June 22, 2024


Technological development

An Analysis Of Broadcom’s Acquisition Of VMware


Kevin Huber is CEO of IT Outlet.

What is virtualization? According to VMware, it’s to create a software-based (or virtual) representation of applications, servers, storage and networks to reduce IT expenses while boosting efficiency and agility.

With the race to become the leader in tech, virtualization needs to be at the forefront of any IT decision. So, what does virtualization do? Honestly, it helps enhance IT to be agile, scale, move with flexibility and save on bottom-line expenses for the business. What should also happen is increased performance, resources becoming more available and automation in places where it didn’t exist. Along with all those benefits, the management of the infrastructure becomes easy to control.

It was recently announced that Broadcom is set to acquire VMware (full disclosure: Both companies are partners with IT Outlet) for $61 billion, ultimately making it one of the biggest tech deals of all time alongside Dell’s EMC deal of $67 billion and Microsoft’s pending deal with Activision Blizzard for $68.7 billion.

Broadcom is one of the world’s largest chipmakers and is commonly known around TV and broadband internet services. With recent shortages due to consumer demand and pandemic-related production struggles and an FTC order against Broadcom to stop its “anticompetitive” semiconductor monopoly, it’s no wonder VMware is the play. Broadcom likely wants to have a virtual app play and a way to advance its cloud footprint.

By a long shot, VMware will bring more to Broadcom than Broadcom will to VMware. VMware paved the way past the x86 architecture back in 1999, based on Intel’s 1970’s advances. We will expect to see Broadcom’s offerings become more robust as they capitalize on VMware’s elite cloud and virtualization solutions.

The tech market in the virtual space is going to pick up quickly. Companies like RedHat, Azure and Citrix could compete for market share if Broadcom doesn’t keep pace.

This acquisition is one of the year’s most significant to date, and it will affect countless businesses across a variety of verticals. Be on the lookout for a subscription-based model from Broadcom, which could mean no more on-prem local software. A cloud delivery will make for a more robust product and, in theory, beef up the security posture.

I can also see Broadcom putting substantial work into the Symantec product it purchased. That entry-level security offering will be a blessing to the SMB space. The need to be safe on the internet is growing more and more, and our digital footprint is only expanding. From an intergalactic thought, could Broadcom create a virtualized chip or semiconductor by taking the x86 platform and reconditioning the idea of how to power/automate today’s techy needs?

From an investor perspective, look to see stock shares elevate in the current market setting. The cloud and virtual space are only going to get more intense. With all the Meta talk and blockchain algorithms, our future in Web3 will be nothing short of spectacular. What happens in a matter of seconds could change the world forever, so it’s crucial for businesses to be accepting of embracing change in the tech space. There are shortages everywhere in any industry, and technology is no different. The only thing that makes tech shortages worse is that everything we use has technology strapped to it. Technology is going to continue to rule society. Be secure, intelligent and aware!

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