Comment Truly sad and sadly true (Score 1) 23
Broadcom's share price has only tripled after closing the VMWare acquisition in Nov '23 -- from $100 to $300
Think of it this way: what does Broadcom do? Make chips! What increases the demand for chips?
- Less virtualisation
- Poorer quality virtualisation
- Forced infrastructure changes
Even Nutanix uses Broadcom chips. As a Hyperconverged Infrastructure provider, Nutanix relies on hardware partners such as Dell, HPE, and Cisco. Their products incorporate various hardware components (NICs, routing silicon) from Broadcom. So if Nutanix gains 30K customers due to Broadcom squeezing the life out of VMWare, some coins roll down Broadcom's way. Yes, Nutanix wins more bigly, but a Broadcom bean-counter is probably carefully tracking all these effects in a financial model.
And this model almost certainly does not track environment degradation due to infrastructure changes forced by Broadcom's behaviour with VMWare.