VENDORiQ: KKR to Acquire VMware’s End-User Computing Division from Broadcom

Why It’s Important

The acquisition raises several concerns. The discontinuation of free hypervisor versions by Broadcom has caused discontent within the developer community, who previously utilised them for learning and development purposes. This decision raises concerns about the future accessibility of these tools for educational and experimental use. There are also potential challenges related to the continued reliability and maintenance of the acquired products. Concerns exist regarding a possible dependency on VMware technology, which could hinder their future development and integration with broader ecosystems. Established players like Microsoft and AWS offer similar functionalities, potentially posing a competitive threat to the acquired products’ market share.

Investment considerations should also be factored in. IBRS has observed that venture capital firms prioritise short-term profitability through existing products. This may impact the development of new features or functionalities within the acquired products.

While the immediate impact on current clients is expected to be minimal within the next two to three years, the long-term trajectory of the acquired products and their ability to compete in the market remains uncertain. Continuous monitoring and evaluation of these factors will be crucial for stakeholders seeking a comprehensive understanding of the acquisition’s potential implications.

Who’s Impacted

• CEO
• End-user computing teams
• VDI Teams

What’s Next?

• Explore new alternatives to traditional VDI, in particular application stream and cloud-based desktop environments. 

Related IBRS Advisory

1. VENDORiQ: Citrix To Acquire Wrike

2. VENDORiQ: Citrix To Be Acquired By Vista Equity Partners And Evergreen Coast Capital