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Broadcom’s VMware acquisition sparks concern

Chip powerhouse Broadcom recently announced its intention to acquire virtualization pioneer VMware for $61 billion. In light of Broadcom’s less than stellar track record with prior acquisitions (CA Technologies in 2018, and Symantec in 2019), VMware’s enterprise customers are understandably worried.

“Following the purchases of CA and Symantec, Broadcom raised prices, decreased support, and stopped investing in innovation,” says Tracy Woo, senior analyst for Forrester. “VMware customers would be wise to have an exit plan,” she cautioned.

IDC analyst Stephen Elliot sees it differently. Rather than advising VMware customers to identify the exits, Elliot believes customers should “double down” on their relationship with the vendor, moving towards a more strategic business partnership.

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Source:: Network World – Data Center