We’ll find good homes for them because there are a lot of very interested parties who are more than happy to take those assets. And we’ll be very, very thoughtful about where we put those assets eventually, simply because the customers of many of these two assets, many of the customers are also the same customers to the VMware Cloud Foundation.
Operator: Thank you. And one moment for our next question. And that will come from the line of Matt Ramsay with TD Cowen.
Matt Ramsay: Hock, I guess I’ll caveat my question saying that I’m a semiconductor guy rather than a software expert. But I wanted to ask about the plan to convert the VMware customer base to subscription models and contrast that with what you guys did with CA and Symantec. So, are there — do you feel like the process is going to be pretty similar in duration and success, or are there differences in maybe the customer base, the length of the long tail outside the sort of Fortune 1000, the type of technologies there? Are there any similarities or differences in the plan there that we should sort of think about and what that might mean for how quickly you can convert that business? Thanks.
Hock Tan: No. These are very different assets, not saying anyone necessarily much better than the other, just different. In CA, particularly where we’re mainframe but also some distributors, we focus very much especially on core customer base, which represented at that time, we bought 70% of the overall revenue of those — CA. We focus on these customers. We focus on supporting them and they’re continuing to basically give them really good support, feature request growth in the area. And that’s how we then and — we focus on Symantec too, which is a small core group of customers. And a big part of it is the technology of CA, especially on mainframe is honestly — is running a lot of legacy applications that are still very, very much alive today, but customers preferring to run it on those mainframe tools simply because it makes no sense to modernize or change for whatever — for their own good reasons.
VMware, however, we’re selling a product of the present and of the future. It is a growth product to be able to create a virtualized cloud environment in your own data center on-prem for any global company. The good thing about going to public cloud is also totally virtualize, but very resilient when you run — when you run a software-defined environment. We are creating with VMware, the same experience of virtualization of the data center on-prem for those companies, which has workloads, by the way, that are already running VMware products that application that’s already written on VMware Cloud Foundation. This is then giving these enterprises the opportunity to have a hyperscaler on-prem. That’s the plan we’re doing, plain and simple.
Operator: Thank you. One moment for our next question. And that will come from the line of William Stein with Truist.
William Stein: Hock, in the past, I think we’ve all been aware that there’s one major customer on the accelerated compute side. I suspect that he’s broadened and deepened perhaps and hoping you can give us some characterization of that, maybe the number of customers or projects, how diversified it is at this point, that would really help. Thank you.
Hock Tan: Yes, it has. It has, which reflects some of my opening remarks that say that I used to tell you guys, hey, merchant silicon will triumph. But I think with the evolution — a very rapid evolution I’ve been seeing on the AI, large language model, generative AI large language models and the fact that in hardware one size doesn’t fit all. That is variation depending on the models you run. I would say that if — for some of those hyperscalers with the resources, with the scale requirements to be able to create customized versions of hardware to match with customization of their foundation models and even their application models, we begin to see the effect of that. Other than that, I’d rather not disclose any more to you at this point because we’re kind of under NDA overall.
Operator: Thank you. One moment for our next question. And that will come from the line of Harsh Kumar with Piper Sandler.
Harsh Kumar: Yes. Hock, first of all, congratulations on closing the VMware deal. I know you’ve been trying to close that for a while. I wanted to — you’ve had a lot of time. Your management had a lot of time to look at this deal through the process of closing. I was curious what you have seen so far that pleases you the most and what do you think will be the most challenging aspect of the integration over the next 12 months that you highlighted?
Hock Tan: Well, over the past 18 months almost, we had on the journey of closing this deal from the date of announcement. You’re right, we had a great opportunity, and thanks to a very supportive management team from VMware that engages with us very, very well. Again, it’s planning. We can see, we can’t touch, but it has a lot of time to plan and think through. It also gives me a lot of opportunity to go out there. And over the past 12, 16 months, I must have talked one-on-one or in small groups to at least 150 CIOs globally of the largest customers of VMware out there. And one thing is very clear. The VMware core product, the VMware Cloud Foundation software stack that enables virtualization of not just computing, servers, compute, but storage, networking as well as orchestration and management layer over that whole stack is something that CIOs, head of infrastructure of large — many large companies out there really want.
