Broadcom Software President Krause to Leave Amid Pending VMware Acquisition

Tom Krause, president of the Broadcom software group and the face of its pending acquisition of VMware, is leaving the company. Broadcom revealed Krause’s resignation on Monday in an SEC filing. Krause plans to join another undisclosed enterprise software company, according to the 8-K filing.

Tom Krause

Krause’s unexpected departure is surprising because he played a leading role in negotiating Broadcom’s $61 billion VMware acquisition. Broadcom announced the deal in May, which, if completed, stands to become one of the largest IT mergers to date.

Broadcom has not elaborated on Krause’s resignation beyond Monday’s filing, which noted the company will eliminate his position. Hock Ton, Broadcom’s president and CEO, will oversee his responsibilities. The timing of his departure is curious. Krause informed Broadcom of his decision to resign on Wednesday July 6, one day after VMware’s 40-day go-shop period ended.

Broadcom Indicates Krause Departing Amicably

“Mr. Krause’s resignation is not the result of any disagreement with the company or management on any matter relating to the company’s performance, operations, policies, practices or financial statements, including its controls or other financial related matters,” the company stated in the 8-K filing.

Krause will remain with Broadcom through Friday July 15, and continue to assist with the transition, according to the report.

Broadcom’s Hock Tan

Just last month, Krause sought to reassure customers and partners that Broadcom is reviewing VMware’s go-to-market strategy with an “open mind.” Krause urged stakeholders not to presume Broadcom will take the same approach to the VMware ecosystem that it adopted after acquiring CA and Symantec.

Besides leading the negotiations with Tan, Krause has been rationalizing the deal to investors and VMware employees, partners and customers. Apparently, he doesn’t plan to stick around to see the deal close or lead the post-acquisition integration.

Techaisle’s Anurag Agrawal

“Senior executives in the enterprise software space are acquisition architects and builders rather than consolidators,” said Anurag Agrawal, principal analyst with Techaisle. “There was probably nothing more for him to prove. I speculate that there must be a tacit understanding of a more significant role for Raghu Raghuram, current VMware CEO, post-deal closure, covering Broadcom’s entire software strategy and product vision rather than reporting one level below.”

Krause joined Broadcom, then known as Avago Technologies, more than 10 years ago, as VP of corporate development. In 2016, Krause became CFO. While he was in that role, Broadcom entered the software business with the acquisitions of CA and Symantec. Broadcom named Krause president of its software group in late 2020.

COO Named President of New Semiconductor Group

Broadcom’s Charlie Kawwas

Broadcom also reported in Monday’s 8-K filing that it appointed COO Charlie Kawwas as president of the company’s new Semiconductor Solutions Group. Kawwas, who will oversee Broadcom’s semiconductor portfolio, will retain responsibility for global operations and sales for the company’s semiconductor and Brocade storage networking businesses.