Cloud services, software-as-a-service (SaaS) applications, and on-premises infrastructures connected by wired and wireless networks now represent the backbone of modern enterprises. To fully harness the benefits of modern network architectures, network operations teams need a deep understanding of how these systems perform. This visibility is essential if teams are to avoid the downtime that results in lost revenues.

To be successful, teams must enhance their operational awareness and gain comprehensive visibility into the performance of both internal networks and those managed by third parties. Even by making small advances in this IT arena, teams can deliver large business benefits and demonstrable return on investment (ROI). 

Broadcom

Fig 1. Following a maturity model enables IT teams to take achievable steps toward expanding their operational visibility

Eliminating Redundant Network Monitoring Software Yields $1M in Cost Reductions

To move from basic visibility to proactive network operations, teams must meet the following objectives:

Establishing unified contextual awareness across network inventory, alarms, events, fault, performance, flows, logs, and configurations for traditional network architectures.Retiring redundant toolsets and establishing one source of truth for data collection and correlation across multi-vendor technologies.Instituting advanced capacity planning and insights into how bandwidth consumption affects user experiences.

Over the years, teams have invested in capabilities for monitoring complex networks that connect employees to a mix of enterprise applications, public cloud environments, and SaaS applications. The end result has been tool sprawl, which costs companies an average of $2.5 million per year. By following a maturity model that advances IT awareness in complex network architectures delivering critical user experience, businesses can expect a 50% reduction in costs over three years, delivering savings of more than $1M.

Avoiding Downtime Yields $2.5M in Revenue Savings

To move from proactive operations to modern observability, teams must establish awareness of modern network technologies like SD-WAN. However, gaining this visibility can’t mean adding more tools to your environment. Today’s teams need tool vendors that offer add-on capabilities, so they can use their current monitoring processes and workflows and apply them to these complex, modern network technologies. This guarantees that teams don’t have to deploy, learn, and administer new tools. Plus, it means teams can more easily apply the operational expertise they already have to the software-defined networking space.

By following these steps, teams can discover opportunities for avoiding downtime. This downtime avoidance can lead to improved network availability for critical business services, which can provide revenue savings of up to $2.5 million over three years.

Realizing an ROI of 160%

The holy grail for network operations is to move from modern observability to experience-driven network observability. Achieving these capabilities requires establishing advanced visibility into the experience of network users.

Research shows that, when following this maturity model for advancing network monitoring capabilities, organizations typically invest around $2.6 million. These investments can deliver business benefits amounting to $6.8 million over three years, resulting in a net present value (NPV) of $4.2 million and an ROI of 160%.

As companies invest in network innovations to support changing business needs, teams need to make commensurate investments in tools to manage their modern environments. However, it’s vital that these investments enable teams to establish unified visibility, including of both legacy and new technologies, and of both networks that are managed internally as well as those managed by external vendors. By leveraging these capabilities, teams can reduce downtime and costs.

Many business leaders still view IT as a cost center, rather than a strategic partner. By delivering significant business outcomes, including sizable cost savings and ROI, IT teams can fundamentally and permanently change this perception.

To learn more, visit Broadcom.

Networking

Journey Beyond, a part of Hornblower Group, is Australia’s leading experiential tourism group. Headquartered in Adelaide, it operates 13 brands and experiences spanning the country. The company’s overall strategy is to “have a customer experience that’s second-to-none — from the moment they first engage with the company to plan their experience, to when they return home at the end of their travels — regardless of what Journey Beyond adventure you are booking.”

However, the company’s disparate technology systems were proving to be a hinderance in its commitment to consistently deliver unmatched services and experiences to customers. As its business diversified, including its own acquisition by Hornblower Group in early 2022, Journey Beyond inherited a range of disparate technology systems, including six different phone systems and an outdated contact center that was only servicing Journey Beyond’s rail journeys. The remaining brands in the company’s portfolio were using basic phone functionality for customer enquiries and reservations.

Madhumita Mazumdar, GM of information and communications technology at Journey Beyond

istock

“The different communication solutions were unable to provide an integrated 360-degree customer view, which made it difficult to ensure a consistent, unrivalled customer experience across all 13 tourism ventures, and any other brands Journey Beyond may add to its portfolio in the future. The absence of advanced contact center features and analytics further prevented us from driving exceptional customer experience. Besides, we couldn’t enable work-from-anywhere, on any device capability, for employees,” says Madhumita Mazumdar, GM of information and communications technology at Journey Beyond.  

These challenges forced the company to transition to a modern cloud-based communication platform.

Multiple communication solutions cause multiple challenges

Because Beyond Journey operates in the experiential tourism market, providing a personalized, seamless customer experience is essential — something its previous communications systems lacked, Mazumdar says.

“For instance, our train journeys get sold out a year prior to their launch. Therefore, when we launch a new season, there is a huge volume of calls from our customers and agents. The existing system lacked callback mechanism, leading to callers waiting in queue for as long as 40 minutes, which adversely impacted their experience,” she says, adding that there was also no way to prioritize certain calls over others.

The existing system also lacked analytical capability to provide any customer insights and it wasn’t integrated with Beyond Journey’s CRM. As a result, representatives interacting with a customer didn’t know whether the customer had traveled with the company before. “The communication between us and the customer was transactional instead of being personalized,” Mazumdar says.

Since the existing systems were very old, they couldn’t be managed remotely. In case of an outage, the company had to send a local person to rectify the on-site phone system, which could take a couple of hours. During this time, customers were unable to call Journey Beyond.

“The IVR was also not standardized across the company. As the IVRs were recorded in voices of employees from different business units, a caller had no idea they were part of the same business,” says Mazumdar.

Incoming calls to Beyond Journey’s toll-free numbers were also adding to the operational cost. “We paid per-minute on the calls received to our toll-free numbers. The high call volumes meant huge costs for us. Even if the call was hanging in the queue, it was costing us every minute,” she says.

Implementing a consolidated communications platform

To overcome the bottlenecks and drive customer engagement to the next level, Journey Beyond launched a contact center transformation, the first step of which was to establish a common unified communications (UC) platform across the business and integrate it with a new contact center (CC) solution. After evaluating several UC and CC solutions, Journey Beyond chose RingCentral’s integrated UCaaS and CCaaS platforms — RingCentral MVP and Contact Center.

“We started evaluating multiple vendors in the first quarter of 2021. The software evaluation process took three to five months after which the implementation started in August 2021. We went live in October 2021,” Mazumdar says. The entire SaaS solution was hosted on AWS.

The company took this opportunity to shift to soft phones and headsets by getting rid of all physical phones. “We purchased good quality noise-cancelling headsets, which was the only hardware we invested in significantly,” says Mazumdar. “Although we had premium support from RingCentral, we decided to learn everything about the solution and take full control over it. So, while the integration and prebuild was completely done by RingCentral, over time we trained multiple people in the team on the solution. In hindsight, this was the best thing we did,” says Mazumdar, who brought in two dedicated IT resources with phone system background for the new solution.

“Different business units within the company work differently. For instance, the peak hours for one business could be different from those of another business, which impacts how you set up the call flows. It’s not one basic standard rule that could be set up for all businesses across the company. With in-house understanding of the solution, we had full control over the solution and were able to make changes, refinements, and complex prioritization rules to it ourselves without depending on the solution provider,” she says.

Cloud-based solution delivers customer visibility and value

Connecting multiple businesses with a common communications platform to deliver consistent customer service across the group has yielded compelling business benefits to Journey Beyond.

A key advantage of the tight integration between UC and CC is the customer service operation’s accessibility for the entire Journey Beyond team.

“At a national integrated level, we now have subject matter experts in each of our experiences available to deliver unrivalled customer experience, with economies of scale. So, if one team is under duress in terms of call volumes, the call can be overflowed and picked up quickly by a consultant with secondary expertise in that brand,” says Mazumdar.

Journey Beyond is supporting its customer experience drive by integrating the CC solution with its CRM to develop omni-channel CX capabilities and build towards a 360-degree view of the customer.

“We are building up our ‘Know You Customer’ strategy, which starts with our customer service agents knowing who you are when you call any of our Journey Beyond brands,” says Mazumdar. “Callers who have travelled with us before, have their phone number in our CRM. When they call, their records pop up. The executive can look at the customer’s history with the company and the communication between them becomes a lot more personalized. The integrated view of the customer also helps to cross sell. For instance, if a person is booking a train journey from Adelaide but our executive knows that he is coming from Sydney, he can sell him another trip in Sydney.”

The other major advantage is the scalability and remote capabilities of the cloud-based platform. The solution allows Journey Beyond to run operations 24×7 with centralized administration and distributed users, working from anywhere, on any device. This has also given Journey Beyond the opportunity to recruit for talent in other locations outside the market around its Adelaide office.

Journey Beyond has also rolled out the solution’s workforce management functionality to better align agent availability with customer demand. The advanced feedback capabilities allow Journey Beyond to measure customer net promoter scores (NPS) right down to the consultant level. That NPS functionality will then be integrated into Salesforce, enhancing the 360-degree view of the customer experience.

The solution’s quality management functionality is providing Journey Beyond with a level of automation to ensure the contact basics are being completed, allowing leaders to focus on scoring the more complex or intangible components of customer engagements — delivering a recording of both the call and what is happening on screen at the same time. “Quality analytics completes the picture in terms of everything we need to see from a skills gap perspective,” says Mazumdar. Journey Beyond has deployed the UC solution to all businesses nationally. The CC solution has been rolled out at the company’ rail division and Rottnest Express while onboarding for the other businesses is in progress.

Unified Communications

Chris Mills, Head of Customer Success, EMEA at Slack

The roles of the CTO and CIO have grown enormously in recent years, proving fundamental in facilitating the rapid shift from traditional working to hybrid working during the pandemic. But this was no short term shift—the value of the CTO and CIO continues to rise.

The next challenge on the horizon? Ensuring workers everywhere remain aligned, efficient and productive despite the economic turbulence organisations are buckling in for. Now, the spotlight is on tech leaders to once again steward businesses through another technological revolution—one in which the digital headquarters (HQ) is key.

Technology revolution 2.0

The majority of businesses are now adept at hybrid working, with many establishing policies to meet the needs of the workforce. This does not mean, however, that setups aren’t without a few wrinkles, with urgent issues including duplicate tools, bloating costs and unoptimised processes.

The digital HQ solves these challenges by uniting teams, partners, and the tools they use in a single digital space—making how work gets done simpler, more pleasant and more efficient. In fact, teams that use Slack as their digital HQ are 49% more productive.

In the digital HQ, bottomless email inboxes are replaced with Slack channels—a way of organising conversations based on topic, project, or initiative. While employees find information-sharing no longer tethered to inflexible meetings; instead, happening in Slack Huddles or Clips—free-flowing real-time or asynchronous audio and video messages that mean, on average, teams have 36% fewer meetings.

Another area the digital HQ really shines in its ability to drive productivity is through its ability to automate tasks—with Slack users launching 1.7 million automated workflows a day. For an example of this in action, businesses should look at Vodafone.

Automating for efficiency

Vodafone first started using the digital HQ as a foundation for modern engineering practices, but now uses it to enhance its collaboration worldwide. This has created opportunities for efficiency, in particular for the DevOps team, where release requests had the potential to be more streamlined.

With the digital HQ, the team is able to simplify release requests and use Slack’s Workflow Builder to automate a complex process. Developers now add the details of a release to a simple form, then used to populate a dedicated Slack channel so that the wider team has a real-time view of what’s going on.

Through the digital HQ, Vodafone has developed an efficient way of dealing with release requests that can number over 100 a month. They remain productive and focussed on the work, not the admin, while other teams retain visibility over an integral part of the business.

Slack

A HQ for challenging times

The pandemic demonstrated that, even in challenging times, productive and efficient ways of working are possible through technology. Vodafone is living proof that our technology evolution didn’t stop there, with the digital HQ providing a new foundation for the future of work.

The macroeconomic challenges we face will surely pass, and there’ll undoubtedly be something else close to follow. Yet the digital HQ is no one-trick pony. By supercharging not just our productivity, efficiency and collaboration, but our resilience too, with the digital HQ, businesses can prepare for the future—whatever it looks like.  

For more information on how Slack’s Digital HQ can help your business click here.

Application Performance Management, Remote Work, Workstations

Merger and acquisition (M&A) activity hit a record high in 2021 of more than $5 trillion in global volume. While the market has certainly slowed this year, it remains on par with pre-pandemic levels — quite a feat at a time of business uncertainty and inflation. But when it comes to corporate deal-making, risk lurks around every corner. The potential for overpaying, miscalculating synergies and missing potentially serious deficiencies in a target company is high.

With so much at stake, information is power. But while plenty of focus is centered on gathering financials, reviewing contracts, picking through insurance details and more, insight into IT risk may be harder to come by. Acquiring organizations need a rapid, accurate way to assess and map all of the endpoint assets in a target company, and then work quickly post-completion to assess and manage cyber risk.

The need for visibility

M&A deal volume may have fallen 12% year on year in early 2022, but the market remains bullish, driven by cash-rich private equity firms that are sitting on trillions of dollars, according to McKinsey. Still, security and IT operations are a growing concern for those with money to spend. It’s extremely rare for both sides of a deal to have similar standards for cybersecurity, asset management and key IT policies. That disconnect can cause major problems down the road.

Due diligence is therefore a critical step; enabling acquiring firms to spot potential opportunities for cost savings and synergies, whilst also understanding how risky a purchase a company may be. It benefits both sides. If an acquirer is unable to gain assurances around risk levels, they could theoretically call a deal off, or lower the offered acquisition price. Should they press on regardless, the organization may experience significant unforeseen problems trying to merge IT systems. Or it might unwittingly take on risk that erodes deal value over time – such as an undiscovered security breach that leads to customer class action suits, regulatory fines and reputational damage. 

These concerns are far from theoretical. After the discovery of historic data breaches at Yahoo, Verizon’s purchase price of the internet pioneer was adjusted down by $350m, or around 7% of deal size, back in 2017.  Marriott International was not so lucky when it bought hotel giant Starwood. It wasn’t until September 2018, two years after the acquisition and four years after the initial security breach, that an unauthorized intrusion was finally discovered. The breach turned out to be one of the biggest to date, impacting over 380 million customers, and led to an £18.4m ($21m) fine from the UK’s data protection regulator.

Getting due diligence right

In an ideal world, CIOs would be involved in M&A activity from the very start, asking the right questions and providing counsel to the CEO and senior leadership team on whether to proceed with a target. However, the truth is that this isn’t always the case. Such is the secrecy of deal-making that negotiations are usually limited to a small handful of executives, leaving some bosses on the outside. 

The best way CIOs can rectify this is to proactively educate senior executives about the importance of information security due diligence during M&A. If they succeed in embedding a security-by-design culture at the very top of the organization, those executives should be able to ask the right questions of targeted companies, to judge their level of risk exposure early on. They may even be inclined to invite the CIO in to help.

For most organizations, however, the first critical point at which due diligence can be applied is after an acquisition has been announced. This is where the acquiring company must gather as much information as possible to better understand risk levels and opportunities for cost reduction and efficiencies. SOC 2 compliance would make things run much smoother, providing useful insight into the level of security maturity at an acquired firm. But more likely than not, the acquiring company’s CIO will need to rely on their own processes.

Visibility is everything. They need accurate, current data on every single endpoint in the corporate environment, plus granular detail on what software is running on each asset and where there are unpatched vulnerabilities and misconfigurations. That’s easier said than done, and most current tools on the market struggle to provide answers to these questions across the virtual machines, containers, cloud servers, home working laptops and office-based equipment that run the modern enterprise. Even if they are able to provide full coverage, these tools may take days or weeks to deliver results, by which time the information is out of date.

Managing post-deal risk

The second opportunity for the CIO is once contracts are signed. Now it’s time to use a unified endpoint management platform to deliver a fast, accurate risk assessment of the acquired company’s IT environment. By inventorying all hardware and software assets, they can develop a machine and license consolidation strategy, eliminating redundant or duplicated software. The same tools should also enable CIOs to distribute new applications to the acquired company, scan for unmanaged endpoints, find and remediate any problems, and enhance IT hygiene across the board.

M&A is a high-risk, high-pressure world. By prioritizing endpoint visibility and control at every stage of a deal, organizations stand the best chance of preserving business value, reducing cyber risk and optimizing ROI.

Learn more about how Tanium can help manage risk and increase business value during mergers and acquisitions.

Risk Management

Merger and acquisition (M&A) activity hit a record high in 2021 of more than $5 trillion in global volume. While the market has certainly slowed this year, it remains on par with pre-pandemic levels — quite a feat at a time of business uncertainty and inflation. But when it comes to corporate deal-making, risk lurks around every corner. The potential for overpaying, miscalculating synergies and missing potentially serious deficiencies in a target company is high.

With so much at stake, information is power. But while plenty of focus is centered on gathering financials, reviewing contracts, picking through insurance details and more, insight into IT risk may be harder to come by. Acquiring organizations need a rapid, accurate way to assess and map all of the endpoint assets in a target company, and then work quickly post-completion to assess and manage cyber risk.

The need for visibility

M&A deal volume may have fallen 12% year on year in early 2022, but the market remains bullish, driven by cash-rich private equity firms that are sitting on trillions of dollars, according to McKinsey. Still, security and IT operations are a growing concern for those with money to spend. It’s extremely rare for both sides of a deal to have similar standards for cybersecurity, asset management and key IT policies. That disconnect can cause major problems down the road.

Due diligence is therefore a critical step; enabling acquiring firms to spot potential opportunities for cost savings and synergies, whilst also understanding how risky a purchase a company may be. It benefits both sides. If an acquirer is unable to gain assurances around risk levels, they could theoretically call a deal off, or lower the offered acquisition price. Should they press on regardless, the organization may experience significant unforeseen problems trying to merge IT systems. Or it might unwittingly take on risk that erodes deal value over time – such as an undiscovered security breach that leads to customer class action suits, regulatory fines and reputational damage. 

These concerns are far from theoretical. After the discovery of historic data breaches at Yahoo, Verizon’s purchase price of the internet pioneer was adjusted down by $350m, or around 7% of deal size, back in 2017.  Marriott International was not so lucky when it bought hotel giant Starwood. It wasn’t until September 2018, two years after the acquisition and four years after the initial security breach, that an unauthorized intrusion was finally discovered. The breach turned out to be one of the biggest to date, impacting over 380 million customers, and led to an £18.4m ($21m) fine from the UK’s data protection regulator.

Getting due diligence right

In an ideal world, CIOs would be involved in M&A activity from the very start, asking the right questions and providing counsel to the CEO and senior leadership team on whether to proceed with a target. However, the truth is that this isn’t always the case. Such is the secrecy of deal-making that negotiations are usually limited to a small handful of executives, leaving some bosses on the outside. 

The best way CIOs can rectify this is to proactively educate senior executives about the importance of information security due diligence during M&A. If they succeed in embedding a security-by-design culture at the very top of the organization, those executives should be able to ask the right questions of targeted companies, to judge their level of risk exposure early on. They may even be inclined to invite the CIO in to help.

For most organizations, however, the first critical point at which due diligence can be applied is after an acquisition has been announced. This is where the acquiring company must gather as much information as possible to better understand risk levels and opportunities for cost reduction and efficiencies. SOC 2 compliance would make things run much smoother, providing useful insight into the level of security maturity at an acquired firm. But more likely than not, the acquiring company’s CIO will need to rely on their own processes.

Visibility is everything. They need accurate, current data on every single endpoint in the corporate environment, plus granular detail on what software is running on each asset and where there are unpatched vulnerabilities and misconfigurations. That’s easier said than done, and most current tools on the market struggle to provide answers to these questions across the virtual machines, containers, cloud servers, home working laptops and office-based equipment that run the modern enterprise. Even if they are able to provide full coverage, these tools may take days or weeks to deliver results, by which time the information is out of date.

Managing post-deal risk

The second opportunity for the CIO is once contracts are signed. Now it’s time to use a unified endpoint management platform to deliver a fast, accurate risk assessment of the acquired company’s IT environment. By inventorying all hardware and software assets, they can develop a machine and license consolidation strategy, eliminating redundant or duplicated software. The same tools should also enable CIOs to distribute new applications to the acquired company, scan for unmanaged endpoints, find and remediate any problems, and enhance IT hygiene across the board.

M&A is a high-risk, high-pressure world. By prioritizing endpoint visibility and control at every stage of a deal, organizations stand the best chance of preserving business value, reducing cyber risk and optimizing ROI.

Learn more about how Tanium can help manage risk and increase business value during mergers and acquisitions.

Risk Management

By Hock Tan, Broadcom President & CEO

Over the last several weeks, I have had the opportunity to visit with Broadcom customers around the world to discuss what’s on the horizon as they navigate increasingly complex IT operating environments. During these visits, I’ve also answered their questions and shared our vision of what a combined Broadcom and VMware will look like following the close of the transaction.

It’s clear from these conversations that three topics are top of mind for customers as it relates to the VMware-Broadcom transaction: multi-cloud, cloud-native apps and pricing. Ultimately, what I’ve stressed to them has been straightforward: our customers are and will remain the most important part of our business. That said, I want to discuss each of these topics and share my current thinking to help address the concerns I’ve heard.

Broadcom’s Strategy

I hope I’ve made clear that at Broadcom, we are continuing to embrace and invest in customers’ priorities. My priorities for Broadcom are very much aligned with customers.

By investing and innovating in infrastructure software and VMware’s broad portfolio — including multi-cloud and cloud-native capabilities — we will bring our customers greater flexibility and deliver new solutions to help them connect, scale and protect their IT infrastructure. This will also empower our customers to modernize and architect their IT infrastructure while ensuring there will be large-scale, secure, and reliable, yet flexible, solutions to do so. Similarly, continuing to develop our ecosystem will enable partners to grow their businesses with expanded offerings of the combined portfolio and even better meet customers’ needs.

Multi-Cloud

As I met with customers across the U.S., U.K., Germany and France, I asked about their current and future priorities. For some time, Broadcom has recognized that the future of enterprise IT is multi-cloud — the ability to distribute applications and services across a combination of clouds. It’s one of the many reasons Broadcom solutions complement what VMware does in the multi-cloud space across private, public, edge and sovereign clouds today. It’s clear our customers have already adopted this mindset, too. I’ll share an example.

While in London, I met with the chief technology officer of a global financial services firm. We discussed the increasing need for financial institutions to adopt innovative solutions and ensure legacy infrastructure is efficient and secure. We agreed multi-cloud solutions meet this need, ultimately improving performance and strengthening resilience at a lower cost. Customers are enthusiastic about the multi-cloud vision and, with increased resources from Broadcom following transaction close, the potential to implement it as VMware grows and increases momentum in the space.

Cloud-Native Apps

Customers are similarly excited about VMware’s momentum around cloud-native apps. Containers are changing the way modern applications are built, resulting in faster and more predictable development and deployment. Developers also can take advantage of Kubernetes clusters, which more efficiently use the containerized infrastructure that power those applications. Kubernetes clusters bring other advantages, including making apps more resilient and easier to manage, bringing cost savings to organizations; and  making apps more portable between different clouds and internal environments, because Kubernetes clusters can run on premises or within public clouds. The resulting modern applications are more scalable and flexible, accelerating the speed and agility of innovation within organizations. By providing customers with the environment and hands-on guidance to help build cloud-native applications quickly and upskill their teams along the way, a combined Broadcom-VMware can help them drive forward their businesses.

Since the announcement of our intention to acquire VMware in May, I have had the opportunity to spend time with many VMware and Broadcom customers, partners and the VMware Product and Go-to-Market leadership teams. I have gained a deeper understanding of the VMware Tanzu portfolio and the strategic importance of cloud-native applications and modern app development and management. Customers are telling me that modern applications are a central part of their go-forward strategy in a multi-cloud world, and that the VMware Tanzu portfolio of products and solutions are an important area of focus for them.

Many customers and partners are asking me how I see the VMware Tanzu portfolio and Broadcom’s future commitment to the Tanzu business. My answer to them is that I see Tanzu as a strategic part of the VMware software portfolio and it will remain that way as we move forward within Broadcom. VMware Tanzu customers are running some of the most mission critical applications in the world. As customers think about future investments in cloud native applications and the modern application development space, they should feel confident in Broadcom’s commitment going forward.

Pricing

We work with our customers every day to tackle a wide spectrum of challenges, and we are constantly innovating to create the next generation of technology to address their needs. This is largely what has made our business successful, and we intend for this to continue.

Our growth into a global technology leader was not based on taking existing products and raising their prices, but by creating technology and products that provide clear value to customers and continuing to improve them. We fuel growth by offering more and better products so customers are using more of our entire portfolio of technology products, rather than just one or two. By delivering long-term value to customers and investing in improved, customer-focused R&D, we can innovate, scale and offer better products without raising prices.

VMware develops technology for the future and addresses a growing market. The Broadcom business case for this transaction is premised on focusing on the business model, increasing R&D, and executing so that customers see the value of the full portfolio of innovative product offerings — not on increasing prices. Following the close of the transaction, we will invest in and innovate VMware’s products so we can sell even more of them and grow the VMware business within enterprises, deepening and expanding the footprint instead of potentially raising prices.

Of course, our other main priority once the transaction is complete will be integrating VMware and its employees. VMware is an innovation success story — but the company’s story is far from finished and we’re excited to help write the next chapters. I have tremendous respect for what VMware has built, and experiencing the company’s excitement for the future at VMware Explore in San Francisco earlier this year reinforced my belief that we are on the right path.

I came away from my recent travels even more excited about what a combined Broadcom and VMware can deliver to our customers, and I look forward to continuing these valuable conversations as we progress toward closing. More than that, once we complete our transaction, I look forward to starting the important work of fostering an environment of growth and innovation aligned with our customers’ priorities.

To stay updated on the news about the transaction, click here.

Cautionary Statement Regarding Forward-Looking Statements

This communication relates to a proposed business combination transaction between Broadcom Inc. (“Broadcom”) and VMware, Inc. (“VMware”).  This communication includes forward-looking statements within the meaning of Section 21E of the U.S. Securities Exchange Act of 1934, as amended, and Section 27A of the U.S. Securities Act of 1933, as amended.  These forward-looking statements include but are not limited to statements that relate to the expected future business and financial performance, the anticipated benefits of the proposed transaction, the anticipated impact of the proposed transaction on the combined business, the expected amount and timing of the synergies from the proposed transaction, and the anticipated closing date of the proposed transaction.  These forward-looking statements are identified by words such as “will,” “expect,” “believe,” “anticipate,” “estimate,” “should,” “intend,” “plan,” “potential,” “predict,” “project,” “aim,” and similar words or phrases.  These forward-looking statements are based on current expectations and beliefs of Broadcom management and current market trends and conditions. 

These forward-looking statements involve risks and uncertainties that are outside Broadcom’s control and may cause actual results to differ materially from those contained in forward-looking statements, including but not limited to: the effect of the proposed transaction on our ability to maintain relationships with customers, suppliers and other business partners or operating results and business; the ability to implement plans, achieve forecasts and meet other expectations with respect to the business after the completion of the proposed transaction and realize expected synergies; business disruption following the proposed transaction; difficulties in retaining and hiring key personnel and employees due to the proposed transaction and business combination; the diversion of management time on transaction-related issues; the satisfaction of the conditions precedent to consummation of the proposed transaction, including the ability to secure regulatory approvals on the terms expected, at all or in a timely manner; significant indebtedness, including indebtedness incurred in connection with the proposed transaction, and the need to generate sufficient cash flows to service and repay such debt; the disruption of current plans and operations; the outcome of legal proceedings related to the transaction; the ability to consummate the proposed transaction on a timely basis or at all; the ability to successfully integrate VMware’s operations; cyber-attacks, information security and data privacy; global political and economic conditions, including cyclicality in the semiconductor industry and in Broadcom’s other target markets, rising interest rates, the impact of inflation and challenges in manufacturing and the global supply chain; the impact of public health crises, such as pandemics (including COVID-19) and epidemics and any related company or government policies and actions to protect the health and safety of individuals or government policies or actions to maintain the functioning of national or global economies and markets; and events and trends on a national, regional and global scale, including those of a political, economic, business, competitive and regulatory nature.

These risks, as well as other risks related to the proposed transaction, are included in the registration statement on Form S-4 and proxy statement/prospectus that has been filed with the Securities and Exchange Commission (“SEC”) in connection with the proposed transaction.  While the list of factors presented here is, and the list of factors presented in the registration statement on Form S-4 are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties.  For additional information about other factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to Broadcom’s and VMware’s respective periodic reports and other filings with the SEC, including the risk factors identified in Broadcom’s and VMware’s most recent Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K.  The forward-looking statements included in this communication are made only as of the date hereof.  Neither Broadcom nor VMware undertakes any obligation to update any forward-looking statements to reflect subsequent events or circumstances, except as required by law.

No Offer or Solicitation

This communication is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.  No offering of securities shall be made, except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended.  

Additional Information about the Transaction and Where to Find It

In connection with the proposed transaction, Broadcom has filed with the SEC a registration statement on Form S-4 that includes a proxy statement of VMware and that also constitutes a prospectus of Broadcom.  Each of Broadcom and VMware may also file other relevant documents with the SEC regarding the proposed transaction.  The registration statement  was declared effective by the SEC on October 3, 2022 and the definitive proxy statement/prospectus has been mailed to VMware’s stockholders. This document is not a substitute for the proxy statement/prospectus or registration statement or any other document that Broadcom or VMware may file with the SEC.   INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT MAY BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.  Investors and security holders may obtain free copies of the registration statement and proxy statement/prospectus and other documents containing important information about Broadcom, VMware and the proposed transaction, once such documents are filed with the SEC through the website maintained by the SEC at http://www.sec.gov.  Copies of the documents filed with the SEC by Broadcom may be obtained free of charge on Broadcom’s website at https://investors.broadcom.com.  Copies of the documents filed with the SEC by VMware may be obtained free of charge on VMware’s website at ir.vmware.com.

Participants in the Solicitation

Broadcom, VMware and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction.  Information about the directors and executive officers of Broadcom, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in Broadcom’s proxy statement for its 2022 Annual Meeting of Stockholders, which was filed with the SEC on February 18, 2022, and Broadcom’s Annual Report on Form 10-K for the fiscal year ended October 31, 2021, which was filed with the SEC on December 17, 2021.  Information about the directors and executive officers of VMware, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in VMware’s proxy statement for its 2022 Annual Meeting of Stockholders, which was filed with the SEC on May 27, 2022, VMware’s Annual Report on Form 10-K for the fiscal year ended January 28, 2022, which was filed with the SEC on March 24, 2022, a Form 8-K filed by VMware on April 22, 2022 and a Form 8-K filed by VMware on May 2, 2022.  Other information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, are or will be contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC regarding the proposed transaction when such materials become available.  Investors should read the proxy statement/prospectus carefully before making any voting or investment decisions.  You may obtain free copies of these documents from Broadcom or VMware using the sources indicated above.

About Hock Tan:

Broadcom Software

Hock Tan is Broadcom President, Chief Executive Officer and Director. He has held this position since March 2006. From September 2005 to January 2008, he served as chairman of the board of Integrated Device Technology. Prior to becoming chairman of IDT, Mr. Tan was the President and Chief Executive Officer of Integrated Circuit Systems from June 1999 to September 2005. Prior to ICS, Mr. Tan was Vice President of Finance with Commodore International from 1992 to 1994, and previously held senior management positions with PepsiCo and General Motors. Mr. Tan served as managing director of Pacven Investment, a venture capital fund in Singapore from 1988 to 1992, and served as managing director for Hume Industries in Malaysia from 1983 to 1988.

IT Leadership, Multi Cloud

The headlines read “Artificial Intelligence (AI) will completely transform your business.” But does the hype match the reality? We have been seeing these exclamations for two decades, but where are the examples? Where are the success stories? Is AI really a game changer, and does it actually apply to my business?

Every ten years it seems there is a new technology that is going to change the world, but all too often only leads to disappointment when adopting it becomes too challenging. For several decades this has been the story behind Artificial Intelligence and Machine Learning.

However, we have now reached a tipping point with AI where the compute capacity, ubiquitous connectivity, and wealth of data can match the moment and assist business leaders to create unique competitive advantages by better serving customers, improving processes, enhancing employee experience, or reducing costs. As Andy Jassy, CEO of Amazon, said, “Most applications, in the fullness of time, will be infused in some way with machine learning and artificial intelligence.”

As I advise in my presentation “Building a Smarter Organization Powered by Machine Learning” there are three key focus areas successful organizations master to get value from AI: Mindset, Skillset, Toolset. This creates a flywheel we call The Data Network Effect, where you acquire more data, which helps create better algorithms, which drives better engagement, ultimately leading to happier customers, which then generates more data, and so on, and so on. This process then repeats, improving and generating more value with each cycle.

While some companies are already benefiting from this transformative impact of AI, we see others struggling. There is often confusion at the management level about the applicability and impact of AI, leaving business leaders to struggle to find the right use cases to prioritize. Additionally, navigating existing AI resources reveals a great deal of highly technical information but little in the way of business impact examples and guidance. Until now, a comprehensive list of AI and ML use cases that serve as meaningful references for business leaders simply did not exist.

The bottom line: Most companies know they need AI but have not found the answer to “where do I start?” In this blog post, I will share five actions you can take to move beyond the buzzwords and make your AI-driven digital transformation a reality that will shape your organization’s future.

Be clear on the “why”

Do not just implement AI so you can check it off your list. AI should be used to support your business strategy not be your business strategy. Do not fall victim to the analogy of “a hammer in search of a nail, that only winds up pounding in screws everywhere.” Instead evaluate your business opportunities or problems and then determine if AI is the right tool for the job.

Get alignment from your stakeholders

I always told my team and customers that long-term success with AI solutions is driven by people, not technology. As you begin to work with various stakeholders on your initiative, ensure you are effectively and continuously collaborating with them. Structure your strategy discussions around the four key areas: business, finance, technology, and science, and encourage stakeholders in those areas to weigh in on your AI project decisions.

It is also important to develop an organizational culture that empowers people across business and technical roles to become involved with your AI. Our customers who have successfully rolled out these initiatives have one thing in common: they embraced the culture of continuous process evolution and had champions who brought teams across the organization together. Creating a culture that excels in change management, celebrates failure as learning, promotes new skills acquisition, and fosters collaboration is a great way to propel your organization in this direction.

Explore what is possible with AI and get started

To help you get started, AWS has just launched the AI Use Case Explorer, a complimentary, interactive guide for business leaders and AI practitioners to conceptualize and build their applications.

With over 100 use cases and sub use cases and 400 customer success stories, this tool can help you quickly identify the right use case to get started based on your industry, function, and desired business outcome. Once you have identified your use cases, you can read about success stories from around the world and kickstart your deployment, from proof-of-concept to full production, by following an expert-curated action plan provided for your specific use case.

Do not boil the ocean … we tried that … it did not work

As an industry, we have learned hard lessons from trying to deploy monolithic data warehouses, business intelligence implementations, and analytics solutions by gathering, cleaning, and preparing tremendous swaths of data from across the entire enterprise. This delayed value, increased cost, raised complexity, and ultimately failed to deliver. Instead, focus on gathering the data specific to the use case you are implementing, and drive quickly through proof-of-concept to production and value. Then move on to the next use case and do the same thing again, expanding your data assets as needed.

Technology is not the objective, it is the enabler

True value does not come from just using a new technology, but rather from using new technology to reimagine existing processes. As you look to implement your AI project go beyond just creating an AI-enabled twin of your existing process, and instead reimagine the process using the new capabilities of AI.

As AI transforms the way we live and work, from optimizing business processes to personalizing content for consumers, I am excited about all of the innovative and impactful AI applications that can assist businesses as well as individuals in the coming years. The possibilities are endless! I invite you to check out the AI Use Case Explorer site and explore your organization’s unique path to AI success.

ABOUT THE AUTHOR:

Tom Godden is an Enterprise Strategist and Evangelist at Amazon Web Services (AWS). Prior to AWS, Tom was the Chief Information Officer for Foundation Medicine where he helped build the world’s leading, FDA regulated, cancer genomics diagnostic, research, and patient outcomes platform to improve outcomes and inform next-generation precision medicine. Previously, Tom held multiple senior technology leadership roles at Wolters Kluwer in Alphen aan den Rijn Netherlands and has over 17 years in the healthcare and life sciences industry. Tom has a Bachelor’s degree from Arizona State University.

Artificial Intelligence