Broadcom plans to sell VMware end-user computing and carbon black businesses

[German]A few weeks ago, it was announced that Broadcom had completed the acquisition of VMware. Now Broadcom is moving to sell all of VMware's end-user computing and Carbon Black (endpoint security solution) businesses.


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In this article, The Register quotes Broadcom CEO Hock Tan, who told investors the following at Broadcom's Q4 2023 earnings conference:

We are now focusing on VMware's core business of creating private and hybrid cloud environments for large enterprises worldwide and divesting non-core assets.

Our strategy for the future is to enable global enterprises to run applications in data centers and public clouds by leveraging VMware's high-quality software stack. To attract and retain microservices tools, we are investing in tools for microservices. To attract and retain workloads, we invest in microservices tools.

Hock Tan intends to sell the entire vStack instead of individual parts, according to The Register. The idea is probably to sell off VMware's end-user computing and carbon black units.

Tan named VMware's end-user computing portfolio, which includes desktop virtualization, application publishing and mobile device management, as one of the assets to be divested, according to The Register. Carbon Black's security software unit is also to be divested after it was announced on November 27 that it has become an independent business unit of Broadcom.

Broadcom will now invest and focus sales, research and development on the core areas of VMware Cloud Foundation. Furthermore, a rapid changeover to subscription licenses for larger software packages is to be made, presumably in order to keep money flowing into the company's coffers. However, the Broadcom boss wants to carefully examine to whom the VMware end-user computing portfolio is sold – the interested party must take over the entire package – parts should not be sold to different interested parties. I'm curious to see what will become of these plans – I can't imagine that users are enthusiastic about VMware products.


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