Broadcom CEO defends CA purchase
Summary
Its been two months since Broadcom announced it was buying CA Technologies for $18.9 billion in cash as part of a major pivot into the enterprise software market.Just as we have done with hyper cloud players, we believe we can bring our compute offload solutions, our Tomahawk switchers, Jericho routers, fiber optics and our server storage connectivity portfolio directly to these same large enterprises that are buying CA software.Later on in the call, Tan was pressed by an analyst questioning Broadcoms M&A track and how the CA purchase was not, in fact, a purely financial deal.The analyst also questioned the stickiness of CAs technologies given their legacy nature and Broadcoms tendency to slash SG&A and cut R&D.Tan appeared a bit irked by the question, which he called "wrong on so many levels," but went on to rebuff the notion that mainframes -- a core CA business -- are on their way out.
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