Who has the money and where does it make the most sense for it land?
12 replies (most recent on top)
I agree, Google's partnership with Cameyo is an example of the coming shift in EUC market share. Conservative CIOs might prefer the shift to Intune Suite.
"Who's coming up with these fantasies?"
You are uninformed. Do the research, then it becomes clearer that legacy EUC BU is a boat anchor compared to the BC profitability model.
The nimble app streaming startups will take the remaining market share that Microsoft Intune Suite doesn't extract from the Citrix and VMware installed base.
So we're supposed to believe that driving customers to use CSPs for enterprise application delivery is going to return revenue to VMware? They will never recapture that revenue lost if EUC is sold. That type of an idea would hurt Broadcom's hardware business as well, and expedite the destruction of all of their other business investments. Who's coming up with these fantasies?
To be fair, all legacy enterprise software companies have had problems convincing their customers to move from on-prem license contracts to SaaS subscriptions. And, their are huge issues related to the profit margin differences.
For example, the burden of building a skilled and experienced Customer Success team for SaaS renewals has been a major factor. Clearly not part of VMW's expertise.
"what part of the EUC business is making such a huge shift to SaaS that it undermines trust in the financial statements?"
No huge shift. In fact EUC customers that chose to go from on-prem to SaaS is significantly lower than originally forecast, so Shankar and his team adjust the subscription numbers to reduce the perceived forward-looking revenue/profit shortfall.
FYI, the prior Citrix CEO and CFO were forced out of the company due to similar tactics. There were several investor law suits that accused their leadership of fraudulent performance reporting each quarter to cover-up the subscription challenges
@eut+1olhgI0s what part of the EUC business is making such a huge shift to SaaS that it undermines trust in the financial statements?
"I don't think its widely known how profitable we are as a BU"
That because it's untrue. Note, Shankar and the CFO continue to inflate the results from the ongoing shift to EUS SaaS subscriptions. That's why a new PE owner is the best bet to improve profitability by reducing operational costs. Once that process is complete, then they can find a permanent buyer that won't have to deal with the current 'financial engineering' that masks the true state of the business.
I'm thinking we will be on BC's payroll for a while as a fully owned subsidiary. I don't think its widely known how profitable we are as a BU so I think they will watch us for a while to see how we do, then if its bad, sell us off.
Google would be great, but not going to happen - they’re not interested in MDM
Microsoft would not get through anti trust.
Okta would be a good home, but they don’t have the $$$.
Ping perhaps?
VC more likely :(
Goggle that thing.
"Goggle win win situation!"
How is it win win? It immediately alienates EUC from Microsoft and Apple, wiping at least 50% of EUC's value.
Goggle win win situation!