After the acquisiton of VMware, Broadcom wants to adopt the company’s name. Broadcom’s entire software division will be rebranded to VMware. The organization shared the plans in a new statement.
At the end of May, Broadcom announced the acquisition of VMware. The organization wants to buy VMware for 57 billion dollars. In the coming months, market authorities will decide whether the deal can go through. If Broadcom’s new market share is deemed too large, the acquisition creates unfair competition, and won’t be greenlit. If the market share is deemed fair, the acquisition can go ahead.
Broadcom is sure of its case. In a new statement, it shared its plans for VMware. “VMware is an iconic software company”, said Broadcom Software president Tom Krause. “We don’t want to change any of that and have committed to rebrand Broadcom Software Group as VMware.”
Strong brand
Broadcom Software is Broadcom’s software division. Besides software, the organization focuses on network technology, storage and cybersecurity. The software division is relatively new. Broadcom is rapidly the unit with large acquisitions, including CA Technologies, Symantec and — if successful — VMware.
Changing Broadcom Software’s name to VMware is a logical choice. VMware has a strong brand. Broadcom Software’s existing solutions, such as AIOps and Enterprise Automation, will be renamed after the acquisition. The result: ‘VMware AIOps’, ‘VMware Enterprise Automation’, and so on.
VMware’s portfolio remains intact. Broadcom won’t withdraw any services from the offering, but rather supplement the offering with its own products.
Concerns
The acquisition’s announcement created unease. VMware has hundreds of thousands of customers. They want to know what the takeover means for them. The future is never set in stone. Although nobody knows exactly what Broadcom has in store, the company’s strategy gives an idea.
Broadcom Software and VMware have several differences. For example, VMware regularly invests in new products, including VMware Tanzu. New products require marketing and sales. VMware spent over a billion dollars on marketing and sales in the most recent quarter.
Broadcom Software prefers to invest in existing products. During an investor meeting in November 2021, the organization stated that it prioritizes the 600 largest customers. They receive most customizations. Sales, marketing and support for smaller customers are provided by partners. VMware has an important partner channel as well, but priorities differ.
The acquisition may bring great change. Not just for customers, but for employees as well. We wouldn’t be surprised if Broadcom decided to cut hundreds of sales positions in a few months time. “We have tremendous respect for what VMware has built, supported by a skilled team of engineering talent”, Krause said in the new statement. Marketers and salespeople are mentioned way down the line. Krause promised that Broadcom will invest in direct sales teams and partners, but fails to deliver a convincing point.
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