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Broadcom Product

To create breakthrough technology that connects everything intelligently by powering the future of global connectivity and intelligent automation

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To create breakthrough technology that connects everything intelligently by powering the future of global connectivity and intelligent automation

Strengths

  • PORTFOLIO: Robust integrated product portfolio across semiconductors & software
  • CUSTOMERS: Strong enterprise relationships with 85% of Fortune 500
  • INNOVATION: $5B+ annual R&D investments driving next-gen solutions
  • SYNERGY: Successful integration of VMware expanding cloud capabilities
  • MARGIN: Industry-leading operating margins of 60%+ in semiconductor

Weaknesses

  • INTEGRATION: Ongoing challenges merging VMware operations fully
  • TALENT: 5% higher turnover rate in software division post-acquisition
  • COMPLEXITY: Product portfolio sprawl creating customer confusion
  • LICENSING: Customer friction with new subscription licensing models
  • DEPENDENCIES: Heavy reliance on few major customers like Apple (~15%)

Opportunities

  • AI: Explosive growth in AI infrastructure spending projected at 25%+ CAGR
  • CLOUD: Hybrid/multi-cloud adoption accelerating among enterprises
  • 5G: Network infrastructure upgrades creating $50B+ market by 2026
  • AUTOMOTIVE: Connected vehicle segment growing at 22% annually
  • SUBSCRIPTION: Expanding ARR-based business models across portfolio

Threats

  • COMPETITION: Nvidia dominance in AI compute acceleration space
  • REGULATION: Increasing global regulatory scrutiny of acquisitions
  • CYCLES: Semiconductor industry cyclicality affecting revenue stability
  • LOCALIZATION: Geopolitical pressures forcing supply chain reshoring
  • ALTERNATIVES: Open-source and cloud-native alternatives to VMware

Key Priorities

  • AI-FIRST: Prioritize AI acceleration across entire product portfolio
  • INTEGRATION: Accelerate VMware synergies to unlock combined value
  • SUBSCRIPTION: Transition more offerings to subscription revenue model
  • SIMPLIFICATION: Streamline product portfolio for customer clarity
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To create breakthrough technology that connects everything intelligently by powering the future of global connectivity and intelligent automation

AI EVERYWHERE

Infuse AI capabilities across our entire product portfolio

  • PLATFORM: Launch unified AI development platform integrating hardware & software by Q3 with 500+ developers onboarded
  • SILICON: Ship next-gen AI accelerator chips with 2x performance/watt vs previous gen to top 5 cloud providers
  • AUTOMATION: Deploy AI-powered IT automation solutions for 100+ enterprise customers, reducing ops costs by 30%
  • INTEGRATION: Implement 15 key AI features from acquisitions into core product lineup with 85% feature adoption
SEAMLESS FUSION

Accelerate VMware integration to maximize synergies

  • UNIFICATION: Complete unified product roadmap across all business units with 90% team alignment by end of Q2
  • EXPERIENCE: Launch integrated customer portal for all products reaching 75%+ customer adoption rate
  • EFFICIENCY: Realize $250M in additional cost synergies beyond original target through shared operations
  • RETENTION: Improve post-acquisition talent retention to 92% for high performers through targeted programs
RECURRING REVENUE

Shift business model toward predictable subscription base

  • CONVERSION: Transition 40% of perpetual license customers to subscription models with <5% revenue churn
  • ARR: Grow annual recurring revenue to $8.5B+, representing 25% YoY growth in software segment
  • UPSELL: Achieve 115% net revenue retention through cross-selling and expanded use cases
  • BUNDLING: Create 10 new hardware+software subscription bundles generating $100M+ in new ARR
CUSTOMER CLARITY

Simplify our portfolio for seamless customer experience

  • CONSOLIDATION: Reduce total product SKUs by 30% while maintaining 98% of revenue coverage
  • JOURNEY: Redesign customer onboarding process reducing time-to-value by 40% across top product lines
  • DOCUMENTATION: Rewrite technical documentation with 85% customer satisfaction score, up from 62%
  • DASHBOARD: Create unified customer success dashboard with realtime metrics for 95% of enterprise accounts
METRICS
  • Annual Recurring Revenue (ARR): $8.5B by EOY 2025
  • Customer Satisfaction Score (CSAT): 85% across all product lines
  • AI-Enabled Product Adoption: 60% of enterprise customers using AI features
VALUES
  • Innovation-Driven Culture
  • Customer-First Approach
  • Operational Excellence
  • Sustainable Growth
  • Inclusive Collaboration
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Align the learnings

Broadcom Product Retrospective

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To create breakthrough technology that connects everything intelligently by powering the future of global connectivity and intelligent automation

What Went Well

  • REVENUE: Q1 2024 revenue hit $11.96B, up 43% YoY exceeding forecast
  • MARGINS: Achieved 65% adjusted EBITDA margin, 3 points above target
  • INTEGRATION: VMware cost synergies realized 6 months ahead of schedule
  • SUBSCRIPTION: Software ARR reached $7B+, growing 23% year-over-year
  • CUSTOMERS: Added 32 new $1M+ customers in enterprise software segment

Not So Well

  • WIRELESS: 5G RF solutions declined 8% YoY due to smartphone weakness
  • TRANSITION: Customer pushback on new subscription licensing models
  • GUIDANCE: Conservative outlook caused stock volatility post-earnings
  • INVENTORY: Higher channel inventory in networking segment than target
  • COMPETITION: Lost market share in ethernet switching to key competitor

Learnings

  • BUNDLING: Combined HW/SW offerings deliver 22% higher customer value
  • MIGRATION: Subscription transitions require stronger customer support
  • CUSTOMIZATION: Enterprise customers demanding more flexible licensing
  • SPECIALIZATION: Vertical-specific solutions driving 3x higher growth
  • PROACTIVITY: Early customer engagement reduces migration resistance

Action Items

  • STREAMLINE: Consolidate product portfolio to reduce 30% SKU overlap
  • ACCELERATE: Launch AI-optimized network/storage products by Q3 2025
  • SIMPLIFY: Create unified customer licensing dashboard across portfolio
  • AUTOMATE: Implement AI-driven customer success tools for onboarding
  • INCENTIVIZE: Align sales compensation to subscription revenue growth
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To create breakthrough technology that connects everything intelligently by powering the future of global connectivity and intelligent automation

Strengths

  • COMPUTE: Leading silicon AI accelerator capabilities with DPUs
  • INFRASTRUCTURE: VMware cloud foundation powers AI infrastructure
  • SECURITY: AI-enhanced cybersecurity solutions across portfolio
  • PARTNERSHIPS: Strategic AI ecosystem partnerships with hyperscalers
  • DATA: Access to vast enterprise operational data for AI training

Weaknesses

  • TALENT: Gap in specialized AI engineering talent vs pure AI companies
  • FRAGMENTATION: Siloed AI initiatives across business units
  • ADOPTION: Slow internal AI tools adoption within engineering groups
  • MARKETING: Weak AI-first narrative compared to competitors
  • INTEGRATION: Limited AI integration between hardware and software

Opportunities

  • EDGE: AI compute shifting to edge creating new silicon opportunities
  • AUTOMATION: AI-powered IT automation reducing operational costs
  • VERTICAL: Industry-specific AI solutions for healthcare/finance
  • SUBSCRIPTION: AI features driving premium subscription pricing
  • PLATFORM: Creating unified AI development platform across portfolio

Threats

  • COMPETITION: Nvidia's dominance in AI computing ecosystem
  • COMMODITIZATION: Cloud providers building proprietary AI solutions
  • TALENT: Aggressive recruitment of AI talent by tech giants
  • SPECIALIZATION: Vertical-specific AI startups targeting niches
  • REGULATION: Emerging AI regulations impacting development cycles

Key Priorities

  • CONSOLIDATION: Unify AI capabilities across hardware and software
  • ACCELERATION: Prioritize AI silicon roadmap for data center/edge
  • AUTOMATION: Develop AI-powered IT automation for enterprise
  • ECOSYSTEM: Expand AI partnerships with key cloud providers