KKR intends to keep the VMware EUC unit as a standalone company run by existing management. Shankar Iyer, senior vice president and general manager, will remain as head of the team.
“The KKR team knows our industry well and is the ideal strategic partner to help us become a standalone company with an exclusive focus on delivering powerful tools for the digital workspace,” Iyer said. On top of that, KKR will make VMware EUC employees owners in the group’s success. The model reflects the private-equity mindset on which Broadcom, even though it’s publicly traded, also operates (hence the recent uproar around the partner program terminations and changes, and product bundling). KKR said that, since 2011, its portfolio companies have awarded billions of dollars in total equity value to more than 60,000 non-senior-management employees.
30 replies (most recent on top)
"EUC Engineers have always been focused on a specialization."
That's not true. Maybe you are just lucky enough to work in a region with an abundance of resources where you have the luxury to be specialized.
EUC Engineers have always been focused on a specialization. Be in Workspace ONE or Horizon. We've always been specialists. Now KKR is forcing SEs to become deep and wide with BOTH product sets. SEs drive the sales and this is REALLY going to be impactful. A very uneducated and out of touch move. This needs to get fixed to how it will not end well for either party. Customer experience will suffer and the good SEs who have been specialists with years of knowledge will be leaving. We have already had some attrition. Telling a heart surgeon that they now have to cover cardiac and brain surgery will he the death nail.
No RTO letters to EUC employees. So far so good.
"We've yet to reach the full potential of the existing EUC product portfolio, due to the fear of change
Fear of changing leadership apparently.
EUC has been put out to pasture. It’s full potential is a stay in hospice.
"We've yet to reach the full potential of the existing EUC product portfolio, due to the fear of change."
That's a pipedream. According to Gartner and IDC, VMW EUC is a distant third-place vendor (behind Microsoft and Citrix) in a product category with flat demand and limited growth potential. There are many good reasons why both industry analysts have stopped their UEM and VDI ranking and reporting.
Customers should anticipate higher prices and reduced support from KKR. It's inevitable.
Agreed. Euc was the redheaded step child of vmw and milked for it's money. That being said I think there was poor politics and poor leadership. The fact that dimwit was able to run it into the ground, quit, comeback as president is telling of how little they respected that BU
The seething hatred that some of these posts have for EUC is strange. Given how badly VMware treated EUC, I think EUC will be in a much better place.
EUC been living rent-free in a few heads, judging by some comments lol.
Most likely those under the thumb of the Tan man.
Is anyone impressed by Shankar ?
EUC is still a toast!!! no matter how.
Soon 2.0
Feels like Groundhog Day.
why is it a good deal for EUC employees?
Because AVGO is an irresponsible company, gives 0 darn to its employees, I am so happy to have a chance stay away and don't have to witness it's new show.
"Bring in fresh leadership to turn a new leaf."
Agreed, many of the EUC directors have done the same job for 10-15 years. It's no wonder they are stale and resist change. They cherish their status quo above all else.
"If Shankar revamp his direct reports with fresh energetic leaders who are knowledgeable with modern technologies and strategies, he will do just fine."
Perhaps, KKR should start with a Sales and Marketing leadership revamp. We've yet to reach the full potential of the existing EUC product portfolio, due to the fear of change.
KKR will treat those who remain well. Hopefully they exit a few "tireless" leaders.
If Shankar revamp his direct reports with fresh energetic leaders who are knowledgeable with modern technologies and strategies, he will do just fine. Keep the dinosaurs and pay the price in a year. EUC need to get rid of the old leaders from prior acquisitions. Bring in fresh leadership to turn a new leaf.
Microsoft has decimated the Airwatch market and Horizon has never been very competitive. The cloud versions are also sub market quality. KKR will be selling whatever it can after a couple quarters. And if Broadcom does not honor vSphere for Desktops steep discounting it won't take that long. Everyone will get to be laid off by a new owner and not Hock. So you have that going for you which is nice.
“ They'll likely convert the prior VMware RSUs into shares of Newco (whatever name KKR gives the acquired EUC BU).”
Since some RSU’s will mature prior to close those should be awarded by BC.
Citing a closing date in the latter half of this year suggests that the letter will be issued around that time. It appears to be a tactic of leveraging Broadcom's resources until the last minute before the spinoff.
"many of us have a lot of RSU's that existed before the acquisition"
They'll likely convert the prior VMware RSUs into shares of Newco (whatever name KKR gives the acquired EUC BU). They'll want all remaining employees to have ownership. But there probably won't be any cash value until KKR spins it off in an IPO within a year or so.
"Shankar Iyer, senior vice president and general manager, will remain as head of the team."
But, knowing the KKR track record, how long will he last under their pressure on PE financial performance metrics? Shankar is a custodian-style leader at best, and I just can't imagine KKR accepting his lack of vision and meaningful strategic leadership. He came to VMware from Citrix and has offered little more than basic tech project management.
While it's true that EUC employees didn't get any additional AVGO stock as part of the acquisition, many of us have a lot of RSU's that existed before the acquisition and were converted to AVGO. I guess that the "employee ownership program" is what will become of them.
The deal is expected to close sometime later this year, subject to standard regulatory approval
EUC employees didn't get AVGO shares or an option for severance.
why is it a good deal for EUC employees?
They will lose all of their non-vested AVGO shares.
Good deal for EUC employees!
In case you're wondering when the deal will close. It's scheduled to be closed SOON.
Right alongside Parallels (or combined), under Alludo, formerly known as Corel?
https://en.wikipedia.org/wiki/Alludo
Will it be CPL vs CSG?
employee ownership program, giving employees a chance to own equity in the new company alongside KKR. The deal is expected to close some time later this year.