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Now that VMware is officially part of San Jose-based Broadcom Inc., big changes are taking place, including a division of VMware into four parts.
First up after the $69 billion deal closed on Wednesday is the departure of VMware CEO Raghu Raghuram, a 20-year veteran of Palo Alto-based VMware who became its chief executive in 2021.
Next, Broadcom (Nasdaq: AVGO) said it is splitting up VMware into four Broadcom divisions:
- Tanzu — One part is centered on VMware's two-year-old Tanzu platform, which helps companies with container applications. This is being led by Purnima Padmanabhan.
- Cloud — A second is focused on commercializing the VMware Cloud Foundation, which is led by Krish Prasad. The foundation is a software suit that bundles Tanzu along with other VMware products like its vSphere hypervisor and NXS network management platform.
- Application networking and security — Umesh Mahajan is leading this part of the company, which Broadcom didn't go into detail about
- Software-defined edge units — Sanjay Uppal will head this division, which also wasn't fully defined by Broadcom.
"Broadcom is committed to innovation. That’s in our DNA and why we plan to invest significantly each year to advance VMware’s innovation and customer value," Broadcom CEO Hock Tan said in a blog post Wednesday after the merger, first announced 18 months ago, was completed.
Tan said that half of Broadcom's investment will be focused on research and development while the other help "will help accelerate the deployment of solutions through VMware and partner professional services."
As the mega-deal closed, Wall Street's reaction has been muted. For the week, Broadcom's stock has risen 1.5%. In early trading on Friday, the stock is down about 0.2% to trade at more than $970 a share. Broadcom is valued at $400.5 billion.
| Rank | Prior Rank | Business name/Prior rank |
|---|---|---|
1 | 1 | Apple Inc. |
2 | 2 | Alphabet Inc. |
3 | 3 | Chevron Corp. |