Broadcom is selling even more VMware assets — end-compute unit set for billion-dollar deal

(Image credit: Ferran Rodenas / Flickr)

It seems that Broadcom isn't quite finished with its shake-up of VMware just yet, as it is reportedly planning to sell off its End-User Compute (EUC) arm.

According to reports, Broadcom, which bought VMware in November 2023, is selling the EUC portion to KKR, a private equity firm that already owns cyber security firm Barracuda Networks, as well as Cloudera and BMC. The alleged figure for the purchase is $3.8bn.

Broadcom announced its intentions to sell VMware's EUC operation in December last year. The Register claims that the revenue generated from that side of the business is around $1bn a year.

Big changes, unhappy customers

VMware's EUC sector boasts some high-level clientele, including those in government and tightly-regulated industries. Such organizations typically favor using virtual desktops as opposed to on-prem hardware for added security and privacy. 

Since Broadcom's purchase of VMware, it has made some significant and controversial changes to the cloud computing service, including the termination of perpetual licenses, which struck fear into many customers over rising prices. It also axed the free ESXi Hypervisor.

The Register found an example of a customer complaining that their costs have risen by an eye-watering 6600% since the changes, and another claiming that their renewal bill went from $8m to $100m. 

Prashanth Shenoy, a VP at VMware, tried to placate customers by putting a positive spin on the sweeping changes, claiming that the shift to monthly subscriptions offered greater flexibility for customers, and that the downsizing of VMware's portfolio would make the platform more efficient, as well improving the higher-value products.


Lewis Maddison
Staff Writer

Lewis Maddison is a Staff Writer at TechRadar Pro. His area of expertise is online security and protection, which includes tools and software such as password managers. 

His coverage also focuses on the usage habits of technology in both personal and professional settings - particularly its relation to social and cultural issues - and revels in uncovering stories that might not otherwise see the light of day.

He has a BA in Philosophy from the University of London, with a year spent studying abroad in the sunny climes of Malta.