In Short:
Broadcom has acquired VMware for $69 billion, expanding from semiconductors into software. The companies aim to strengthen their partnership and regain customer trust by launching new programs. Broadcom is focusing on market solutions, especially in India, where they’re investing heavily. They see great potential in private AI for enterprises, offering clients data privacy while enhancing business operations.
The US multinational Broadcom has made significant strides following its acquisition of VMware, a key player in infrastructure software, in a deal valued at $69 billion last year. The two organizations are not only focused on enhancing their existing portfolio but are also investing efforts in building customer trust and have introduced several partner programs. In an exclusive interaction with ETTelecom’s Muntazir Abbas, Sylvain Cazard, President of Asia Pacific (APAC) at Broadcom, discussed various aspects related to the merger, including market diversification, government business opportunities, and the emphasis on private artificial intelligence (AI).
Diversification in Software Business
Broadcom is predominantly recognized for its semiconductor operations. With the acquisition of VMware, are you now diversifying into the software sector?
Indeed, while Broadcom‘s roots lie in semiconductors, we have been diversifying into software over the last five years and currently operate within the infrastructure software business. The acquisition of VMware complements this strategy, allowing us to navigate both semiconductor and software realms.
Integration Challenges
What are the notable challenges during the integration of the two companies?
The integration of VMware into Broadcom marked one of the largest technology mergers in history. Naturally, such a merger entails various challenges and numerous activities to be undertaken. However, we believe we are on track for a smooth integration, putting in significant effort to ensure it is executed in alignment with our clients’ best interests.
Building Trust with Partners and Customers
What initiatives are you pursuing to rebuild trust with your partners and customers?
We are dedicating substantial time to engage directly with our customers across all market solutions, particularly in India. This involves specific discussions that aim to optimize their experience. Our partner programs have been enhanced to ensure all partners are well-informed about our strategies, operational changes, and the benefits these bring.
Integrated Roadmap and Clientele
Looking ahead, do you have an integrated roadmap that combines both VMware and Broadcom, or will they remain separate entities?
This acquisition involves two substantial organizations. There are numerous synergies that can be leveraged to deliver significant benefits to our customers and partners through our combined software and infrastructure offerings.
Can you identify your top clients in the enterprise sector within the Asia region?
We generally do not disclose names of specific clients; however, our technology supports 90% of the world’s banking institutions, including various governments. For instance, SoftBank actively utilizes our technology platform.
Sector Expansion Focus
Aside from Banking, Financial Services, and Insurance (BFSI), which sectors do you aim to target?
We are concentrating on governmental entities, general manufacturing, and a variety of clients across diverse industries.
Opportunities in Digital Transformation in India
The Indian government is aggressively pursuing digital transformation. Do you see this as a significant opportunity for companies like yours?
We have been actively investing in India for nearly 15 years through VMware. Our established presence signifies that India is not only a vital market but also a hub for product development and support, contributing significantly to our strategic advantages. We remain optimistic about infrastructure developments in India, where we have already made notable contributions, exemplified by our involvement in the UPI platform.
Workforce in India and Expansion Plans
What is your headcount in India?
While we cannot disclose specific figures by country, our R&D center in India is substantial, with leadership comprising individuals of Indian origin.
Future Expansion in Asia
What are your future expansion plans in Asia, particularly India?
Asia presents diverse markets with unique dynamics, and India stands out as a key focus area. Countries like Australia and New Zealand have historically embraced cloud technology, while Japan is modernizing its infrastructure. We are also bolstering our presence in Singapore’s digital services and infrastructure sectors.
Revenue Contribution from Asia
What is the contribution of Asia to your overall revenues?
Asia remains a crucial market, with growth continuing in double digits.
AI Strategy and Future Roadmap
What is your perspective on AI, particularly regarding a private AI-driven roadmap?
Our investment in AI has been substantial, primarily driven by leading players in generative AI technologies such as ChatGPT. The movement toward enterprise-level AI solutions is gaining momentum, with organizations eager to develop applications that enhance their operations. We advocate for private AI, addressing the increasing need for data privacy, allowing clients to execute their AI models and large language models (LLMs) within their enterprise frameworks.
