VMware's end-user compute unit reportedly headed to private equity firm KKR VMware's end-user compute business unit is set to be acquired by private equity firm KKR, according to a Reuters report that claims the deal will see $3.8 billion change hands. If the deal is done, it will see VMware's desktop virtualization and application publishing estate offloaded, per plans Broadcom announced in December …
The cloud bit doesn't agreed - it is just a front for the existing for AVD. The on-prem element which is still fairly huge is entirely liked to vSphere and all those cloud providers providing hosted desktop as a service via Horizon and ESXI could be left in the lurch. Other hypervisors would be great though
I'd wonder more about the impact of these changes on the technology.
Will the products on each side be impacted by being disconnected from advancements in the other.
Even if they have an intellectual property sharing deal, having say, desktop as no longer being part of VMWare will mean no (a lot less) consideration to this being paid by VMWare to this when making changes.
Horizon has been overpriced (against the market) for years now. The likes of Azure Virtual Desktop (formerly Windows Virtual Desktop) is basically a value add feature on top of the Azure infrastructure cost of the server capcity, except its flexible (turn it off at night when not in use, or scale it up for summer temps etc), and uniquely, supports true Windows 10/Windows 11 multiuser, so no RDS CAL's required, and no software compatibility headaches trying to run stuff on a Server OS. The only licence required comes as part of the Windows Enterprise licence most business users will have as part of an M365 Bundle.
Combined with the existing exodus from onprem to cloud that's been a thing for some years, changes that make on-prem virtualisation (server and desktop) less commercially viable only serve to hasten the exodus.
Disclaimer: There's always going to be a case for on-premise/private cloud - predictable, constant workloads, locations with poor connectivity, etc etc - but for the majority of cases, whether your servers are sat on VMWare in your own remote colo, or in Azure/AWS, is going to have zero impact on the end user experienece - and is going to open a lot of capability and flexibility doors for admins.
.... and yet Microsoft AVD requires Nerdio to make it workable (extra cost) and the user experience is poor unless you have a high speed connection (RDP only TCP options). Horizon Blast operates on low speed links. Some customers prefer a hybrid approach rather than being locked into Microsoft. Once they start using AVD they get their first Azure bill and go "what the f**k". If they have a hybrid approach they can at least put the majority of their VDI workload on-prem which provides some competitive tension vs a fully cloud approach.
"Horizon has been overpriced (against the market) for years now."
Can you show your working on that? Citrix is the only real like for like and Frame was sold to Dizzon from Nutanix which shows a lack of confidence in that product. AVD and Workspaces have their places but they aren't really the same. Also you have to consider what they are there to do. For Microsoft and Amazon these services are there to lock you in on a consumption based platform who's costs are... variable. The motivations of the vendor have to be considered and neither Microsoft or Amazon are interested in delivering VDI, they are interested in you consuming Azure or AWS. Once you're doing so their interested is in keeping their costs down and your consumption up, not features or innovation.
Software industry "deals" are traditionally heavy with huge discounts. Broadcom has no problem walking away from customers who are not profitable. That is what happened with Symantec - price didn't change, but the insane discounts went away. From Broadcom's viewpoint that is good business. They are a for-profit business, not a charity.
Before you hit the thumbs-down, can you at least be honest enough with yourself to admit this strategy has delivered an all-time stock high? Hate it if you want, but investors love it.
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