Given all the chatter, the general consensus right now seems to be that EUC will be sold off as part of the acquisition. What are peoples thoughts on this? Do you think it will be at close (as in, they already have/will have a buyer lined up) or later? Any thoughts on potential buyers? MS and Google come to mind but since MS already compete directly i'm not sure if that would get through anti-trust and just does not seem to make sense given they don't really need another VDI/MDM solution. Google might make more sense but i'm not sure if its an area that they would really be interested in. Maybe Amazon? Also thinking perhaps some no-name VC company similar to what happened to CTXS.
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Great analysis. Absolutely true about PE companies. VMW employees who stay on are in for the shock of their lives. Magoo and his buddies get their big payout.
Thanks for pointing out the Veracode deal. EUC is a perfect target for a sell-off to another PE firm.
I worked at a software company purchased by PE last time, ruthless board, price increases, tight cost, low budget T&E, huge pressure on sales, cannot see BCOM being any different only under PE you may not get the insistence on working from an office but it is not a comfortable ride by any stretch. Also no RSU's, they did issue shares but very heavily weighted towards leadership, board and exec team A class 100 dollars, had to put their own money in, B class 1 dollar middle management director and C class .001c no surprise most staff got C class i was senior enough to get B and cleared high 5 figures. leadership was low millions, staff low thousands. Payout only upon exit when sold on, usually 3-5 year cycles. Have a look at how Thoma Brava work who they bought, who they bought from, who they sell to, how often they sell. They have bought companies from BCOM sometimes turn around 100m profit in a couple of years. Example BCOM buy CA who bought Veracode for 614m, sold to TB for 950m, 300m. As soon as BCOM bought CA they sold Veracode so these deals are already being negotiated, will happen as soon as the bigger deal closes. https://www.zdnet.com/article/broadcom-closes-ca-technologies-purchase-then-sells-cas-veracode-unit-for-950-million/
Lots of confusion in this thread. If it is sold it will absolutely not be to a big 3 cloud provider because of regulatory issues. Also, venture capital is not the same as private equity. It will most likely be sold off to private equity but doubtful it would be CSG. Way too much overlap in the portfolio. The real question is will that private equity be any better than BC?
The EUC (UEM and VDI) space is ripe for consolidation in order to offer an alternative to and compete with Microsoft, and so it would not surprise me of they tried to sell it to Hok Tan's buddy Tom Krause who left Broadcom right after the VMware acquisition announcement to take the helm at the newly formed Cloud Software Group which took Citrix private. Whether the current regulatory regime would allow it is another story of course. Citrix's RDSH/VDI combined with VMware's Workspace ONE (Airwatch UEM) technologies would make for a very compelling alternative to Microsoft's Intune and Azure Virtual Desktops.
Yes EUC is going to private owned VC and mostly everything will be moved to india to keep it low cost and all the benefits would mostly go away.
99% that it will be VC and not sure how it will turn out.
Definitely not google and AWS.
As per what I have heard it is mostly VC
AWS would be a good play as they push into the EUC space with their workspace solution. Google is also struggling to get into the enterprise with gsuite so it could be possible there as well. That being said those are the top hopeful companies I think it will end up with a VC though unfortunately.
It will most likely be a VC. Amazon and Google have no interest and are already going though reprioritization after their layoffs. Also MSFT is going to continue to take the EUC market with AVD and Intune. Basically they are giving it away for free if you already have a E3 or E5 license. So the future growth does not look promising.