Though Tanzu sounds exciting, most of its products are in an emerging market category. Namely, Tanzu observability, Mission Control etc. However, they’re key to a multi-cloud vision. Will Tanzu ecosystem get a chop from Broadcom?
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If Tanzu is valuable but does not fit into the plans by BC, that business will be sold off. Hock needs to recuperate as much of the billions spend on VMware as soon as possible. So, there is hope still.
Tanzu might not be in immediate plans for BC. But i doubt they will shut it down. They might milk it by selling it to a company in a similar space looking to enter the multi-cloud containerization space. BC has a history of doing it.
"In April 2020, Broadcom sold Symantec's 300-person Cyber Security Services business to Accenture for a reported $200 million to help organizations anticipate, detect and respond to cyberthreats. Then in May 2020, Broadcom sold the majority of Symantec's enterprise consulting team to HCL Technologies to gain more expertise across endpoint security, web security services, cloud security and data loss prevention"
What would Gordon Gekko do?
Our team is part of the core and we use Tanzu Observability so closing it overnight seems unlikely. It will probably be one of those that takes a while since they have to merge it with aiops. But make no mistake aiops will be the winners
As someone that works in Tanzu Labs I'm not hopeful. Maybe Redhat or Oracle would buy Tanzu?
I'm preparing to be cut though.
I think it's possible that Broadcom would sell off the whole Tanzu operation. I'm not sure who would buy it. Likely a company with adjacent products that wants to expand into the container space.
Does anyone see the possibility that the Tanzu division including all important open source projects like the Spring framework may be sold to another company after the merging if it will not enter in the Broadcom immediate plans? Do you think some players can be interested?
all Tanzu will be shut
How much revenue does TAS, TKO and TMC bring in? VMware acquired Heptio. Wonder what the multi-cloud future looks like to Broadcom.
Tanzu labs had around 15% utilization last year. Yes you read that right. Most people in Tanzu labs are on the beach most of the time. I would expect a spin-off (if lucky) or layoffs.
Tanzu labs and all its consulting services should get cut for sure. Its a consulting business, and Broadcom doesn't believe in consulting. They will have to sell it to a system integrator, like Accenture. Easiest place to cut. Then, all R&D at VMware is overstaffed, relative to other industry benchmarks (20% of revenue spent on R&D at VMware). So every engineering group will likely be cut some.
Tanzu has not achieved significant revenue or market share. It is in a growing market and applications are moving to that architecture, however I'm not sure that Broadcom will take a bet on Tanzu. It is a lot easier to milk the service contracts and renewals on vSphere.