Broadcom’s Pursuit of VMware Takes Page From Michael Dell
A big acquisition would cement the chipmaker’s move into cloud-related products, echoing earlier deals by Dell.
Not only a chipmaker.
Photographer: David Paul Morris/Bloomberg
When Michael Dell bought VMware Inc. in 2015, his eponymous technology company was facing an identity crisis. Dell himself knew that the business he founded had become much more than a personal computer maker, but many investors and customers still associated the brand with PC hardware.
Dell’s acquisition of VMware via its parent EMC Corp., a data storage provider, solidified Dell’s shift into the fast-growing cloud business. VMware is a pioneer in virtualization, a technology at the heart of cloud computing that allows servers to run more efficiently. Last year, the business that combines cloud-related products such as servers, storage and infrastructure accounted for half of Dell’s operating income. In October, the company spun off its controlling stake in VMware, but Michael Dell and private equity firm Silver Lake remain the biggest investors in the software firm.