Not a VMware fan. But...
The narrative that “bad big company” bought “hot little competitor”, fired everybody, killed their amazing product and hurt their customers... is nonsense in this case. And many cases like it.
Datrium was dead in the water with no money and no way to get enough money.
Datrium likely had 100-200 customers. After many years. Any recent new customers buying Datrium were running with scissors around the swimming pool wearing a blindfold. One should not be entirely surprised that it came to a sudden and inglorious end.
Anybody who thinks Datrium was a “competitor” for VMware, that they bought to shut down because Datrium was a threat, is high on crack. VMware did this as an asset deal for pennies per dollar of invested capital, for the engineers, some patents, and maybe a few bits of code. They did these guys a favor. This was not a strategic deal. Ignore the press releases on acquisitions like this.