Citrix-Tibco New CEO Tom Krause: 5 Huge Things To Know
From his vast IT history to his key role in Broadcom’s planned acquisition of VMware, here are five big things to know about Citrix-Tibco‘s new CEO, Tom Krause.
Tom Krause’s Departure From Broadcom-VMware: 5 Big Things To Know
Krause will become the new CEO of the soon-to-be combined Citrix Systems and Tibco Software company. He is set to leave Broadcom on Friday, July 15.
In a statement today, Krause touted Citrix and Tibco as pioneers in their respective markets.
“I am honored to take the helm of a global enterprise software leader that will continue to accelerate digital transformations and the future of hybrid work,” said Krause. “I am excited to partner with the leadership teams and talented employees from Citrix and Tibco around the world to drive growth and ensure a successful path forward for the combined company.”
Private equity firms Vista Equity Partners and Elliott Investment Management agreed to acquire Citrix earlier this year for $16 billion.
The firms plan to merge Citrix with Tibco, a Vista portfolio company, within the next few months.
Broadcom plans to close on its VMware purchase by the end of its fiscal year 2023, which ends October 2023.
In a letter to VMware employees today announcing Krause’s departure Broadcom CEO Hock Tan tried to reassure VMware that everything is going to be fine.
“Since announcing the transaction, I know that Tom has gotten to know some of you through our post-closing planning efforts,” said Tan in a letter today to all VMware employees. “I will now be overseeing these efforts which will continue in the normal course as we work towards closing the transaction in Broadcom‘s fiscal year 2023. … Broadcom is steadfast in our commitment to reimagining what we can deliver for our customers together.”
CRN breaks down the five most important things to know about Tom Krause departing Broadcom amidst its VMware deal to become CEO of the combined Citrix-Tibco.
Krause Was Face Of Broadcom’s Acquisition Of VMware
Simply put, Krause has been the public face of Broadcom’s VMware acquisition.
He has spoken at length with investors, analysts and VMware employees about the benefits of the deal.
Krause even carried out a town hall with VMware employees alongside Hock Tan, while also writing several blogs regarding the benefits of the merger.
The initial plan for VMware, post-acquisition, was for the company to become part of Broadcom’s Software Group under Krause’s leadership. The Broadcom Software Group would then be rebranded as VMware.
“VMware is an iconic software company with a vibrant ecosystem, including hyperscalers, system integrators and channel partners,” Krause said this year. “We don’t want to change any of that, and in fact, we want to embrace those relationships. We have tremendous respect for what VMware has built, supported by a skilled team of engineering talent. It is for all these reasons and more that we’ve committed to rebrand Broadcom Software Group as VMware.”
The Takeaway : Krause was slated to become the leader of VMware, a pioneer in virtualization and a software superstar, following the merger. His abrupt and sudden departure will only add to the worries and concerns being expressed by VMware channel partners and VMware employees.
Krause To Battle Broadcom-VMware In Software
Citrix and VMware already battle in several large IT markets including cloud desktop as-a-service (DaaS), modern applications, and virtual desktop infrastructure (VDI) markets.
The combination of Citrix and Tibco is set to create one of the largest software providers in the world, pitting it against Broadcom and VMware’s software business.
The new Citrix-Tibco company will serve over 100 million users in over 100 countries.
Krause will lead the Citrix-Tibco software charge against his former employer when Broadcom absorbs VMware software, cloud, virtualization, security and data center portfolio.
The Takeaway : Both Citrix-Tibco and Broadcom-VMware are investing millions in cloud software innovation in a bid to become a market leader in the hybrid cloud and multi-cloud era. Krause will no doubt compete head-to-head with his former employer on several technology fronts.
Krause’s Broadcom Position Eliminated; Hock Tan Takes Over Duties
In a surprising move, Broadcom said it will completely eliminate Krause’s position of president of Broadcom’s Software Group.
Broadcom CEO Hock Tan said he will be taking over all of Krause’s responsibilities.
With Krause’s departure, Tan now says that VMware will become part of Broadcom’s existing infrastructure and security software solutions group.
“Following the closing of the transaction, the Broadcom Software Group will rebrand and operate our existing infrastructure and security software solutions as VMware,” said Tan in a letter to VMware employees. “I’m confident that our team will continue to drive Broadcom Software Group’s strategy into the future, including with respect to combining our two companies.”
Additionally, Broadcom said its current chief operating officer, Charlie Kawwas, has been named president of the new Semiconductor Solutions Group, overseeing the company’s broad semiconductor portfolio.
The Takeaway : There’s little doubt that some eyebrows are being raised with Hock Tan’s decision to take on Krause’s responsibilities in addition to his duties as CEO.
Tom Krause’s Broadcom, Avago And IT Career
Tom Krause was vice president of corporate development at Avago Technologies in 2016. When Avago Technologies and Broadcom merged, he soon became chief financial officer of the newly formed Broadcom Inc.
As CFO of Broadcom, he was responsible for all financial functions, mergers and acquisitions, human resources and investor relations.
In 2020, he was promoted to lead the chip company’s six software divisions as president of Broadcom’s Software Group, which he helped form.
Krause was responsible for all of Broadcom’s software divisions as well as software sales, customer support and software operations. He worked with a team of more than 6,000 employees and managed over $5 billion in revenue.
During his Broadcom tenure, he drove the acceleration of innovation and the building of a portfolio of business software that modernized, optimized and protected the world’s most complex hybrid IT environments.
Prior to Avago and Broadcom, Krause ran his own financial advisory firm—Krause Consulting Group—for two years where he represented several public and private technology companies.
His IT career also includes a six-year stint at Techwell as vice president of business development; two years at venture capital firm Technology Crossover Ventures (TCV); and two years working as an investment banking analyst at wealth management firm Robert Stephens.
Krause received a bachelor’s degree in economics from Princeton University.
The Takeaway : With decades of experience, Krause has top-notch expertise both on the business development and financial side of the house.
Krause’s New CEO Role; Bullish Thoughts From PE Firms
In his new role as CEO of the combined Citrix-Tibco, Krause will be tasked with bringing together two dissimilar companies.
Private equity firms Vista Equity Partners and Elliott Investment Management are set to buy Citrix this year for $16 billion. The two firms will merge Citrix with Tibco, a Vista portfolio company, within the next few months.
“We have the highest confidence in Tom’s ability to lead the combined teams of Citrix and Tibco,” said John Stalder, managing director at Vista, in a statement. “Their employees, customers and partners will all benefit from his experience, as the combined company looks to continue to innovate and deliver market-leading solutions globally.”
Bob Calderoni, Citrix chairman of the board and interim president and CEO, also stated his confidence in Krause.
“I am confident and excited to see how the combined company will accelerate innovation and growth as a private company under Tom’s leadership and help our customers empower secure hybrid work,” said Calderoni in a statement.
Calderoni will continue to serve as Citrix interim president and CEO until the completion of the combination of Citrix and Tibco.
“Tom is the right leader for the combined company, bringing decades of deep industry experience and an unparalleled track record of building companies and setting them up for sustainable growth and value creation,” said David Kerko, head of North American private equity at Elliott, in a statement.
The Takeaway : Citrix Systems, Tibco Software and its parent private equity firms made a big bet in nabbing Tom Krause from Broadcom with the belief he can build a world-leading software company.