TMT Series #8: VMware, a strategic acquisition for Broadcom's software push

Only seven months after its spin-off from Dell, VMware has caught the eye of Broadcom in a planned $61 acquisition. With shareholder value creation as the sole agenda, VMware’s business and operating models are about to shift drastically in a number of ways with higher prices being the most visible part of the change.

In this analysis, I’ll revisit the deal, compare Broadcom’s outstanding financials to those of VMware and explain the competitive advantages behind it and finally seek to identify what this deal means for VMware’s customers from a business and technical standpoint going ahead.