Anyone in EUC with offers?
34 replies (most recent on top)
One person , one computer, is that so hard?
"Customers are going to flee both Citrix and VMware."
True for mid-sized company customers in the near term that shift to low-cost and less complicated streaming SaaS alternatives. However, Large enterprises take longer to shift to Microsoft solutions (for example) because of the planning involved for a significant end-user migration. Also, some of the announced Microsoft Intune Suite features have limited availability. The bottom line, there will be some movement in this flat market.
The idea that competitors would not complain is truly absurd. Look at Frame, Nerdio etc. Nor would the customers just want "maintenance". Horizon is still behind Citrix and customers expect VMware to catch up. Tibco would have no interest in doing this. The only way VMware has gained Horizon customers is by taking them from Citrix because of a bad experience with Citrix the company. Tibco is worse. Customers are going to flee both Citrix and VMware. No chance Tibco will acquire VMware EUC. It is absurd. Much more likely that someone like Palo will acquire it for the zero trust side of the business and Horizon will slowly decline into irrelevance due to lack of support.
"There is zero chance Tibco/Citrix will acquire VMware EUC."
Once again, for the clueless who don't understand, it is the Private Equity owners who would acquire a reduced (after headcount cuts) VMware EUC BU.
This is a viable and compelling solution. No competitors would complain, since none would be impacted. In contrast, most existing customers would appreciate the joint offerings. CIOs know that these legacy platforms are now in 'maintenance mode' with no meaningful new capabilities.
They just want to be sure that someone is publishing security updates and bug fixes. Legacy UEM and VDI software have no future opportunities, just ongoing support.
There is zero chance Tibco/Citrix will acquire VMware EUC. It would be stopped on competitive grounds alone by other competitors lodging complaints. Also the only reason VMware has any EUC customers is because they ran away from Citrix to VMware. These customers will not go back and will find alternatives like AVD.
“As an engineer at EUC , I am ready to lease for a new company. Luckily I will receive VMware severance . I won’t think too much about the future of EUC.“
Don’t be expecting a severance. You will not receive an offer that you can choose to accept or decline. You will likely be receiving a welcome to the EUC division of Broadcom. If you don’t want to stay, you can resign, but that will not include severance.
You are assuming you will get an offer letter, if it is indeed a welcome to broadcom letter, there is no severance, you can resign at your own will anytime you want.
As an engineer at EUC , I am ready to lease for a new company. Luckily I will receive VMware severance . I won’t think too much about the future of EUC.
Cloud just means other peoples computers.
none of you get it - the only reason for Citrix (Vista) to acquire VMW EUC is to lock in customers that are fleeing Citrix’ (CSG) absurd renewal increases. If Tom Krause can corner the customer, then they HAVE TO PAY. In terms of features, Citrix > VMW > MS > AWS > *
Will a customer migrate to lesser feature EUC vendors to save costs and spite Tom? We will see in 2024
2024 will be the Year of the Desktop! /s
One more thing, an estimation that the VMW BU installed base is worth a range from $5 to $15 billion seems like a wild guess -- coming from the same uninformed people who didn't know that Citrix (part of Cloud Software Group) is already owed by Private Equity.
So, if you're going to put forward a counter argument, do some research first. Okay?
Let's re-frame the rationale for the joining of Citrix and VMware EUC installed base assets in another way. It's a common practice in the tech sector to merge together two old product lines to gain "operational efficiencies" from that combination.
So, the combined entity needs just one sales force, one marketing organization, professional service, finance, HR and all the other organization that a duplicated across each company today.
And to the earlier comments about some customers still want on-prem solutions, while other want cloud-base SaaS, no worries. They can have that choice, and a choice of legacy systems.
Why is this appealing? It's easier for customer CIOs (like banks) that acquire one of their competitors. There's no need post-acquisition to replace any IT infrastructure -- both EUC systems can coexist with the support of the same common vendor. Understood?
"Citrix does not have the money to acquire VMware."
Correct, but their Private Equity owners of CSG (parent holding company of Citrix) can line up the financing for the deal. Also, two legacy software company assets aren't a threat to anyone if merged together. There is no 'antitrust' issue with two lame ducks coming together as one larger lame duck company. They can avoid long-term insolvency. Separately they are both weak against ongoing attacks by Microsoft with Intune, etc.
"So PE is the best bet. So let's STOP talking about Citrix buying EUC."
A the risk of insulting your intelligence, I must state the obvious - Citrix is already owned by Private Equity companies, which is exactly why this is likely an easy transaction.
Citrix does not have the money to acquire VMware. It would probably be at least a 5-10 billion merger when they’re in cost cutting mode.
There is no way Citrix or MSFT is going to buy EUC because of antitrust. The FTC and other regulatory agencies won’t allow it. So PE is the best bet. So lets STOP taking about Citrix buying EUC.
A merger with Citrix makes no sense. Would they want to buy a duplicate product set? Why would they want to spend 10-15 billion on it and there is no way it would get regulatory approval.
A merger with Citrix under Tom Krause leadership makes sense to me, and I've been in the EUC BU for many years and have seen and read all the industry analyst reports.
This is a contracting market and Microsoft is a formidable competitor. Offering 50% off VMW SaaS subscriptions to try and attract Citrix customers was the wrong strategy.
Tom understands our challenges, he's seen our pipeline reports and he's aware of the VMW low market penetration relative to our competition. Also, he won't be scared away by our near-term profitability concerns like other PE-backed potential buyers.
AVGO, if you're listening, please help us align with Citrix and get it done ASAP!
Does anybody know if severance would be an option for EUC employees in the letters? Doesn't look like it, considering they are treated unfairly than the rest of the company so far.
Im in infosec but got the EUC email from Hock? no idea what to make of that, have not received offer yet.
No EUC letters have been sent out yet. That will happen in the coming weeks, and will be country dependent
What communication did Hock send to EUC?
It cracks me up reading all these software engineers from Palo Alto opine about EUC. You have no idea what you are talking about. Just like all the geniuses that were so sure this deal wouldn’t close and China was blocking it. Nothing new of course you all always looked at us as the red headed step children. The assertion that on prem is dead is so unbelievably misguided it is laughable. You all see everything through your Silicon Valley lens. Most companies don’t operate like a Silicon Valley company. They have complex environments that even if they wanted to lift and shift to the cloud they can’t do it. You know nothing about the EUC portfolio and think workspace one is still just Airwatch and Horizon is a Citrix clone. You all should step out of your cube one day and go talk to customers. Rather than sh-----g on the people actually selling and making this company money. EUC will be around for a long time, hopefully as a new company. I am going to be thinking of you when we IPO!
Why can't we propose that the EUC BU is merged with the remains of Citrix? We both have the same business challenge and the same powerful enemy (Microsoft). Together we can defend our joint installed base and try to slow the customer defections.
Tom Krause was supposed to lead us into a slow decline before he quit AVGO, so why not revisit this option again? He clearly knows how to prolong the life of legacy apps (CA and Symantec) because he's been there and done that successfully.
No offers, euc will be sold off. I love the comments that on prem is dead technology when the same technology is used in the cloud. Most governments in the world refuse to put their sens8tive data in the cloud. Euc is far from dead and as time goes on, more companies will revert back to on prem. I worked on both sides and customers complaints about cloud was the lack of control and redundancy. Euc is what made VMware and its cloud that destroyed VMware.
"Were you expecting a spin-off right out of the door?"
Not at all. But it does appear that Brian Madden's dark prediction is becoming reality.
Shankar, you are full of excr-ment.
Were you expecting a spin-off right out of the door?
"We are a division that will review strategic alternatives."
That's code for the real message - "we are desperately seeking another PE buyer, to replace the one that decided to decline our proposal after seeing our balance sheet."
Shankar Iyer and his 'leadership' team should be ashamed. Pitiful outcome...
"Anyone in EUC with offers?"
Seriously, you have to ask this question? This BU was the ugly duckling at VMW.
Put another way, the denial of the EUC market reality for legacy apps is over and done.
Anyone else feel this falls short of hints & suggestions?
So the exciting news that no one in EUC MGT can talk about is that we are a division that will review strategic alternatives.
Shankar, you are full of excr-ment.
I heard they were going to offer everyone in EUC a ham sandwich, but that seems excessive
Not an offer but a general letter went out today from HT to all EUC employees