VMware EUC in a post-Broadcom world 

3 min read
Contemplating the VMware EUC unit after the Broadcom acquisition

The takeover of VMware by Broadcom has been met with quite a bit of concern amongst customers and partners, some of it based on rumours and innuendo, though some based on announced changes such as the complete reshuffle of core VMware SKUs.  One of the difficulties faced by Broadcom is one of communicating changes in a fluid situation.  Nowhere is this more pertinent than the VMware EUC business unit. 

Right back when the Broadcom announcement came out, they set their stall with EUC – the division was to be run separately, with a view to divesting through sale or spinning off in its own right. 

Let’s take a look at how things are developing with EUC and what the outlook is. 

Splitting off VMware EUC: The Early Days

Following the initial splitting off of the EUC Division, things were, as much as possible, run as they were, but with a push to recruit into functions that the division would need to stand on its own.   

Interestingly, there were no changes to published license offerings, even though this contradicted Broadcom’s own position.  For example, the “for desktops” offerings for vSphere and vSAN were all made end of life (VMware End Of Availability of Perpetual Licensing and SaaS Services – VMware Cloud Foundation (VCF) Blog), even though they were included to varying degrees in VMware Horizon editions. 

No branding or identity had been decided upon – so, although they established their own evangelist group akin to VMware vExpert, the group only has a provisional “EUC Experts” name at present.  This makes some sense – no point going through a naming and branding exercise if there’s a threat of being gobbled up by another business. 

The KKR Acquisition

In late February 2024, Broadcom announced that the global investment firm KKR were going to acquire the VMware EUC Division (VMware EUC by Broadcom to be Acquired by KKR | VMware). 

What does this mean?

Firstly, KKR intend to run the division as a stand-alone company, with all the functions that this entails.  This includes substantial investment to develop the company and its offerings. 

KKR and Broadcom have committed to a smooth transition of services, without disruption – especially important in the case of government offerings such as the US FedRAMP scheme. 

The new EUC business is committed to supporting and developing the core products in their portfolio – VMware Horizon and VMware Workspace ONE.   

What this will look like with respect to licensing and operation remains as unknown as the business name and branding at this time, but these are still early days. 

Conclusion

The EUC unit has compelling products that are highly regarded in the industry.  The commitment by KKR to both splash $4 billion in the first place and then provide capital investment into the new business shows a belief in the prospects of the business. 

By not being a part of the wider Broadcom, they have an opportunity to shine in their own light, something that was difficult enough under the VMware umbrella.  In some respects, as VMware gets digested by Broadcom, the EUC Division, by virtue of being run by ex-VMware leadership, may end up “more VMware than VMware”. 

What’s next for your End-User Computing (EUC) Strategy?

Are you still seeking clarity on what the changes mean for you and your business? Some professional guidance from Xtravirt’s EUC team could help you navigate to the right path quickly and confidently.  

Please get in touch to put your questions to us or to find out more about our EUC consulting and managed services. Xtravirt support organisations like yours at every stage of their digital workspace journey from assess and design, to deploy and manage. We undertake one-off health checks and provide 24 x 7 x 365 support for EUC platforms and everything in between.  

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Solutions Architect