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In this blog, Techzine reports on the latest developments surrounding VMware’s acquisition of Broadcom.

February 26 – KKR reports that it has signed a definitive agreement with Broadcom. The deal includes the End-User Computing Division (EUC Division). The investment company will pay 4 billion dollars for the acquisition. Shankar Iyer, senior vice president and general manager of the EUC Division, said in a statement that this acquisition will transform the EUC Division into a standalone company. Iyer says KKR is an ideal strategic partner with the resources to get to a success story. “They are eager to invest in our mission to become an even more innovative and customer-centric organization,” he continues. The transaction should close later this year.

February 25 – Broadcom appears to be rid of the first “redundant” part of VMware. Reuters reports that the End-User Computing business unit appears to be becoming part of private equity firm KKR. The deal would be worth $3.8 billion. It is the result of an auction, so other parties also bid. One of them was EQT, according to Reuters’ sources. With this acquisition, VMware EUC will have a new home. This could well be an interesting new home too. After all, KKR also owns Alludo. That company says it is focused on “the future of work” and has Parallels in its portfolio, among others. In any case, EUC is a better fit there than at Broadcom. Of course, it remains to be seen what it all means for the development of VMware’s EUC platform and the customers who use it.

February 13 – Broadcom has discontinued the free version of the VMware ESXi hypervisor. “Along with the termination of perpetual licensing, Broadcom has also decided to discontinue the Free ESXi Hypervisor, marking it as EOGA (End of General Availability)”, explains the VMware website. The free version could only run on a limited number of cores and lacked many management niceties. No replacement product is now available.

January 31 – Dell has terminated its distribution deal with VMware. The agreement dates back to November 2021, when Dell divested the company. Ever since, the two parties remained closely connected through this “commercial framework agreement”, which allowed customers to purchase software and hardware at the same time. However, the Broadcom acquisition has thrown a spanner in the works because OEMs like Dell are no longer allowed to act as resellers of VMware licenses. For that reason, the official notice can be seen as a “legal nicety”, as The Register describes it.

January 24 – Broadcom will stop offering Aria on a SaaS basis. Previously, VMware offered various solutions to operate, deploy and maintain applications, infrastructure and platform services through an as-a-Service model. This will no longer apply to Aria, whose functionality is now bundled within VMware Cloud Foundation and vSphere Foundation. As The Register notes, this change effectively results in a price increase for customers. The cost of the chosen VMware offering would now have increased due to the forced purchase of unwanted additional solutions that are now bundled.

January 22 – VMware feels compelled to offer customers more clarity with regard to ongoing support for various products. It stresses in a blog post that the 59 solutions that are no longer available stand-alone will still be supported. Meanwhile, the portfolio has been simplified to just VMware Cloud Foundation and VMware vSphere Foundation, with the rest of the offerings available as “advanced add-ons”.

22 January – Veeam is investigating whether it may support Proxmox in future. Proxmox is an open-source alternative to VMware. The Register highlights a discussion on the Veaam forum where the company’s SVP Product Management Anton Gostev refers to the development. Besides Proxmox, Gostev also cites Oracle Linux KVM, which will be supported from the next update of the RHV backup service. Better support for backups with VMware competitors will make it easier for organisations to make the switch.

January 12 – A roundup from Computable (Dutch article) reveals that a massive exodus of VMware partners and customers is imminent. Of the 4,000 current partners, less than half would remain and “at least a few hundred thousand” customers are expected to be shown the exit door. The 120 global distributor count looks set to be reduced to a little more than a dozen by Broadcom.

January 10 – Most VMware Cloud Service Providers won’t continue under Broadcom’s reign. A notice to CSPs from Broadcom states that the old VMware Partner Connect Program will be abolished. In its place will be the invite-only Broadcom Expert Advantage Partner Program, according to The Register. Those not receiving an invite will stop being VMware CSPs from 30 April 2024. Since the news hit in late December, things have remained quiet. Many CSP customers will not yet be aware that their provider may no longer be able to provide VMware products from 30 April.

January 9 – Broadcom will now take the 2,000 top VMware accounts direct. That policy took effect immediately, CRN reports. That outlet’s sources state that this move was expected. “Opportunity Registration,” the process through VMware accounts are applied by a partner, will no longer be accepted within “strategic customer segments.”

December 23 – Broadcom has sent a “Termination Notice” to VMware partners. VMware’s partner program will be replaced by the invitation-only Broadcom Advantage Partner Program as of Feb. 5, 2024. A source stated to CRN that all vendors that make less than $500,000 in annual revenue from their VMware offerings may not be invited back in and retain their partner status. Contracts with various service providers are said to continue through April, however.

December 12 – From now on, VMware will no longer offer perpetual software licenses. Those who already have these licenses will no longer get support and security updates. SVP and GM of VMware Cloud Foundation (VCF) Krish Prasad explains that under the leadership of Broadcom, VMware want to simplify its portfolio. This means that all solutions will now be delivered on a subscription basis. According to VMware, the new policy affects the following services: VCF, vSphere, vSAN, NSX, HCX, Site Recovery Manager, vCloud Suite, Aria Universal, Aria Automation, Aria Operations, Aria Operations for Logs and Aria Operations for Networks.

Read more about this development: VMware kills off perpetual licenses, only subscriptions remain

December 7 – Broadcom CEO Hock Tan has confirmed that, as expected, it will divest VMware End-User Compute and Carbon Black. The company also revealed what strategy it will pursue with the remaining VMware services, likely resulting in higher costs for customers.

Read more about this: Broadcom will divest VMware EUC and Carbon Black

December 3 – Broadcom CEO Hock Tan has let VMware employees know they now have to return to their offices if they live anywhere near one. This is based on a report by Fortune. Earlier, VMware was known to be positive about remote work and supported a hybrid work culture. “If you live within 50 miles of an office, you get your butt in here,” Tan stated in conversation with VMware workers. He also had a negative impression of so-called employee resource groups (ERGs) that VMware staff have set up. These groups exist as cooperative ventures between employees and between the company and the outside world. They aim to further the careers of its members, which may be accomplished by sharing social networks and expertise.

December 1 – Broadcom plans to lay off 1,267 employees at the VMware HQ in Palo Alto, California. The move was made apparent by a submission from Broadcom to the California Employment Development Department, Bloomberg reports. This group represents about 3.3 percent of VMware’s total workforce. According to Channel Futures, Broadcom-related layoffs now stand at 2,837 as of Thursday afternoon. Locations in several states in the U.S. as well as in Ireland are also affected by the round of layoffs. For some of these employees, their departure will take place at the end of January 2024.

November 30 – In an internal meeting, CEO Hock Tan revealed that many employees will no longer be needed. The VMware departments focused on sales, HR and finance will be combined with Broadcom’s offering, leading to significant job losses. “That is consolidation, wisely called integration,” Hock Tan stated. The reporting comes from Business Insider.

November 29 – Broadcom’s acquisition of VMware is said to generate $70 billion for investment firm Silver Lake and Michael Dell. Both parties owe this astronomical sum to EMC’s hefty 81 percent stake in VMware, according to a Financial Times calculation. An investor in Silver Lake has called it “one of the deals of the decade.”

November 29 – Broadcom has made Carbon Black a separate business unit; the same goes for VMware End-User Compute. VMware partners have been informed that they should not sell these products alongside other VMware offerings. With that, a sale of these two components appears imminent. We have further highlighted these developments in a separate blog:

Read more: Broadcom immediately sets up Carbon Black for sale

November 27 – While a round of layoffs at VMware is looming, VMware partners face a lot of uncertainty. CRN reports on customers no longer receiving support for their software, with one party refusing to pay a VMware partner for that reason.

November 23 – Broadcom execs list revealed that VMware has been split into four divisions. VMware Cloud Foundation will continue to carry the acquired company’s name, while Tanzu, Software-Defined Edge and Application Networking & Security have folded within Broadcom. In doing so, the future of security option VMware Carbon Black and VMware End-User Compute appears to lie elsewhere.

Read more: VMware split into four divisions after acquisition by Broadcom

November 21 – Confirmation at last. Broadcom has officially acquired VMware. After CEO Hock Tan’s company made pledges to remain interoperable with Chinese suppliers, authorities in Beijing gave way. Earlier, Broadcom had convinced U.S. and European regulators that the VMware acquisition would not harm the competitive landscape.