First impressions can be misleading. Case in point: when Broadcom first announced its plan to acquire VMware, initial concerns from regulators focused on perceived anti-competitive effects resulting from the deal. Others suggested that VMware’s value proposition could be diluted. Fortunately, since then, Broadcom has been making its strategic case with regulators and customers. Most notably, Broadcom president and CEO Hock Tan, in a blog post, outlined how a combined Broadcom and VMware will create new competitive pressure on the public cloud by accelerating private and multi-cloud capabilities for enterprises, while pledging $2bn a year for research and development (R&D) and improved VMware deployments. So, were regulators’ initial concerns about the deal justified? This article outlines why ABI Research believes this acquisition is a positive development for the market overall and, in fact, essential in the current cloud market. Virtualisation companies like VMware create vendor-agnostic software that can operate on any server. VMware’s products started with virtual machines and hypervisors.
Full opinion : How Broadcom’s acquisition of VMware will accelerate multi-cloud adoption.
