The combination of Broadcom and VMware no doubt disrupts the virtualization market. Broadcom not only gains a more robust product offering and ability to deliver cloud services like never before but also carries strong projections for a positive balance sheet. According to Broadcom’s third-quarter earnings report, the deal is expected to net a whopping 32.2% revenue growth in FY2023, which is a significant increase over the consolidated 25% year-over-year reported (Broadcom Financial News, September 2022). Effectually, both companies are highly confident that this acquisition will be successful – and it’s easy to see why. The biggest question mark? Licensing. VMware’s traditional models are vastly different from Broadcom’s, which will surely impact pricing structures and contracts in the not-so-near future.
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