Thriving Amidst Transition: A Guide for Southeast Asian Companies in the Broadcom Shakeup

Attributed to: Faiz Shakir, Vice President, Southern Asia, Nutanix

When Steve Ballmer, the former CEO of Microsoft, was asked for his thoughts on the iPhone shortly after its announcement in 2007, his reply, which was accompanied by a scoff, was: ”[The iPhone] doesn’t appeal to business customers because it doesn’t have a keyboard, which means that it’s not a good email machine.”

We all know how the story ends. Ballmer’s so-called “business customers” embraced touchscreens, smartphones with physical keyboards went the way of dinosaurs, and Ballmer’s Microsoft exited the smartphone market in 2016.

Today, we are on the verge of another seismic shift.

Walk Before You Run: Acknowledging the Pains of Transition

Broadcom’s acquisition of VMware continues to make waves across industries. While efforts to integrate the two firms are ongoing, customers have persistent concerns about how this will affect their businesses.

First, there are concerns directly related to the acquisition itself. In Southeast Asia, organisations are bemoaning the higher-than-expected price increase for VMware, which might negatively impact their carefully managed budgets. Some are also worried about future support and changes to account contacts. As such, many are now looking for alternative platforms that would be the right long-term solution for them.

Second, concerns on how trusted and experienced channel partners will operate given changes to the VMware product landscape. Customers demand help on their needs from licensing to services. Historically Broadcom’s approach has been to minimize channel involvement to increase margin. The recent announcements around VMware Cloud on AWS echo these fears, reduce customer choice, and cut out critical channel help.

Speaking of experienced partners, here are some key features Southeast Asian businesses need to consider when looking for a cloud computing provider.

Run Before You Soar: Key Cloud Computing Features to Consider

New workloads like generative AI demand the need for visibility and access to private and public clouds simultaneously. The first critical feature to consider for this approach is scalability. An ideal scalable solution allows for easy addition of resources (compute, storage, networking) in a non-disruptive manner, supports distributed architectures, and maintains performance levels as workloads increase. This feature ensures that businesses can adapt to market changes and customer needs without the need for costly and time-consuming infrastructure overhauls.

The total cost of ownership (TCO) is also important. TCO typically includes upfront capital expenses (hardware and software purchases), and operating expenses (power, cooling, management, and support). Evaluating TCO not only fits within budget constraints but also contributes to the financial health of the organisation by optimising resource utilisation and minimising waste.

As businesses increasingly rely on digital platforms, the importance of security and compliance cannot be overstated. Aside from adherence to industry regulations, other key aspects include encryption, identity and access management, threat detection and response, and regular security updates. Prioritising security and compliance helps build trust with customers and partners, safeguarding the company’s data and reputation.

Finally, businesses need to choose a technology partner that invests in innovation and continuous improvement. A commitment to innovation indicates a forward-looking approach, preparing businesses to take advantage of emerging technologies such as artificial intelligence, machine learning, and edge computing. It also means that the solution will adapt to evolving best practices and standards, thereby keeping the business at the forefront of its industry.

To the Cloud and Beyond: Thriving in a Hybrid Multicloud World

Over 500 brands exited the smartphone market worldwide between 2017 and 2023, including the likes of Microsoft, Blackberry, and LG. The 200-odd companies left in the game share two things in common: their smartphones all feature touchscreens, and the companies themselves have a high willingness to embrace change.

Much like the smartphone market, the world of enterprise infrastructure is moving to a hybrid multicloud way to run workloads and data; a combination of a hybrid cloud (private cloud and a single public cloud), and multicloud (multiple public clouds.

Acquisitions as dramatic as the one between Broadcom and VMware don’t occur every day. When they do happen, it is easy to see such transitions as disruptions rather than opportunities. Yet, if history has taught us anything, it is that change often leads to transformative growth, especially for companies that are strong and willing enough to embrace it.

By carefully evaluating Broadcom’s impact on your business, and selecting hybrid multicloud computing providers based on scalability, cost-effectiveness, security, and a commitment to innovation, businesses will be free to adapt and lead at the speed of their business needs.