Broadcom Begins Strategic Evaluation of Two VMware Units After $69 Billion Deal
Alisa Davidson
The U.S. semiconductor giant, Broadcom, is gearing up to explore strategic avenues for two specific segments within VMware, notably the End-User Computing and Carbon Black units.

May 01, 2025 by According to a confidential email from CEO Hock Tan to the team, as uncovered by a source familiar with the matter, Broadcom is set to evaluate strategic paths for two VMware divisions.
The monumental $69 billion deal to acquire the cloud computing powerhouse, VMware, was finalized on November 22, after receiving the green light from Chinese regulators. The segments under scrutiny include End-User Computing and Carbon Black, as reported by Reuters. Alisa Davidson VMware intends to maintain its operational framework that includes Cloud Foundation, Tanzu, Software-Defined Edge, and Application Networking. Raghu Raghuram, the CEO of VMware, will act as a technical consultant to CEO Tan.
Broadcom Faces Regulatory Challenges Regarding VMware Purchase April 30, 2025 Recently, China's State Administration for Market Regulation (SAMR) approved Broadcom’s acquisition of VMware, marking a significant milestone in the technology sector. However, the regulatory body had paused its investigation from September 25 to November 17, surpassing Broadcom's initial closing goal of October 30.
The postponement raised alarms about potential antitrust issues tied to the acquisition, given VMware’s dominance in virtualization paired with Broadcom’s specialization in fiber channel host bus adapters (HBAs). The approval came with mandates that require Broadcom to maintain compatibility between VMware solutions and rival hardware, aligning with guidelines set forth by other industry players.
Rival firms like Nutanix and Oxide are taking advantage of the current situation by underscoring Broadcom's history of aggressive asset optimization and the likelihood of price increases. They are gradually establishing themselves as viable competitors to VMware, especially as both customers and staff express concerns about forthcoming transformations. by Broadcom's calculated investment in VMware's diverse capabilities showcases a deliberate strategy, demonstrating an intention to engage with a wide range of channel partners to extend support to a broad customer spectrum.
Nevertheless, as the technology landscape evolves at an unprecedented speed, VMware’s standing is threatened by the rise of innovative technologies and changing consumer preferences. Alisa Davidson .
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Victor serves as the Managing Tech Editor/Writer at Metaverse Post, focusing on topics such as artificial intelligence, cryptocurrency, data science, the metaverse, and cybersecurity in the enterprise domain. With five years of media and AI expertise at reputable outlets like VentureBeat, DatatechVibe, and Analytics India Magazine, he is also a Media Mentor at prestigious institutions such as Oxford and USC. Armed with a Master’s degree in data science and analytics, Victor is dedicated to keeping pace with emerging trends. April 30, 2025 He provides readers with the latest and most insightful stories from the Tech and Web3 spheres.
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