Opinion: Omnissa Forms VMware’s EUC Dedication

Introduction: A New Chapter for VMware’s EUC Portfolio

When Broadcom announced the acquisition of VMware in May 2022, the enterprise technology world held its collective breath. As someone who has spent the better part of a decade implementing VMware’s End-User Computing solutions across hundreds of organizations, I watched the subsequent developments with both professional interest and genuine concern for the future of the EUC market.

The formation of Omnissa in May 2024—a joint venture between Broadcom and KKR specifically focused on VMware’s EUC portfolio—represents one of the most significant developments in enterprise mobility and digital workspace technology in recent years. Today, I want to share my perspective on what this means for the EUC market, existing VMware customers, and the future of digital workspace technology.

Understanding the Omnissa Formation

The Strategic Context

To understand the significance of Omnissa’s formation, we need to examine the broader context of Broadcom’s VMware acquisition strategy. Broadcom has historically focused on infrastructure software and semiconductors, with a clear preference for high-margin, subscription-based software businesses that serve mission-critical enterprise functions.

Broadcom’s Portfolio Strategy:

• Core Infrastructure Focus: Emphasis on vSphere, vSAN, and NSX as foundational infrastructure
• Subscription Model Preference: Shift toward predictable, recurring revenue streams
• Enterprise Customer Focus: Concentration on large enterprise accounts with significant spending
• Operational Efficiency: Streamlining operations and reducing complexity

EUC Portfolio Positioning:

VMware’s EUC portfolio—including Workspace ONE, Horizon, and related technologies—represents a significant but distinct market from Broadcom’s core infrastructure focus. The EUC market has different dynamics, customer requirements, and competitive pressures that don’t necessarily align with Broadcom’s broader strategy.

Why Omnissa Makes Strategic Sense

The decision to spin out the EUC portfolio into Omnissa reflects several strategic realities that I’ve observed in my work with enterprise customers.

Market Focus and Specialization:

The EUC market requires deep specialization and focus that can be challenging to maintain within a broader infrastructure portfolio. Digital workspace technologies face unique challenges:

• Rapid Innovation Cycles: Mobile platforms, operating systems, and user expectations evolve quickly
• User Experience Focus: Success depends heavily on end-user satisfaction and adoption
• Diverse Integration Requirements: EUC solutions must integrate with a wide variety of third-party systems
• Regulatory Complexity: Privacy, security, and compliance requirements vary significantly across industries and geographies

Investment and Development Requirements:

Maintaining competitive EUC solutions requires sustained investment in areas that may not align with broader infrastructure priorities:

• Mobile Platform Support: Continuous adaptation to iOS and Android platform changes
• Cloud-Native Development: Modernizing legacy on-premises solutions for cloud delivery
• AI and Analytics Integration: Incorporating machine learning and analytics capabilities
• User Experience Innovation: Competing with consumer-grade applications and services

Customer Relationship Dynamics:

EUC customers often have different buying patterns and requirements compared to infrastructure customers:

• Business Unit Involvement: EUC decisions often involve HR, security, and business unit leaders
• User-Centric Evaluation: Success metrics focus on user productivity and satisfaction
• Agile Implementation: Faster deployment cycles and more frequent updates
• Diverse Deployment Models: Mix of cloud, on-premises, and hybrid deployments

What Omnissa Means for VMware EUC Customers

Immediate Implications

For organizations currently using VMware’s EUC solutions, the formation of Omnissa creates both opportunities and concerns that require careful consideration.

Product Continuity and Support:

One of the first questions I hear from customers is about product continuity and support. Based on the information available and my understanding of the transition:

1. Existing Deployments:
   • Current Workspace ONE and Horizon deployments continue to operate normally
   • Existing support agreements transfer to Omnissa
   • Product roadmaps and development continue under Omnissa leadership
   • Integration with VMware infrastructure products remains supported
2. Licensing and Contracts:
   • Existing licensing agreements remain valid and enforceable
   • Contract terms and conditions transfer to Omnissa
   • Renewal processes may change but existing commitments are honored
   • Pricing structures may evolve over time but not immediately

Technical Integration Considerations:

Many organizations have integrated VMware EUC solutions with broader VMware infrastructure. The Omnissa transition raises questions about these integrations:

1. vSphere Integration:
   • Horizon’s deep integration with vSphere continues to be supported
   • vCenter integration for VM management remains functional
   • vSAN integration for storage continues as before
   • NSX integration for networking and security is maintained
2. vRealize Integration:
   • Existing integrations with vRealize Operations continue
   • Log Insight integration for troubleshooting remains available
   • Automation integrations continue to function
   • Future development of these integrations may evolve

Long-term Strategic Considerations

While immediate continuity is assured, organizations need to consider longer-term strategic implications of the Omnissa formation.

Product Development and Innovation:

Omnissa’s focused mandate could actually accelerate innovation in several areas:

• Cloud-First Development: Dedicated focus on cloud-native EUC solutions
• User Experience Innovation: Concentrated investment in user interface and experience improvements
• AI and Analytics Integration: Specialized development of intelligent workspace capabilities
• Platform Modernization: Focused effort on modernizing legacy components

Market Positioning and Competition:

As an independent entity, Omnissa can pursue market strategies that might not have been possible within the broader VMware portfolio:

• Competitive Positioning: More aggressive competition with Microsoft, Google, and other EUC providers
• Partnership Strategy: Broader partnerships with cloud providers and technology vendors
• Pricing Flexibility: More flexible pricing models to compete in different market segments
• Go-to-Market Strategy: Specialized sales and marketing focused on EUC requirements

Industry Impact and Market Dynamics

Competitive Landscape Changes

The formation of Omnissa significantly alters the competitive dynamics in the EUC market, with implications for all major players.

Microsoft’s Position:

Microsoft has been aggressively pursuing the EUC market with Intune, Windows 365, and Azure Virtual Desktop. Omnissa’s formation could impact this strategy:

• Competitive Pressure: A focused EUC competitor may challenge Microsoft’s growth trajectory
• Innovation Response: Microsoft may accelerate development to maintain competitive advantage
• Partnership Opportunities: Potential for increased collaboration in certain areas
• Customer Choice: Customers benefit from increased competition and innovation

Other EUC Vendors:

The formation of Omnissa also affects other players in the EUC ecosystem:

• Citrix: Faces a more focused competitor in the VDI and digital workspace market
• JAMF: May see increased competition in the Apple device management space
• Google: Chrome Enterprise faces a more specialized competitor
• Emerging Vendors: May find it more challenging to compete against a focused, well-funded competitor

Technology Innovation Acceleration

Independent operation could accelerate innovation in several key areas that are critical for the future of digital workspaces.

Cloud-Native Architecture:

Omnissa can focus entirely on cloud-native development without the constraints of legacy infrastructure considerations:

• Microservices Architecture: Modernizing monolithic applications into scalable microservices
• Container-Based Deployment: Leveraging Kubernetes and container technologies
• API-First Design: Building solutions with extensive API capabilities for integration
• Multi-Cloud Support: Supporting deployment across multiple cloud providers

Artificial Intelligence Integration:

Dedicated focus on AI and machine learning capabilities for digital workspaces:

• Predictive Analytics: Anticipating user needs and system requirements
• Automated Troubleshooting: AI-powered problem identification and resolution
• User Behavior Analytics: Understanding and optimizing user experience
• Security Intelligence: Advanced threat detection and response capabilities

Zero Trust Security:

Enhanced focus on zero trust security models for digital workspaces:

• Identity-Centric Security: Advanced identity and access management capabilities
• Device Trust Assessment: Continuous device health and compliance monitoring
• Application Security: Enhanced application protection and isolation
• Data Protection: Advanced data loss prevention and encryption capabilities

Customer Decision Framework

Evaluating Your Current VMware EUC Investment

Organizations with existing VMware EUC deployments need a framework for evaluating their options in light of the Omnissa formation.

Assessment Criteria:

1. Current Deployment Health:
   • Evaluate the performance and stability of your current environment
   • Assess user satisfaction and adoption rates
   • Review integration points and dependencies
   • Analyze operational costs and resource requirements
2. Strategic Alignment:
   • Assess alignment with your organization’s digital transformation strategy
   • Evaluate fit with your cloud and infrastructure strategy
   • Consider integration requirements with other enterprise systems
   • Review compliance and security requirements
3. Future Requirements:
   • Identify emerging requirements for digital workspace capabilities
   • Assess the importance of new features and capabilities
   • Evaluate the need for cloud-native solutions
   • Consider the impact of changing user expectations

Decision Options and Considerations

Based on your assessment, organizations typically have several options to consider:

Option 1: Continue with Omnissa Solutions

Best for: Organizations satisfied with current VMware EUC solutions and confident in Omnissa’s direction.

Considerations:

• Monitor Omnissa’s product roadmap and development progress
• Evaluate new features and capabilities as they become available
• Assess the impact of any changes to licensing or support models
• Maintain awareness of competitive alternatives

Action Items:

• Engage with Omnissa representatives to understand the transition
• Review and potentially renegotiate contracts during renewal periods
• Participate in Omnissa user communities and feedback programs
• Plan for potential architecture changes or upgrades

Option 2: Evaluate Alternative Solutions

Best for: Organizations with concerns about the transition or those already considering platform changes.

Considerations:

• Assess the costs and complexity of migration to alternative platforms
• Evaluate the capabilities and roadmaps of competitive solutions
• Consider the impact on users and business operations
• Analyze the total cost of ownership for different options

Action Items:

• Conduct proof-of-concept evaluations with alternative platforms
• Develop migration plans and cost estimates
• Engage with vendors to understand their offerings and roadmaps
• Assess the impact on existing integrations and workflows

Option 3: Hybrid Approach

Best for: Large organizations with diverse requirements or those seeking to minimize risk.

Considerations:

• Identify which components of your EUC environment are most critical
• Assess which solutions provide the best fit for different use cases
• Evaluate the complexity of managing multiple platforms
• Consider the long-term strategy for platform consolidation

Action Items:

• Develop a segmentation strategy for different user populations or use cases
• Pilot alternative solutions for specific requirements
• Establish governance processes for multi-platform management
• Plan for eventual consolidation based on platform evolution

Practical Guidance for VMware EUC Customers

Immediate Actions

Regardless of your long-term strategy, there are immediate actions that all VMware EUC customers should consider.

Information Gathering:

1. Engage with Omnissa:
   • Contact your VMware account team to understand the transition process
   • Request briefings on Omnissa’s strategy and roadmap
   • Understand how support and services will be affected
   • Clarify any changes to licensing or contract terms
2. Document Current State:
   • Create comprehensive documentation of your current EUC environment
   • Document all integrations and dependencies
   • Assess current performance and user satisfaction metrics
   • Review existing contracts and licensing agreements

Risk Mitigation:

1. Backup and Recovery:
   • Ensure robust backup procedures for all EUC components
   • Test recovery procedures to validate their effectiveness
   • Document configuration settings and customizations
   • Maintain offline copies of critical configuration data
2. Alternative Planning:
   • Identify potential alternative solutions for critical capabilities
   • Develop high-level migration plans for different scenarios
   • Assess the feasibility of temporary workarounds if needed
   • Establish relationships with alternative vendors

Long-term Planning

Organizations should also begin long-term planning to ensure they’re positioned for success regardless of how the market evolves.

Architecture Evolution:

1. Cloud Strategy:
   • Assess your organization’s cloud adoption strategy
   • Evaluate the benefits of cloud-native EUC solutions
   • Consider the impact of data sovereignty and compliance requirements
   • Plan for hybrid cloud deployment models
2. Integration Strategy:
   • Identify critical integration points with other enterprise systems
   • Assess the importance of deep VMware infrastructure integration
   • Evaluate the benefits of API-based integration approaches
   • Consider the impact of vendor lock-in on future flexibility

Capability Development:

1. Skills and Expertise:
   • Assess your team’s current skills and expertise
   • Identify training needs for evolving technologies
   • Consider the benefits of vendor-agnostic skills development
   • Plan for knowledge transfer and documentation
2. Operational Processes:
   • Review and optimize current operational processes
   • Identify opportunities for automation and efficiency improvements
   • Assess the scalability of current processes
   • Plan for process standardization and documentation

The Broader EUC Market Evolution

Technology Trends Driving Change

The formation of Omnissa occurs against the backdrop of significant technology trends that are reshaping the EUC market.

Remote and Hybrid Work:

The permanent shift to remote and hybrid work models has fundamentally changed EUC requirements:

• Performance Requirements: Need for consistent performance across diverse network conditions
• Security Challenges: Protecting corporate data on unmanaged networks and locations
• User Experience Expectations: Consumer-grade experience expectations for enterprise applications
• Device Diversity: Support for a wider variety of devices and platforms

Cloud-Native Architecture:

The shift toward cloud-native solutions is accelerating across all enterprise technology categories:

• Scalability and Elasticity: Ability to scale resources based on demand
• Global Deployment: Consistent experience across geographic locations
• Operational Efficiency: Reduced infrastructure management overhead
• Innovation Velocity: Faster deployment of new features and capabilities

Artificial Intelligence Integration:

AI and machine learning are becoming integral to EUC solutions:

• Predictive Capabilities: Anticipating user needs and system requirements
• Automated Operations: Reducing manual administrative tasks
• Enhanced Security: Advanced threat detection and response
• Personalized Experience: Customizing the workspace based on user behavior

Market Consolidation and Competition

The EUC market is experiencing both consolidation and increased competition, creating a complex competitive landscape.

Platform Consolidation:

Organizations are seeking to consolidate EUC capabilities onto fewer platforms:

• Operational Efficiency: Reducing the complexity of managing multiple solutions
• Cost Optimization: Leveraging volume discounts and reducing licensing costs
• Consistent Experience: Providing users with a unified digital workspace experience
• Simplified Integration: Reducing the complexity of enterprise system integration

Competitive Intensification:

Competition in the EUC market is intensifying across multiple dimensions:

• Feature Innovation: Rapid development of new capabilities and features
• Pricing Pressure: Competitive pricing models and value propositions
• Partnership Strategies: Strategic partnerships to enhance platform capabilities
• Customer Experience: Focus on improving customer success and satisfaction

Conclusion: Omnissa’s Opportunity and Challenge

The formation of Omnissa represents both a significant opportunity and a substantial challenge. As someone who has worked extensively with VMware’s EUC solutions and observed the evolution of the digital workspace market, I see several key factors that will determine Omnissa’s success.

Success Factors

For Omnissa to succeed as an independent entity, several factors will be critical:

Product Innovation and Development:

• Cloud-Native Transformation: Successfully modernizing legacy solutions for cloud delivery
• User Experience Focus: Delivering consumer-grade experience for enterprise users
• AI Integration: Incorporating intelligent capabilities throughout the platform
• Platform Modernization: Updating architecture for scalability and performance

Market Execution:

• Customer Retention: Maintaining confidence and loyalty among existing customers
• Competitive Positioning: Effectively competing against Microsoft, Google, and others
• Partnership Strategy: Building strategic partnerships to enhance platform capabilities
• Go-to-Market Excellence: Developing effective sales and marketing strategies

Operational Excellence:

• Talent Retention: Retaining key engineering and product talent
• Customer Support: Maintaining high-quality support and services
• Financial Management: Achieving sustainable growth and profitability
• Cultural Development: Building a strong, independent company culture

Potential Challenges

Omnissa will also face significant challenges as an independent entity:

Market Competition:

• Microsoft’s Ecosystem Advantage: Competing against integrated Microsoft 365 and Azure offerings
• Google’s Innovation: Responding to Google’s cloud-native approach with Chrome Enterprise
• Emerging Competitors: Addressing threats from new entrants and niche players
• Price Pressure: Maintaining pricing power in an increasingly competitive market

Technology Evolution:

• Platform Modernization: Updating legacy architecture while maintaining compatibility
• Cloud Transformation: Competing effectively in cloud-native markets
• Integration Complexity: Maintaining integrations while operating independently
• Innovation Pace: Keeping up with rapid technology evolution and customer expectations

My Assessment

Based on my experience with VMware’s EUC solutions and understanding of the market dynamics, I believe Omnissa has a genuine opportunity to succeed, but success is not guaranteed. The EUC market is large enough to support multiple successful players, and there’s clear value in having a focused, specialized competitor.

The key will be execution. Omnissa needs to demonstrate that independence enables better innovation, customer focus, and market responsiveness than was possible within the broader VMware portfolio. They need to prove that the benefits of specialization outweigh the advantages of integration with broader infrastructure platforms.

For customers, the formation of Omnissa ultimately represents increased choice and competition, which should drive innovation and value across the entire EUC market. Whether you choose to continue with Omnissa solutions or explore alternatives, the increased competition benefits everyone.

The next 18-24 months will be critical for Omnissa as they establish their independent identity, demonstrate their innovation capabilities, and prove their value proposition to both existing and new customers. As someone who has seen the evolution of this market over many years, I’m optimistic that this increased focus and competition will ultimately benefit organizations seeking to provide their users with exceptional digital workspace experiences.

The formation of Omnissa marks not just a corporate restructuring, but a new chapter in the evolution of enterprise mobility and digital workspace technology. How that chapter unfolds will depend on Omnissa’s ability to execute on their vision while navigating an increasingly competitive and rapidly evolving market.