Broadcom is buying CA because of its customers and its technology, as their CEO stated, so that means not for its workers and their accomplishments. It was clear to me from the start that this buy goes way more to Broadcom’s benefit then CA’s, but wasn’t expecting Hock Tan to be so open about it. In my opinion, we should expect a large round of layoffs as early as Q4.
https://www.cbronline.com/news/broadcom-ceo-ca-technologies
@VbCfy76-2khk Failed miserably at growth? If you cut out the acquisitions the distributed side shrank dramatically. The EM portfolio was virtually wiped out under Bike Boy. How he stayed employed for five years is beyond me.
"Maybe it is the patent portfolio he wants, along with mainframe revenue?"
That plus the revenue for selling all the other piece parts to PE firms or other software companies. Selling the parts will probably add $4-5B, making the net cost for MF and patents $14-15B.
MF milks ~$2B a year, and with tighter controls probably nets $1.5B. Figure another $1B of cross-sell opportunity to big customers for AVGO products. In around 5 years or so the investment is totally paid off and it's pure cash from that point forward.
The only reason CA made revenue from the other products was that they were bundled with mainframe. And mainframe is sticky. Tan will just stick them together with other infrastructure stuff. CA failed miserably with growing any distributed revenue over the past 5 years under Gregoire.
They bought another company for the same reason, to make money. But this one makes no sense. And they are screwing it up.
Step 1: Piss off your staff.
Step 2: Incent the best people to leave.
Step 3: All the rest sit around demoralized while the competition starts chipping away
Step 4: Customers see the mayhem and won't buy anything until the dust settles. Welcome to horrible quarters!
Step 5: Move development to India. For the 6 months it takes to ramp, lose all of the ability to deliver a quality product.
Step 6: Customer experience nosedives. Why renew?
How are you going to recoup $19bn? If you wanted people to stay you would at least talk up the areas of technical growth that were important. As it is, management has disappeared. Maybe it is the patent portfolio he wants, along with mainframe revenue?
This is not rocket science. Stop thinking with emotion and use your brain. Talk to anyone who has been through a Broadcom acquisition. Hock Tan is successful because he is smart, micromanages everything himself, and cuts to the core. If you want something out of this acquisition, take your severance and buy Broadcom stock as its only going to go up. If you want to sit and pretend everything will be OK, ask the CA World team how that worked out for them. They thought everything would be OK as well, right up to Thursday evening. What Tan wants, Tan gets.
Broadcom doesn't do commission incentives. It's base salary and possibly equity. If your role has a higher incentive comp than your base, you are probably gone.
Broadcom outsources services and support. If this is your role, you are going to be divested to Wipro or Accenture.
If you are in mainframe or security (excluding sales), you are pretty safe. Well, 25-30% of you are.
Sales. Well, you probably already know. Sorry.
How many great companies has CA bought over the years, sold as many licenses as possible, then let die? Don't blame Hock, blame CA. 30 years of spending more on travel, customer dinners and entertainment than product development and support finally caught up with them.
We've all seen this coming for 15 years, now it's here. Management parasites will ride off to the next host on their fancy Trek bikes with their golden parachutes strapped to their backs and the Modern Software Factory will be sold off floor by floor. Hey, maybe Charles Wang will buy up some of this and we can start this ponzi scheme up all over again.
People are technology.
Wait, so all those acquisitions CA has done in it's history for the benefit of who? The people being acquired? The customers? The world in general? The stupidity of people really baffles me, I guess at least here they can be stupid anonymously rather than telling the world who they are like on Yammer.
HT is not stupid; he will try to sell off any unwanted divisions rather than just shutting them down. Sales, General, and Administrative, on the other hand, will be hit hard.
They said nothing about layoffs? What about the article that said they would remove over 1 billion in expenses from the company? I can’t find the link right now but I’m sure someone can post it. 1 billion in expenses is a lot of people. Do you think Broadcom is going to keep everyone?
That article says nothing about the future plans Broadcom have for CA. For all we know Hock has sold all the employees to martians for medical experimentation!
Nothing but scare mongering and speculation. Wait and see, you may be right also you could just as equally be wrong.
This type of negative speculation is a waste of time and energy. Of course Broadcom bought CA for their benefit, why else would you buy another company. They have said nothing about layoffs or downsizing the current staff. Your opinion is worth nothing.