February 2, 2023
Broadcom has announced its plans to compete with hyperscale datacenter operators after its procurement of VMware is completed.
VMware’s current strategy is to provide an overlay so that businesses that use hybrid multi-cloud can connect those assets with virtual networks and apply consistent security policies rather than having to treat each of their clouds as a silo.
The plan was revealed in a newsletter Broadcom sent to VMware employees following Broadcom’s acquisition of VMare. Broadcom says in the newsletter that it is committed to innovation, that it is doing all it can to understand VMware so that the $61 billion acquisition goes smoothly, and that it wants to create a “inclusive and welcoming culture.”
That strategy competes with hyperscalers by allowing VMware customers to adopt multi-cloud with (theoretically) less complexity and pain, rather than feeling compelled to commit to fewer clouds for the sake of simplicity. However, it also complements hyperscalers, who understand that hybrid multi-cloud has occurred – mostly by accident, rather than through planning or strategy – and must be accommodated before it annoys customers.
VMware can challenge hyperscalers and provide customers with a comprehensive and flexible cloud solution by leveraging its large and established enterprise customer base, strong hybrid cloud capabilities, established partnerships with several major cloud providers, including Amazon Web Services (AWS) and Google Cloud, and its history of innovation and investment in areas such as software-defined networking and security.
The sources for this piece include an article in TheRegister.
