Rich Stroffolino

Broadcom-VMware Gets EU Thumbs Up

Since this is a revenue diversification play for Broadcom, its in their interest to not restrict VMware’s software stack. While Broadcom is pervasive across enterprise infrastructure, it would needlessly devalue their VMware assets, which are not operating in a competitive vacuum.

Thus, the EC has made this one of the conditions for approving the deal — Broadcom must provide guaranteed access and interoperability relating to the “APIs, materials, tools, and technical support” that allow rival hardware companies (i.e. Marvell) to leverage VMware’s virtualization software. And on the same terms as Broadcom does.

It’s interesting the tact Broadcom has taken since their bid to acquire Qualcomm fell apart a few years ago. While that fell apart over concerns about Chinese influence, that really had all the trappings of creating a vertical chip monopoly. The Broadcom-VMware deal isn’t done, but getting EU approval means its a lot closer to happening.