Broadcom is planning to acquire the enterprise technology company for USD 18.9 billion. The acquisition is being termed as a strategic gain for Broadcom who aims to acquire critical technology businesses to become one of the largest chipmakers in the world.

United States: Broadcom and CA Technologies recently announced that Broadcom is planning to acquire the enterprise technology company for USD 18.9 billion in cash. The acquisition is being termed as a strategic gain for Broadcom, furthering its mission to acquire mission critical technology businesses after it failed to takeover bid for rival Qualcomm.

CA Technologies, which manufactures cloud-based and traditional enterprise software, could help diversify Broadcom, should it gain antitrust approvals in the U.S., the E.U. and Japan. The boards of both companies have already approved the deal.

Under Chief Executive Officer, Broadcom is set to transform itself by a string of deals to become one of the world’s largest chipmakers. Last year, Tan launched an ambitious attempt to grow even bigger -- through the purchase of rival mobile-chip maker Qualcomm Inc. That hostile takeover bid was blocked in March by the U.S government on national-security grounds. With a deal for CA, Broadcom will move into software used to manage business planning and other processes, adding a steady stream of recurring revenue from long-term contracts. The company implied that it will do more deals.

Broadcom provides components for computers, smartphones and networking equipment. CA’s software and services do not directly overlap with Broadcom.

But diverging so far in terms of products may help the transaction avoid the same level of regulatory scrutiny that followed during the Qualcomm purchase. Winning the approval from governments is a major challenge in the chip industry, as the sensitive nature of the technology and its use in military equipment can lead lawmakers to block deals based on questions about national security.

CA makes software to manage IT operations, digital security and project management and for developing applications. The company traditionally made products that run on mainframes, but in recent years has entered the cloud computing market. The software maker is cutting 800 jobs, it said in a regulatory filing in May, putting it in line with the cost-reduction measures.

According to TechSci Research, the acquisition of CA technologies by Broadcom is expected to have a positive impact on Enterprise mobility market as well as the cloud market. As pressure to remain competitive in the marketplace is increasing due to growing mobile device and smart technology penetration, ongoing digital revolution, evolving business infrastructure and burgeoning security vulnerabilities, deployment of BYOD & enterprise mobility is anticipated to surge on a global level over the course of next five years. Further, factors such as increasing penetration of cloud computing and technological advancements is expected to drive Cloud Migration Services Market in the coming years. Demand for cloud computing is expected to be driven by some other factors, such as lower security, flexibility and lower costs. The increasing use of Cloud computing is also expected to propel the market for Cloud Monitoring Market in the coming years.

According to the recently published report by TechSci Research, “Global BYOD & Enterprise Mobility Market, By Component (Software, Security Solution & Service), By Deployment Mode (Cloud Vs On-Premise), By End User Sector (Retail, BFSI & Others), By Region, Competition Forecast & Opportunities, 2013 – 2023”, Global BYOD & enterprise mobility market stood at around $ 34 billion in 2017 and is projected to grow at a CAGR of 18% to reach $ 95 billion by 2023, predominantly on account of growing smartphone and internet penetration across the globe. Surging demand for workforce mobility coupled with increasing adoption of SMACT technologies across diverse sectors, such as retail, BFSI, manufacturing, healthcare, government, logistics, etc., would drive the BYOD & enterprise mobility market, globally, in the coming years. Some of the other factors that are expected to fuel the market including ongoing smart society reforms and increasing focus on mobile application development.

According to the recently published report by TechSci Research, “Global Cloud Migration Services Market, By Service Type (Automation & Integration, Application Hosting etc.), By Application, By Deployment Model (Public Cloud, Private Cloud etc.), By Organization Size , By Vertical , By Company and By Geography, Forecast & Opportunities, 2023, Global Cloud Migration Services Market is expected to reach USD 9.52 Billion by 2023, at CAGR of over 25%. The major factors contributing in the growth of the market are increasing penetration of cloud computing and technological advancements. Moreover, demand for cloud computing is expected to be driven by some other factors, such as lower security, flexibility and lower costs. In 2017, the North America region dominates the Global Cloud Migration Services market due to increasing need for well-organized computing systems and growing demand for shifting the workload on cloud and the region is expected to maintain its dominance over the next five years as well.

According to the recently published report by TechSci Research, “Global Cloud Monitoring Market, By Component (Solutions and Services), By Service Model (Software as A Service, etc), By Organization Size (Large Enterprises and Small & Medium-Sized Enterprises), By Industry (Banking, Financial Services, & Insurance, etc), By Company, By Region, Forecast & Opportunities, 2013-2023, Global Cloud Monitoring Market is expected to reach USD 1.99 Billion by 2023, witnessing growth at a CAGR of over 19%, in value terms, due to the increasing need of cost-effective management and security solutions. Moreover, the solutions and services provided by cloud platforms are witnessing a rise due to their application in industries such as Banking, Finance and Insurance, which will the drive the growth of this market further. Based on size of the organization, the large enterprise segment dominates the market, owing to increasing demand of enhanced cloud monitoring systems. North America is anticipated to have the largest market share over the next five years owing to rapid adoption of cloud platforms.  

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