Nutanix expects “significant” opportunity from its rival’s moves; plus, look for big changes ahead for Carbon Black — and big money for CEO Hock Tan.

Kelly Teal, Contributing Editor

February 29, 2024

5 Slides

The Broadcom-VMware saga continues to unfold. 

This week, some notable developments transpired. First, Broadcom announced the sale of the VMware end-user computing unit to KKR, a private equity firm. Then, unanticipated news arose about Carbon Black. From there came word of CEO Hock Tan’s new compensation package. All of that emerged as key VMware rival Nutanix unveiled its latest round of earnings, which many industry observers expected would reflect momentum from VMware migrations. Channel Futures got some one-on-one time with CEO Rajiv Ramaswami, who had a lot to say.

Let’s dive in.

To start, Broadcom shedding VMware EUC was no surprise. Broadcom said in December after closing the $61 billion VMware purchase that it would offload EUC and Carbon Black. VMware bought the latter, a security vendor, in 2019, but Hock Tan, head of Broadcom, considered both EUC and Carbon Black “non-core” distractions. What’s happening with Carbon Black now, though, does come as a bit of a surprise.

But first, Channel Futures takes a look at the ripple effects of the Broadcom-VMware deal on competitors. On Wednesday, Nutanix, largely considered the most viable full-stack VMware alternative, released its latest earnings. While the numbers reached new heights, they do not yet reflect the full scope of possible new revenue the company can gain from the Broadcom-VMware upheaval. There’s no doubt, though, that Rajiv Ramaswami, Nutanix CEO, is bullish on those prospects.

Related:Meet Channel Futures' 50 Channel Influencers for 2024

Ramaswami spoke with partner-focused media on Feb. 28 after Nutanix went live with its fiscal second-quarter earnings ($565 million in revenue, a 16% increase).

“All the actions of Broadcom have created a significant multiyear opportunity for us to win customers, new customers, to gain market share,” Ramaswami said.

In the slideshow above, we go into detail with Ramaswami about Nutanix’s ability to capitalize on the Broadcom-VMware channel fallout. We also share his thoughts on why Nutanix might have to wait a while to realize serious revenue from its rival’s strategies.

But there’s one person who’s not waiting to see more money as a result of the Broadcom-VMware transaction, and Broadcom’s business strategies overall. That person is Hock Tan, CEO of Broadcom, who Channel Futures this month names its Channel Influencer of the Year. A recent Securities and Exchange Commission filing shows that Tan is now making millions more dollars at a jaw-dropping percentage increase. Get the details — start with the image above.

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About the Author(s)

Kelly Teal

Contributing Editor, Channel Futures

Kelly Teal has more than 20 years’ experience as a journalist, editor and analyst, with longtime expertise in the indirect channel. She worked on the Channel Partners magazine staff for 11 years. Kelly now is principal of Kreativ Energy LLC.

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