Broadcom asserts VMware's strategy isn't working and it basically needs rescuing

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Broadcom has based on that VMware will neglect to execute its multicloud strategy – and hyperscale clouds truthful won't look beardown title – unless it is allowed to get nan virtualization titan.

That return connected nan transaction emerged connected Wednesday erstwhile nan UK's Competition and Markets Authority revealed Broadcom and VMware's response [PDF] to its probe of nan deal, and arguments for why it should beryllium allowed to proceed.

The archive includes galore redactions that picture business secrets – but there's still complete 40 pages to digest.

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As expected, it explains why nan 2 entities don't deliberation nan woody represents a consequence to title – pointing retired that some person made their reputations connected hardware interoperability and do not intend to harm themselves by changing that policy.

It besides reveals Broadcom's belief that acquiring VMware will create an entity tin of creating title for hyperscale clouds, but that VMware unsocial can't get that occupation done:

We're beautiful judge that redaction is not for position for illustration "sure thing" aliases "slam dunk."

Here's different conception successful which Broadcom is not precisely complimentary astir its quarry:

The archive besides states:

  • VMware has been incapable to seduce its customers to licence and deploy its Private Cloud software;
  • VMware lacks nan standard needed to create its Private Cloud package and summation consumption;
  • VMware needs to put much successful R&D and supply much deployment support to its endeavor customers [but] lacks nan standard to make nan basal investments.

With each of those problems and failures astatine VMware, The Register's virtualization table is almost near wondering why Broadcom wants to bargain it astatine all.

  • Europe greenlights Broadcom's $61B VMware buy
  • VMware teases multi-cloud generative AI offerings for August debut
  • VMware's Arm hypervisor still creeping forward, slowly
  • Nutanix de-converges by allowing dedicated nodes for compute and storage

Unshakeable belief successful its ain expertise to move things astir is nan answer.

The archive reveals nan turnaround scheme includes an other $1 cardinal a twelvemonth successful R&D spend, positive nan aforesaid sum "to build deployment support capabilities [and] double VMware's master services capabilities from $1 cardinal to $2 cardinal per twelvemonth and to connection master services to VMware's customers."

There's besides a promise to "increase nan ratio of VMware's go-to-market and administrative structure."

"Broadcom has a beardown way grounds of fiscal discipline, and plans to execute [REDACTED] costs synergies by leveraging Broadcom's [REDACTED]. Broadcom besides plans to summation [REDACTED] complete nan people of its acquisitions of CA Technologies and Symantec. These costs savings will free up much resources to put successful R&D and nan GSI partner network."

The 2 paragraphs propose Broadcom is not a instrumentality of VMware's income and trading teams, nor its backmost agency operations.

The mention of Symantec and CA is besides a small scary – customers of some reported life became little pleasant aft Broadcom's takeovers.

The Register imagines VMware users will beryllium aghast – aliases possibly resigned – astatine immoderate of nan contented successful this archive arsenic it does not represent Virtzilla successful a flattering light. VMware shareholders, meanwhile, mightiness beryllium thanking their fortunate stars that Broadcom stepped in. Or possibly they'll each motion it disconnected arsenic not overmuch much than beardown words designed to impressment a regulator. ®