Jim Cramer: "You don't tolerate divisions that don't perform!"
Hock Tan: "Frankly I don't. To qualify as a division on the Broadcom platform, you have to stand alone and sustain for the next 10 years, at least."
This expectation is filtered all the way down to individuals.
Bruh did no one consult this guy about what the he-l VMware is? I can tell from the 61 B offer (waaaay over priced ) that he does whatever he wants… if the deal is dead He will look back and say I dodged a bullet 61B no way he will recoop that especially not after the damage he’s done and this is just the begging
If HT thinks he can eliminate most of VMWs developers and keep selling 2023s version of vSphere indefinitely, I think he’s in for a surprise.
Whoever gave you that idea - they weren't very well informed.
I'll give you a fictitious team of 10 developers and $1M budget. Right now, every developer makes $100K salary (round numbers). Your manager is given a goal. Cut the product cost, make the product better, and increase production. What do you do? 9 out of 10 managers will take your 3 best developers and triple their salary, and fire everyone else. It's very reasonable that in a group of 10 employees, the top 30% can do the work of the bottom 70% and should be rewarded greatly for their talent. They're already likely doing most of the work to begin with.
That's how you run an efficient and productive team and keep it continuously relevant.
When you get into the business of paying everyone $300k for low product output, you lay off the entire team and divest with the boat anchor. Take, for example, the Pontiac Grand Am.
I have used VMWare from the 3rd version. In a small business non cloud on premise it still works great. Everything in the cloud is $$$$$. Return to premise is back baby. What would make it a cash cow would be to buy Veeam and make it a part of the tool and charge more.
Sure, the business of business is to make money.
The issue is that from his public statements, HT doesn’t seem to have a firm grasp on how you make money with software. VMW is not some legacy software company selling stability. It’s essentially an operating system company. If VMW fails to innovate, customers will move on. This isn’t like hardware where BCs contract manufacturers are selling chips to companies where it would be a massive hit to switch vendors. You don’t just pop out a new phone design because BC raised prices. With the rise of containerization, switching to some other virtualization stack might not be easy, but it’s not difficult enough for customers to put up with an unlimited amount of nonsense.
In order for VMW to continue to make money, it not only has to keep up with competitors, it has to beat them. Because VMW doesn’t compete on price. If HT thinks he can eliminate most of VMWs developers and keep selling 2023s version of vSphere indefinitely, I think he’s in for a surprise. Keeping a software company going is more than just maximizing short term profit. Good luck with that.
Sc--w this incompetent HT A$$hat, tolerate this!
Does it matter from VMware folks?
China blocked the deal.
It's dead.