Raghu stated in our All Hands that there are NO plans to spin off CB or EUC. Completely contrary to what we are hearing internally by EUC leadership. Thoughts? The lack of similar messaging is frustrating. Who would be more likely to lie?
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In general, the record demonstrates. that Broadcom does not act quickly in terms of spinning off business units following the acquisition of companies such as CA and Symantec. Talk of spin-offs usually originates from people who fear becoming part of Broadcom and are hoping their business unit gets spun into off.
Remember that at this level they are also kind of politicians:
- Dell is aquiring us... great news!
- Dell is selling us... great news!
- Broadcom is acquiring us... great news!
So, when I hear "we have no plan to fire people" or "we have no plan to spin off EUC", I also hear "...but Broadcom has a plan to do so" ;)
Hock Tran said he will F you if at all possible.
Magoo should just start answering these questions by
Dribbling on his bib and having Betsy wipe the applesauce off his face.
Horizon cloud on azure is doing quite well if I recall.
See y’all over at Citrix in a 6-8 momths
No one is going to pay much for the EUC BU. And the only edition of Horizon worth using is the version that requires vSphere. Hock is going to find that the sum of the VMware parts does not equal $69B by any stretch.
Is CB or SEBU going to be spun off?
This has been said time and time again. Horizon on prem has integration but literally Titan which is the Next Gen Horizon does nothing with vSphere hence why it can run Azure natively. This was talked about at VMworld for going on prem as well which means it can be indeed spun off.
Magoo ain't gonna say " hey guys we selling you off" until after Broadcom actually buys the company which they haven't done.
Magoo should just start answering these questions by saying “I’m a worthless puppet CEO who has no plans to do anything prior to the Broadcom acquisition.” The dude won the lottery and just wants to retire after this with his tens of millions from Dell and Hock.
He and current execs / board may not have any plans but all bets are off once someone else is signing the checks.
With the tight integration between Horizon and vSphere/ESXi, I think it would be difficult to spin off EUC and include Horizon in the spin off.
Personally I can't see EUC being spun off.
CB Yes!
He very distinctly said in session 1 that post-acquisition Broadcom will be evaluating divisions and it is up to them what gets spun off. I agree this sounds more like a confirmation than a denial.
how about other BUs?
Just look at the trending financial performance of each BU and it's no wonder that rumors continue to circulate about possible spin-offs. That said, you have to wonder if the EUC leadership actually wants to be spun-out of VMware. That would explain why Shankar continues to be vague about the future outcome for EUC.
There is little synergy between EUC and the VMware core. And, Hock Tan knows he could raise cash to pay-down debt by pitching EUC to a buyer (Private Equity or IT Vendor).
Honestly my interpretation was that he couldn’t have been clearer - it’s in Broadcom’s plan for it to definitely happen, and probably immediately following the acquisition.
What he said is not contrary to what you've heard so far. He said it in a very precise way.
Yep that’s what I heard. He said pre acquisition. BC then gets to decide post merge.
There are no plans for _VMware_ to spin them off _pre-acquisition_. He can't speak for Broadcom's plans post acquisition, which are likely still in flux. Listen more carefully.