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Hock Tan: Broadcom’s Plan For VMware As Krause Departs

Mark Haranas

Here’s what Broadcom CEO Hock Tan is telling VMware employees following the departure of software leader Tom Krause.

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With the shocking departure of Broadcom software leader Tom Krause—who was set to helm VMware post-acquisition—Broadcom CEO Hock Tan wants to reassure all VMware employees that everything is going to be fine on the Broadcom-VMware front.

In a surprising move, Tan said he will be taking over the additional responsibilities of Krause, who was president of Broadcom’s Software Group.

“Since announcing the transaction, I know that Tom has gotten to know some of you through our post-closing planning efforts,” said Tan (pictured) in a letter 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.”

Krause, who has acted as the company’s spokesman to rally enthusiasm for its acquisition of VMware, is leaving the company at the end of this week to become the CEO of the soon-to-be combined Citrix Systems-Tibco Software company.

His position as president of Broadcom’s Software Group will be eliminated, effective July 15.

Broadcom’s Plan For VMware

The plan was to have VMware’s employees and technology portfolio become part of Broadcom’s Software Group under Krause’s leadership following the closure of its $61 billion acquisition of VMware. With Krause’s departure, CEO Tan says VMware will still become part of Broadcom’s Software Group that will now being run by Tan.

“Following the closing of the transaction, the Broadcom Software Group will rebrand and operate our existing infrastructure and security software solutions as VMware. 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,” said Tan.

Broadcom also said current COO Charlie Kawwas has been named president of its new Semiconductor Solutions Group, overseeing the company’s broad semiconductor portfolio.

Tan said Kawwas will remain responsible for Broadcom’s global operations and sales for the Semiconductor and Brocade Storage Networking businesses.

Broadcom’s $61 Billion Acquisition Of VMware

Earlier this year, Broadcom sent shockwaves throughout the IT industry by announcing its intent to acquire VMware by the end of its fiscal year 2023, which ends in October 2023.

A 40-day window that gave other potential suitors a chance to bid on VMware—and spoil Broadcom’s 2023 plans—closed last week without any other offer emerging.

VMware’s board, as well as largest shareholder and board chair, Michael Dell, had signed off on the proposed merger barring a better offer, which did not come during the “go-shop” period.

Broadcom’s $61 billion deal must still clear regulatory hurdles in the U.S. and the European Union.

Krause’s Future

Krause was a key negotiator in Broadcom’s upcoming $61 billion purchase of virtualization and cloud software superstar VMware. Once VMware was acquired by Broadcom, it was set to become part of Broadcom’s Software Group under Krause’s leadership.

However, having been named CEO of the soon-to-be formed Citrix Systems-Tibco Software company, Krause is being tasked with bringing together two dissimilar companies.

Citrix and Tibco are set to merge within the next few months.

“Citrix and Tibco are pioneers in their respective markets, and 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 in a statement. “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.”

Mark Haranas

Mark Haranas is an assistant news editor and longtime journalist now covering cloud, multicloud, software, SaaS and channel partners at CRN. He speaks with world-renown CEOs and IT experts as well as covering breaking news and live events while also managing several CRN reporters. He can be reached at mharanas@thechannelcompany.com.

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