Dell Technologies has announced the termination of its commercial agreement with VMware, the former subsidiary it recently sold to Broadcom. This agreement covers various commercial activities, including Dell acting as a distributor of VMware’s products and services.
Dell Technologies did not specify the reason for canceling the agreement with VMware, but it is believed to be due to VMware’s new direction under Broadcom, which has led many partners (such as Veeam) to start exploring alternative options in the virtualization software market.
The cancellation of the agreement by Dell Technologies is interesting because Dell was originally the owner of VMware, having acquired the business of EMC in 2016 before spinning off VMware as an independent company in 2021. However, Dell still holds a significant stake in VMware.
TLDR: Dell Technologies has decided to terminate its commercial agreement with VMware, the company it previously owned, following VMware’s new direction under Broadcom. This move raises questions as Dell still holds a significant stake in VMware.
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