The Move That Will Change The Balance In The Software Industry

    Semiconductor manufacturer Broadcom has acquired VMware, which specializes in virtualization software. In addition to the sectoral impact of this acquisition, the most striking aspect was the huge purchase price. Broadcom sacrificed 61 billion dollars to buy the software company and its subsidiaries!

    Broadcom, which has an important place in the sector with computer hardware and the software it has developed for this hardware, announced that it has made an astonishing deal. According to the statements made by the company, VMware, which specializes in virtualization software, and all its subsidiaries were purchased for a full $61 billion. 

    When we look at the details of the agreement, we see that $ 8 billion of this $ 61 billion agreement consists of VMware’s debts. The remainder of the deal includes the shares of VMware and its subsidiaries. With this acquisition, Broadcom seems to consolidate its position in the software world more than ever before.

    How does this agreement affect the end consumer?

    Broadcom is basically a semiconductor manufacturer, and as you know, COVID-19 has hit this industry hard. However, VMware and its derivatives are more focused on the software industry. This agreement is a development that will financially support Broadcom in the long term by making it an ambitious company in the software industry.

    The general view of the industry is that Broadcom has increased its revenue sources risk-free with this acquisition. VMware, on the other hand, is now free of its debts and will most likely continue its work freely. In other words, when we look at this huge deal of 61 billion dollars in terms of sector, we see that a win-win situation has occurred. So what does this deal do for the end consumer?

    To be frank, Broadcom has not yet announced its plans for VMware. However, those who are familiar with the software world know well; Operating systems like Linux can be run very easily on a Windows-based computer using VMware. This is where the elbow contact between the two companies can affect the end consumer. Better optimization of VMware for Broadcom chips could make it easier for consumers using virtual OS. On the other hand; VMware also has major cloud solutions for companies. The company can now receive both financial and technical support from Broadcom to improve these cloud solutions. We’ll see how this deal ends.

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