After the confirmation that Broadcom was going to buy VMware, doubts of all kinds began to arise in VMware and also in the sector, but especially among VMware customers, about what the merger of both companies would be like. This was a few months ago, and finally from Broadcom they have decided to clear up the doubts. Has been its CEO and President, Hock Tanthe fact that answered the main questions that have been emerging in recent weeks, through a post on the company’s blog.
The main doubt and concern of the customers is related to a possible increase in the cost of the products, because when Broadcom bought CA and Symantec, their prices went up. In addition, support was reduced, and investment in innovation stopped. And it is not the first time that it has done so, which is leading many VMware customers to seek an exit plan from the company if the situation repeats itself.
So ensure that the purpose of the merger is not to raise pricesand stresses that «VMware develops technology for the future and addresses a growing market. Broadcom’s business plan for this transaction is intended to focus on the business model, increasing research and development, and working for customers to see the value of the entire portfolio with the innovative product offerings out there, not in raising prices«.
Broadcom’s CEO is going in the same direction when it comes to investing in VMware products and technology. Thus, he points out that “after the transaction closes, we will invest and innovate in VMware products so we can sell even more and better products, and grow VMware’s business within companies by deepening and expanding its footprint, rather than potentially raising prices«.
The manager has also given details about their long-term plans, about what he has stated that his growth «to become a global technology leader was not based on taking existing products and raising their prices, but on creating technology and products that offer clear value to consumers, and on continuing to improve them. We drive growth by offering more and better products, so customers use more products from our entire portfolio, instead of just one or two. By delivering long-term value to customers and investing in improved, customer-focused research and development, we can innovate, scale and deliver better products without raising prices.«.
Another concern surrounding this merger is how it will manage the advancement in cloud and multicloud software, especially as VMware develops new multicloud packages, tools and products. Like the ones it unveiled in August at VMware Explore, which include a SaaS-based update to its core networking software, NSX. Also a cloud-native management service, VMware Aria, and various integrated security features. In addition, the company will not stop presenting products in this regard in the coming weeks.
Well, Tan has pointed out that «With more resources from Broadcom post-transaction, the potential for development grows, as VMware increases momentum in the space. For some time, Broadcom has recognized that the future of enterprise technology lies in multicloud: the ability to deliver applications and services across a combination of clouds. It’s one of the many reasons Broadcom’s solutions complement what VMware is doing in the multicloud space today, across sovereign, public, private and edge clouds. It is clear that our customers have also adopted this mentality«.
In another order of things, for Tan, customers are also excited about the current situation of VMware in relation to cloud-native apps, and notes that “lContainers are changing the way modern applications are developed, resulting in faster and more predictable development and deployment. Developers can also take advantage of Kubernetes clusters, which more efficiently use containerized infrastructure to power these applications. By providing customers with the framework and practical guidance to help them quickly develop cloud-native applications, and enhance the capabilities of their teams as they do so, the combination of Broadcom and VMware can help drive their businesses forward.«.
In addition, Tan has also specified the position that the Tanzu app development product portfolio will have in the new company once the merger is executed, noting that he sees Tanzu «as a strategic part of the VMware software portfolio, and will continue to be as we move forward with Broadcom. VMware Tanzu customers are running some of the world’s most mission-critical applications. As customers think about future investments in cloud-native apps and the modern app development space, they should trust Broadcom’s commitment going forward«.
Meanwhile, the merger continues its course, and is currently in the phase of overcoming and obtaining approvals from different regulatory entities. The Broadcom and VMware teams have already started work, and from VMware they are explaining the details of their portfolio of products and services for companies. Of course, VMware continues to function independently, with its own plans and strategy. It will be like this until the merger is completed, which will be effective in 2023.