Broadcom's Hock Tan on Partners, Scale and Choice for VMware

The CCS Insight Podcast

Under the spotlight of regulatory scrutiny, Broadcom CEO and president Hock Tan has been working to bring clarity to how VMware will thrive in the Broadcom family. What will undoubtedly be a relief to prospective customers, partners and the wider market is that it won't come at the expense of stifling competition and choice. However, faced with apprehension from various trade, competition and antitrust bodies, Mr Tan and his team have had some convincing to do.

Shortly after Broadcom announced its intentions to acquire VMware on 26 May 2022, CCS Insight commented on the announcement. We viewed the decision as a smart move to shepherd a more diversified hardware and software company with a rounded infrastructure and cloud management story. And, although VMware is certainly a prized asset to acquire, we expected challenges in bringing together silicon, software and services.

In this episode of the CCS Insight podcast, Bola Rotibi, chief of enterprise research, provides a deep dive into the foundations for the acquisition of VMware, with Mr Tan setting out his vision for the deal.

Broadcom's investment goals promise to extend the range of VMware partners, offering more choice and expanding VMware's operations and market foothold. Its aim of rebranding and repositioning the Broadcom Software group under the VMware brand is recognition of the latter's strength in the technology and supply chain ecosystem. Customers and partners will be reassured by these aims — and Broadcom will be hoping that regulatory bodies feel the same.

The companion report outlining the key points of the discussion is now available here.

Note: Hock Tan's comments on investments and plans for VMware are to be understood as referring to future circumstances in which Broadcom has closed its proposed acquisition of VMware.