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Updated Broadcom CEO Hock Tan has announced his intention to divest VMware's end-user computing and Carbon Black units, and signalled a rapid shift to subscription licenses of bigger software bundles.

Speaking on Broadcom's Q4 2023 earnings call, Tan told investors "We are now refocusing VMware on its core business of creating private and hybrid cloud environments among large enterprises globally and divesting non-core assets."

"Our strategy going forward is to enable global enterprises to run apps across datacenters and public clouds by consuming VMware's high value software stack," Tan explained, adding: "To attract and retain workloads we are investing in microservices tools."

Tan named VMware's end-user computing portfolio which comprises desktop virtualization, application publishing, and mobile device management as one asset to be divested. The Carbon Black security software unit is also on the way out, after on November 27 announcing it had become an independent Broadcom business unit.

"We're now going to invest and focus our sales and R&D on those core areas of VMware Cloud Foundation," Tan continued. "And to us, end-user computing, Carbon Black, good assets as they may be, we prefer now to divest them. We'll find good homes for them because there are a lot of very interested parties who are more than happy to take those assets."

The Broadcom boss promised to be "very, very thoughtful about where we put those assets eventually, simply because the customers of many of these two assets are also the same customers to the VMware Cloud Foundation.

Hes right: VMware's desktop virtualization wares rely on the virtualization pioneer's ESXi hypervisor, so won't be easily disentangled.

But Tan doesn't want customers to buy bits and pieces of VMware's portfolio. He intends to have more of them buy Cloud Foundation which includes compute, storage and network virtualization, plus multi-cloud management and automation.

Tan described VMware as having practiced "very loose component sales in the past, particularly on compute only." Changing to sales of Cloud Foundation will mean customers pay more propelling VMware revenue towards Broadcoms goal of adding $8.5 billion of pro forma EBITDA within three years of the deal closing. The CEO predicted the shift to Cloud Foundation sales alone should see that number in sight by the end of Broadcom's 2024 financial year.

CFO Kristen Spears foreshadowed another change for VMware customers, in the form of a push to subscriptions when they renew their licenses.

"We are also converting an install base of licenses that is over 60 percent perpetual today to one that will be mostly subscription by the end of fiscal 2024," she announced on the earnings call.

Spears also revealed that by the end of FY '24, VMware spending will shrink to $1.4 billion per quarter down 40 percent from a year ago.

Some of those savings will clearly come from job cuts. Public filings suggest VMware has axed over 2,000 jobs in the US. The Register has made several requests to Broadcom to detail those job cuts, and how they will change the experience of working with VMware, but it has not responded. In its Form 8-K, Broadcom revealed it "expects to take charges of approximately $1.3 billion through fiscal year 2025 for the implementation of cost reduction activities."

Tan's remarks about Broadcom's plan to focus on global enterprises reflect the playbook the voracious conglomerate followed after the acquisitions of CA and Symantec, which both saw product development focus on the needs of larger customers. Smaller users and the partners who serve them both reported indifference from Broadcom.

Tan said VMware is different because " we're selling a product of the present and of the future. It is a growth product to be able to create a virtualized cloud environment in your own datacenter on-prem for any global company."

Broadcom forecast VMware will generate $12 billion of revenue for eleven months of its next financial year, excluding $2 billion for end-user computing and Carbon Black.

The biz reported $9.3 billion revenue for Q4 up four percent year on year, and an eight percent annual revenue increase to $35.8 billion. Net income was essentially steady for the year and quarter.

FY 2024 revenue was forecast to reach $50 billion, helped by the addition of VMware, secular increases in demand for semiconductors, and some help from the AI boom.

+COMMENT The Register struggles to reconcile the many references on Broadcom's earnings call to VMware Cloud Foundation as an ideal product for global enterprises, the plan to de-emphasize "loose" sales of unbundled products, and past insistence that smaller VMware customers will continue to get the innovation and service they need.

Broadcom is currently offering those customers little succour or information and they're openly fearful and contemplating alternatives.

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Broadcom to divest VMware's end-user computing and Carbon Black units - The Register

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NCS and Google Cloud announced today their strategic partnership to accelerate AI-led transformation for public and private sector organisations across Singapore, Australia, and the wider Asia Pacific (APAC) region.

NCS has also integrated its Google Cloud expertise across its service offerings and teams. This enables APAC clients to harness AI and cloud technologies to transform and innovate at greater speed and scale. Clients can tap into NCS' extensive experience and capabilities and its 100-strong APAC Google Cloud team to confidently navigate the full spectrum of innovation, security, and AI transformation.

NCS is a Premier partner for Google Cloud Platform and Google Workspaces, offering clients a range of services from Data Analytics to Infrastructure and Cyber across the Google suite, including Google Cloud, Workspace, Maps, and Mandiant. Supporting this Premier status are Partner Specialisations in Infrastructure Services, Data Analytics Services, and 15 Partner Expertise including retail, healthcare, education, and financial services.

Earlier in September, NCS had announced a partnership with leading cybersecurity specialist, Mandiant, now part of Google Cloud. The combined offering, experience and deep capabilities enable organisations to tap into an intelligence-led approach to cybersecurity, supported by end-to-end applications and infrastructure services delivered by NCS. The partnership also enables clients to take advantage of a single point of contact and accountability, thereby accelerating resilience for organisations.

NCS has also invested in Google Cloud training for over 200 personnel as Google Cloud Certified Professionals, including professional-level certifications in Data Engineering and Cloud Architecture. This is in addition to NCS' 100-strong APAC Google Cloud team.

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NCS announces strategic partnership with Google Cloud to accelerate digital transformation in Asia Pacific, ETCIO SEA - ETCIO South East Asia

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New York, Dec. 07, 2023 (GLOBE NEWSWIRE) -- According to Market.us, The Global Computing Power Market is likely to secure a valuation of USD 48.4 Billion in 2024, with a CAGR of 6.8% during the forecast period. The global market is anticipated to capture a valuation of USD 81.3 Billion by 2032.

Computing power refers to the ability of computer systems or infrastructures to execute computational tasks and process information efficiently and quickly. It measures both processing capacity as well as speed and performance - typically measured in terms of how many operations or calculations computers can complete in an allotted amount of time - usually expressed either as "Flops per Second" (Floating Point Processing Every Second) or MIPS (million Instructions Per Second).

The computing power market, also referred to as high-performance computing (HPC), entails providing infrastructure and resources necessary for meeting rising computing power demand. It includes software, hardware and services which help companies leverage significant computing power for complex and data intensive tasks.

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Key Takeaway:

Top Trends in the Global System Integration Services Market

An important trend in the Computing Power Market is the increasing popularity of cloud computing. Governments worldwide are emphasizing cloud computing and digital transformation initiatives. For instance, projects like Smart Abu Dhabi and Smart Dubai in the United Arab Emirates (UAE) promote cloud computing adoption and stimulate demand for these systems. Additionally, the work-from-home trend, accelerated by the COVID-19 pandemic, has led to enhanced high-performance computing power limitations through solutions like data analysis. This trend reflects the adaptability and relevance of the market in evolving work environments.

Get deeper insights into the market size, current market scenario, future growth opportunities, major growth driving factors, the latest trends, and much more. Buy the full report here

Regional Analysis

The Computing Power Market exhibits regional variations in its dynamics. North America leads the market, driven by its emphasis on technological advancements and robust data security measures. This region is a hub for technological innovation and is characterized by the presence of major global enterprises and SMEs that adopt HPC systems to address technical challenges.

North America's commitment to innovation and technological adoption has propelled the adoption of high-performance computing systems. Major enterprises, such as Boeing and General Motors, coupled with SMEs, recognize the value of HPC systems in overcoming technical restraints and driving growth.

In contrast, the Asia Pacific region is emerging as a significant player in the Computing Power Market, particularly in areas such as weather forecasting and scientific research. The region's focus on digitization and technological adoption contributes to its growth potential. As businesses and governments in the Asia Pacific region continue to invest in high-performance computing, the market's dynamics are expected to evolve further.

Competitive Landscape

Prominent participants in the Computing Power Market comprise Atos SE, Advanced Micro Devices, Inc., Hewlett Packard Enterprise Development LP, Dell Inc., Cisco Systems, Inc., Fujitsu, Intel Corporation, IBM, Microsoft, and Amazon Web Services, Inc. These key market players play a pivotal role in influencing the market landscape through strategic initiatives, product advancements, and collaborative partnerships.

Their significant presence and impact highlight the competitive dynamics of the market. These companies stand at the forefront of innovation, spearheading the creation of high-performance computing solutions tailored to the diverse requirements of businesses and industries. Leveraging their expertise and market leadership, these entities emerge as critical contributors in this dynamic and ever-evolving industry. Their proactive engagement in shaping the market, be it through strategic initiatives, cutting-edge product development, or strategic partnerships, solidifies their position as key players in the Computing Power Market.

Scope of the Report

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Market Drivers

Several key factors are driving the growth of the Computing Power Market. Chief among them is the escalating demand for high-efficiency computing. In today's rapidly evolving business landscape, organizations across diverse industries seek faster and more efficient data processing capabilities to maintain competitiveness.

The evolution of virtualization technology has significantly contributed to this demand surge. Virtualization helps organizations optimize their computing resources to increase efficiency and lower operational costs. As IT continues its rapid expansion and diversification, high-performance computing solutions become ever more essential.

Hybrid high-performance computing (HPC) solutions have gained great traction over recent years. These powerful computing systems specialize in processing vast volumes of data quickly, making them popular with academic institutions, government agencies, energy companies and defense agencies. Their widespread adoption across these sectors has been instrumental in shaping and growing the high-performance computing industry as a whole.

Market Restraints

While the Computing Power Market presents promising growth opportunities, it also faces certain restraints. One notable challenge is the escalating concerns regarding cybersecurity. As the use of HPC systems expands, the market is exposed to multiple potential security threats. HPC environments consist of heterogeneous systems, requiring multiple management systems to operate securely.

Unfortunately, the implementation of security policies and management processes has lagged, leading to vulnerabilities without corresponding benefits. Addressing these security concerns is crucial to sustaining the market's growth. Organizations and governments must invest in robust cybersecurity measures to mitigate potential risks associated with high-performance computing.

Market Opportunities

The Computing Power Market presents substantial growth opportunities in a variety of industries, both within the United States and globally. High-performance computing has served as the catalyst for innovation in areas like automotive, aerospace and healthcare, finance and many more. These industries rely on high-performance computing to transform the way they offer their services and products. The inherent capability of high-performance computing systems to speed up complicated business processes, is an important instrument for companies seeking productivity and effectiveness.

Expected growth in the need for supercomputing in the coming years is driven by the need for faster data processing, higher computational capabilities, as well as increased efficiency in operations. Companies that invest wisely in high-performance computing systems are set to get an edge in the market, opening new possibilities to innovate and encouraging sustainable growth.

Report Segmentation of the System Integration Services Market

Component Analysis

The Computing Power Market is composed of several pivotal components, each playing a crucial role in its functionality and expansion. These components encompass Servers, Software, Services, and Other Components. Among these, Servers notably occupy a dominant position in the market. The escalating prevalence of data centers and the growing presence of small and mid-size enterprises (SMEs) are key drivers behind the heightened demand for servers. Given the imperative for efficient data processing capabilities, servers emerge as a vital component within the Computing Power Market.

The Services segment constitutes another significant contributor to the market's dynamics. This segment encompasses maintenance, management, and support services, which are integral during the installation and ongoing operation of high-performance computing (HPC) systems. HPC vendors offer support to ensure the seamless functionality of these systems, addressing any issues that may arise during their use. This comprehensive suite of services underscores the importance of the Services segment in maintaining the robustness and reliability of the Computing Power Market.

Deployment Mode Analysis

The choice of deployment mode is a critical decision for businesses operating in the Computing Power Market. The market is primarily divided into two deployment modes: On-Premise and Cloud. On-Premise deployment remains a preferred choice for many organizations due to concerns about data security. Enterprises are cautious about the safety of their sensitive data, especially with government regulations in place.

Cloud deployment, however, is poised for substantial growth in the coming years. The cloud offers numerous advantages, including cost-cutting potential and operational efficiency benefits. The flexibility and scalability of cloud computing provide a compelling choice for companies looking to lower expenses for operations and reduce the requirement for more computing resources in-house. As cloud computing grows and become more reliable, it is likely to become more prominent within the Computing Power Market.

End-User Analysis

The Computing Power Market serves a diverse range of end-users, each with its unique requirements and challenges. These end-users include BFSI (Banking, Financial Services, and Insurance), Gaming, Media & Entertainment, Retail, Transportation, Government & Defense, Education & Research, Manufacturing, Healthcare & Bioscience, and Other End-Users.

Among these, the Manufacturing sector stands out as a dominant player in the market. Manufacturing processes are often time-consuming and computation-intensive. To address these challenges, the industry adopts HPC systems and CAD (Computer-Aided Design) software. These technologies enhance performance, improve computational speeds, and provide quick data access, contributing to increased efficiency and competitiveness within the sector.

The Government & Defense sector is another prominent player in the Computing Power Market. Governments and defense agencies are increasingly leveraging high-performance computing to support digitization initiatives and contribute to economic development. These agencies adopt progressive IT solutions to improve computing efficiency, enhance security measures, and drive technological advancements.

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Market Segmentation

By Component

By Deployment Mode

By End-Users

By Geography

Top 10 Biggest Companies in Computing Power Market

The competitive landscape of the market has also been examined in this report. Some of the major players include:

Recent Developments

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Computing Power Market Revenue to Total USD 81.3 Billion by 2032 | Growing Investments In Data Centers - GlobeNewswire

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Enterprises are building, deploying and managing modern applications in cloud computing environments. By adopting cloud technologies, they can build highly scalable, flexible and resilient applications that can be updated quickly.

Cloud native technologies support fast and frequent changes to applications without impacting service delivery. They help industries to increase efficiency, reduce costs and ensure availability of applications to meet their customer demands.

With all the benefits the cloud has to offer, it also introduces a new set of challenges, particularly for industries where security and compliance are priorities.

When PPRO and Spotnana, influential companies within the fintech and travel sectors, needed to prioritise their security and regulatory compliance, they turned to my company for a solution.

The growing complexity of their environments, the numerous alerts hindering their ability to effectively monitor and mitigate vulnerabilities and the mounting concerns around keeping speed and agility in the DevOps team while ensuring security were only a few of the challenges each was looking to resolve.

PPRO (pronounced 'p-pro') is at the forefront of the fintech industry, providing banks and businesses with a globalised digital payment infrastructure. PPRO's secure and unified payment platform grants customers access to card schemes, payment methods, fraud screening tools and other robust capabilities.

These tools empower users to conduct quick transactions, enhance checkout conversions, and streamline services via a single connection. PayPal, Stripe and GlobalPayments are just a few of the businesses that rely on PPRO.

As a global payment provider, PPRO adheres to stringent regulations spanning various industries and countries. Looking for a complete cloud native solution to help balance the multiple workloads and environments, PPRO chose us to protect and monitor their customers' payment platforms, ensuring end-to-end visibility, speed, and compliance.

Oursolutionbridges the gap between PPRO's developers and management to prioritise vulnerabilities and streamline remediation efforts.

PPRO's security team can now collaborate to address and resolve discovered vulnerabilities, whether that means fixing them immediately, monitoring for malicious activity at runtime, or flagging the non-compliant resource. By scanning for secrets hidden below the surface of PPRO's platform, our product has transformed PPRO's operational hygiene.

Time savings proved evident during the Log4J and Spring4Shell vulnerabilities. The first instance occurred before PPRO's deployment of our tech, while the second vulnerability was detected shortly after the implementation.

In response to the first CVE report, PPRO's security team took immediate action, developing and testing writing scripts to run against all known repositories a task that consumed hours of effort.

Since the implementation of the defence platform, PPRO's security team receivesinstant notifications and gainsclear visibility into all affected applications via the dashboard. What used to take hours or days of research and remediation now only takes a matter of minutes. Our cloud native protection platform provides PPRO with a competitive advantage in the financial services sector respectively.

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Spotnana is a global travel-as-a-service platform redefining corporate travel with personalised and cost-effective offerings. Spotnana provides cloud-based travel solutions to bring simplicity and trust to adventurers worldwide.

Leveraging cloud computing, microservices and open APIs, Spotnana drives innovation in the travel industry. Corporations, agencies, suppliers and technology providers using Spotnana's platform can deliver travel experiences smoothly to connect people from all around the world.

To establish trust with its customers, Spotnana must secure the cloud native technology that powers its transformative travel-as-a-service platform.

Built on AWS Fargate, Spotnana assumes responsibility for the security of their cloud native applications, including video and runtime. Gabriel Alexandru, Senior Security Engineer at Spotnana, emphasised key concerns in the company's security posture.

"We were building the security function from the ground up and lacked telemetry and protection on our AWS containers," he said. "Without forensic evidence of what was happening on those containers, we couldn't harden runtime and certainly couldn't prevent anything from happening at runtime."

Spotnana needed cloud native protection that would fit into its existing tools and workflows, ensuring end-to-end protection from development to runtime.

My company's tech emerged as the optimal solution to secure Spotnana's travel-as-a-service platform with AWS Fargate. Its platform provides essential telemetry, runtime hardening, and comprehensive cloud-native security across the entire application lifecycle.

Seamlessly integrating into Spotnana's DevSecOps workflows, our technology brings dynamic threat analysis, container protection and detection of malicious behaviour into their security landscape. With effortless scalability, accurate threat detection, and Kubernetes expertise, it delivers unmatched value for the Spotnana platform, its security team, and its customers.

Spotnana intends to further leverage the technology's features and values our company's valuable research and educational content, which keeps them informed of the latest threats. With such support, Spotnana maintains a secure infrastructure while cultivating innovation and delivering exceptional travel experiences.

In navigating the complexities of the cloud, the stories of PPRO and Spotnana highlight the pivotal role our technology plays in enabling organisations to harness the full potential of cloud native technologies while addressing the unique challenges they bring.

As cloud computing continues to reshape industries, security and compliance remain paramount concerns. PPRO's journey illustrates how our security facilitates the seamless integration of security into DevOps workflows, transforming operational hygiene and reducing response times to vulnerabilities.

Spotnana's experience highlights how we empower companies to build trust by securing cloud native environments and ensuring end-to-end protection.

Both stories exemplify the ability to not only safeguard critical assets but also drive innovation and enhance the delivery of exceptional customer experiences in the cloud era.

The technology is not merely a solution but a strategic partner in navigating the cloud's complexities, safeguarding enterprises, and propelling them towards success in the ever-evolving digital landscape.

Forrester Consulting recently examined the Total Economic Impact (TEI) and the return-on-investment (ROI) that enterprises may realise by deploying my company's solution.Dive into the new studyto learn how to achieve 207% ROI along with other quantifiable benefits of using our platform.

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Aqua Security on how to navigate the Cloud's complexities - IT Brief Australia

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