This is one of the more interesting acquisitions we have seen in years. Broadcom (formerly, and trading under the ticker symbol for Avago that purchased Broadcom) is traditionally a hardware player that is going to become a big software player overnight. This is part of the company’s shift to enterprise software after purchasing CA Technologies. It also follows a fairly predictable plan for the company’s leadership.

Broadcom Agrees to Purchase VMware

While the company is now Broadcom, it was previously Avago. Many longtime readers know that we have chronicled the business practices of Broadcom/ Avago for some time, even back to 2016 in the Business side of PLX acquisition: Impediment to NVMe everywhere. After Broadcom’s failed Qualcomm bid in 2018 due to anti-trust concerns, the company pivoted to add enterprise software. The company purchased CA Technologies and Symantec’s enterprise security business now building a software unit that VMware will fit into.

Many in the hardware industry that we cover know Broadcom-Avago’s game plan. They purchase companies like PLX that makes PCIe switches. These are usually the best components in markets with few if any competitors (Microchip is probably Broadcom’s biggest competitor in the PCIe switch space.) In these low competition markets, Broadcom raises prices and also puts heavy bundling burdens on hardware companies where supply or reasonable pricing are withheld.

This is not just done to small server makers. A great example where we saw this to the detriment of customers we saw in our An Important HPE ProLiant DL325 Gen10 Change Since Our Review piece. Here in the top center of the photo, you can see the