What's the latest news on Tanzu? What does Hock think!? Tell me all the deets. #TanzWho #Deeznutz
16 replies (most recent on top)
"The Tanzu business is spun out and sold to a buyer that understands its value. "
Got a good chuckle out of that one. I'd be surprised if a spin-out of the combined Tanzu (VMW/Heptio/Pivotal) business would sell for more than what VMW (over)paid for Heptio.
I'm so sick of waiting too hear about the news. IDGAF anymore. Hoping that by next month they'll be transparent with us....
I work in Tanzu Labs, should I be worried about the merger?
Tanzoo is done. Stop asking about it every day. It is done.
Tanzu is NOT profitable. I've seen their quotas YoY and no one seems to scratch the surface of 40% attainment. BCOM will take it out to the backyard and shoot it as soon as the deal closes.
There are two lists…keep and sell.
No one explicitly talks about if the BU is profitable. Some subgroups likely are, most are not.
MAPBU is likely seen now as a “big bet” and can’t be profitable on its own. Option 1 requires too much investment for BCOM as a “franchise”, so selling off the menagerie of tech to “those who understand the value” (yea, don’t reveal your inner thoughts Mr. Tan) is what is likely.
The root of this weirdo collection of technologies is also due to the financial engineering angle with Silver Lake/Dell acquiring Pivotal - to avoid losses with Pivotal stock - in 2019 which has kept this whole thing alive.
Going back further it was Paul Maritz as CEO of VMware that started acquiring companies so they could be the next Microsoft (from where he came…)
Remember when you could acquire EMC (and 83% of VMware) for the bargain basement price of just $67 billion?
The clever finance folks really managed to make a ki----g on all this “enterprise transformation”.
Is Tanzu a profitable BU? I remember Pivotal wasn't at all but maybe things have changed? I see the 1) option very difficult if it's not profitable... Who is going to invest on it? Broadcom? don't think so... Some other investors after the Pivotal failed experience? uhm.... very difficult too...
Tanzu DAP group (Developer and App Platform) meeting on Aug 10th
What August 10 call? Was this just with the Tanzu team?
From the Aug 10 call, the following text from a slide.
—-
Broadcom CEO Hock Tan called out only two potential outcomes
- The Tanzu Business operates as a franchise under the Broadcom umbrella (VMware software). It gets investment but is largely independent, autonomous.
- The Tanzu business is spun out and sold to a buyer that understands its value.
Hock - “I plan to share that plan with the leadership team as soon as we have decided which outcomes it is out of these two, you’ll be partners on the journey to reaching it.
——
Well as long as we are going to be partners, all is cool. Hard to make this stuff up.
Let’s ask Joe Beda and Craig McLuckie
My guess is that if Tanzu is not profitable now or in the near time, it will be spun off or dismantled.
Anxiously awaiting any news as well.
It's not looking good, we will know next month. stay tuned
"Tanzu (DevOps) are potential "for sale" assets," per https://www.streetinsider.com/dr/news.php?id=20216135&gfv=1