We hear a lot about Tanzu and how constant scrutiny is taking place, how are ANS and SDE doing in contrast? Future looking any more optimistic?
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SDE will merge into VCF. ANS will be sold.
SDE is in a rough spot. Broadcom hates cloud and most of SDE is hosted services/SaaS. AOP and operating run rate are under constant downward pressure. Massive cuts forced on physical server foot print, massive cuts forced in cloud spend, massive cuts in lab footprint. It will be a wonder if SDE is able to actually build things after too long.
Such a close monitoring is happening for SDE as well. More to come in the next year during the first performance review, there we will see the fireworks!
They are having to take repatriate monies from overseas to pay off the debt and taking a huge tax hit. They are showing a loss already. Can't add to the losses by having more transition costs. It is getting tough to hide all the losses from the VMware acquisition.
Only one division per quarter. The transition costs are not infinite. One step at a time to zero headcount. Round robin the divisions.