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"When a big fish swallows another big fish, you get a whale," an MSP told Channel Futures.

James Anderson

May 27, 2022

11 Slides

Changes are coming for VMware partners and customers, and not everyone is looking forward to it.

The IT industry has been buzzing about a reported acquisition of VMware by Broadcom all week. Broadcom on Thursday made the rumors official, confirming a $61 billion agreement to buy VMware. The deal, which analysts have widely hailed as a big win for VMware shareholder Michael Dell, comes a year after Dell spun off VMware.

Broadcom executives state that they expect to expand their software mix up to 49% of the company’s revenue. However, some analysts question if the buyer intends to build a holistic, full-stack technology platform or if it merely wants to benefit from a “cash cow.”

Most channel partners say the move surprised them. Moreover, many are anticipating changes in the way VMware engages with them. They remained optimistic in their comments to Channel Futures, however.

IT administrators commenting under the relative anonymity of Reddit offered more blunt reactions to the deal. Redditors aired their grievances about past Broadcom acquisitions and expressed concern that VMware service to smaller customers will suffer.

Scroll through the images above to see comments from MSPs, VARs and customers.

Allison Francis contributed to this report.

Want to contact the author directly about this story? Have ideas for a follow-up article? Email James Anderson or connect with him on LinkedIn.

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About the Author(s)

James Anderson

Senior News Editor, Channel Futures

James Anderson is a news editor for Channel Futures. He interned with Informa while working toward his degree in journalism from Arizona State University, then joined the company after graduating. He writes about SD-WAN, telecom and cablecos, technology services distributors and carriers. He has served as a moderator for multiple panels at Channel Partners events.

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