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Broadcom Announces Successful Acquisition of VMware

Providing best-in-class solutions for our customers, partners and the industry

Today I am thrilled to announce Broadcom’s successful acquisition of VMware, and the start of a new and exciting era for all of us at the company. VMware joins our engineering-first, innovation-centric team, which is another important step forward in building the world’s leading infrastructure technology company.

While an important moment for Broadcom, it’s also an exciting milestone for our customers around the world. And as I said when we first announced the acquisition, we can now come together and have the scale to help global enterprises address their complex IT infrastructure challenges by enabling private and hybrid cloud environments and helping them deploy an “apps anywhere” strategy. Our goal is to help customers optimize their private, hybrid and multi-cloud environments, allowing them to run applications and services anywhere.

As we begin this journey together, here is what you, our customers, our partners, and our community, should know.

Our commitments

Broadcom is committed to innovation. That’s in our DNA and why we plan to invest significantly each year to advance VMware’s innovation and customer value. Half of the investment will be focused on R&D, and the other half will help accelerate the deployment of solutions through VMware and partner professional services. We are committed to creating value and driving revenue for our robust partner ecosystem, which has been made stronger with the addition of VMware’s partners.

The future of our technology

Broadcom builds technology that lasts. We plan to continue investing in our industry-leading products. With the close of the transaction, here are some highlights of what’s to come:

VMware Cloud Foundation

Broadcom’s focus moving forward is to enable enterprise customers to create and modernize their private and hybrid cloud environments. At the core, Broadcom will invest in VMware Cloud Foundation, the software stack that serves as the foundation of private and hybrid clouds. VMware Cloud Foundation fits into Broadcom’s vision of helping customers convert the typically heterogeneous enterprise IT infrastructure into a virtualized and containerized environment, enabling private and hybrid clouds. The goal of the platform is to free up IT resources from infrastructure integration and management tasks. This will enable them to deliver IT services that help achieve business goals by minimizing security risks, achieving better time to market, and generating additional revenue from new business services.

Incremental to Broadcom’s investment in VMware Cloud Foundation, VMware will offer a rich catalog of services on top of VMware Cloud Foundation to modernize and optimize cloud environments, including the following.

  1. Application networking and security
    Protecting workloads from evolving cyber-threats is top of mind for customers. It’s no longer about protecting the perimeter, as threat actors are moving laterally and exploiting internal systems to gain controls. Customers want multiple layers of defense to protect against lateral attacks – from unauthorized access to malware and ransomware. VMware’s distributed security coupled with full visibility enables customers to execute their defense-in-depth and zero-trust security strategies. The focus is to deliver lateral protection that can be implemented in a simpler and more agile manner for VMware virtualized infrastructure. Emerging AI/GenAI techniques are leveraged to counter the evolving threat landscape.

    Additionally, application workloads get deployed with a load balancer. In the digital era, applications need to be highly available, and auto scale as the load increases. Agility, auto scale and built-in application visibility are key requirements for a modern load balancer solution.

  2. Modern applications
    We are excited by VMware’s technology and how our customers stand to benefit from it. Modern applications are a great example of this.

    Modern applications and both private and hybrid clouds are at the heart of digital transformation. VMware research shows that more than 70% of CIOs are developing net-new modern and cloud native apps. In addition, modern apps designed for the any-cloud model have now overtaken traditional apps in the enterprise. Business leaders are keenly aware that software agility and speed to market are critical for a company’s ability to compete successfully and grow revenue. As a result, businesses are prioritizing application strategies based on technologies such as AI, machine learning, Kubernetes, open-source solutions, and private and hybrid cloud ecosystems to gain a competitive edge. But delivering apps at scale can be an immense undertaking and it is becoming increasingly complex.

    With VMware Tanzu, our goal is to increase our customers’ business agility by accelerating application development, delivery and management on any cloud – on VMware Cloud Foundation as well as across all major hyperscalers. Specifically optimized for app-dev frameworks such as Spring, the leading enterprise Java application framework, Tanzu drives significant developer productivity while enabling platform teams to enforce application standards, maintain security and compliance and track app performance. Our application-centric focus leveraging common data and control model allows VMware Tanzu to provide both software agility and a more streamlined experience for platform and cloud operations teams. Tanzu is an important part of VMware’s software portfolio, and our investment in it will allow customers to continue running some of the most mission critical applications in the world by creating a virtualized and containerized environment. We are here to support customer apps wherever they are, so that they can run anywhere.

    At Broadcom, we are focused on helping customers simplify their IT environment. To make this happen, we will evolve our existing suite of services while combining and investing in the assets of VMware to deliver increased value for our customers.

  3. Software-enabled innovations from data center to the edge
    Customers have always been interested in software-enabled technologies. This has gained renewed focus as they consider the need for flexibility within their data centers and what type of workloads they want to run in different cloud environments. Private and hybrid cloud ambitions are gaining velocity just as modular, platform-based technologies enable agility. This is true in the data center and also becoming true at the Software-Defined Edge. Consider the complex IT environments within a government agency, which made a $9 billion investment in private and hybrid cloud infrastructure to strengthen and bring agility to its digital management and defense capabilities. These trends point to software-enabled innovation to help organizations deliver better outcomes for all types of workloads from the data center to the Edge.

Looking ahead

Broadcom has a long track record of investing in the businesses we acquire to drive sustainable growth and customer value, and now that the transaction is closed, we can hit the ground running.

I look forward to what we will accomplish together, as a combined company, to provide best-in-class solutions for our customers, partners and the industry at large.

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Broadcom Inc. (NASDAQ: AVGO) is a global technology leader that designs, develops and supplies semiconductor and infrastructure software solutions.