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Scale Computing Exec: Broadcom’s VMware Buy Creating ‘New Opportunity’

Mark Haranas

‘Scale [Computing’s] just easy, it’s cost effective, it’s fast and they have great partner support. What else could I ask for?’ says Adam Rodriguez, co-owner of Scale Computing partner Network Systems Group.

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Scale Computing says Broadcom’s planned $61 billion acquisition of VMware is leading to new opportunities for Scale Computing and its channel partners.

“With the acquisition of VMware, it’s opened up this new opportunity of, ‘What’s going to happen?” said Kyle Fenske, director of North American channel at Scale Computing, during a session at XChange 2022 this week.

You might assume that [VMware’s] going to get expensive given the track record that Broadcom has, but it opens up an opportunity for partners to look at options, understand what the market wants, and that’s where Scale Computing can really come in,” Fenske said. “Just be able to offer you that extra layer of protection. So you have a new solution that you can offer your customers.”

[Related: Nerdio CRO Sees Boost From VMware, Citrix ‘Chaos’]

Indianapolis-based Scale Computing competes with Palo Alto, Calif.-based VMware on several fronts including edge computing and hyperconverged infrastructure software.

‘They’ve Embraced Me’

Adam Rodriguez, co-owner of Columbus, Georgia-based Network Systems Group, said he’s betting big on Scale Computing due to the company’s channel partner dedication, support teams and ease of technology.

“We had situations where we had VMware, we had Synology, or some other kind of SAN [storage area network] provider, then we would have HPE servers—but when there’s an issue, who do you call? Do you call VMware? Do you call HPE? Do you call your SAN provider—it’s annoying, because they all just pointed fingers,” said Rodriguez. “Scale doesn’t point figures. They just fix it. They have a U.S.-based call support. … Scale is a super supportive vendor partner. They’ve embraced me.”

“Scale’s just easy, it’s cost effective, it’s fast and they have great partner support,” he said. “What else could I ask for?”

Rodriguez also touted how you can easily migrate from other systems, such as VMware and Microsoft, to Scale Computing.

Scale Computing LinkedIn Poll

During its session at XChange 2022, Scale Computing highlighted a recent LinkedIn poll the company sent out for partners and customers asking them how they felt Broadcom’s acquisition of VMware would impact customers and partners.

Approximately 31 percent of respondents said they expect lower support and innovation; 21 percent said more expensive and complicated; 37 percent said they were unsure and would proceed with caution; while 10 percent said their looking for alternatives.

“The results: most people said that they don’t really know. They’re unsure of what’s coming,” said Fenske. “No one really knows what’s going to happen to VMware, but proceeding with caution is the best aspect.”

Broadcom’s $61 Billion Purchase Of VMware

Broadcom sent shockwaves through the IT world this year by entering into an agreement to acquire VMware for $61 billion.

Both VMware employees and channel partners have express concern over the acquisition due to Broadcom’s statements about eliminating VMware positions to increase profitability.

Broadcom said, once acquired, it plans to increase VMware’s annual profitability from $4.7 billion to $8.5 billion within the first three years of closing the deal. Broadcom said it will achieve this, in part, by “eliminating duplicative general and administration functions across human resources, finance, legal, facilities and information technology.”

Additionally, Broadcom’s has a history of making large multi-billion acquisitions followed by layoffs as well as a decline in either innovation or customer base, specifically with Broadcom’s acquisition of Symantec and CA Technologies.

In June, VMware’s President Sumit Dhawan tried to reassure its more than 35,000 employees that if the company does get acquired by Broadcom, the semiconductor company wouldn’t handle VMware the same way its treated Symantec and CA Technologies.

“Let’s not assume, I would say at this point in time, that just because they have done what they have done with Symantec and CA [Technologies] is something that they intend to do with VMware because we’ve heard quite the opposite so far,” said Dhawan.

Broadcom is slated to complete its $61 billion acquisition of VMware by the end of its fiscal year, which ends October 2023.

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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