Quantum computing may not impact CIOs for a few more years, but generative AI and Broadcom’s acquisition of IT virtualization pioneer VMware hit like a one-two punch in 2023. IT leaders are bracing their strategies and systems for handling a new wave of AI applications and data. At the same time, many are stunned by changes they see coming from VMware by Broadcom, forcing them to assess if they have the right underlying software to manage IT operations and meet the challenges ahead.
Not long after the acquisition closed in November 2023, analysis from the investment community circulated. "The disruption in the infrastructure software space stemming from Broadcom’s recent acquisition of VMware is turning out to be more significant than we expected," analyst Jason Ader wrote in an investor note for William Blair that sparked coverage across business and technology publications.
News outlets reported on a rise in IT professionals exploring alternatives to VMware’s dominant ESX hypervisor. Analyst firm Forrester predicted up to 20 percent of VMware enterprise customers are planning to escape its extensive virtualization stack in the coming year.
“While we expected Nutanix to benefit from this disruption, the VAR [value added reseller community sees a multiyear runway for the Nutanix Cloud Platform and Nutanix AHV [its hypervisor] to take market share from VMware,” The Register reported, citing Ader’s note.
"VMware's roots are everywhere, and pulling them up is going to unearth a lot of dirt," wrote Chris J. Preimesberger in The New Stack. "The acquisition seriously changes the relationship customers will have with the new version of the company going forward."