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Hock Tan is very upfront with his strategy when acquiring these companies - he intends to extract the maximum from the top 500 customers, who are reliant on the
by avree 2y ago
Hock Tan is very upfront with his strategy when acquiring these companies - he intends to extract the maximum from the top 500 customers, who are reliant on the product, while abandoning anyone below the 'margin line' he's drawn. As to why it happens - VMWare was incredibly bloated, spending less than 50% of their OPEX on R&D (compare to Broadcom's 80%). They had once created a good product, but the business wasn't working.
- EricE 2y ago"but the business wasn't working" This. Otherwise why would have Dell sold VMWare to Broadcom in the first place?