Analyzing VMware's strategic evolution and the implications of the Broadcom acquisition

AI

This week’s VMware Explore event spotlights a pivotal moment for the computer virtualization pioneer as it reaches its 25th year in business.

During theCUBE’s Explore day 1 kickoff analyst panel in Las Vegas, up for discussion was the future of enterprise computing, innovation in artificial intelligence, the expansive realm of multicloud landscapes and the far-reaching implications of the still-pending Broadcom Inc. acquisition of VMware Inc.

“Jensen [Huang] came on stage, the CEO of Nvidia, I think he kind of called it,” said industry analyst John Furrier (pictured, second from right). “He pointed out that VMware, and this is the real story about the transition, some say the demise of the old VMware and the rise of the new VMware, is that they changed history.”

Furrier was joined by industry analysts Dave Vellante (right), Lisa Martin (second from left) and Rob Strechay (left) at VMware Explore 2023, during an exclusive broadcast on theCUBE, SiliconANGLE Media’s livestreaming studio. The panel delved into the evolution of VMware, especially in light of the company’s planned acquisition by Broadcom. (* Disclosure below.)

Exploring VMware’s transformation over 25 years

VMware Explore kicked off with three days of live coverage from the Venetian Expo, with theCUBE team diving into the event’s significance. This year marked theCUBE’s 13th consecutive year covering VMware events, tracing back to its origin at EMC World in 2010. The journey through VMware’s history and transformation provides insight into its current trajectory.

“I think everything that was announced was to align with where do they dovetail into Broadcom strategy. That was my going in assumption,” Martin said. “Lot of news, a lot of talk … but my expectation was that what they announced today is going to really driving their dovetailing into Broadcom.”

This year’s event prompted a reflection on the evolution of VMware over the past 25 years. From its inception and acquisition by EMC for a modest $630 million, the company has blossomed into a multi-billion-dollar entity. EMC’s investment paved the way for a thriving enterprise, and the subsequent appointment of Paul Maritz as VMware CEO heralded an era of expansion, ultimately resulting in a far-reaching and diversified portfolio. As the company consolidates its offerings, it presents a unique opportunity for multicloud solutions, emblematic of the dynamic cloud ecosystem, according to theCUBE analysts.

“That created a little bit of a far-flung portfolio, which now they’re consolidating,” Vellante said. “And now you get this opportunity of multicloud. And, of course, as you said, the whole Broadcom acquisition.”

Unpacking the future of enterprise computing and the Broadcom deal

The keynote analysis also shed light on the future of enterprise computing, with Nvidia Corp. CEO Huang, drawing attention to the paradigm shift happening right now. He echoed theCUBE’s sentiment on stage, stating that “the future of enterprise computing is happening now.” This assertion underlines VMware’s ongoing evolution and its role in shaping the tech landscape, according to the analysts.

As the analysis shifted their conversation toward the future, the focus turned to AI and multicloud. The synergy between VMware and Nvidia, particularly in the AI realm, has the potential to create a new paradigm for enterprise computing. However, this pivot to AI presents a multifaceted challenge, from technical integration to forging partnerships with data companies.

Amid these complexities, VMware’s commitment to fostering simplicity with services, such as NSX Enterprise Plus as a SaaS-delivered solution, illustrates the company’s determination to enable a seamless multicloud experience.

“I think this NSX Plus being a SaaS-delivered service and coming, bringing it together has the potential to make it simpler for multicloud. And I think that’s key,” Strechay said.

Here’s the complete video interview, part of SiliconANGLE’s and theCUBE’s coverage of VMware Explore 2023:

(* Disclosure: This is an unsponsored editorial segment. However, theCUBE is a paid media partner for VMware Explore 2023. VMware Inc. and other sponsors of theCUBE’s event coverage do not have editorial control over content on theCUBE or SiliconANGLE.)

Photo: SiliconANGLE