A deal between Ingram Micro and Broadcom is proving impossible. Although the IT distributor will still supply VMware in some regions, it is stepping away from it elsewhere starting in 2025.
“We were unable to reach an agreement with Broadcom that would help our customers deliver the best technology outcomes now and in the future while providing an appropriate shareholder return,” Ingram Micro said in a statement shared with The Register.
Downside
For Broadcom, which will serve 500 VMware customers directly, Ingram Micro’s choice will be a disappointment. After all, the distributor works with 161,000 customers and has relationships with 1,500 vendors to supply them. Ingram Micro partners who don’t offer VMware any other way will soon have to find another supplier or stop that offering.
It’s doubtful whether that’s too bad for the customers themselves. Evidently, Ingram Micro’s support for VMware solutions leaves much to be desired, as can be read in online forums. The Register rightly notes that the public nature of this relationship breakdown is also extra painful. The impossibility of a profitable deal has driven Ingram Micro to an official statement, whereas such distributors regularly quietly part ways with vendors.
Still, VMware by Broadcom is doing well
Regardless, Broadcom will be mostly happy with VMware since it completed the acquisition in late 2023. For example, it recently revealed that the company earns more from VMware by Broadcom than it initially expected. Spending, meanwhile, has also decreased significantly, from $2.4 billion per quarter to $1.2 billion. This is to be expected somewhat, considering that there have been rounds of layoffs and numerous splits since Broadcom CEO Hock Tan took the reins at VMware.
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