On the other hand, Broadcom has poured significant resources into VCF, as evidenced by the recent release of VCF 9.1, which the company describes as an AI- and Kubernetes-native private cloud platform with integrated security.
And CEO Hock Tan has articulated a clear vision for VMware as the indispensable platform for enterprises running both traditional and AI workloads in a private cloud setting.
“VMware Cloud Foundation, VCF, is the essential software layer in data centers integrating CPUs, GPUs, storage, and networking into a common, high-performance, private cloud environment,” Tan said during Broadcom’s earnings call in March. “As the permanent abstraction layer between AI software and physical chips, VCF cannot be disintermediated or replaced.”
Whether Broadcom’s strategy is brilliant (from the Wall Street perspective) or diabolical (from the enterprise perspective), it seems to be working. Broadcom’s first quarter 2026 revenue was up 29%, and the company said it expects an astounding 47% year-over-year increase in the current quarter. While much of that is driven by chip sales, VMware revenue was up 13% year-over-year, and recurring VMware-based revenue growth is on pace for a 19% increase.
