VMware & Broadcom Together…Finally

The Six Five team discusses VMware & Broadcom Together…Finally.

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Transcript:

Patrick Moorhead: Dan. VMware and Broadcom together finally.

Daniel Newman: Well listen, I never get any private messages from you when I talk too long. So what I’m going to do here is I’m going to make this one really fast. Hey everybody. The deal for Broadcom to acquire VMware is done and everything that we said would happen now has happened. Look for the upcoming and impending divestitures. Look for continued thinning of the herd. I did hear a rumor that it will be a Palo Alto campus. I can’t say where I heard that ’cause I actually don’t remember, but I heard that big beautiful campus-

Patrick Moorhead: Beautiful.

Daniel Newman: Will be the location of the new Broadcom, which obviously its software business will be led by the acquisition of VMware, of course to partner, but Pat, not a lot to say here. Look, apparently the PAC that came over here, that little dinner and the shaking hands and it was about 48 hours later, the rubber stamp went across and this deal closed. So Pat, I still stand by my thing. Good for the market. It will be a better acquisition than people think and it will actually end up being really good for VMware shareholders because if there’s one thing Hock Tan knows, and you and I had the exclusive sit down interview, which published right after the event, if there’s one thing that gentleman knows is he knows how to drive returns to shareholders while keeping companies on the right growth trajectory.

Patrick Moorhead: In Hock Tan’s blog, engineering first, 50% goes into R&D. Doubling down on private and hybrid multi-cloud apps services anywhere. I think if anything is going to be divested it’ll be in the end user computing division, virtualization, carbon black, stuff like that, but VCF, Edge, and modern apps, IE Tanzu is an absolutely go forward and we interviewed all of the go forward general managers except for one.