Summary Bullets:

• The playbook Broadcom is running on VMware is indistinguishable from the one used on Symantec and CA Technologies – after it promised things would be different with VMware.

• Acquisitions pivot around humans as much as money – a badly handled acquisition can destroy culture and methods, leaving the acquired entity a husk.

The saga of Broadcom’s VMware acquisition has progressed into the second act. Broadcom took full control of the company after the $61 billion transaction was finally approved by Chinese authorities. Broadcom’s treatment of two previous acquisitions, CA Technology and Symantec, generated significant worries by channel partners, industry watchers, and customers before the VMware deal was even completed. Both companies suffered restructuring, layoffs, divestitures, executive departures, callus treatment of employees, and priorities diverging significantly from what they were accustomed. Broadcom management, including CEO Hock Tan reassured everyone that this time would be different and that the company had learned its lesson. For some, this was a positive sign that VMware, a staple of IT in enterprises, would fare better and its essence and spirit would remain intact.

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