What’s peoples thoughts on what Broadcom will do with EUC post acquisition ? Vmware historically had challenges with Core selling EUC. It’s profitable and is setting the precedent for ARR but is that enough? Do you think Broadcom will keep it or sell it off?
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Still continues to have growth every quarter. I could see it getting cut down with some of the bloat to make it profitable
Here's how I see it for product groups
Keep / Sell %
vSphere 100/0
vRealize 100/0
vSAN 100/0
Edge 75/25
EUC 50/50
SASE 50/50
NSX 50/50
Tanzu 25/75
SA 25/75
CB 25/75
For Broadcom to sell EUC, their has to be a buyer. And that buyer has to pay enough that it’s worth it for AVGO to sell versus streamlining and milking it like the rest of VMW.
In terms of a buyer, who would that be? What would they be buying, and for what reason, and how much is that worth? Does EUC have core tech & IP that someone else would want? Is their business growing? Is that net new customers, other VMW BU customers, or are they taking customers away from CTXS or MSFT?
Personally I don’t see it. What doe EUC have that’s so valuable that someone else would want to pay $5B+ for it? A protocol? A device management database? “Intelligence”? Seriously, what is unique about valuable about anything VMW EUC makes that someone who would buy it wouldn’t already have? Or would a new buyer just be buying customers? But if AVGO is going to fire a big percentage of customers, why buy EUC when you can just pick up those customers for free in the next year or two?
But also, why would AVGO even want to sell EUC? VMW’s EUC business isn’t that different than the rest of their BUs. EUC generates good ARR on aging on-prem tech. Seems like that’s what AVGO was buying in general with VMW, dunno why they wouldn’t want EUC?