The Future of EUC: Who Will Acquire this Division from Broadcom/VMware?

As the tech world buzzes with speculation about Broadcom/VMware's EUC (End-User Computing) division's potential sale, several major players emerge as likely candidates. I wanted to delve into the possibilities of Citrix, HPE, Nutanix, and Microsoft acquiring this division, analyzing the pros and cons of each. These are my top four candidates, based on my 20+ years in the VDI/EUC space.

1. Citrix

Pros:

• Synergy in Product Offerings: Citrix's strong foothold in the EUC space could mean a seamless integration of Broadcom/VMware's EUC solutions, leading to a more comprehensive product suite.
• Market Expansion: This acquisition could expand Citrix's market share, solidifying its position as a leader in the EUC market.

Cons:

• Monopoly Concerns: Such a merger might raise antitrust concerns, given the combined market share.
• Integration Challenges: Merging two large EUC portfolios could lead to integration challenges, both technically and in terms of company culture.

2. HPE (Hewlett Packard Enterprise)

Pros:

• Diversification: HPE could diversify its portfolio, which is currently more hardware-centric, adding significant value through EUC software solutions.
• New Market Opportunities: This acquisition could open new markets for HPE, allowing it to offer more comprehensive IT solutions.

Cons:

• Lack of Experience in EUC: HPE's primary focus has been on hardware, and venturing into a predominantly software-based EUC might present operational challenges.
• Resource Allocation: Balancing resources between its existing hardware business and a new software division could be challenging.

3. Nutanix

Pros:

• Complementary Technologies: Nutanix, being a leader in hyper-converged infrastructure, could integrate EUC solutions to offer a more rounded product to customers.
• Innovation Potential: The acquisition could lead to innovative solutions combining Nutanix's infrastructure and Broadcom/VMware's EUC technologies.

Cons:

• Financial Strain: As a smaller player compared to others, the financial impact of such a large acquisition could be significant for Nutanix.
• Market Positioning Risk: Shifting focus to integrate EUC might affect Nutanix's current market positioning and core business focus.

4. Microsoft

Pros:

• Strategic Fit: Microsoft's extensive portfolio in software and cloud services could be greatly enhanced by adding EUC solutions, offering a more holistic service to customers.
• Global Reach: Microsoft’s global presence could help in rapidly scaling the EUC solutions to a broader market.

Cons:

• Regulatory Hurdles: Given Microsoft's size and market influence, regulatory approval for such an acquisition might be challenging.
• Focus Dilution: Integrating Broadcom/VMware's EUC division could dilute Microsoft's focus on its core products and services.

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I discussed who “I” thought would be the potential suitors for Broadcom/VMware's EUC division, and it's clear that each contender brings its own set of strengths and challenges to the table. The acquisition, regardless of who secures it, is poised to reshape the landscape of the EUC market.

But what do you think? Which company do you believe is best suited to acquire the EUC division from Broadcom/VMware? Do you see a clear frontrunner based on strategic alignment, market potential, or innovation capability? Or perhaps you envision a dark horse in this race, one not mentioned in my analysis?

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Christopher’s Two-Cents (..and it’s probably worth about as much):

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In my assessment of why Citrix emerges as the most probable acquirer of Broadcom/VMware's EUC division, a key consideration is the strategic integration and enhancement of technologies. Citrix has the unique opportunity to extract specific elements, such as Instant Clone technology, and incorporate them into their existing CVAD (Citrix Virtual Apps and Desktops) solution. This integration could significantly bolster Citrix’s offerings, enhancing efficiency and performance.

More intriguing, however, is the possibility of Citrix offering a combined solution, potentially branded as "Citrix Horizon." This would not only maintain the strengths of VMware Horizon but also blend it with Citrix's own technologies, offering EUC customers a more versatile and powerful solution. The strategic value of such a move could be substantial, providing customers with enhanced features and greater flexibility in their EUC solutions.

A compelling reason for this direction is the significant footprint of VMware Horizon in the federal government. The government sector's reliance on VMware's solutions presents a lucrative opportunity for Citrix. By acquiring the EUC division and potentially offering a combined solution, Citrix could make significant inroads into this sector, tapping into a large and stable customer base.

The potential for Citrix to offer "Citrix Horizon" could be a game-changer in the EUC market, providing existing VMware customers a familiar yet enhanced product and giving Citrix a stronger foothold in sectors where VMware is currently dominant.

I believe this strategic approach, coupled with Citrix's established presence in the EUC space, makes them a frontrunner in the acquisition race. I'm interested to hear your views on this analysis. Do you see Citrix's potential acquisition and the creation of "Citrix Horizon" as a likely and beneficial move, especially considering the federal government's existing investment in VMware Horizon?