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What VMware Workers Need To Know If Broadcom Deal Closes

O’Ryan Johnson

“It’s OK for us to have some questions and concerns based on what has happened in the past,” VMware CEO Raghu Raghuram tells employees.

Broadcom’s Potential Cost-Cutting Plans

Broadcom is forthcoming that it is looking to cut overlapping “functions” between the two companies, as a way to increase profitability.

In a slide it published last week to investors titled “Multiple Levers To Increase VMware’s Profitability” Broadcom says it will increase VMware’s profitability by 80 percent, from $4.5 billion last year, to $8.5 billion in the future.

Broadcom’s plan to get there, includes targeting efficiencies in sales and marketing, as well as “eliminate duplicative administrative functions” across “IT, finance, legal, human resources and facilities.”

When those cost-cutting plans might come is not spelled out, however Broadcom did provide a history of how quickly it sheds debt, post-acquisitions.

 
O’Ryan Johnson

O’Ryan Johnson is a veteran news reporter. He covers the data center beat for CRN and hopes to hear from channel partners about how he can improve his coverage and write the stories they want to read. He can be reached at ojohnson@thechannelcompany.com..

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