Ingram Micro stated, 'We were unable to reach an agreement with Broadcom that would help our customers deliver the best technology outcomes now and in the future while providing an appropriate shareholder return.' This highlights the difficulty in aligning business interests with customer needs.
Broadcom, which will directly serve 500 VMware customers, faces disappointment as Ingram Micro deals with 161,000 customers and 1,500 vendors. This reveals the significant market impact of the distribution choice.
Despite the setback with Ingram Micro, VMware under Broadcom is performing better than expected post-acquisition, with earnings surpassing initial forecasts and substantial spending cuts.
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