More Cloud Tech Surprises from 2022

Yesterday, we started our list of surprises in cloud technology for 2022. The first one was Cisco (Nasdaq: CSCO) not making a meaningful acquisition in the cloud technology space. Now let’s continue on …

Here is the remaining list of surprises in 2022:

Broadcom to buy VMware. In a move that sent shudders up and down the spines of cloud and networking infrastructure practitioners worldwide, Broadcom announced in May that it would be acquiring VMware, one of the world’s largest purveyors of cloud management software, for $61 billion in cash and stock.

What’s not to like? Broadcom’s CEO Hock Tan is known as a genius in the M&A arena, but this doesn’t always mean good things for the acquired company. Broadcom (Nasdaq: AVGO) is known for ruthless cost-cutting in acquisitions, and the fear is that Broadcom could be more mercenary in its approach with VMware, perhaps even raising prices to milk the most out of its installed base. Tan has recently gone on the charm offensive, saying they have no plans to raise prices after hearing of these fears from customers. There are still many hurdles to jump, including possibly antitrust challenges, before the deal can close.