A $61 Billion Deal, VMWare Is Now An Instance On Broadcom

The Rumours Were True, Broadcom Has Acquired VMWare

If you’d bet on VMWare being bought because of the rumours over the past weekend then it is time to collect your winnings, may they be somewhere near the $61 billion that Broadcom spent to gobble up the company in it’s entirety.  The purchase of the Dell spinoff is somewhat strange, as it is hard to determine what Broadcom’s intentions are with the technology that comes with VMWare.   VMWare grew beyond the virtualization which was their original business to include security from the Carbon Black acquisition, containerization from Heptio and even migration tools from Pivotal.  

Broadcom is already a technological Swiss Army knife, but tend towards the hardware side of things, not those services which VMWare is known for.  They do offer a variety of software services, some of which overlap with VMWare, so this could indicate that Broadcom will be expanding that part of their business.  Then again, considering how many times VMWare has been bought and sold perhaps Broadcom is just looking to increase the value of VMWare before dangling it in front of the market to find another buyer.