7 controversial stories that shook the UK IT channel in 2022

Doug Woodburn
clock • 9 min read

1) VMware's proposed takeover by Broadcom

What happened?

Having first announced plans to acquired VMware in May, Broadcom moved a step closer to bringing the $61bn mega-deal to fruition last month when VMware shareholders green-lighted it.

Why was it controversial?

Broadcom has a chequered history when it comes to how it has integrated previous large acquisitions, including Symantec and CA Technologies - or at least that's the perception.

The news that VMware may become part of the semi-conductor giant's empire therefore understandably sparked concern among both customers and partners. Will Broadcom continue to develop VMware's technology? Will it raise prices? Will it take sales direct?

Despite efforts from both Broadcom and VMware's CEOs to counter such concerns (see here and here), some UK partners remain sceptical of the semi-conductor giant's motives.

"We've recently seen VMware transitioning away from using partners for professional services and bringing this in-house, which for us is concerning and already raises questions about VMware's commitment to the channel," Rob Smith, CTO at VMware partner Creative ITC told CRN in November.

"So, the Broadcom acquisition may just compound this stance. The biggest concern for any VMware partner is margin erosion. For now, we are neutral but there is without doubt concern."

 Controversy rating: 10/10

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