Broadcom VMware & Antitrust
Transcript
all right send my rent why are Regulators looking at this VMware avgo broadcom deal what's the Hang Up where is the anti-competitiveness in a chip maker buying a software company well it's the same concerns I had back when Dale bought VMware it even when EMC bought VMware previous to that when does a provider of software become a competitive or anti-competitive advantage of one of the component makers so for EMC it was uh very apparent that storage was a huge part of the enablement for uh software
for VMware and if VMware cuddled up too closely to EMC NetApp uh all compelling all the storage providers of the day would be at a disadvantage for customers looking to use VMware a couple of things didn't exist at the time one VMware was nowhere near the massive influence they are on Enterprise I.T infrastructures as they were even when Dale bought them and then two EMT kind of didn't know what they had and they left VMware alone and VMware partnered with NetApp uh extremely well and with
HP uh which is now hpe fast forward to the dill acquisition Michael Dell without a doubt at the onset said the CR Crown Jewel of the EMC acquisition was the VMware acquisition and that Dale was not going to take the same hands-off approach that EMC did that it was going to be a better together story I'll link to to a video interview that I did with one of the then VMware Dell customers who were actually excited about the innovation it's one thing to get excited about
the Innovation from a customer perspective but when you're a competitor when you're hpe when you're Lenovo Cisco super micro and you don't have this special relationship that Dale had with VMware you can't do special things like vxrail What specifically uh around vxrl vxrail is a hyper-converged infrastructure solution where you take basic server components combine them together with software and provide a automated cloud-like platform VMware and Dale co-bashed employees to make sure that vxrail was the best example of an integrated solution between vmware's Cloud Foundation platform
in their hardware and Dell's Hardware we did a study examining vxrail and without a doubt from a VMware Cloud Foundation vmware's cloud platform private cloud data center platform it is the best integration of any HCI platform we've seen with vmware's Cloud flat platform this gave Dell a competitive advantage go back check notes Dell would tell you how VMware uh was accelerated by the Dell partnership how Dale was accelerated by the VMware partnership it was a competitive advantage Regulators have taken note if you look at the
deal today what Regulators have concerned with is in the GPU Market or uh specifically dpu these data center data center processing units which are chips that uh all of the major microprocessor companies Intel uh obviously broadcom competitors are creating Nvidia that take some of the components of VMware software put them on the chips directly and accelerate efficiencies within the data center obviously the concern is is if brachom who is a major player in the dpu in CPU space has this competitive advantage that they can better
team with the leader in data center virtualization that they would therefore have a competitive advantages over Intel Nvidia and other builders of gpus the EU and I'm assuming UK and the US I think ideally would want to avoid this scenario happening a second time can broadcom give uh uh giveaways or commitments to avoid this type of competitive situation you know what maybe I I don't know I don't know what the remedy is uh we can look towards the EMC example and just show how EMC just
didn't play for favorites uh VMware created platforms that were available and there was no special engineering between EMC and VMware maybe that is a remedy uh that I think again a deal this size you you we're concerned about multiple areas of anti-competitive nature when you know you look at it as a third party where else could VMware give a broad comma unfair competitive advantage in the data center and Cloud you want to learn more DMS are open at CTO advisor on Twitter uh you can reach
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