[HN Gopher] Broadcom to Acquire VMware for $61B
       ___________________________________________________________________
        
       Broadcom to Acquire VMware for $61B
        
       Author : squidofbits
       Score  : 471 points
       Date   : 2022-05-26 11:48 UTC (11 hours ago)
        
 (HTM) web link (www.reuters.com)
 (TXT) w3m dump (www.reuters.com)
        
       | meling wrote:
       | This could be bad news for all the great researchers that moved
       | to VMware after Microsoft closed their Silicon Valley research
       | division...
        
       | jka wrote:
       | For anyone curious about potential open-source migration options
       | given the prospect of uncertainty around VMware pricing and
       | support:
       | 
       | - xcp-ng[1] is a support-available fork of XenServer.
       | Migration[2] can be performed using export to OVA format and
       | subsequent import into the built-in Xen-Orchestra interface.
       | 
       | - proxmox-ve[3] provides a management UI for Linux Virtual
       | Machine (LVM) and Linux Containers (LXC) hosts and provides
       | various vendor migration guides[4]. Both commercial and community
       | support[5] is available.
       | 
       | - The Xen Hypervisor[6] is capable of hosting x86 and ARM virtual
       | hosts, and their project provides a VMware migration guide[7]
       | 
       | [1] - https://xcp-ng.com/
       | 
       | [2] - https://xcp-ng.org/docs/migratetoxcpng.html#from-vmware
       | 
       | [3] - https://www.proxmox.com/en/proxmox-ve
       | 
       | [4] -
       | https://pve.proxmox.com/wiki/Migration_of_servers_to_Proxmox...
       | 
       | [5] - https://www.proxmox.com/en/proxmox-ve/support
       | 
       | [6] - https://xenproject.org/developers/teams/xen-hypervisor/
       | 
       | [7] - https://wiki.xenproject.org/wiki/Migration_from_VMware
        
         | CameronNemo wrote:
         | There is also Openstack, oVirt, and LXD (does KVM now).
        
         | rwmj wrote:
         | virt-v2v can import VMs from VMware to QEMU/KVM-based systems.
         | https://libguestfs.org/virt-v2v.1.html
        
       | whalesalad wrote:
       | VMWare is being passed around like the village bicycle.
        
         | EarthIsHome wrote:
         | Holy crap! Look at these acquisitions:
         | https://en.wikipedia.org/wiki/VMware#Acquisitions
        
           | mkl wrote:
           | Those are companies that VMware acquired, not companies that
           | acquired VMware.
        
             | EarthIsHome wrote:
             | Whoops! Totally misunderstood that page. Thanks for
             | pointing it out.
        
       | formerly_proven wrote:
       | Can we like... stop building these ginormous conglomerates?
       | Thanks.
        
         | fourstar wrote:
         | Sure right after we dismember NATO. Oh wait...
         | 
         | EDIT: NATO shills don't like this comment!
        
         | ReactiveJelly wrote:
         | If intellectual property (specifically software patents) were
         | weakened, this would be less of a problem, right?
         | 
         | Companies don't buy companies, they buy IP, as I understand it.
        
           | alberth wrote:
           | Consolidation in mature markets inevitably happens.
        
             | nousermane wrote:
             | ...absent functioning antitrust legislation, yes.
        
               | streblo wrote:
               | Is there an antitrust case to be made here? Antitrust
               | means a lot more than just 'big company'.
        
               | nicoburns wrote:
               | You seem to be asking if there is a case within current
               | legislation. Whereas the parent is suggesting that more
               | cases ought to be covered by future stricter legislation
               | (which could at least in principle be as simple as "big
               | company").
        
               | [deleted]
        
               | mc32 wrote:
               | So you put a cap in it, what happens, mitosis?
               | 
               | I'm not sure it would have that big of an effect. It
               | would certainly help in some areas like search and social
               | networks though.
        
               | [deleted]
        
               | [deleted]
        
           | kortilla wrote:
           | No, not in the software industry. Nothing VMware has in pure
           | IP is that special. I can't think of any of the big tech
           | companies that even use VMware.
           | 
           | Broadcom is paying for the huge enterprise customer base,
           | sales and support connections, mindshare, and engineering org
           | that has proven adaptable to market demands.
        
             | ergonaught wrote:
             | You don't have to think, you can just browse their list,
             | filter by industry, and have fun as you will:
             | 
             | https://www.vmware.com/company/customers/index.html#
        
               | grumple wrote:
               | Note that this is just a tiny subset of companies that
               | use VMWare (those that have writeups). I've worked for
               | some very big companies that used it but aren't listed.
        
             | Octoth0rpe wrote:
             | > I can't think of any of the big tech companies that even
             | use VMware.
             | 
             | I would be shocked if every single 'big' tech company
             | didn't use _some_ vmware product _somewhere_ internally.
             | Their software portfolio is a hell of a lot bigger than
             | just the actual vmware product. Example: where I work we
             | use the vmware product Carbon Black for 'endpoint
             | protection', which as I understand it is virus scanning +
             | some amount of port monitoring.
        
             | cagataygurturk wrote:
             | > I can't think of any of the big tech companies that even
             | use VMware.
             | 
             | You are quite wrong...
        
             | davidandgoliath wrote:
             | Uh, except everyone that uses VMWare, which is a massive
             | list.
        
             | scarface74 wrote:
             | Out of the five Big Tech companies (FAANG - Netflix + MS),
             | three have their own cloud divisions and one (Apple) does
             | partially use AWS and Azure.
        
             | rejectfinite wrote:
             | Such a silicon valley HN comment holy shit.
             | 
             | https://www.vmware.com/company/customers/index.html#
        
           | AndrewStephens wrote:
           | Maaaaaybe. I am not a fan of software patents but
           | intellectual property laws are the only thing stopping Big
           | Company A from just cloning Small Company B's product. At
           | least now they have to go to the trouble of buying them.
           | 
           | Of course, it goes both ways and laws often favor the strong
           | against the weak. But it is not all one-sided.
        
             | netr0ute wrote:
             | > Big Company A from just cloning Small Company B's product
             | 
             | That's called competition
        
             | erklik wrote:
             | > intellectual property laws are the only thing stopping
             | Big Company A from just cloning Small Company B's product
             | 
             | Is that really the case? Does it work? Isn't Instagram
             | basically cloning TIkTok right now? and cloned Snap before
             | that?
             | 
             | Apple with Alfred, Spotlight, F.lux etc are also examples.
             | Seems like for software, either patents aren't utilized or
             | simply can't be enforced.
        
               | AndrewStephens wrote:
               | Instragram/TikTok/Snap aren't exactly novel ideas, the
               | only valuable thing about them are the brands (also
               | intellectual property but not what we are talking about).
               | 
               | I only know VMWare from its days as virtualization
               | software. I would put money on them having had a bunch of
               | patents on the specific techniques they used.
               | 
               | Software patents sometimes work out, sometimes not. If I
               | were king of the world I wouldn't get rid of them but
               | narrow the scope down to protecting specific
               | implementations, none of this "Buying stuff of the
               | internet" pantenting that invested the 00s.
        
             | yjftsjthsd-h wrote:
             | Wasn't there a whole thing about big tech companies
             | interviewing small companies as if to acquire them and then
             | just cloning the product anyways?
        
               | captaincaveman wrote:
               | Most small companies don't have patents, or ones that
               | matter.
        
         | efficax wrote:
         | competition requires consolidation in order to acquire new
         | lines of profit, it's inevitable
        
           | pooper wrote:
           | > competition requires consolidation in order to acquire new
           | lines of profit, it's inevitable
           | 
           | It may be inevitable but I think I have a solid idea to at
           | least check its explosive growth.
           | 
           | The CEO and the board (includes President) ought to be
           | personally civil as well as criminally liable for any actions
           | of the employees, contractors, or agents of the company if
           | they cannot prove that the employees, contractors, or agents
           | acted against company policy. Elimination of the "right to
           | work" is a precondition to this proposal.
        
         | ronnier wrote:
         | We can but asia won't. We can stop and let Asian tech giants
         | eat us alive.
        
           | SilverBirch wrote:
           | I may have missed something but hasn't China recently
           | demonstrated that it absolutely is not willing to let its
           | tech giants get too big and powerful. Take a look at what has
           | happened with BABA.
        
             | Sakos wrote:
             | China doesn't care about the size of companies. Alibaba ran
             | into political problems because they wanted to compete in
             | an industry with established players with strong relations
             | to regional governments and different parts of the CCP.
        
               | babelfish wrote:
               | Source?
        
           | upupandup wrote:
           | really bizarre that you blame Asians when tech giants exist
           | in other regions. Really didn't expect to see this dog
           | whistling on HN.
           | 
           | Also are you talking about Israel or Bangladesh? They are in
           | Asia too.
        
             | serf wrote:
             | >really bizarre that you blame Asians when tech giants
             | exist in other regions.
             | 
             | it's not bizarre in the least if you consider any of the
             | metrics that attempt to quantify corporate size and
             | holdings.
             | 
             | Here's a market cap index[0], do you notice anything?
             | 
             | One thing that I notice is that every company in the top 25
             | is either American (.. or by some legal stretches, Irish)
             | or from somewhere in Asia.
             | 
             | >Really didn't expect to see this dog whistling on HN.
             | 
             | "We can stop and let Asian tech giants eat us alive." is
             | neither coded, nor suggestive -- nor is it written in such
             | a way as to avoid condemnation or blame, It's a plain
             | statement.
             | 
             | Can you describe how it's a dog whistle, and to signal
             | which faction? I don't get it.
             | 
             | Asia is too vast for a group of people to be against the
             | entirety, no? At least I haven't ran into the anti-Asia
             | faction, yet; but I have ran into plenty of anti-country
             | folks.
             | 
             | [0]: https://companiesmarketcap.com/tech/largest-tech-
             | companies-b...
        
           | [deleted]
        
           | parkingrift wrote:
           | You're saying "Asia" but you're really referring to China.
           | 
           | There is no reason for the west to allow Chinese companies to
           | compete in their markets. Reciprocal market access or no
           | access at all.
           | 
           | If western trade agreements forbid companies of a certain
           | size from selling locally there is no alternative for Asian
           | companies but to split or exit the market. We aren't helpless
           | passengers on a worldwide economic joyride.
        
             | DANK_YACHT wrote:
             | A lot of America's wealth comes from being competitive on a
             | global scale. Google is popular not only in the U.S., but
             | also in Europe and the rest of the Americas. Apple sells
             | phones, computers, and service all over the world. People
             | use these products because they're best-in-class. We may be
             | able to protect the domestic market, but the international
             | market will not be as forgiving.
        
             | beambot wrote:
             | Samsung, Toyota, Sony, TSMC?
        
       | SSLy wrote:
       | Oh no
       | https://www.reddit.com/r/cybersecurity/comments/uxucz4/if_vm...
        
         | 0x53 wrote:
         | Linked by Reddit poster: https://kicksec.io/vmware-too-big-to-
         | fail/
        
           | ra7 wrote:
           | From the article:
           | 
           | > My hope is that Michael Dell vetos this merger, from my
           | accounts of Michael and the people I know who are employed by
           | Dell, Michael is a great leader and a good human being and
           | that is the most important thing, not profit at any cost.
           | 
           | I don't know if the author is serious. This deal has Michael
           | Dell financial engineering written all over it. He's not
           | going to veto anything. Dell is all about enriching himself
           | with moves like this rather organically grow a company.
        
         | 999900000999 wrote:
         | This feels way too pessimistic, VMware got big before open
         | source virtualization took off.
         | 
         | I imagine someone could use docker instead of VMware in most
         | cases, and if that's not possible then hire some people to make
         | it so.
         | 
         | Vendor lockin is a scary thing, the people who are really going
         | to hurt here are mega super corps who are now going to have to
         | pay out the nose. If you're a smaller company, you should be
         | moving to docker or another open source solution anyway.
        
           | zerkten wrote:
           | It's not purely a case of vendor lock-in, but that shouldn't
           | be downplayed too much. Virtualization is still very much
           | applicable for the legacy applications which are still
           | prevalent. New apps may run in containers, but it's not just
           | a few big companies running ancient legacy software.
           | 
           | When you refer to smaller company and mention docker, or open
           | source, it's only those that are tech startups, or close to
           | the field with the skill to operate in this fashion. The
           | majority of small and medium companies don't have the skills
           | or resources to do this. Over time that changes, but it's
           | completely unrealistic to think that they can get away
           | quickly from VMware (even when their overworked IT person
           | would like to.)
        
             | 999900000999 wrote:
             | Then we have a market for a nice UI wrapper around Docker
             | which provides a display render.
             | 
             | You can run Windows in a docker container so this would
             | support legacy applications.
             | 
             | I'm not saying it's easy, but it's not insurmountable. If
             | all else fails, Virtual box is open source
        
           | mrweasel wrote:
           | VMware has a ton of product, none of them really competes
           | with Docker. They do have Tanzu I suppose, but that more a
           | Kubernetes offering.
           | 
           | I would argue that there are more Docker containers running
           | on a VM, running on top of VMware than there are Docker
           | containers running on bare metal servers.
           | 
           | Both VMs and containers can be used and misused in a number
           | of ways, but rarely can you replace a VM on VMware ESXi with
           | Docker. There's still a massive business case for VMware and
           | the only real competitors are Microsoft Hyper-V and Citrix
           | XenServer (if it's still called that).
           | 
           | You also have to remember that there's a crazy big Microsoft
           | world out there, Docker and containers still aren't of much
           | use here. While this could run on Hyper-V, many just pick
           | ESXi because it's what they know (No one was ever fired for
           | choosing VMware).
        
             | 999900000999 wrote:
             | You can run Windows in Docker.
             | 
             | Ether figure it out now, or in 2 years when VMware starts
             | to suck.
             | 
             | Then again, all the big companies I know put things off
             | until the last moment.
             | 
             | If I was a better developer I'd be putting together a
             | project right now that allows you to run all your happy
             | legacy Windows software with Docker.
             | 
             | Shouldn't be hard to raise a bit of funding for such a
             | project assuming you have the right background.
        
             | dangerboysteve wrote:
             | Citrix Xenserver is now called Citrix Hypervisor and there
             | was also a fork of Xenserver by a French company called
             | Vates and they have an opensource version called XCP-NG.
             | Vates offer support and other addons.
        
           | mvdwoord wrote:
           | Ever tried to manage 50.000 production vms? Whith a mix of
           | applications which cannot be easily containerized... Vcenter,
           | vrops, NSX, etc . You could reinvent, build in house. Or you
           | can buy VMware with support. What would the regulator prefer?
           | 
           | But, this does offer incentive for outsiders to create
           | competitive stacks.
        
             | indigodaddy wrote:
             | This 1000%. And this applies to a huge percentage of very
             | large orgs/ISPs/telecoms/fortune 500s, etc. VMware for the
             | most part "just works" and is entrenched in these
             | companies, much like AD.
             | 
             | If you are rolling your own replacement of VMware, what
             | happens if a couple (or even say 20 out of your 5000) of
             | your "parent" hosts go down. Will all of your guests auto-
             | migrate to healthy hosts?
             | 
             | And we are not talking about Kubernetes or similar here.
             | That is very different. You don't roll your own VMware
             | alternative. You just use VMware.
        
           | metamet wrote:
           | > I imagine someone could use docker instead of VMware in
           | most cases, and if that's not possible then hire some people
           | to make it so.
           | 
           | It's been a few years since I've worked with bare metal, but
           | doesn't Docker require a hypervisor for the containers?
           | 
           | You could swap to KVM or Hyper-V, but transitioning an org's
           | hypervisor on bare metal is a massive task any way you cut
           | it.
        
             | [deleted]
        
             | electroly wrote:
             | No, docker doesn't require a hypervisor of any kind.
        
             | yjftsjthsd-h wrote:
             | No, Docker is not a hypervisor and doesn't use one unless
             | you need to add one for security reasons; it uses Linux
             | features to build containers. On the other hand, yes
             | switching from virtual machines to containers it is likely
             | to be a non-trivial workflow change and not something a
             | company can do on a dime.
        
             | jordanbeiber wrote:
             | No hypervisor for cgroups (docker & friends), no. Which is
             | why something like LXD/LXC outperforms hypervisor
             | virtualization by quite a bit.
             | 
             | I was on a team that ran performance critical stuff for a
             | reasonable sized ecommerce business - moving from vmware to
             | bare metal was fantastic on every level from api's to
             | performance and reliability.
             | 
             | The enterprise spirit is stong in vmware.
        
         | technion wrote:
         | It's relevant that they are talking about VMware's security
         | portfolio.
         | 
         | The vast majority of why people are VMware proponents is down
         | to their virtualisation software. It's why we were big
         | resellers for a while. But for the last few years, their own
         | sales people have only wanted to talk about security products,
         | quite plainly acknowledging stagnant growth in on premise
         | virtualisation.
         | 
         | But virtualisation is in my view the only place they've made it
         | big. You've just linked a Reddit post in /r/cybersecurity
         | talking about security products and every reply is about how to
         | replace ESXi. It'll be interesting to see how their future pans
         | out.
        
           | andyjohnson0 wrote:
           | This. Virtualisation has been commodified - cloud,
           | kubernetes, docker, hyper-v, even virtualbox. Whereas
           | securing a decade's worth of on-prem infrastructure is a real
           | pain-point for enterprises.
           | 
           | VMware Workstation blew my mind when I saw it demoed in (I
           | think) mid-2000 [1]. I genuinely couldn't believe what I was
           | seeing - it seemed _that_ revolutionary, running an OS inside
           | an OS on a desktop. I wonder whether VMware 's problem
           | nowadays is that, having basically invented the technology,
           | they've become almost synonymous with the category of
           | virtualisation tech - kind of like "Hoover" for home
           | appliances - and their other products get less attention.
           | 
           | (I know that VMware didn't invent the idea of virtual
           | machines. But my perception is that at that time, virtualised
           | OSs were mostly found in mainframes.)
        
             | anthk wrote:
             | >VMware's problem nowadays is that, having basically
             | invented the technology,
             | 
             | IBM, actually, on mainframes.
        
             | scarface74 wrote:
             | I was running an x86 VM on my 16Mhz 68030 Mac LCII in 1996
             | in college - SoftPC by Insignia Solutions.
        
         | nwatson wrote:
         | Yep, that's Broadcom's business model ... buy a business
         | (VMWare), ignore its smaller customers, upsell the Fortune 500
         | on the product (VMWare) to push out competing solutions, and
         | keep the line items on those Fortune 500 bills growing. It's
         | worked for them I guess. I left a Broadcom acquisition before
         | the takeover.
        
           | [deleted]
        
           | devonkim wrote:
           | It's kind of par for the entire enterprise market as a whole
           | similar to the structural problems of b2b companies. SMBs are
           | hard to serve effectively and the margins are slim, so you'll
           | see companies that are b2b move more toward SMB b2b (see:
           | Best Buy although Apple is the clear exception here).
           | Everyone chases the big accounts because the model is less
           | risky no different than how there's no shortage of luxury
           | homes being built.
        
         | TheRealDunkirk wrote:
         | Why wouldn't you just post to the article directly, and bypass
         | the horrible Reddit web site for the redirect?
        
           | cruano wrote:
           | Because the reddit post was also made by the author ? And
           | he's responding to the comments there too?
        
             | TheRealDunkirk wrote:
             | Fair enough.
        
           | goodguyamercunt wrote:
           | Install old reddit redirect on firefox
        
       | infogulch wrote:
       | It's so sad to see good integrated tech products being bought out
       | just so the market can squeeze it and its customers dry of money,
       | leaving nothing but a dry soulless husk of finance-driven
       | leadership squeezing blood from desperate vendor-locked
       | customers, just so swarms of consultants can move everyone that
       | can afford them off onto the next integrated product to rinse and
       | repeat.
       | 
       | The current solution to business management feels suboptimal. If
       | companies are like persons maybe they should be organized with a
       | more integrated 'body', where the 'head' doesn't have total power
       | to sell out the rest of the integrated parts for its own gain.
       | Co-op like organizational structures might avoid this issue, for
       | example.
        
       | SemanticStrengh wrote:
       | If they invested instead a mere Billion into optimizing a fork of
       | e.g. QEMU they would destroy VMware in performance.
        
         | mbreese wrote:
         | This isn't about the hypervisor. This is about the enterprise
         | sales. A bank isn't going to run their data center on qemu,
         | regardless of the performance. They are going to go with the
         | company that can sell them support contracts with dedicated
         | engineers to answer the phone.
        
           | mountainriver wrote:
           | Yup as a former employee I can confirm this is not about the
           | hypervisor although vmw has a good hypervisor, it's about
           | everything auxiliary to that
        
           | bluGill wrote:
           | Big companies are starting to learn that free open source can
           | be supported in house, in some cases it is even cheaper, but
           | in others the flexibility of being in control of when a much
           | needed by only you feature is developed is a big deal. Open
           | source also is never acquired and the price jacked up to
           | beyond the worth but they are forced to pay the price anyway
           | because they can't get off before their license expires.
        
             | sbarre wrote:
             | > Big companies are starting to learn that free open source
             | can be supported in house
             | 
             | Sure but the problem here is can you find and retain the
             | people who can do that work, if you are a big lumbering
             | "un-interesting" company where tech is not your core focus?
             | In most cases the answer is "no".
             | 
             | There's a reason major software vendors provide
             | professional services. If their customers could reliably
             | hire and (most importantly) retain experts on their own,
             | they wouldn't need professional services.
        
               | nobody9999 wrote:
               | >There's a reason major software vendors provide
               | professional services. If their customers could reliably
               | hire and (most importantly) retain experts on their own,
               | they wouldn't need professional services.
               | 
               | This. As a tech person with _decades_ of professional
               | services experience in the tech space, I couldn 't agree
               | more.
               | 
               | Generally, there are three reasons why corporate entities
               | hire professional services (this isn't limited to tech
               | stuff either):
               | 
               | 1. There's a specific need for design/implementation
               | expertise where FTEs are either not readily available or
               | are unnecessary once the implementation is complete;
               | 
               | 2. The internal group in favor of a particular
               | technology/implementation wants/needs validation from
               | "experts" to get full buy-in from management;
               | 
               | 3. Professional services are brought in to "validate"
               | existing project plans/implementation details as a CYA
               | against project failure (e.g., "the consultants told us
               | this was the way to go. _They_ were wrong, not us. ")
               | which (both bringing in consultants _and_ project
               | failure) happens a lot more often than you might think.
        
             | hotpotamus wrote:
             | I work for a small company and they seem to have figured
             | this out 20 years ago. I've been tasked with supporting the
             | network and I've got to say that all the fancy (or not)
             | proprietary firewalls all seem like a pick your own poison
             | of cost/support issues, and they all go end of life
             | eventually but the network needs to keep running. We also
             | use PFSense in a few places and I think the feeling among
             | the operations team (2.5 of us) is that we'd like to just
             | use that in future.
        
               | BVCommander wrote:
               | I use PFSense and Snort at home and it's perfectly fine
               | for the price I paid for it, but enterprise grade it
               | ain't. I wouldn't use it to protect a network worth more
               | than my beer budget.
               | 
               | I don't know what business you're in and maybe after a
               | nightly tape backup there's nothing important for you to
               | lose. Frankly that's most small businesses. But if you've
               | got real trade secrets get a proper IDS/IPS before you
               | regret it.
        
               | hotpotamus wrote:
               | Sure, the networking thing is a part time job for all of
               | us, and there's even been some talk of bringing in
               | professional services to look over it a bit. But my
               | question is, what would we get? The whole IDS/IPS/WAF
               | industry seems pretty much dripping in snakeoil. It seems
               | like Cisco was once the king, but has lost a lot of
               | respect. Palo Alto seems to be the current fashion but
               | unless you have a serious alcohol problem, it's going to
               | exceed your beer budget. I worked with Imperva and Alert
               | Logic back in the day and no one ever seemed too
               | impressed with them. Then there's SonicWall which seems
               | reviled and Fortigate which seems like the reasonable
               | budget option. I'm sure there's tons others I'm not even
               | aware of.
        
           | wyldfire wrote:
           | > They are going to go with the company that can sell them
           | support contracts with dedicated engineers to answer the
           | phone.
           | 
           | There's no reason the company selling them support couldn't
           | be providing support for QEMU btw. If it met their needs
           | otherwise I'm sure they'd consider it.
        
         | perlgeek wrote:
         | It's not merely about the performance, it's about the
         | management layer on top, support contracts, enterprise sales
         | etc.
        
         | VWWHFSfQ wrote:
         | right but they wouldn't be able to own qemu. that's what they
         | want
        
         | mkl wrote:
         | At the cost of giving away their billion dollars of R&D to
         | their competition - QEMU is GPL licensed.
        
           | sleepydog wrote:
           | It works both ways --- they get their competitors' R&D too.
           | 
           | Plenty of companies seem to be OK with using GPL2-licensed
           | Linux, why wouldn't qemu be the same?
        
       | AcerbicZero wrote:
       | I was hoping an independent VMware might recapture some of what
       | it lost during the Dell years, but they still produce a solid
       | product that I generally enjoy working with. Not sure if Broadcom
       | is going to make the situation much better though.
        
       | unabridged wrote:
       | Enterprise software is such a mystery to me. I can't imagine any
       | company ran by <40 yr olds ever paying $100k+ a year to VMWare,
       | Symantec, Oracle, ...
       | 
       | To me it just looks like older companies paying to keep from
       | having to deal with Linux directly
        
         | burnte wrote:
         | > To me it just looks like older companies paying to keep from
         | having to deal with Linux directly
         | 
         | New companies, too. There's a lot to be said for paying someone
         | to make problems go away. Not everyone wants to write their own
         | software or change their own oil.
        
         | cmckn wrote:
         | Throwing money at a problem is an easy thing to do, if you've
         | got the money. Lock-in sucks, but having someone to blame
         | doesn't.
         | 
         | A friend uses VMWare in an IT role at a medium sized company.
         | They don't have a software engineering team, just a bunch of
         | users and an IT skeleton crew; so it makes sense for them.
        
         | bonzini wrote:
         | Hire one person less and you've already broken even. Applies
         | just the same to to any managed service on the cloud, to
         | Outlook365 instead of your own email server, etc.
        
           | scarface74 wrote:
           | And when you outsource it - you make finding that next one
           | person someone else's problem. I've had to hire that "one
           | person" before. It's a pain. And while we were looking for
           | that one person, I had to juggle my day job (software
           | development) with net ops.
           | 
           | Yes I know how to do app dev + cloud Net ops, it's kind of my
           | thing.
        
         | jodrellblank wrote:
         | > " _To me it just looks like older companies paying to keep
         | from having to deal with Linux directly_ "
         | 
         | You can see people spending millions of dollars a year to keep
         | from having to deal with Linux as evidence that they are
         | stupid. Or you can see it as evidence that Linux really is that
         | bad. It works both ways.
         | 
         | VMware gives you a thing people can be trained on and certified
         | on, a brand you can hire for and screen resumes on, a
         | consistent environment which behaves in a predictable way that
         | you really can turn employees into replacable cogs. Any
         | helpdesk or admin employee can deal with VMware, any MSP, any
         | tech recruiter, and a lot of training companies. You can get
         | backup systems which "support VMware" and storage which
         | integrates with VMware snapshots, and reporting tools which
         | work with VMware.
         | 
         | It's almost not about the tech at all, it's about how do you
         | build companies on shifting sands? You define interfaces for
         | components which can be plugged together. "VMware" is an API or
         | interface that the business can work to; vendors can say
         | "deploy this OVF to VMware", sales can say to the business
         | "this thing we need works with VMware" or to the customers "we
         | can work with your VMware" or "our offering is trustworthy
         | because we use VMware" and the customer recognises the name. HR
         | can say "we need to hire people who know VMware" and that means
         | something fairly specific to the wider world. "runs on Linux"
         | and "people who know Linux" are wildly, wildly, variable and
         | vague things which could mean "ran a website, minimum wage" or
         | "turns SELinux off to make things run" or "was SRE for FAANG"
         | or "did a PHD in AI for tuning networking stacks in HPC
         | applications but doesn't know anything else".
         | 
         | You make software by defining interfaces and components that
         | can be plugged together to make larger systems. Brands are
         | that, for tech. Like you hire someone who "knows React" not
         | someone who "is a programmer" because that's too vague and is
         | as likely to get you someone who worked on a Java CRUD program
         | or someone who worked on a Python log analyser. Like you hire a
         | "service delivery manager" or a "customer account manager" and
         | not "an employee".
        
         | stjohnswarts wrote:
         | There is a whole world outside of silicon valley, crypto, and
         | HN startups. There are huge companies that don't care a fart
         | about open source, the newest buzzwords, or it's go/rust/java
         | or c++. They want something they can get a full solutions from
         | and that is companies like vmware, oracle, IBM, Dell. They want
         | support from those corps when things fail and it's costing them
         | millions of dollars per hour when the system breaks.
        
         | unixhero wrote:
         | The fat bosses above me get more cred by buying something
         | expensive and ha ing everything outsourced, than doing
         | something brilliant and inventing the future. This is the
         | reason for it. I'm this way the fat bosses are left alone and
         | can go home to their families, go on holidays, cabins and
         | whatnot with not a gram of risk and uncertainty.
        
         | jnovek wrote:
         | Presuming for a moment that you're under 40 for the sake of
         | conversation:
         | 
         | Have you ever considered the other way around? That is, "What
         | changes with age that would make someone over 40 prefer
         | outsourcing a problem to an enterprise?"
         | 
         | It's possible that this trend is a result of a different
         | perspective.
        
           | ghaff wrote:
           | Certainly part of it is that, as you have been around longer
           | and maybe moved higher up, you probably better appreciate how
           | expensive it really is to have "just" a small team doing
           | something that could largely be outsourced. You have the
           | developers of course, their benefits, their manager's salary
           | and benefits and some small slice of attention up the
           | management chain and across other functional groups like HR.
           | And it's just one more distraction from the things that
           | actually matter to running the business.
        
             | jnovek wrote:
             | Everything in this conversation is dancing around the same
             | thing: core competency.
             | 
             | Something I saw in action building a startup is that the
             | fewer people you have on your team, the more efficient they
             | are.
             | 
             | As you grow, it's wise to focus your headcount on your core
             | competency and outsource everything else so that you are
             | committing the organizational expense of more employees to
             | all and only what you need as a business.
             | 
             | Of course, enterprise stuff is not all roses. You still
             | have to have someone with product expertise. There's vendor
             | lock-in. Enterprise software is often oversold. Etc etc.
             | 
             | There is no panacea, just stuff that works better in
             | different situations.
        
         | ProAm wrote:
         | One thing you are paying for is maturity (in both software and
         | the engineers) and predictable behavior. When you need to run a
         | business sometimes (almost all the time) it's easier to pay
         | people to get out of your way so you can execute. Execution is
         | everything in running a successful and profitable business.
         | Don't be penny foolish.
        
         | elzbardico wrote:
         | Legacy. Interoperability with other similar companies. Manpower
         | requirements (far easier to onboard a junior developer with
         | boring technologies)
        
         | vinyl7 wrote:
         | It's a big plus in the corporate world to be able to outsource
         | support. It's worth it for companies to pay VMWare, Microsoft,
         | etc. larges sums of money for support contracts so they have
         | someone to call when things break. While Microsoft sells
         | Windows Server, they also try really hard to add on support
         | contracts with it. Paying several thousand dollars a year for a
         | support contract is probably cheaper than paying
         | salary+benefits for someone within the company to maintain it,
         | and you get the facade of talking directly to people who know
         | the product inside and out
        
           | silvestrov wrote:
           | Sometimes for me it seems like they pay to "get the facade of
           | talking directly to people in suits" rather than having to
           | deal with technies.
        
             | JumpCrisscross wrote:
             | > _it seems like they pay to "get the facade of talking
             | directly to people in suits" rather than having to deal
             | with technies_
             | 
             | Broadly speaking, anyone generalising the world into suits
             | and techies needs a translation layer between them and
             | anyone else.
        
         | scarface74 wrote:
         | You should always outsource any part of your business that is
         | not part of your core competency and doesn't give you a
         | competitive advantage - ie "the undifferentiated heavy
         | lifting".
         | 
         | I worked at companies as a software developer from 1996 - 2012
         | that _had_ to manage their own infrastructure. But today, the
         | only company that I worked for back then that would be managing
         | their own infrastructure today is the one that has mainframes
         | and hardware that handle the backends for lottery systems
         | across the US.
         | 
         | By 2012, there was a slow shift to the cloud.
         | 
         | I first was exposed to how large enterprises worked in 2017. I
         | was hired to lead two green field implementations. But at the
         | last minute they decided to "move to the cloud" neither they
         | nor I knew anything about the cloud. They hired consultants and
         | a Managed Service Provider. Of course the internal IT
         | department was vigilantly defending their turf and the
         | "consultants" were old school Netops folks who only knew how to
         | "lift and shift" and duplicate an on prem infrastructure and
         | all of the red tape to the cloud and of course it was more
         | expensive than just using a colo.
         | 
         | I spent the next six months after the decision was made
         | studying AWS and getting a certification not because I value
         | certifications (I don't). But it gave me a guided learning path
         | to know what I didn't know. It did open my eyes to what I
         | wanted to do - work with companies - specifically developers
         | and operations to show them how to actually take advantage of
         | cloud and not just do lift and shifts - ie true "Devops".
         | 
         | I left that company and went to a small startup for two years
         | where I learned everything I know about "cloud application
         | modernization" and then ended up in Professional Services at
         | AWS.
         | 
         | Until I started working with large enterprises and government
         | organizations from the consulting side, I never appreciated the
         | concerns of large enterprises and how they aren't in the "tech"
         | business and it does make sense to outsource that knowledge -
         | not to ProServe we don't do that type of work - to external
         | partners.
         | 
         | As far as VMWare, as silly as it sounds on the surface.
         | Companies actually use VMWare to manage hybrid infrastructure
         | on the cloud and on prem as a "single pane of glass".
         | 
         | https://aws.amazon.com/vmware/
         | 
         | I personally don't deal with those implementations. I stick
         | with app dev.
        
         | gautamdivgi wrote:
         | Newer companies don't deal with Linux directly either. The vast
         | majority use managed cloud services (kubernetes, containers,
         | serverless, managed databases, etc.). For all practical
         | purposes - most of the start-up players use "enterprise
         | software" as well. It's just different enterprises.
        
         | numlocked wrote:
         | I am the 37 year old CTO and co-founder of a company that pays
         | VMWare something like that per year because we need an endpoint
         | management solution. We have a strong engineering team but that
         | certainly isn't something we are going to build ourselves.
         | VMWare is not just virtualization.
        
           | MrBuddyCasino wrote:
           | whats an ,,endpoint management solution"
        
             | marcus0x62 wrote:
             | They are almost certainly talking about Airwatch, which is
             | a mobile device management solution (allows an employer to
             | set restrictions on BYoD endpoints.) It might be a
             | reference to Carbon Black, which is kind of like an
             | antivirus client with some forensics capabilities added in.
        
             | dangerboysteve wrote:
             | usually cell and mobile device but can also include
             | computers. Being able to push out software, policy updates,
             | provisioning and remote wiping of devices.
        
             | andyjohnson0 wrote:
             | Access control/management for corporate networks and
             | networked resources.
        
             | buro9 wrote:
             | Compliance based stuff... "do you trust this machine to
             | access your network/services/applications and execute these
             | commands?"
             | 
             | https://www.crowdstrike.com/cybersecurity-101/endpoint-
             | secur...
             | 
             | (the VMWare owned product isn't CrowdStrike, that just had
             | the best SEO page with a clear description. VMWare have
             | Carbon Black which is the other dominant player in this
             | market https://www.vmware.com/uk/products/whats-new/carbon-
             | black.ht... )
        
               | sbf501 wrote:
               | That's really interesting. So a company would hire
               | Crowdstrike/VMWare, and say "here's all these endpoints,
               | make sure they are secure"? And then CS/VM would provide
               | the service to manage the assets and their connectivity?
               | Ka-ching. I would not want to spin up an IT team to do
               | all of this if I could hire some experts with
               | concentrated knowledge.
        
               | bsagdiyev wrote:
               | Hit the nail on the head. It's a bit more than that
               | realistically.
               | 
               | I work for CrowdStrike just so any potential bias is out
               | there in the open, but do not speak for them.
        
           | throwaway19423 wrote:
           | I'm in a senior position but not CEO. I'd pay VMware for
           | virtualization as it just works compared to the complexity of
           | opensource solutions. For endpoint mgmt, I'm curious about
           | your use case? Is it about managing virtual endpoints in the
           | cloud, on-prem servers (physical or virtual) or are you
           | talking about laptops/workstations?
        
             | numlocked wrote:
             | Laptops and workstations. We use Workspace ONE.
        
             | jhickok wrote:
             | VMware purchased Airwatch, perhaps the premiere mobile
             | device management suite.
        
           | sbf501 wrote:
           | Grove.co is a great example because it is totally not a
           | software company. Is your role as CTO primarily the ERP &
           | storefront, or just one or the other? I'm not following what
           | you mean by endpoint (other than "storefront" because ERP
           | would all be a SaaS right?)
        
             | t3rabytes wrote:
             | endpoint being employee devices, probably (via vmware's
             | workspace one product)
        
             | numlocked wrote:
             | Storefront. We have our own headless e-commerce platform,
             | with iOS, Android, and Web clients. We also have our own
             | order management system that mediates between storefront
             | and our ERP (which is commercial SaaS). And a handful of
             | other smaller applications for everything from outbound
             | carrier rate card testing, to customer service tooling &
             | automation (integrated with ZenDesk) and all sorts of other
             | bits and bobs like ETL code, integration layers, marketing
             | tools, etc, etc. We should not have quite this much custom
             | software, but it takes time to migrate the non-strategic
             | sub-systems to commercial solutions -- and even then you'd
             | be surprised how much custom software we DO actually need
             | in a business like this.
             | 
             | My role also encompasses many "CIO-like" functions, but my
             | area of expertise is in application development and I look
             | to hire strong leaders in the other areas (or move certain
             | tech domains entirely into other functions -- eg our
             | warehouse management system lives within our operations
             | group, and me and my team help in an advisory capacity but
             | don't "own" the budget or WMS strategy).
        
           | unabridged wrote:
           | It may be my pure naivety about management software, but I
           | assume it just consists of spreadsheets, forms, secure login,
           | data storage, and simple queries. I cannot imagine anything
           | with this combination that couldn't be implemented in Google
           | Sheets (and workspaces, and a handful of other google cloud
           | apis) for at most $20 a month per user.
        
         | mrweasel wrote:
         | We did the math at my previous employer. The cost of running
         | OpenStack, in terms of training and day to day operations was
         | higher than just paying VMware their licens fee. We even had a
         | guy from RedHat help us do the cost analysis, didn't matter,
         | cheaper to just pay VMware. This didn't even include the cost
         | of doing the migration.
         | 
         | I can't imagine it being cheaper to build everything yourself
         | on top of just plain KVM, or even LXC.
        
           | jve wrote:
           | Working in a Data Center, we provide various services,
           | including Dedicated Cloud and Shared Cloud. We also evaluated
           | OpenStack years ago... yes, we came to the same conclusion
           | and just use VMWare.
        
           | dangerboysteve wrote:
           | Also factor in the people trained to use VMware. There is
           | always a pool of individuals to hire.
        
         | eatYourFood wrote:
        
         | sleepdreamy wrote:
         | As someone who works in the MSP space, Enterprise basically
         | runs this country from a business perspective. I'm not even
         | kidding.
         | 
         | Microsoft has a monopoly on Corporate Domains/OS as it is.
        
         | ghc wrote:
         | Just for a second, imagine a company that _isn 't_ a software
         | company, but needs software to run its business. Think
         | manufacturing, logistics, shipping, construction, food
         | (industrial scale egg production, for example) etc. There's a
         | lot of companies like that out there...in fact it's almost all
         | of them.
         | 
         | Those companies run all their boring, essential software
         | (accounting, ERPs, etc.) on VMWare, Oracle, Azure, etc. Since
         | software isn't their core business, they pay an external
         | company to keep their software running. Like it or not, cloud
         | providers are for software companies, and most companies have
         | no interest in becoming a software company. They might have
         | some small groups that do analytics or software in-house, and
         | those groups might use cloud providers, but all the _essential_
         | software will be run by a company you can call when something
         | breaks, or if you 're big enough embeds some staff in your
         | office.
         | 
         | It's just good sense to outsource non-core functions. Software
         | companies outsource hosting and datacenter stuff to AWS, etc.
         | Why should enterprises deal with Linux directly?
        
           | nimbius wrote:
           | but thats just it, this argument only ever works if you dont
           | care about performance or features and believe the marketing.
           | You make eggs, and your target fixation only allows you to
           | see eggs, so these companies hold some mysterious value to
           | you.
           | 
           | KVM performance is orders of magnitude better than VMWare and
           | handles migrations snapshots imports and exports without
           | additional byzantine license agreements or mandatory minimums
           | for hardware support on network switches and servers. Cockpit
           | makes it dead simple to run.
           | 
           | Oracle performance is so awful the license terms do not allow
           | you to release performance benchmarks or comparative analysis
           | against other databases. it also has all the same heavy
           | lifting you need to focus on for things like galera clusters
           | or postgres, so theres no clear win unless you like paying
           | Larry for the privilege of slow transactionals on a
           | hyperconverged iron beast, or youre too lazy to figure out
           | ODBC.
           | 
           | And Symantec so openly hates their customers they now bundle
           | a cryptominer with their software. before that their
           | incompetence was so blinding Google had to step in and force
           | them to give up their CA business.
           | 
           | "enterprise" software is an absurd proposition for anyone
           | smart enough to realize their business is more than just the
           | end product. to everyone else, these companies are borderline
           | predatory.
        
             | amenod wrote:
             | I agree with you - and you are still missing the point. The
             | enterprises are buying a service. They don't care that it
             | is running on AHWRGGG instead of TLMWBBB (which is soooo
             | much better). What they care about is that it runs, and
             | when it doesn't, that someone fixes it. This is it. Could
             | you run everything on PostgreSQL instead of Oracle? Yes,
             | take a look at EnterpriseDB. I guess Oracle just sells
             | better? (guessing here, no idea)
             | 
             | The money is of course important, but these providers are
             | smart. They take only what they can and not more. Which is
             | still big money. And while Oracle & co. would never make it
             | into any company I can make a decision for, I don't think
             | that keeps them awake at night - there are enough (big!)
             | fish in the ocean.
        
               | fragmede wrote:
               | You could run everything on Xen instead of VMware, except
               | as you point out - you can't really. Oracle is similarly
               | positioned. Their database software is just one piece of
               | a much larger ecosystem of products. An "enterprise
               | solution", if you will. Oracle actually competes with
               | VMware in the broader enterprise space.
        
             | treesknees wrote:
             | > KVM performance is orders of magnitude better than VMWare
             | 
             | Do you have any sources for this? I worked at a company
             | developing NFV appliances, we always had much higher
             | network throughput on VMware than we did using KVM without
             | using some type of convoluted vswitch alternative or PCI
             | passthrough.
             | 
             | VMware isn't just a hypervisor, it's an entire ecosystem of
             | VM management and orchestration. You can tie it into AD,
             | delegate different permissions and roles to users/groups,
             | manage upgrades, interact with PowerShell and other APIs,
             | it has integration into Dell and Cisco solutions, all sorts
             | of additional features you won't find running CentOS and
             | KVM without adding more 3rd party software on top and
             | cobbling it together.
        
               | gregmac wrote:
               | > VMware isn't just a hypervisor, it's an entire
               | ecosystem of VM management and orchestration. You can tie
               | it into AD, delegate different permissions and roles to
               | users/groups, manage upgrades, interact with PowerShell
               | and other APIs, it has integration into Dell and Cisco
               | solutions, all sorts of additional features you won't
               | find running CentOS and KVM without adding more 3rd party
               | software on top and cobbling it together.
               | 
               | This is it, really. For big companies this kind of stuff
               | is important.
               | 
               | And "cobbling it together" is very much understating the
               | effort involved to keep it running: eventually you'll
               | upgrade one of the components and it will break
               | something, because you didn't read the release notes of
               | an upstream dependency that mentioned a breaking change
               | that affects your particular setup.
               | 
               | Having the vendor (vmware) provide this as a delivered,
               | tested, supported solution is _so_ much easier.
               | 
               | Similarly, I suspect it would be significantly simpler to
               | find IT firms and/or hire individuals with VMware
               | knowledge than it would be to find the equivalent on KVM
               | + Cockpit + the dozen other components you need.
               | 
               | Note: I'm not saying this is right or the way things
               | _should_ be, but simply pointing out the  "enterprise"
               | perspective. Boring technology is safe.
        
               | foobiekr wrote:
               | Same. VMware leagues better than the various horrible
               | Openstack deployments some customers want to use.
               | 
               | I have in depth knowledge of kvm and the issue isn't kvm
               | it's everything else.
        
               | nimbius wrote:
               | colour me unimpressed. VMWare cheerleaders haul out
               | openstack as their touchstone example of how hard VM's
               | are in linux but forget that VMWare pales in comparison
               | to what Openstack is, which is an entire full-stack cloud
               | hosting provider with accounting, DNS, tenant metering
               | and network delegation, and support for k8s.
               | 
               | Start comparing VMWare against Proxmox, which is an out
               | of the box solution anyone can use and includes every
               | single feature of ESX and many vsphere features youd
               | easily lose your shirt for. https://www.proxmox.com/en/
               | 
               | heres an independent performance test. KVM is easily
               | faster than ESX.
               | 
               | https://www.spec.org/virt_sc2013/
        
               | scarface74 wrote:
               | You don't grok "the enterprise". Any CTO of a large
               | company would feel much better about having VMWare behind
               | them and their ecosystem than your proposed solution.
               | 
               | "No one ever got fired for buying IBM" applies equally to
               | big enterprise SaaS providers and companies like Oracle,
               | Microsoft, VMWare, Salesforce, etc.
        
               | rad_gruchalski wrote:
               | I learned this lesson in an interview once. I was bullish
               | on sap pricing and the cost of consultants. The person
               | from top management, multi-billion chemical, said "you
               | think we have no money"? They did, 2 years later they've
               | opened a brand new building to fit a 1000 of those
               | consultants.
        
             | mbreese wrote:
             | _> if you dont care about performance or features _
             | 
             | Bingo! If you are a manufacturing company, you care about
             | two things:
             | 
             | 1) does this software do the job I need?
             | 
             | 2) does this software cost less than the value I get out of
             | using it?
             | 
             | If the answer is "yes and yes" then -- congratulations! you
             | made a sale!
             | 
             | Sure, if some other company comes in and says "hey, I can
             | do the same job, but cheaper," the customer would listen.
             | But so long as the software works _good enough_ , then the
             | externalities of support contracts, billing, "enterprisey-
             | stuff" may matter more than features or performance.
        
             | ghaff wrote:
             | >if you dont care about performance or features and believe
             | the marketing
             | 
             | I don't except to the degree that the product is more or
             | less suitable for my business needs. And note I said
             | product, which KVM by itself is not. If I'm going to use
             | KVM--and, yes, I likely would rather than VMware unless I
             | otherwise needed VMware for some reason--I'd be buying it
             | as part of a supported commercial Linux distribution.
        
             | scarface74 wrote:
             | Would you suggest that all companies write their own office
             | suites? Manage their own SSO solutions? Manage their own
             | mail servers? Manage their own expense system (Concur)?
             | Manage their own payroll (ADP)? Every small company manage
             | their own benefits (Insperity)? Do whatever Workday does?
             | 
             | The health care organizations overwhelmingly use third
             | party EHR/EMR systems and schools use third party companies
             | for enrollment (Blackboard).
             | 
             | It doesn't make sense to bring any those in house.
        
             | eatYourFood wrote:
             | lulwut?
             | 
             | I've got several clients that pay over 500k/year to a SaaS
             | ERP vendor. The ERP system is the very definition of
             | enterprise software.
             | 
             | What would you suggest I advise my clients when it comes to
             | their finance, inventory, order management, logistics etc?
             | 
             | I guess they could piece together various SaaS solutions to
             | create some sort of composable microservice based system to
             | meet their needs but that's a massive engineering overhead
             | when they can just get all of the functionality they need
             | on one big fat enterprise ERP system.
             | 
             | The cosmetics manufacturer I work with does not care about
             | what the technologists (people like you and me) care about.
             | They just want to run their manufacturing and wholesale
             | operation and if Oracle are offering one system that does
             | it all, why wouldn't they take that deal?
        
             | rconti wrote:
             | No, it only ever works if you care about your core
             | competencies more than performance or features of the
             | software products you run your business on.
             | 
             | Remember, not only are most non-software companies better
             | at their business than they are at software, they're also
             | not hiring from the same tech talent pool, they're not
             | paying their tech people as much, they're not letting the
             | tech run their business.
        
           | JohnJamesRambo wrote:
           | Sounds like a tax for stupidity and laziness, like AWS. This
           | is how I feel about most B2B companies and software. I wonder
           | how a recession and the end of free funny money will change
           | that whole sector?
        
             | xbar wrote:
             | Small companies will fail and vanish. Large companies will
             | layoff employees and reinvest in technology to leverage the
             | ones that remain. B2B software companies would do well to
             | retain existing developers and grow their teams if possible
             | to meet scaling demand and cover feature gaps in existing
             | product lines as part of normal business.
             | 
             | One part of the dynamic, simplified: big companies can show
             | quickest cost savings by laying off employees; this
             | satisfies anxious shareholders during the bumpy times by
             | suggesting that management is wiling to make "hard
             | decisions." Such companies cannot quickly re-tool their
             | technology stacks nor renegotiate 3-year software
             | contracts. B2B companies tend to do very well as long as
             | they are not solely focused on their startup/growth/pre-IPO
             | customers, who get hit hard.
             | 
             | Here are some arguments for post-downturn tech growth: 1981
             | and the use of the PC + Lotus/WordPerfect/BASIC for
             | efficient local compute 1990 and the surge of the LAN to
             | replace centralized IT 2001 and the swell of SaaS 2008 and
             | the swell of cloud 2022 and the .....
        
             | rootusrootus wrote:
             | If you're right, then this looks like a great opportunity
             | to outcompete these dumb, lazy companies that don't know
             | how to run a business.
        
             | jjice wrote:
             | > Sounds like a tax for stupidity and laziness
             | 
             | I pay a barber to cut my hair. Sure, I could learn how to
             | cut my own hair, but there's a good chance I'll spend a lot
             | of time and still mess it up.
             | 
             | I pay a mechanic to fix my car for serious repair. Sure, I
             | could learn how to replace a transmission, but there's a
             | good chance I'll spend a lot of time and still mess it up.
             | 
             | If these (and the endless examples of paying professionals)
             | are a tax for stupidity and laziness, then everyone is lazy
             | and stupid. If you're not a software company, there's a
             | good chance it's worth it to save the time to pay someone
             | to set it up for you. Also, if Joe's Fish Market wants a
             | POS system and needs a server for it and he decides to set
             | it up himself, if he gets it up and running, what are the
             | chances it'll stay up to day and not have a firewall issue?
             | Probably pretty low compared to if a professional did it.
             | 
             | Joe wants to focus on selling fish. That's where he's a
             | pro. I don't know anything about fish, but I could set up a
             | server for him. We all have our own skills, and it's often
             | worth while to leverage other people's skills, because
             | they'll do it faster, better, and it will likely end up
             | cheaper after time and security are taken into
             | consideration.
        
               | yobbo wrote:
               | > I pay a barber to cut my hair.
               | 
               | Meaningless analogy. Here some other meaningless
               | analogies:
               | 
               | Why would anyone ever own a frying pan? Not only do you
               | need to rent a stove, you also need to hire a chef to
               | cook with frying pan, you need a station with chefs that
               | prep ingredients and so on. Just go to a restaurant.
               | 
               | You pay a mechanic to fix your car? Why would anyone ever
               | own a car when you can rent a car whenever you need one.
               | 
               | You pay a barber to cut your hair? Why not just wear a
               | wig!
               | 
               | And so on ...
        
               | depaya wrote:
               | There are other good replies to you, but one other thing
               | I'll add: for a lot of companies it is much much easier
               | to pay a steady $xxx/month than it is to pay a large
               | amount up front and budget for unknown variable costs
               | down the road.
        
               | scarface74 wrote:
               | Actually, I seriously have been thinking about not owning
               | a car ever again. We are the typical two car family. But
               | I went a year without a car and I still go weeks on end
               | without a car when my son needs it.
               | 
               | Uber is actually cheaper for me than a car + insurance +
               | maintenance. I work from home. I'm going to give my car
               | to my son when we move.
               | 
               | When I need to see my parents 200 miles away, I can hop
               | on a small plane for $300 round trip and just work from
               | there for a week.
        
               | jnovek wrote:
               | I lease a car every four years in part so that I don't
               | have to deal with the inevitable car repairs that come
               | after that point.
               | 
               | For some -- but not all -- people, that's a preferable
               | option.
               | 
               | For some -- but not all -- companies, enterprise tech is
               | a preferable option.
        
               | yencabulator wrote:
               | I typically own cars 4-10 years old. I'm currently still
               | happy with a 2008 model that has had exactly one non-
               | maintenance, non-upgrade, cost -- which wouldn't even
               | have prevented using it in any way, I just like the
               | emissions system to be as eco-friendly as it can.
               | 
               | "Inevitable repairs after 4 years" is just a delusion,
               | and silly.
               | 
               | Might I suggest you be honest with yourself and say you
               | like the new car feel? Maybe even like it as a status
               | symbol? Don't want to think about what tires to buy to
               | replace worn-out ones?
               | 
               | I'm the opposite. I like having a scuffed-up car (or in
               | this case, jeep), with dogs climbing all over the seats
               | and sand everywhere from going off road. I'd rather use
               | the thing and have fun on the trip.
               | 
               | Even if I drove my jeep off a cliff, called it a total
               | loss, and got nothing back from insurance, I'd lose less
               | money than you lost in 3 years of leasing -- and I've
               | already had the thing longer than that.
        
               | jnovek wrote:
               | "Might I suggest you be honest with yourself and say you
               | like the new car feel? Maybe even like it as a status
               | symbol? Don't want to think about what tires to buy to
               | replace worn-out ones?"
               | 
               | Dead wrong.
               | 
               | I lease the cheapest car that is practical for my
               | situation. I consider cars completely utilitarian tools.
               | I get no joy from them, I hate driving and take public
               | transit whenever I can.
               | 
               | I had very little money until I was in my late 20s when
               | my career prospects finally took off. Cheap cars that
               | failed frequently were a constant source of anxiety
               | because I couldn't get far enough ahead to maintain
               | savings. When my career improved and I could afford small
               | luxuries, I spent the money on leasing because I wanted
               | to avoid the anxiety of cars breaking down. It was a gift
               | to myself to lower my stress level.
               | 
               | EDIT: also, in northern Minnesota where the winters are
               | hard and everything is covered in salt, car trouble DOES
               | start after 4 years. Sometimes before.
        
               | rconti wrote:
               | Wow, you argued with the parent about their own
               | priorities, and then proved their point anyway.
               | 
               | Yes, they don't want to think about what tires to buy. Or
               | whether it needs to be fixed or not. The fact that
               | repairs are not in inevitability but a possibility is
               | part of the point.
               | 
               | The parent is making the point that they're rather throw
               | money at the problem and not have to think about it, not
               | that they've precisely run the numbers on all of the
               | possibilities and decided their outcome is the most cost-
               | effective.
        
               | vel0city wrote:
               | Why would you pay for municipal water supply? Just
               | laziness. Put a well in instead and maintain it.
               | 
               | And when putting in the well, why would you _pay_ someone
               | else to dig it for you? Just laziness. Dig it yourself!
               | 
               | And then when digging the well, why would you rent the
               | drill? Just laziness, outsourcing the maintenance and
               | ownership costs to someone else.
               | 
               | And then why bother buying the drill at some market where
               | they're then manufacturing the drill for you? Pure
               | laziness. Just make the drill yourself!
               | 
               | Or maybe, you just go with a trusted service instead of
               | learning how to manufacture digging equipment when all
               | you really want is running water.
        
               | teh64 wrote:
               | For the first two, there are definitely people how live
               | like that, because of _surprise_ tech companies like Uber
               | making it possible.
               | 
               | Also literally everyone and every company relies on
               | someone else to provide some services or hardware to
               | enable people to do their job and live. Even this
               | conversation could not even happen without other people
               | making sure internet connections are kept stable. This
               | whole "one person is an island" ideology is not something
               | a lot of people subscribe to.
               | 
               | Some companies don't want to spend time doing software
               | things that are not core to their business, so they pay
               | other companies which _sometimes_ do it better. Most
               | definitely not always, but for some companies it would
               | still be better than some in-house hodgepodge.
        
               | filmgirlcw wrote:
               | I mean, people do most of those things (the wig analogy
               | is a bit off but people do get weeves and extensions) --
               | not everyone, but I don't cook, as an example. I own a
               | frying pan, but I don't know the last time I've ever used
               | it. As a general rule, I don't cook.
               | 
               | And many, many people don't own a car, not because they
               | can't afford one but because it makes more sense to rent
               | one or hire a car service when needed. Frankly, my dream
               | scenario is to have enough money to hire a personal
               | driver who is on-demand and at the ready when I need to
               | go out and do things. For plenty of people, that's
               | anathema. But for me, I don't like driving (or cooking)
               | and I'd much rather pay someone to do it for me.
               | 
               | The same is true for software. I like tinkering with a
               | lot of my own software, but if I was building my own
               | business, I sure as shit would rather pay for an
               | established company to handle some of the grunt work,
               | rather than hiring dedicated teams that in aggregate
               | would cost a lot of money.
               | 
               | The rise of SaaS and PaaS isn't just laziness. It's a
               | recognition that for a lot of people, even developers,
               | we'd rather entrust a lot of the operations and IT work
               | to someone else.
        
               | yobbo wrote:
               | > The rise of SaaS and PaaS isn't just laziness.
               | 
               | My point is that none of the analogies are arguments for
               | (or against) SaaS, or in this case "brand name"
               | enterprise software.
               | 
               | Whenever any of these comically banal analogies are
               | brought out to sell something, the intention always seems
               | to be to suspend critical thinking.
               | 
               | There exists many legitimate arguments, for many things.
               | They never begin with "why would anyone need a frying
               | pan".
        
             | lp0_on_fire wrote:
             | Would you consider a chef who buys produce from the market
             | as opposed to buying a farm and growing it on their own
             | "stupid and lazy"?
        
               | JohnJamesRambo wrote:
               | It's more like being a chef and paying another company to
               | cut up your ingredients for you and cook them.
               | 
               | Companies these days just want to specialize in making
               | cool menu designs and marketing and waiting on the three
               | star Michelin review to roll in somehow.
        
               | simiones wrote:
               | > It's more like being a chef and paying another company
               | to cut up your ingredients for you and cook them.
               | 
               | That would be like a Hypervisor company paying VMWare to
               | re-distribute ESXi or something.
               | 
               | But a farm company buying VMWare ESXi to run its IT infra
               | instead of using, say, CentOS is exactly like a chef
               | sourcing ingredients instead of growing them herself.
        
               | teh64 wrote:
               | That is not the same analogy, because a chef's job is to
               | make food, but say a trucking companies job is not to
               | create GPS and mapping software, or some HR tool which
               | tracks sick days etc... The difference is what the core
               | competency of the company is.
        
           | nousermane wrote:
           | Exactly. Most "enterprise" software competes with a team of 3
           | doing it all in excel. At this rate, $100k/yr is a bargain.
        
             | FredPret wrote:
             | I do ERP and the thought of replicating it in Excel...
             | yikes. For a big company you'll need a team of hundreds and
             | a huge surplus of sanity, and you'll still have a worse
             | outcome.
             | 
             | An ERP is basically a database with an interface with
             | business logic built in. Certainly not something you want
             | to do in Excel.
        
             | foobiekr wrote:
             | When people talk enterprise they are talking 2000+ person
             | companies. They are not doing their ERP payroll etc using
             | excel.
        
           | tnel77 wrote:
           | Because Linux is fun! /s
        
           | indymike wrote:
           | > Why should enterprises deal with Linux directly?
           | 
           | Um... perhaps because it is less costly and will lead to
           | better capabilities, more reliability, less complexity than
           | burying it under 18 layers of apis, containers, and virtual
           | machines.
        
             | adrr wrote:
             | If you think there is efficiency gains in terms of cost
             | savings. Why don't you do a startup to try to go after the
             | enterprise software market? We spend millions on ERP, PLM,
             | SCM,WMS, etc. We would gladly move to cheaper solutions
             | that offered the same feature sets. I don't have choice
             | about VMWare because a bunch of software requires on-prem
             | hosting due to latency(need sub 10ms for sensors) and the
             | software is built on top of windows.
        
             | noizejoy wrote:
             | > ... perhaps because it is less costly and will lead to
             | better capabilities, more reliability, less complexity than
             | burying it under 18 layers of apis, containers, and virtual
             | machines.
             | 
             | Over the years, I've come to suspect that maybe the
             | technology is less of a differentiator in the overall
             | effectiveness of a company's IT environment than the people
             | running it.
             | 
             | And with IT staffing supply having lagged behind demand (as
             | also evidenced by relatively high salaries in IT vs many
             | other professions), you could easily argue that it was
             | (still is?) historically more difficult to hire good IT
             | people than in many other professions.
             | 
             | And arguably that's making outsourcing of IT needs
             | relatively more attractive than outsourcing of other
             | business functions where reasonably competent leadership
             | and staffing is easier to come by.
             | 
             | And arguably, capturing many of the benefits of Open Source
             | require more IT competency than using off the shelf
             | mainstream commercial software. If I'm using the same crap
             | that everyone of my competitors is using, none of us win or
             | lose on that. But when using Open Source, I'm more likely
             | to depend on the quality of my IT leadership and staff to
             | outcompete my competitors. And unless a CEO is quite IT
             | literate, s/he probably doesn't want that additional
             | headache of becoming good at figuring out how to hire good
             | IT leadership.
             | 
             | So I'd hazard a guess, that insourcing and the use of Open
             | Source will become more attractive for many corporations
             | only if/when IT salaries drop more in line with other
             | professions.
        
           | yobbo wrote:
           | > but needs software to run its business
           | 
           | In this case, they have no need for VMWare or Oracle.
           | 
           | Actually, the parent comment is on to something. "Brand name"
           | enterprise software is a buoy that certain types of
           | careerists handcuff themselves to, which allows them to float
           | through their careers fairly unchallenged.
           | 
           | At one point in time, IBM had this market position. Then
           | Microsoft, Oracle, and now Amazon and Google.
        
             | hnarn wrote:
             | > Actually, the parent comment is on to something. "Brand
             | name" enterprise software is a buoy that certain types of
             | careerists handcuff themselves to
             | 
             | Or maybe, just maybe, really big corporations that make
             | software solutions are often really big because their
             | solutions are, if not feature-wise the absolute best, by
             | far the most stable and reliable?
             | 
             | If one were to buy your argument, that would be like saying
             | that businesses buying the Google Apps suite is
             | nonsensical, because the only reason you'd ever use Google
             | is because you're a "careerist" that "only know" Google.
             | 
             | That's obviously not true, Gmail and the rest of the Google
             | suite have been market-leading for many years, because they
             | are good solutions that solve real problems. Presumably the
             | same thing goes for the Microsoft Office suite, and so on.
        
               | yobbo wrote:
               | People are now starting careers as Office 365 "officers".
               | From now until retirement, they will champion Office 365
               | and its successors in all situations, because in effect
               | they will be championing their own CVs.
               | 
               | Just like people did with IBM, Oracle, J2EE, and so on.
               | 
               | If at one point Google Apps is superior to Office 365
               | makes no difference.
               | 
               | The insight is that _the careerists_ are the effective
               | insider salesmen of enterprise software. Not specs,
               | benchmarks, stats or anything like that.
        
               | hnarn wrote:
               | Why can't multiple things be true at the same time?
               | 
               | The idea of product "officers" can be bizarre and counter
               | productive, while that product simultaneously can be one
               | of the best in the market.
               | 
               | I'm not saying that O365 is great, I use it at work and I
               | hate it, but enterprise software has always been like
               | this: it's not enough to be better, you need to be
               | something like 3x better, but if you are it doesn't
               | matter if you're going up against Microsoft. Software is
               | a lot more competitive in that way than a lot of other
               | industries.
        
               | yobbo wrote:
               | The pain occurs because of the symbiosis between
               | technical lock-in and careerists.
               | 
               | If a tech company has achieved both technical and
               | organizational lock-in (or maybe "capture"), specs don't
               | matter.
        
               | scarface74 wrote:
               | It doesn't matter if Google Apps itself is superior.
               | Google is not exactly known for its enterprise support.
               | You also can't count on the long term focus of Google.
               | You know when you buy into the MS ecosystem you are going
               | to get great enterprise support, they don't have the
               | attention span of a crack addled flea like Google does,
               | it's going to integrate well with the rest of their
               | products, you get deep discounts from bundling.
               | 
               | Specs and benchmarks only matter to geeks.
        
               | amenod wrote:
               | Gmail is a market leader only because it is good enough
               | (and at the start it was even better than competition)
               | and because it was _free_ - and still is for some cases.
               | Can 't comment on Google Apps, never used them.
               | 
               | Otherwise, I'm not sure I would put Google in the mix
               | with Oracle / MS and others. They are firmly non-
               | enterprise, in that it is notoriously difficult to get
               | any support from them, even if you are paying (there are
               | exceptions, yadda yadda...). With Oracle, their products
               | may suck (and they do), but the company knows to answer
               | the phone for their customers, otherwise they won't be
               | able to sell that beefy contract in a few months' time.
               | 
               | > Or maybe, just maybe, really big corporations that make
               | software solutions are often really big because their
               | solutions are, if not feature-wise the absolute best, by
               | far the most stable and reliable?
               | 
               | Oracle? Lol.
        
               | vel0city wrote:
               | > Can't comment on Google Apps, never used them.
               | 
               | > They are firmly non-enterprise
               | 
               | So you acknowledge you don't really have knowledge of the
               | _core_ enterprise suite Google sells to enterprises, but
               | at the same time you 're certain they're non-enterprise?
               | 
               | Google Workspace (the new-ish name for Google Apps) is
               | _absolutely_ enterprise. They definitely have enterprise
               | support contracts, and the few times I 've had issues
               | _while having a support contract_ they have been easy to
               | work with.
        
               | scarface74 wrote:
               | > Google Workspace (the _new-ish_ name for Google Apps.
               | 
               | You hit the nail on the head why enterprises stay away
               | from Google. They are going to lose focus on it as soon
               | as no one internally can justify maintaining it to
               | enhance their careers and show "scope" and "impact".
        
               | vel0city wrote:
               | They've been selling Google Workspace for 16 years. Its
               | one of the biggest MDM platforms out there. ~~There are
               | over 2 _billion_ users of this paid enterprise suite.~~
               | Guess I was wrong on that figure,  >2 billion users with
               | >6 million paid subscriptions.
        
               | scarface74 wrote:
               | Those are non paid users
               | 
               | https://www.computerworld.com/article/3637079/as-google-
               | move...
               | 
               | > As of March 2020, there were 6 million paid customers,
               | according to Google's most recent publicly available
               | stats.
        
               | vel0city wrote:
               | Ah, I misread their announcements.
               | 
               | There's still supposedly over 2 _billion_ users of these
               | services. Its not a small project with a niche client set
               | where absolutely nobody pays. Reader was popular, but not
               | 2 billion users popular. How many people do you think
               | really used Allo? Its really not in the same space as the
               | many products they 've killed.
        
               | scarface74 wrote:
               | It matters because Microsoft uses its much larger
               | _paying_ installed based to support a slew of first party
               | and third party companies to provide "enterprise
               | support". They have hundreds of people in sales that
               | report back to MS what large enterprises want.
               | 
               | People on HN don't grok "the enterprise".
               | 
               | I mentioned in another post, that even though I work for
               | $BigTech, I work in the cloud enterprise consulting space
               | (not Azure). Dealing with the enterprise is a completely
               | different beast than dealing with other tech companies.
               | Microsoft has almost four decades of experience in the
               | space.
               | 
               | Even on the personal side, I would much rather deal with
               | MS for my one lonely 5 person Office365 subscription than
               | Google support.
        
               | hnarn wrote:
               | I don't have direct experience with administrating
               | Oracle, but my impression is that they make a lot of
               | money from the moats they've built: but they would never
               | have been able to build them if the product was garbage
               | to begin with. Sure, nobody would probably pick Oracle
               | today for a new project almost regardless of size, but
               | surely there must have been a point in time when Oracle
               | was simply superior when it came to stability and
               | functionality? If not, their current size really makes no
               | sense, because you can't build a business on scamming
               | people in the long run.
        
               | tetha wrote:
               | 5 - 10 years back, Oracle was very far ahead of the
               | database game and there was no practical competitor
               | regarding performance, query optimization, storage
               | management and enterprisey management features. For quite
               | some time, if you needed a large central relational store
               | for a business, Oracle was the only answer.
               | 
               | The main change is that MariaDB and PostgreSQL have
               | caught up a lot of ground over the last years, so
               | OracleDB has been losing the edge they have been paid
               | for.
        
               | yobbo wrote:
               | > because you can't build a business on scamming people
               | in the long run.
               | 
               | When switching is effectively impossible, this is what
               | happens.
               | 
               | Oracle has been buying various application companies with
               | installed bases that are difficult to migrate away from.
               | They are essentially buying customers to milk after
               | putting in their enclosed pasture.
        
               | parasubvert wrote:
               | Switching isn't impossible, there are plenty of companies
               | that help you get off Oracle. It's just that it's risky
               | and time consuming, requires specialized knowledge, and
               | companies would rather pay up than deal with all of those
               | things. But this goes for almost any complex product on
               | the planet. Switching costs are high,
        
               | scarface74 wrote:
               | Gmail in no shape form or fashion a "market leader" in
               | the enterprise.
        
           | unabridged wrote:
           | Nontech companies are only using spreadsheets, forms, and
           | storage. But they spend their technical manpower on
           | implementing business logic in closed source locked-in
           | expensive software. I don't think its much more work just to
           | implement the business logic in excel/google sheets and
           | serverless functions, and end up with something much much
           | cheaper and much more portable.
        
           | squarefoot wrote:
           | > Why should enterprises deal with Linux directly?
           | 
           | Not just Linux but IT in general. It may have to be about
           | security; my impression is that at least some of the
           | widespread successful attacks in recent years might have been
           | prevented if non IT companies had their own IT department,
           | servers and in house security teams. Relying on an external
           | provider is cheap and comfortable, until the day a single
           | vulnerability screws all its customers data in a single day.
        
             | mfer wrote:
             | Having your own It department doesn't mean you'll be fine
             | for security. Plenty of health systems have their own IT
             | department and have been hit.
             | 
             | But, even thinking of health care systems is thinking of
             | big businesses. How does a road construction company
             | justify an IT department or security team? Think of
             | businesses like that. They have have an IT guy who manages
             | services they use and is an expert at using those.
             | 
             | Most businesses are small to medium in size and non-tech.
        
             | hnarn wrote:
             | > if non IT companies had their own IT department
             | 
             | I think you vastly underestimate the cost of on-prem IT,
             | especially for small and medium sized businesses. The
             | "floor" cost of your own IT is many, many orders of
             | magnitude higher than a subscription to something like
             | Office 365 for something like 50 people.
             | 
             | "Normal" people don't use cloud services because they're
             | lazy, they do it because the economics of rolling your own
             | IT does not make sense, and hasn't since the days when it
             | stopped being your only option.
        
             | imwillofficial wrote:
             | I work in this area and it's the opposite.
             | 
             | Small businesses with in house It get hacked waaaaasy more.
        
         | ghaff wrote:
         | Whether or not those specific companies are good deals absent
         | legacy requirements, how many engineers can you hire for that
         | $100K+ to DIY? And how are you going to convince your auditors
         | that you're taking appropriate steps to mitigate your risk?
         | Companies broadly need to make build vs. buy decisions about a
         | _lot_ of things and they should generally be pretty selective
         | about what they build.
        
         | [deleted]
        
         | geodel wrote:
         | Yeah, a lot of companies which are raising world's
         | consciousness wouldn't buy the grubby enterprise software.
        
         | rr808 wrote:
         | I work for a regular corp. We have a lot of servers, our annual
         | hardware bill is 8 figures (just for our single project), more
         | than our developer's wages. 100k is a drop.
        
       | DebtDeflation wrote:
       | Not sure I understand the expected synergies here. Broadcom's
       | main business is making embedded chips for networking and storage
       | devices. Is this just a pure diversification play?
        
         | MangoCoffee wrote:
         | yes consider Broadcom bought Symantec.
        
         | dralley wrote:
         | >Is this just a pure diversification play?
         | 
         | Probably. 6 months ago they were looking at acquiring SAS
         | (which didn't go anywhere). The core competencies for that of
         | those companies are even less related to what Broadcom does.
        
       | martypitt wrote:
       | I wonder if this will have knock-on repercussions into the JVM
       | stack, since VMWare owns Pivotal, and Pivotal create Spring.
        
         | ulkesh wrote:
         | Yeah this has me a little concerned, but only a little at this
         | time. The only reason I'm not feeling any major anxiety yet is
         | due to the ubiquity of Spring libraries/frameworks/products.
         | They're everywhere used by thousands of companies, so it would
         | be unlikely that this acquisition would have any dramatic
         | changes for Spring. Perhaps a change in ownership or governance
         | will occur, but hopefully there will be little or no impact.
        
       | mysterydip wrote:
       | "to speed up its expansion into the enterprise software
       | business."
       | 
       | Why does a chipmaker want/need to expand into enterprise
       | software? Shouldn't they be expanding to making different chips?
        
         | mbesto wrote:
         | Why not both? There's no reason _NOT_ to get into enterprise
         | software. You have hundreds of sales people selling chipsets to
         | enterprise and you 're telling me it would be dumb not to have
         | them increase their attach rate?
        
           | AlphaSite wrote:
           | Tens of thousands of sales people.
        
         | nwatson wrote:
         | In 2021 Broadcom semiconductor revenue was $18.8B out of $27.5
         | billion. Broadcom has a large portfolio of enterprise software
         | offerings.
         | 
         | The web page for their software offerings is at
         | https://software.broadcom.com/ . The interesting thing you'll
         | notice is that they do not list any specific software they
         | offer (e.g. Symantec for enterprise security, which by the way
         | is separate from Norton now). Rather they sell you on their
         | ability to deliver on four specific enterprise functional
         | needs.
         | 
         | They won't answer your call to buy their suite unless you're in
         | the Fortune 500. They will try to sell you on their whole
         | suite. They will upsell you on any new acquisition, eg VMWare.
         | 
         | They might renew my personal VMWare Fusion license for another
         | year but would probably close that down soon for not being
         | core. On the M1 I've moved on anyway to UTM.
         | 
         | EDIT: word choice
        
           | sitkack wrote:
           | https://github.com/utmapp/UTM
           | 
           | The cool thing about UTM is that it runs hardware virt and
           | emulation, so you can run x86 on M1, which Vmware Fusion
           | cannot do.
        
             | temac wrote:
             | x86 on M1 through Qemu is very slow though. Not really
             | usable to run Windows 10 in good conditions, for example
             | (good news is that this is rarely needed, Windows on Arm
             | running x86 and x64 programs seems quite good)
        
         | true_religion wrote:
         | Pairing virtualization software tech with hardware chipsets
         | that directly support it seems like a good plan.
        
           | fujidust wrote:
           | I think this is the play. They can create or influence
           | standards that favor their new position - build vertical
           | integration where others in this space cannot.
        
             | TomVDB wrote:
             | Absolutely not.
             | 
             | You're thinking that Broadcom acts as a company with a
             | technological vision. This is a totally not the case and
             | the CEO is very open about that.
             | 
             | Today's Broadcom is a company that optimizes the financial
             | performance of technology assets.
             | 
             | There are no long term plans.
        
             | mysterydip wrote:
             | Wouldn't that be an abuse of monopoly though? If VMware
             | suddenly starts supporting broadcom hardware better than
             | other enterprise hardware.
        
         | [deleted]
        
         | xadhominemx wrote:
         | Broadcom likes to buy big companies with big moats that trade
         | at a reasonable multiple because they have a mature growth
         | profile. There are no more chip companies left with that
         | profile except Qualcomm, which they tried to buy, and maybe
         | Intel although their moat is fading. So they pivoted to
         | software.
        
         | vinyl7 wrote:
         | IIRC Broadcom was sold to an equities group some years ago, so
         | it's not really broadcom the chip manufacturer...but rather an
         | investment company for tech
        
         | nikanj wrote:
         | Because they want something that's not affected by the chip
         | shortage.
        
           | xadhominemx wrote:
           | No, that is just incorrect. Please don't speculate if you
           | don't know what you're talking about.
        
             | sitkack wrote:
             | I think you misunderstand the point of HN, that is
             | basically the _only_ thing that occurs here.
        
               | xadhominemx wrote:
               | I know, but if someone just flat out makes something up
               | I'd hope they'd hedge their language a little bit.
        
             | strunz wrote:
             | This was reported by multiple financial news organizations,
             | what makes you so confident it isn't true?
        
               | xadhominemx wrote:
               | I am very confident this is not true. I am certain I know
               | Broadcom's corporate strategy and views on the semi cycle
               | better than any financial journalist.
        
         | BoGs83 wrote:
         | Because corporate capitalism and investors expect ever higher
         | returns. So a company that does good at what it does needs to
         | look at new revenue sources to please investors which after a
         | while just does mediocre at everything.
        
       | spaintech wrote:
       | I have a very different view on this purchase, and I f my thesis
       | is right, then it just might be the best move ever ( Michael Dell
       | has certainly won again with this deal.) Here is my vie, VMware
       | has become the OS of the private cloud. Sure Linux based, but
       | from an enterprise perspective, VMWAre is closer to the HW than
       | any other OS. Considering that Broadcom is a HW company, and that
       | they are looking to fend off Qualcomm, Amd, and Intel as key
       | competitors, should they move to build ARM or RISK-V based server
       | for the enterprise, they could be at a mejor advantage on those
       | CPU architecture. Just a thought from over the pond, but they
       | could buy Ampere and be in that market very well positioned to
       | take in the Enterprise space end to end, they would only need
       | storage if you don't consider VSAN as a valid solution in that
       | space. Tim will tell.
        
         | gmassman wrote:
         | Who's Tim?
        
         | sokoloff wrote:
         | It might be the hypervisor and related ecosystem of private
         | cloud today, but I wouldn't bet $61B on VMWare against the
         | entire field (xen/kvm in Type 1, and all the container
         | solutions) for 2027.
        
       | e40 wrote:
       | I wonder if VMware Fusion will get worse or better, because it
       | got so bad I switched to Parallels. This was after being a
       | customer for a long time.
        
       | vkat wrote:
       | For anyone who doesn't know, VMware has doubled down in open
       | source in the past 3 years, especially Kubernetes. I don't think
       | Broadcom really understands how investment in open source works
       | or for that matter cares.
       | 
       | Half of my org of ~500 engineers works on upstream projects.
       | 
       | Disclaimer: Current employee of VMware
        
         | colechristensen wrote:
         | I would be mildly interested in a 5 minute pitch of what VMware
         | is offering these days, it's been 15 years since I've touched
         | any of their products and the way they were doing things then
         | really seems like it is becoming increasingly irrelevant so
         | what have they been doing instead? It looks like my vague guess
         | of "the same but also on top of cloud providers" seems to be
         | about right given a quick glance at their website, but I'm
         | curious to know a bit more.
        
           | silksowed wrote:
           | vmware enterprise footprint and business still seems to chug
           | along. most of the world markets lag behind hyperscale
           | technology progress.
        
           | geodel wrote:
           | They have this VMware Tanzu platform which is like Red Hat
           | Openshift. A heavily customized application packaging ,
           | deployment management solution on top of Kubernetes. It can
           | be deployed on any cloud and on-prem DCs. So kinda multi
           | cloud bet. They are selling it in a big way.
        
             | awild wrote:
             | They also offer tanzu as on prem cluster where you can
             | somehow use kubernetes to provision kubernetes virtualised
             | kubernetes clusters.
        
             | awill wrote:
             | What does "They are selling it in a big way" mean? I've
             | never heard of it, and neither have any of the software
             | engineers who are next to me at the office. RedHat
             | OpenShift also bombed. They had a great start 11 years ago,
             | but then didn't innovate, and worse, released a 2.0 that
             | wasn't backward compatible. They used the 2.0 release as an
             | excuse to kick off all free plans. What a joke. There's a
             | reason Red Hat isn't a leader in Cloud.
        
               | parasubvert wrote:
               | They also released a 3.0 and 4.0 of OpenShift that
               | weren't backwards compatible :-)
               | 
               | Yet OpenShift is making bank. You'd be surprised how much
               | money they make on AWS, Azure, and Google.
        
               | emptysongglass wrote:
               | OpenShift is fantastic and I wouldn't hesitate to
               | recommend it to any medium sized startup and up. I run it
               | in my closet. Most medium sized startups end up building
               | out an OpenShift-like K8s but they use 6 months to a year
               | plus to do it.
               | 
               | Upgrades within major versions are totally painless, one-
               | click affairs.
        
           | vinceguidry wrote:
           | They still make the best virtualization software for OSX. I
           | use it daily to run desktop Linux on OSX. Video drivers seem
           | to be having a tough time with Electron apps these days,
           | sigh.
        
           | luma wrote:
           | They own a substantial chunk of the on-premises datacenter
           | virtualization space. Loads of orgs still run their own kit,
           | and VMWare makes some damn nice tools to squeeze the most
           | from that investment. There are competitors in the space, but
           | none with the breadth and depth of VMWare.
        
           | parasubvert wrote:
           | VMware has several billion-dollar or more businesses...
           | 
           | - the core vSphere hypervisor and management software
           | 
           | - Vmware Cloud on AWS which is pretty big on its own, plus
           | other cloudy things like datrium / disaster recovery as a
           | service.
           | 
           | - cybersecurity (carbon black and secure state), which is
           | similar to what Symantec does, will be an interesting overlap
           | 
           | - endpoint management (security for desktops, mobile) which
           | was AirWatch
           | 
           | - management (monitoring & automation) aka. vRealize and
           | Cloud Health
           | 
           | - workspace / single sign on, similar to okta (Workspace ONE)
           | 
           | - virtual desktops (Horizon) which compete with Citrix
           | 
           | - software defined networking (NSX) which competes with F5,
           | Cisco, Juniper etc.
           | 
           | - modern apps (Tanzu) which is largely open source...
           | containers & developer tools & data services & agile
           | consulting, e.g. Spring, Apache Tomcat, RabbitMQ, Greenplum,
           | Wavefront, Bitnami / Kubeapps, Kubernetes, Cloud Foundry and
           | Pivotal Labs (now Tanzu Labs)
        
             | rsync wrote:
             | Fascinating ... your very comprehensive list does not
             | contain the only VMware products I have ever cared about:
             | workstation and fusion.
        
               | fuy wrote:
               | their main business for two decades has been datacenter
               | virtualization. Individual developers don't care about
               | it, sure, but it's a huge software business.
        
               | IshKebab wrote:
               | And has a lot of "similar to {thing I have actually heard
               | of}"
        
               | walterbell wrote:
               | A few years ago, most of the US dev team for workstation
               | was laid off in favor of a non-US team.
        
               | TMWNN wrote:
               | You run a well-known online backup company and I don't,
               | but my reaction was exactly the same: The only VMware
               | products I've ever cared about are Workstation and
               | Fusion, neither of which is on the list.
               | 
               | On the one hand, it's pretty cool that VMware has pivoted
               | so successfully over the past 15 years from being solely
               | focused on a hypervisor (or, I suppose in modern
               | terminology, "self-hosted cloud") business that the cloud
               | largely supplanted. On the other hand, it's sad for
               | someone like me, who used Workstation to run VMs at home
               | (I moved to VirtualBox), and have thought at times about
               | spinning up ESXi.
        
           | influx wrote:
           | I run esxi on my (admittedly beefy), home server. It is a
           | fantastic piece of software that can be completely controlled
           | through a web browser. I can easily spin up a couple of VMs,
           | interact with the install without having to use a remote
           | virtual keyboard/video switch, and the whole thing is rock
           | solid.
           | 
           | I could probably do a lot of the same thing with Linux
           | itself, but the web interface is so nice, I'm keeping it as
           | long as it continues to be free for home use.
        
             | stormbrew wrote:
             | I'd be really interested in an "i used both" comparison
             | between esxi's free offering and proxmox for this sort of
             | purpose. I imagine esxi might be more polished, but also
             | more limited.
        
               | pkulak wrote:
               | I use Proxmox and can do everything OP just described. I
               | would assume the esxi is more polished, but I don't spend
               | a heck of a lot of time on my hypervisor; mostly on what
               | it's hypervising.
        
               | nyx wrote:
               | I've used both, though not for anything especially
               | complicated. Your guess about the polish level is
               | correct; ESXi blows Proxmox out of the water interface-
               | wise, especially for some specific tasks like configuring
               | networks or managing PCI passthrough devices. As far as
               | "more limited" goes, I can't say I noticed much of a
               | feature discrepancy, although being open and just sitting
               | atop KVM, Proxmox doesn't have any of the artificial
               | limitations imposed by VMware (like a cap on number of
               | vCPUs in the free version, eugh).
               | 
               | One pretty big one, if you're looking at homelab use, is
               | that Proxmox is just Debian, so it's waaaay more likely
               | to run on crap-tier commodity hardware, whereas VMware
               | has all the usual enterprise-level support commitments
               | and so you're very much on your own if you try to force
               | it to run on hardware that isn't on their official
               | compatibility list.
        
               | influx wrote:
               | Excellent point on hardware support. I'm running several
               | years old Xeon chips in my server, and ESXI is already
               | complaining they might not be supported in a future
               | release.
        
             | bityard wrote:
             | You can do the same thing with Proxmox VE. IMO, Proxmox is
             | a much better choice for stand-alone VM hosts. The UI alone
             | is certainly miles better.
             | 
             | Where VMware shines is when you want to virtualize multiple
             | datacenters and manage them all from a single browser
             | window. Getting hundreds of hosts and datastores managed
             | all under one vCenter umbrella all while eliminating single
             | points of failure, while not trivial, is the bread and
             | butter of VMware and it works very well once it's all up
             | and running.
        
               | andyman1080 wrote:
               | not super critical but is there a terraform provider for
               | proxmox? I looked at proxmox a while back when building
               | my home server but went with esxi free because of the
               | community provider - https://github.com/josenk/terraform-
               | provider-esxi
        
         | laura2013 wrote:
         | I can only hope they let VMware operate independently and
         | continue growing like they've done in the past decade.
        
           | bobo_legos wrote:
           | One thing that I always gave Dell/EMC credit for was that
           | they at least outwardly seemed to have left VMware free to
           | their own thing. As opposed to a lot of their other
           | acquisitions that they bastardized in this rush to sell
           | enterprises on everything private cloud. We'll see Broadcom
           | ends up taking the same route.
        
             | vkat wrote:
             | Quite agree, Dell/EMC treated VMware as independent.
        
           | joedissmeyer wrote:
           | It is best to set your expectations extremely low for this
           | type of acquisition. My personal opinion: Broadcom is
           | _buying_ its way into the Enterprise technology space by hook
           | or crook. When Broadcom acquires a company their M.O. is to
           | immediately install finance-driven leadership and focus
           | strictly on cost cutting measures coupled with accelerated
           | profit-making endeavors. The only thing VMware employees have
           | to look forward to in the near future are layoffs, all types
           | of cost reductions, team consolidations (i.e. you do more
           | work with less resources) and severely reduced R&D. And the
           | only thing that VMware customers have to look forward to are
           | increased VMware costs, more vendor lock-in, reduced
           | satisfaction with support, and almost zero innovation.
           | 
           | Again, this is just my opinion so I could end up be wrong. Or
           | maybe I am just in a bad mood today... meh
        
             | sharken wrote:
             | Bad mood i hope.
             | 
             | Should Broadcom do all those things, they run a substantial
             | risk of degrading the products offered by VMware, which is
             | a poor business decision.
             | 
             | Given the very profitable state of VMware, it's a lot more
             | likely that they will only introduce minor changes.
        
         | TomVDB wrote:
         | After being acquired by Avago, Broadcom ceased to be a single
         | company. It's a conglomerate of entities/BUs that are
         | explicitly asked to NOT work cooperatively, so that each entity
         | can be sold at moment's notice if it doesn't deliver the right
         | financial results anymore.
         | 
         | Chances are that the current leadership doesn't care about how
         | VMware operates, as long as it cuts enough costs to increase
         | metrics that Wall Street considers important.
         | 
         | Expect major cuts in R&D, receptionists, travel expenses,
         | general benefits, and virtually no hiring of college grads or
         | interns. You'll be on the phone in a queue for hours to get
         | outsourced IT support.
         | 
         | Support of open source should be the least of your worries.
         | 
         | Stock price might go up though...
        
           | Thoreandan wrote:
           | Thanks for the clarification - it's the corporate-shoggoth of
           | HP>Agilent>Infineon+LSI>Avago "Broadcom Inc." not
           | underground-dungeon-scandal "Broadcom Corporation". Their
           | NASDAQ ticker is still AVGO. :)
        
             | rsync wrote:
             | ... and here all I wanted was updates to fusion and decent
             | HBAs...
        
           | imwillofficial wrote:
           | I was part of Symantec when we were acquired. I didn't agree
           | with all Broadcoms moves, but they empowered us to really cut
           | the fact and focus on what we were good at.
        
             | LeifCarrotson wrote:
             | Cut the fat, I think you mean.
             | 
             | Not sure if that was a typo, eggcorn, or pun on truth and
             | fiction post-acquisition...
        
               | imwillofficial wrote:
               | Thank you, I did indeed mean cut the fat. I need to cut
               | the fat on my fat fingers!
        
             | axus wrote:
             | I was very surprised when the product quality went up, for
             | the Symantec software I use.
        
         | hodgesrm wrote:
         | VMware learned their lesson from OpenStack, where emerging
         | upstream technology threatened their virtualization monopoly.
         | They also were forced to go in this direction by their
         | enterprise customers, who are very dependent themselves on open
         | source technology.
         | 
         | One of the opportunities at VMware is monetize the open source
         | investment more effectively, especially Kubernetes. I still
         | don't totally understand how they plan to do that but wish them
         | (you) all well.
         | 
         | Disclaimer: Former employee of VMware
        
           | WanderPanda wrote:
           | Given the situation of Docker, it doesn't look good for the
           | monetization of Kubernetes, or am I missing something (I'm
           | not too familiar with Kubernetes)?
        
             | m3adow wrote:
             | There's stuff like Openshift and Rancher as commercial
             | Kubernetes distributions as well as a lot of Kubernetes
             | "addons" like weave, portworx, etc. Monetisation of
             | Kubernetes is totally possible.
             | 
             | Docker failed because they tried to compete with
             | Kubernetes, lost and then didn't have a clue how to find a
             | niche where they could enrich the Kubernetes ecosystem.
        
             | houseofzeus wrote:
             | Docker didn't really attempt to monetize Kubernetes at all
             | until the writing was on the wall, instead they had their
             | own thing (Swarm) that they were pushing but most of the
             | ecosystem went in the other direction.
        
             | theptip wrote:
             | Given how pluggable k8s is, it should not surprise you that
             | there are companies at every integration point. Tigera for
             | network policy. Security policy vendors using admission
             | controllers to secure clusters. Linkerd/Istio for service
             | mesh. Storage vendors. Etc. Each integration point provides
             | a hook for someone to do better than the default behavior
             | and charge for it.
             | 
             | The ecosystem is thriving and because the k8s platform was
             | built to be pluggable; it is an actual platform. Docker
             | (the company) tried to monopolize and monetize when they
             | built Swarm, and that's why they lost the cluster
             | orchestrator space IMO. Docker (the tool) is just a tool,
             | not really something you can monetize easily. Docker (the
             | image format) is where most of the value lives, there isn't
             | much value to extract there as it's an open protocol.
             | 
             | Docker (the tool) was commoditized by k8s, and now there
             | isn't really any way to charge for a differentiated
             | implementation. Providing a registry and a best-in-class
             | Docker for Desktop experience isn't going to be a huge TAM.
        
             | outside1234 wrote:
             | The cloud vendors, that cooperatively are building
             | Kubernetes, are making bank off of Kubernetes.
             | 
             | Kubernetes is fine.
        
               | vkat wrote:
               | Multi billion dollar businesses. Just look at AWS EKS.
        
             | hodgesrm wrote:
             | The lack of monetization was mostly on Docker itself as far
             | as I can tell. For example, they could have offered secure
             | container supply chains years ago. Instead, companies like
             | JFrog got there first. Public cloud container repos are
             | another example. Amazon and others got there first with
             | products like ECS.
        
         | monocasa wrote:
         | Did they ever stop blatantly violating the GPL in ESX?
         | 
         | Taking driver code out of Linux and just running it inside the
         | hypervisor has to be the most brazen violations possible.
        
           | technothrasher wrote:
           | > Did they ever stop blatantly violating the GPL in ESX?
           | 
           | If you mean, did they remove the vmkLinux layer from their
           | product? Yes, they did, back in 2019 soon after they won the
           | lawsuit on procedural grounds (the court ruled the person who
           | brought the suit didn't have standing, and it was upheld on
           | appeal).
        
             | monocasa wrote:
             | It sounds like vmklinux is deprecated but still shipping
             | for older drivers if I'm understanding their documentation.
             | https://blogs.vmware.com/vsphere/2019/04/what-is-the-
             | impact-... vSphere 6.7 (which they're still supporting and
             | shipping updates to as it was only released last June),
             | includes the vmklinux driver stack.
             | 
             | For those reading along at home, that's a shim layer to
             | link GPLed code into the closed source hypervisor.
             | 
             | It's absurd that the company responsible for some of the
             | most blatant license violations in the industry (and is
             | still actively continuing to violate after a decade) is
             | trying to push itself as open source friendly.
        
       | 1024core wrote:
       | One thing I've noticed is that M&A activity really picks up just
       | before a downturn.
       | 
       | It's just a gut feeling, I have no data to back it up.
        
         | lostcolony wrote:
         | I mean...how do you define downturn?
         | 
         | If you mean recession, as defined by two consecutive quarters
         | of dropping GDP - if GDP drops, stock markets drop. Not sure
         | the directionality there, but the two are usually part and
         | parcel.
         | 
         | If stock prices drop, it's a great time for acquisitions if
         | you're sitting on cash.
         | 
         | I suspect any time stock markets drop sufficiently, you'll see
         | increased M&A activity, regardless of whether it is prolonged
         | enough to count as a recession.
        
       | acd wrote:
       | Ponders if it will payoff as an investment. Hyper visors are
       | nowdays commodity. Workloads are moving from enterprise onsite
       | datacenters to the cloud. Hyperscalers AWS,Google and Azure
       | running the cloud are running work loads on Linux KVM kernel
       | based virtual machines.
        
         | hnarn wrote:
         | > Workloads are moving from enterprise onsite datacenters to
         | the cloud.
         | 
         | This is something that the HN crowd repeats as if it were an
         | obvious axiom where no scrutiny is needed. While I'm sure it's
         | true that there's a _general_ movement towards cloud-based
         | infrastructure, there is a very real and non-trivial part of
         | the IT infrastructure of any country that will not move to the
         | cloud in the coming decade, if it ever will. This general
         | movement is not the same thing as  "everything will eventually
         | have moved".
         | 
         | The hypothesis that on-site virtualization somehow is an
         | obviously dying technology assumes that it must be true that
         | on-site hosting will stop existing, which I have a very hard
         | time believing. If nothing else (and there are plenty of
         | "elses"), strict data security and privacy concerns will keep
         | on-site hosting moated for a long time.
        
         | kasey_junk wrote:
         | I was under the impression each of those had custom
         | hypervisors? While perhaps still Linux that doesn't seem like a
         | commodity.
        
           | wildfire wrote:
           | AWS' Hypervisor is Nitro.
           | 
           | Which is based upon KVM - AIUI.
           | 
           | https://www.kovarus.com/blog/deep-dive-into-the-aws-nitro-
           | sy...
        
           | sithadmin wrote:
           | They're 'custom', but are heavily derivative of KVM in the
           | case of AWS (Nitro) and GCP. Azure runs a fork of Hyper-V,
           | AFAIK.
        
         | mountainriver wrote:
         | Not a fan of vmware (I used to work there) but pretty much no
         | one currently can compete with VMware's full product line and
         | optimizations
        
         | iKevinShah wrote:
         | VMware used to be centered around Virtualization until 2015-16
         | or so. Since then it has moved / expanded to Software defined
         | Datacenters (technically virtualization, yes), Automation,
         | Security (Carbon Black) and lately, K8s (with Tanzu). That does
         | not mean a good chunk of revenue might still be from
         | virtualization - FWIW, I do not have any idea on that.
         | 
         | Disclaimer: I am an ex-employee of VMware.
        
         | dehrmann wrote:
         | I also don't see any obvious synergies with a company that
         | specializes in network chips.
        
         | JeremyNT wrote:
         | > Ponders if it will payoff as an investment. Hyper visors are
         | nowdays commodity. Workloads are moving from enterprise onsite
         | datacenters to the cloud. Hyperscalers AWS,Google and Azure
         | running the cloud are running work loads on Linux KVM kernel
         | based virtual machines.
         | 
         | It's not the lower level primitives here that are valuable from
         | VMware, it's the higher level abstractions built on top of them
         | that facilitate easier management and use by (relatively) less
         | technical people.
         | 
         | You can give a "good at Windows" type technician a few hours of
         | training and they can put together a usable vCenter deployment,
         | including things like corporate SSO and such. They can drag and
         | drop things around and it'll mostly work. And when things go
         | wrong and this person is confused about what to do, they can
         | call up support for help.
         | 
         | Obviously, this is centered on-prem, which is indeed shrinking
         | - but a lot of orgs have a lot of investment in stuff running
         | on site, and there are still plenty of cases where having e.g.
         | lots of storage and enough compute to "process" it in some way
         | physically close to office users can speed up their workflows.
        
         | voidfunc wrote:
         | Azure uses Hyper-V under the hood not kvm. Its also not built
         | on Linux.
        
           | seanw444 wrote:
           | Okay, yes, _Microsoft Azure_ running _Microsoft Windows
           | virtualization_ isn 't shocking. They have to dogfood, or
           | they'll be laughed at hard.
        
             | kube-system wrote:
             | Nobody laughs when MS uses Linux.
        
               | temac wrote:
               | Would it be to compete with one of their own product in
               | such a major way and despite the integration MS did for
               | Linux guests running on Hyper-V, yeah people would laugh.
               | Not about them using Linux. About them having Hyper-V.
               | Like we laughed about Visual SourceSafe.
        
       | simonebrunozzi wrote:
       | I don't understand the stock market. VMW at $50B market cap
       | equates to ~$120 per share. The Broadcom acquisition is for ~20%
       | more, and yet, the stock price is at $120, not... $145 or
       | something.
       | 
       | Can someone more financially literate (or with direct experience
       | in the stock market) explain this discrepancy to me?
       | 
       | (comment made at ~9:33am ET, stock market opened a few minutes
       | ago)
        
         | [deleted]
        
         | phonon wrote:
         | "Under the terms of the agreement, which has been unanimously
         | approved by the boards of directors of both companies, VMware
         | shareholders will elect to receive either $142.50 in cash or
         | 0.2520 shares of Broadcom common stock for each VMware share.
         | The shareholder election will be subject to proration,
         | resulting in approximately 50% of VMware's shares being
         | exchanged for cash consideration and 50% being exchanged for
         | Broadcom common stock. Based on the closing price of Broadcom
         | common stock on May 25, 2022, the total $138.23 per-share
         | consideration represents a 44% premium to the closing price of
         | VMware common stock on May 20, 2022, the last trading day prior
         | to media speculation regarding a potential transaction, and a
         | 32% premium to VMware's unaffected 30-day volume weighted
         | average price (VWAP). Upon closing of the transaction, based on
         | the outstanding shares of each company as of the date hereof,
         | current Broadcom shareholders will own approximately 88% and
         | current VMware shareholders will own approximately 12% of the
         | combined company on a fully diluted basis. " [1]
         | 
         | 1. The deal might not go through, or the terms might change.
         | 
         | 2. You might not be able to get 100% cash for your shares.
         | 
         | [1]
         | https://www.vmware.com/content/dam/digitalmarketing/vmware/e...
        
         | dodobirdlord wrote:
         | If the stock is trading at $120/share that means everyone who
         | owns stock (and is paying attention and offering it for sale)
         | won't sell for less than $120. But that doesn't mean all of
         | them, or even most of them, would sell for $120. Many of them
         | probably believe their stock should be worth more than $120 and
         | expect the price to go up in the future. So if you want to buy
         | out the whole company you have to pitch a price high enough
         | that a majority of shareholders (or the board of directors as
         | their fiduciary proxy) agree to sell at that price. This is
         | basically guaranteed to be a substantially higher price than
         | whatever the current market price is, because if the average
         | shareholder didn't expect the stock price to go up, why are
         | they holding shares?
         | 
         | As the deal becomes increasingly likely to go through, the
         | stock price will likely gradually shift up to match the deal
         | price.
        
         | terra_ignota wrote:
         | Your instincts are right, it's just that the price jump
         | happened on Monday when the talks were reported in the press
         | over the weekend. It jumped from ~$95 on the Friday close to
         | $115 on the open, ~20%.
        
         | [deleted]
        
       | ricklamers wrote:
       | I think this is actually great news. After acquisition the
       | conglomerate level scale will slow innovation. Freeing up
       | opportunity for talented folks to start companies in the space in
       | the areas that are being underserved by Goliath. In addition,
       | these types of deals prove liquidity to financiers creating
       | precedent for financing young upstarts.
        
       | didip wrote:
       | This deal sounds like it is great for C-suites and investors. I
       | don't know if it's great for the employees. My guess is that
       | there will be a lot of cost cutting moves soon.
        
       | [deleted]
        
       | boeingUH60 wrote:
       | Michael Dell will get $24bn! from this acquisition...It's
       | fascinating how he turned around a struggling PC company (Dell
       | Inc) into a financial engineering machine that made him tens of
       | billions.
       | 
       | https://www.forbes.com/sites/antoinegara/2021/04/18/how-wall...
        
         | [deleted]
        
         | Apocryphon wrote:
         | So he Jack Welched his own corporation?
        
           | papito wrote:
           | Jack Welch and his students turned companies into steaming
           | piles of crap, not gold. GE, Boeing. A few people walk away
           | with riches, however.
        
             | Apocryphon wrote:
             | Good to hear that Dell's schemes haven't done the same to
             | his own company. Would it be more accurate to draw a
             | comparison to Masa Son? An entrepreneur in tech who ended
             | up playing high stakes financial games with his company's
             | own money.
        
               | papito wrote:
               | No one is as much of a gambler as Masa Son. Masa is not
               | particularly evil or scheming - he is just nuts.
        
         | sbf501 wrote:
         | But did he know EMC's ownership of VMWare in 2016 was going to
         | turn out to be such a stellar cloud performer, or was that just
         | IP portfolio luck?
        
           | hnarn wrote:
           | The VMWare market cap in 2016 was ~$32B, of course there's no
           | objective way to answer your question definitely as yes or no
           | but I'd say that VMWare was already at that point more than
           | comfortably a more or less de-facto standard for
           | virtualization.
        
             | rosege wrote:
             | Yeah but there was a big shift away from virtualization to
             | cloud and micro services. As a former VMware admin I'm
             | surprised VMware is doing as well as they are now. But
             | maybe my view is just shaded by the bank I was working for
             | that was moving away from it to AWS.
        
               | scarface74 wrote:
               | There isn't really a big shift to cloud yet. Only 5% of
               | all IT spend is on any cloud provider according to the
               | CEO of Amazon and former CEO of AWS [1]
               | 
               | https://accelerationeconomy.com/cloud/amazon-shocker-ceo-
               | jas...
               | 
               | [1] Andy Jassy is my skip^9 manager.
        
               | donalhunt wrote:
               | Yep. This has been the sentiment shared by Google Cloud
               | execs a lot too. All the players are looking at the 10-20
               | year picture with regard market share / spend (in an
               | industry where no-one knows what compute infrastructure
               | will look like by the middle of that period).
        
       | caymanjim wrote:
       | I didn't know VMware was still a thing. What do they even do? Who
       | uses any of it?
        
         | jodrellblank wrote:
         | You can get three Dell servers and a VMware install ISO and
         | have a hypervisor with a web interface, a distributed cluster
         | filesystem replicating between the nodes, VM failover in case
         | of hardware failure, live migration of VMs between nodes for
         | maintenance (state and/or storage), a centralised update
         | system, VLAN aware guest networking, isolated management
         | networking, all up and running in production in half a day -
         | less if you someone has already opened the boxes and racked it
         | all up before hand. Without any great technical skills needed
         | to setup any of it.
         | 
         | With a bit more planning and a larger environment and more
         | licensing, and not much more tech skills, you'll have redundant
         | trunked network links, it will migrate VMs between nodes to
         | balance load, integrate with the node IPMI management to power
         | hosts down when the load is light and power them on when the
         | load increases, and for enough money on licensing it will keep
         | two VMs on different host nodes in sync down to the CPU
         | instruction in case one host fails nobody will notice. Also
         | with not much tech skills.
         | 
         | And when I say "not much tech skills" you do need to understand
         | enough about computing to plan it and cable things in properly
         | and deal with VLANs and subnets and ISOs and DNS, routing, and
         | VMware's way of doing networking, and the basics. But you need
         | to know approximately nothing about /etc/ or XML or YAML,
         | cluster quorums, elections, filesystem locking, heartbeat or
         | watchdog services, distributed consensus protocols, package
         | management, LVM, systemd, hypervisor subsystems, PAM modules,
         | Kerberos, webservers, databases, Unix permissions, or etc.
         | 
         | I'm under no illusions that it's cheap, or bug-free, or that
         | you never need to SSH in and poke it ever, or that it's the
         | right thing for every task, or that it's the modern way. But
         | it's an amazing packaging up of a lot of things into a
         | worldbeating product, and its integration with Dell
         | specifically - Dell hosts, Dell EMC storage - is such a good
         | fit that makes me surprised and sad that Dell would sell
         | VMware.
        
         | sithadmin wrote:
         | VMware has the largest on-premises hypervisor footprint by a
         | large margin and sells a zillion other software products to
         | layer on top. Pretty much every large public company has a
         | VMware footprint in their data center, and frequently have
         | their entire on-prem infrastructure built on top of vSphere.
        
           | caymanjim wrote:
           | Fair enough. I could have googled it. I live in a bubble of
           | Linux and AWS/other cloud services, so this sort of thing
           | isn't part of my world.
        
       | drumhead wrote:
       | I gather they own Symantec as well, how did that go for them?
       | $61bn is a full price to be paying at this stage of the market.
        
         | gertrunde wrote:
         | I've no idea how well the Symantec acquisition worked for
         | Broadcom, but it was particularly painful for anyone using
         | Symantec products.
         | 
         | The ordering/renewal process was so messed up by the transition
         | that for approximately 18 months it was almost impossible to
         | get a quote or place an order, even to renew an existing
         | subscription, long enough that Symantec started just giving out
         | subscription extensions to tide people over until the order
         | process worked again.
        
       | geodel wrote:
       | It is unlikely but if Broadcom boots out SpringBoot and
       | associated crapola from their portfolio, it could be a win for
       | decent developers in this otherwise bad acquisition.
        
       | brycewray wrote:
       | Would guess they're high-fiving at Parallels right now.
        
         | temac wrote:
         | VMWare Fusion on M1 was already way behind (to an absurd point:
         | it has been > 1 year 1/2 after the M1 launch, and VMWare has
         | not yet launched a release of Fusion for it, only betas, and
         | they do not target Windows). Overwhelming most of VMWare
         | business is about other products anyway.
        
         | travisgriggs wrote:
         | I've been going back and forth every few years between Fusion
         | and || Desktop. I'm currently on a || swing. I guess I'll be
         | staying here for a while.
        
       | monkey_monkey wrote:
       | Do these type of transactions ever end up well for either the
       | acquirer or the acquired company?
        
         | crispyambulance wrote:
         | > Do these type of transactions ever end up well for either the
         | acquirer or the acquired company?
         | 
         | It depends on what you mean by "end up well" and who, exactly,
         | is meant by "acquirer" and "acquired". Yes, they're lucrative
         | and worthwhile from the point of finance people, a rarified
         | sliver of stake-holders and the law firms who buzz around to
         | service all these. If they weren't you would not be seeing them
         | as much.
         | 
         | From the point of view of technology advancement, the
         | professionals who want to actually WORK in these domains, and
         | the customers who depend on the products? No. These
         | mergers/acquisitions are at best a mixed bag and more often a
         | downgrade, or worst of all, a career-derailing adjustment.
        
         | bluGill wrote:
         | 20 years ago when I was part of a company that was acquired the
         | executives told us that only 1 in 4 were successful, but they
         | were determined to make us one of the successful ones. (it
         | wasn't)
         | 
         | I have no idea if the 1 in 4 number is correct, but it feels
         | reasonable.
        
         | cdumler wrote:
         | The point of massive acquisitions are to enrich company
         | stockholders (generally the CxO's and key management), lock up
         | key engineering talent from the market, and give the manager
         | who lead the acquisition a fat bonus. Generally, everyone else
         | loses. To offset the cost, typically value is extracted from
         | the bought company until the product's value dies. Short term-
         | wise, the people involved will get a lot of money and be gone
         | by the time the consequences cannot be ignored.
         | 
         | That said, acquisitions can work if there is due diligence. I'm
         | in a company that has acquired several companies in a related
         | field. Each of the companies have had complementary products,
         | and the cultures were vetted to be similar ours before
         | purchase, ie small groups (30-50 people) who have demonstrated
         | high skill, high trust, and low ego. Finally, there has been an
         | effort keep groups generally autonomous while finding ways to
         | synergize employees and services. There has been a strong
         | feeling of working together. Groups have been willing to share
         | their expertise and experience with other.
         | 
         | I guess in other words: the acquisition is a good idea, even if
         | a product is subsumed into another product, there is plenty of
         | real work to go around for employees to do. If you have to
         | promptly fire people "because redundancy," it wasn't being done
         | to improve your position in the field.
        
         | lotsofpulp wrote:
         | Yes. See Oracle.
         | 
         | https://www.macrotrends.net/stocks/charts/ORCL/oracle/market...
        
           | the_only_law wrote:
           | Not fair to compare software companies to a law firm.
        
         | bombcar wrote:
         | EMC bought VMware for $650 million and Dell bought EMC for $74
         | billion and now sold VMware for $61 billion so it worked out
         | for someone.
        
           | ghaff wrote:
           | The EMC purchase of VMware was probably one of the best tech
           | acquisitions of all time. At least financially. You can
           | reasonably argue whether VMware's overall trajectory was
           | better or worse as a result; in any case, most of the
           | original leadership team ended up departing.
        
             | bombcar wrote:
             | Someone knew something - that's an insanely low valuation
             | for a major player in the (then just starting)
             | virtualization market.
             | 
             | But at the time virtualization was considered as something
             | "to keep that old Windows NT server/software running" - not
             | foundational for all cloud services ever.
        
               | ghaff wrote:
               | As an IT industry analyst at the time, it may seem like a
               | cheap acquisition today, but it was seen as pretty rich
               | at the time. I'm not sure how many people appreciated how
               | big a deal VMware was. My understanding is Diane Greene
               | didn't want to sell but the VCs wanted their exit. And
               | she was eventually pushed out when VMware hit it big and
               | she was excessively chafing under EMC control.
        
               | CaptainNegative wrote:
               | > Someone knew something
               | 
               | A broken clock is right twice a day, and even EMC CEO Joe
               | Tucci was right once in his lifetime.
               | 
               | But don't look at his other acquisitions.
        
               | rehash3 wrote:
               | Hmm.. EMC (which essentially was Smoking Joe T as the CEO
               | for most its limelight years) did quite well with
               | acquisitions, Data Domain, Isilon, VMware and many more
               | smaller acquisitions. They never bought a company to
               | inherit their cash flow but saw an opportunity to invest
               | and grow their business by adding their amazing sales
               | machinery which was stellar as well.
        
               | ghaff wrote:
               | The Data General acquisition, which got them CLARiiON,
               | arguably saved the company during the downturn--given
               | that belt-tightening really hurt Symmetrix sales.
        
         | normac2 wrote:
         | I think Trello and Atlassian went well (massively different
         | scale, though). I think the rep is that Atlassian mainly does
         | well by leaving the companies alone as independent
         | organizations, more like investment positions rather than
         | actually merging the tech.
        
         | cmrdporcupine wrote:
         | The more important question is whether these type of
         | acquisitions end up well for the customer or the employees. And
         | in that case, I think the answer is rarely yes.
        
         | formerkrogemp wrote:
         | More than half of acquisitions and mergers fail, depending on
         | the industry.
        
       | geodel wrote:
       | So far I have only used Automic Automation from Broadcom. I found
       | it supremely crappy. Its UI brings back memory of (I guess now
       | defunct) IBM Websphere. But it is now an "Enterprise Solution" so
       | it has to shoved down developer's throat with full force.
       | 
       | Just like analysts said IBM brought RedHat mainly for Openshift
       | platform and I think there is some truth to it. Seems Broadcom
       | has brought VMWare for their Tanzu platform which is direct
       | competitor of Openshift. It is less about virtualization in
       | corporate data centers which many agree here is legacy business
       | at this point.
        
       | chrisjc wrote:
       | Probably an insignificant detail when considering the entire
       | portfolio of subsidiaries and services under VMWare, but I guess
       | there are some pretty notable projects included in this
       | acquisition.
       | 
       | Especially from the Pivotal portfolio such as RabbitMQ,
       | GreenPlum, Spring, Hibernate, etc... although I'm sure most here
       | couldn't care less about Spring related projects.
        
         | martypitt wrote:
         | I do, and this was what sprung to my mind.
         | 
         | I feel like Pivotal has been doing a great job lately -
         | especially with Spring. I'd hate to see Broadcomm mess with
         | this, but it feels highly possible.
        
         | zkirill wrote:
         | We are a tiny bootstrapped startup. Spring is critical for us
         | and we rely on RabbitMQ. This news is concerning to say the
         | least.
        
         | gunnarmorling wrote:
         | Hibernate isn't part of the Pivotal portfolio. I'm sure there
         | are contributions by Pivotal employees, but the core Hibernate
         | engineering team is employed by Red Hat, who also own the
         | trademark, etc.
         | 
         | Disclaimer: I work for Red Hat and used to be part of the
         | Hibernate team
        
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