Broadcom has completed its acquisition of VMware, Inc. after an 18-month process that saw multiple delays. The original acquisition announcement was made in May 2022, and saw multiple deadline extensions, including May 2023, October 2023 (due to delays from China) and, finally, November 26, 2023.
The merger also was plagued by regulatory concerns, especially from China, before finally receiving regulatory approval for the $61 billion deal. But questions remain about what the deal will ultimately mean for partners and the channel.Broadcom CEO Hock Tan has asserted throughout the acquisition process--in blogs and after attending the VMware Explore conference--that VMware channel partners are welcome and have a home with Broadcom. He told VMware Explore attendees that, upon completion of the merger, Broadcom would invest $2 billion into VMware and its channel partner organization. But, as Channel Futures reported, partners have reacted differently to those assertions over the intervening months.CRN reported earlier this month that some partners were considering other vendor options, especially in light of the regulatory approval delays, including Nutanix and Cloud Software Group, a company that formed from a merger of Citrix and TIBCO.In a Q&A session with VMware partners, Tan implied that the ecosystem would continue. "VMware's partner ecosystem is a highly successful machine, and we don't plan to turn that upside down. Together following closing, we will accelerate its growth and momentum to help move forward our mutual customers' businesses," he said."VMware's collaborations across the ecosystem, combined with Broadcom's exciting technologies, innovative partnership models and deep relationships, will enable partners to better capitalise on new business opportunities and create differentiated solutions that they can replicate with other customers. We also see opportunities with existing Broadcom Software solutions to create even more value for partners across the combined network."
The merger also was plagued by regulatory concerns, especially from China, before finally receiving regulatory approval for the $61 billion deal. But questions remain about what the deal will ultimately mean for partners and the channel.Broadcom CEO Hock Tan has asserted throughout the acquisition process--in blogs and after attending the VMware Explore conference--that VMware channel partners are welcome and have a home with Broadcom. He told VMware Explore attendees that, upon completion of the merger, Broadcom would invest $2 billion into VMware and its channel partner organization. But, as Channel Futures reported, partners have reacted differently to those assertions over the intervening months.CRN reported earlier this month that some partners were considering other vendor options, especially in light of the regulatory approval delays, including Nutanix and Cloud Software Group, a company that formed from a merger of Citrix and TIBCO.In a Q&A session with VMware partners, Tan implied that the ecosystem would continue. "VMware's partner ecosystem is a highly successful machine, and we don't plan to turn that upside down. Together following closing, we will accelerate its growth and momentum to help move forward our mutual customers' businesses," he said."VMware's collaborations across the ecosystem, combined with Broadcom's exciting technologies, innovative partnership models and deep relationships, will enable partners to better capitalise on new business opportunities and create differentiated solutions that they can replicate with other customers. We also see opportunities with existing Broadcom Software solutions to create even more value for partners across the combined network."
