On 5/7/2026 8:39 AM, Simon Clubley wrote:I think the real question is why did Broadcom buy VMWareOn 2026-05-06, John Dallman <jgd@cix.co.uk> wrote:One has to wonder what their end game is? When one has a milk cow producing well, one doesn't consign it to hamburger.Ah, you haven't grasped just how thoroughly Broadcom have alienated the>
VMware customer base, especially the large ones. My employer's VMware
replacement plan is well behind the original schedule, but nobody is even
considering staying with Broadcom. The pricing is far too abusive.
I knew they had seriously annoyed them (and had posted comments along those
lines), but I admit I had not realised just how incredibly bad and toxic
that situation had actually become.
for the price they did.
Broadcom paid 69 B$ for a company that made 12-14 B$
per year in revenue and 1-2 B$ per year in profit.
And with a negative outlook for the future due to cloud
and k8s.
Those numbers do not make much sense.
So if they bought VMWare at that price their only
chance of making it a success was to dramatically
raise prices to raise revenue and profits hoping
that customers would not migrate away or at least
take a long time to migrate.
Why they did what they did is a good question.
To me it looks like they walked into a casino
and put 69 B$ on red.
Arne
Les messages affichés proviennent d'usenet.