Cloud Reorganization: KKR acquires VMware’s EUC Business

KKR acquires VMware’s EUC division for four billion dollars. This strategic acquisition not only signals a new direction for VMware, but could also have a lasting impact on the cloud computing landscape.

Investment firm KKR has caused quite a stir in the cloud computing industry by acquiring VMware’s End-User Computing (EUC) division for around four billion dollars. This sale is part of a larger restructuring process at VMware after the company was acquired by Broadcom. Broadcom’s decision to divest parts of VMware that do not fit with its core strategy raises questions. What will the future of the software vendor and its position in the market look like?

VMware’s EUC Division – New Era under KKR

VMware’s EUC division, known for its advanced digital workspace solutions such as Horizon and Workspace ONE, is at the center of this transaction. These tools are essential for organizations that want to manage their applications, desktops and data seamlessly and securely across multiple devices and platforms. Under the leadership of Shankar Iyer, the EUC division will continue to operate as an independent company. The focus will be on supporting customer relationships through significant investment.

Industry Consequences of Restructuring

This development could have far-reaching consequences for the industry. Analysts are predicting a possible mass exodus of VMware customers, triggered by the takeover by Broadcom and the resulting changes. These concerns are not unfounded, as Broadcom has already started to reorganize the acquired divisions and has discontinued some products.

KKR’s Strategic Moves in the Technology Market

KKR is no newcomer to the software business. Its successful acquisitions, such as that of BMC in 2018 and the subsequent acquisition of Compuware by BMC, demonstrate its expertise and ambitions in the technology sector. With the acquisition of VMware’s EUC division, KKR could further strengthen its position in the cloud computing market and open up new opportunities for innovation and growth.

Impact on the Cloud Computing Landscape

The question that now arises is how these changes will affect the landscape of cloud computing. As the industry continues to grow and evolve rapidly, such strategic moves could be critical to meeting the needs of modern businesses while setting new standards for the delivery of digital workplace solutions.

Source: Computerwoche