Broadcom cuts at least 2,800 VMware jobs following $69 billion acquisition

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This was inevitable, VMware is old hat. The world moved on to containers too quickly for them to pivot and change focus.

I haven't fired up a virtual machine in the last 6 years except maybe to run some old archaic Windows-only tool. Everything else just runs better in containers.
Containers and VM's serve two completely different purposes. Sure, you can do similar things between one and the other, but there are an awful lot of things that containers can't do that VM's can.
 
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msawzall

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This was inevitable, VMware is old hat. The world moved on to containers too quickly for them to pivot and change focus.

I haven't fired up a virtual machine in the last 6 years except maybe to run some old, archaic, Windows-only tool. Everything else just runs better in containers.
We're still running VMware where I work (county government).
 
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alxx

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This was inevitable, VMware is old hat. The world moved on to containers too quickly for them to pivot and change focus.

I haven't fired up a virtual machine in the last 6 years except maybe to run some old, archaic, Windows-only tool. Everything else just runs better in containers.
Cloudfoundry - TAS - Tanzu Application System and TAP are vmware container based systems
 
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nartreb

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No surprise after a number of M&As that this company has done in the past (starting even before the one that included the Broadcom name). Hock Tan has been very frank about his acquisition philosophy. He wants to be #1 or #2 in each market niche. If he sees a company with a market-leading product, he will buy the company, keep that line of business, and cast off every other part of the company. (Usually he will make cuts within that line of business too. Nothing immediately fatal, but prioritizing margins over growth.)
 
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Andrewcw

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Pretty much good on Dell they made a decent chunk of change of it and how were able to get rid of the product that got to the point of kneecapping two sides of the business because the concepts competed against each other. Dells problem was trying to everyone wanting to have someone else run the datacenter backend. When Dell's goal is equipment sales.
 
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roo82

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The layoffs are awful, and apparently Broadcom is doing away with any and all remote work. I would imagine morale is pretty bad at VMware right now. I personally am concerned for the future of VMUG. In addition to vSphere being a great platform, it's nice to be able to bounce things off my home lab before trying them at work (we don't have a test environment, naturally.)

This was inevitable, VMware is old hat. The world moved on to containers too quickly for them to pivot and change focus.

I haven't fired up a virtual machine in the last 6 years except maybe to run some old, archaic, Windows-only tool. Everything else just runs better in containers.
VMware has a container platform, Tanzu. That being said, you might be surprised how much of the world still runs on VMware. Just because you don't know much about it doesn't mean it isn't still hugely important in IT.
 
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rhavenn

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This was inevitable, VMware is old hat. The world moved on to containers too quickly for them to pivot and change focus.

I haven't fired up a virtual machine in the last 6 years except maybe to run some old, archaic, Windows-only tool. Everything else just runs better in containers.
If by "world" you mean startups and new developers trying shit out then yes, maybe. If by world you mean "enterprise" then no, no they haven't. If it's not running a full OS in a VM...then they don't understand it. There are of course exceptions, but plenty of enterprise still thinks Server 2019 is too new or RHEL9 is still "unstable" for production and you'll pry their RHEL7 out of their hands when they're good an ready.
 
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AmanoJyaku

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Will they ditch VMware Fusion for macOS? :unsure:

Doubtful. macOS is a preferred system for many, and Fusion is VMware's only presence in that ecosystem. Fusion isn't meant to be a revenue generator itself, it's meant to be a foot in the door. You see someone running Fusion, you start asking about VMware and its other products.
 
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jhodge

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It's been an absolute cluster for us since nearly all our subscriptions are due up the next couple of months with VMware's cloud products. We can't even get quotes, and we are losing half our of sales team. Not a great start with Broadcom in the enterprise.
Which is exactly what happened to Symantec customers following that acquisition.
 
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50me12

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I'll admit I don't understand the overlap behind Broadcom and VMWare. Did the chip manufacturer just decide that they wanted a virtualization software company for some reason? Apart from just saying "enterprise software" and "synergy," can anyone add some more detail?
No there's no magic between the two.

Broadcom does a whole slew of acquisitions of companies that they think they can get money out of, no different than some private equity groups. Sometimes they sell them for pieces, sometimes they keep pieces and just cut costs and raise prices.
 
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The layoffs are awful, and apparently Broadcom is doing away with any and all remote work. I would imagine morale is pretty bad at VMware right now. I personally am concerned for the future of VMUG. In addition to vSphere being a great platform, it's nice to be able to bounce things off my home lab before trying them at work (we don't have a test environment, naturally.)


VMware has a container platform, Tanzu. That being said, you might be surprised how much of the world still runs on VMware. Just because you don't know much about it doesn't mean it isn't still hugely important in IT.
The problem with VMware is that it's a mature technology. None of the sexy factor left to attract investor money. Trouble is, containers as a technology are maturing too...
 
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Sukasa

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I personally am concerned for the future of VMUG. In addition to vSphere being a great platform, it's nice to be able to bounce things off my home lab before trying them at work (we don't have a test environment, naturally.)

100% this, I've got a homelab and this aquisition has been a worry as to whether I'll be able to continue to get licenses, and what to try/do should the licenses become unavailable. Has there been anything mentioned anywhere about the future of VMUG?
 
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xyzzy01

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Will they ditch VMware Fusion for macOS? :unsure:
Apple ditching Intel for Apple Silicon must have put a big dent in the sales of VMware Fusion - a lot of people used it run Windows, and most of that market disappeared. Sure, you can run an ARM version of Windows but the market for that is considerably smaller.

I know I myself used it for Windows and Linux, at least... and stopped buying it when I got Apple Silicon.
 
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AmanoJyaku

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I'll admit I don't understand the overlap behind Broadcom and VMWare. Did the chip manufacturer just decide that they wanted a virtualization software company for some reason? Apart from just saying "enterprise software" and "synergy," can anyone add some more detail?

Broadcom hit a growth ceiling with semiconductors, so it expanded into software. Expansion into a different industry is a common practice in order to grow revenue. It dipped its toes into the cloud waters with the acquisition of CA Technologies. Broadcom's portfolio consists of datacenter products, so it's attempting to leverage existing relationships and reputation in order to drive VMware revenue.
 
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Buffy

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As a mid-size university, we had trouble (months of trouble) getting a quote from VMware to renew our licenses this past year. Don't worry, though, we've already planned our move to Hyper-V.
My workplace is similar, we have about 1,000 cores and 14T of memory running ESXi and started looking at Hyper-V last year. I setup a small Hyper-V cluster a while back just to get the feel of just how a transition would work.
 
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AmanoJyaku

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My cousin is one of the cuts. He got a heavy severance and is chilling over the holidays, then off for a new venture next year.

He said the writing has been on the wall for a long time and that morale shit the bed long ago.

The writing was on the wall when the board forced out Diane Greene, and Mendel Rosenblum quit soon after. I stuck around for a few years after, but quit when it was clear VMware was no longer a tech innovator and now just another public company obsessed with financials. There was a notable change in product quality, and customer feedback was increasingly negative.

I'm glad I left when I did, my memories are mostly positive.
 
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SplatMan_DK

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As a mid-size university, we had trouble (months of trouble) getting a quote from VMware to renew our licenses this past year. Don't worry, though, we've already planned our move to Hyper-V.
Ghaaaa.

Don't. Please don't. It's not Enterprise ready in any way, shape or form. It's for cheapo installations where some clueless CTO or CEO looks at the licence terms and says "but it's free", like that was ever a good argument for a critical and very technical platform choice.

I've been involved in running 600+ VM clusters on both hypervisors, and I wouldn't touch Hyper-V ever again. Unless it was for a closet-sized installation running a small business on 4 pizza box servers somewhere.

Support for Hyper-V is abysmal as well. When things went haywire and ruined our stability, Microsoft did little to help - essentially stonewalling us for over a month because "the fault is unlikely to be in the Hypervisor" (it was!). All we got was drones in an Indian call centre, in spite of having a proper and pretty expensive support contract.

My current place of work runs slightly over 4500 VMs, all on VMware MSP licenses. VMware is ripping us off big time, but at least it's somewhat stable, and we can get qualified support when something breaks (it occasionally does in an installation this size).

I'd pick KVM on Openstack, or even Proxmox, before Hyper-V. F*ck, i'd run things on-iron before going back to Hyper-V.

Seriously. You'll regret it. Print this post, hang it on the wall, see how you feel in a few years. A couple of changes to your SAN, or a firmware upgrade to core switches, absolutely WILL ruin your day with Hyper-V. I mean, hell, the damn thing won't even continue running the Hypervisor if the host OS has a minor hiccup... and that OS is Windows Server...

Don't do it man. Just don't.
 
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Mechjaz

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My cousin is one of the cuts. He got a heavy severance and is chilling over the holidays, then off for a new venture next year.

He said the writing has been on the wall for a long time and that morale shit the bed long ago.
Damn. Hopefully there's some kind of beneficial equity cash-out, too.

My last company got acquired into an exciting new era of cuts after being bought for $1 billion on ~$150 million in annual revenue.
 
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TylerH

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But is that number growing? And why would newcomers run VMware when Ubuntu and Kubernetes are so much more efficient? Why aren't old institutions updating?

The documentation is free. You can ask ChatGPT to write the Terraform code and Helm charts.

What is with people? Does nobody go to cloud conferences or watch YouTube crash courses on this stuff? Nobody stops you from looking it up. It's all free. It's all free!
No, it's dropping as more people move to cloud-based containers hosted in Azure, AWS, etc.
 
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