Surviving the Broadcom Takeover of Carbon Black

Surviving the Broadcom Takeover of Carbon Black

Background

Broadcom, most recently known for its extensive appetite to acquire a portfolio of semiconductor and infrastructure software solutions, recently expanded its footprint by acquiring cybersecurity firm Carbon Black. This strategic move is part of Broadcom's ongoing effort to bolster its security capabilities for enterprise customers. Carbon Black, known for its advanced endpoint security and threat detection technologies, adds to Broadcom's portfolio of robust cloud-native security solutions addressing the evolving cybersecurity landscape.

Broadcom promises that the integration of Carbon Black's solutions into its product ecosystem will bring significant benefits to both companies' customer bases. For Carbon Black, joining forces with Broadcom provides the resources and scale necessary to accelerate its R&D and expand its market reach. For Broadcom, the acquisition enriches its security offering, enabling it to provide a more holistic approach to cybersecurity that spans across network infrastructure and endpoints. However, given Broadcom's recent track record, many customers are skeptical that the benefits will materialize and fear more pain resulting from focused efforts to extract more value through increased prices, fewer options, and more account control.

Introduction

Broadcom is poised to reshape the cybersecurity landscape with its strategic plan to merge Carbon Black and Symantec into a newly formed Enterprise Security Group (ESG). This move aims to create a robust, integrated solution that tackles the challenges faced by large and heavily regulated enterprises. Through the combination of network and data telemetry with advanced Endpoint Detection and Response (EDR) technologies, the focus is on delivering comprehensive and resilient defense mechanisms.

Enhancing Cybersecurity Through Unified Capabilities

The integration of Carbon Black and Symantec under Broadcom's ESG umbrella promises significant enhancements in cybersecurity. One of the key benefits cited is the improvement in persistent visibility across the enterprise network. Persistent visibility ensures that threats are continuously monitored and promptly addressed, reducing the window of vulnerability. This aspect is crucial for large enterprises that handle sensitive data and must comply with strict regulatory requirements.

Data-driven context is another promised advantage. By leveraging data analytics, the combined entity aims to provide deeper insights into potential threats, optimizing the response process. Flexible control further empowers enterprises to tailor their cybersecurity measures according to evolving threats and regulatory changes.

Autonomous Operation with Focused Investment

An important aspect of Broadcom’s strategy is to operate Carbon Black as an autonomous business unit within the larger corporate structure. This autonomy is expected to allow Carbon Black to maintain its core strengths while benefiting from the increased investment and support from its parent company. Broadcom has indicated plans for substantial investment in both Carbon Black and Symantec, which is expected to translate into enhanced services, dedicated resources, and focused customer support.

Industry Trends and Potential Cost Implications

While there haven't been explicit public details on cost changes for Carbon Black, examining industry trends and Broadcom’s historical actions can shine some light. The tech industry is moving away from perpetual licensing towards subscription-based models to secure recurring revenue streams. Broadcom's past strategies, including bundling higher-tier features and strategic business unit restructuring, hint at potential pricing and packaging changes.

For example, a Gartner Report highlights the prevalence of subscription models in the tech industry and their impact on long-term costs.

Strategic Recommendations for Carbon Black Customers

Given these potential shifts, Carbon Black customers should develop proactive strategies to avoid the pitfalls experienced by VMware customers who faced limited options due to deep technical dependencies and high costs of switching.

A Comprehensive Proactive Strategy

Here’s a detailed step-by-step plan to navigate the potential changes:

1. Assess Your Carbon Black Deployment: Conduct a thorough review of your current Carbon Black implementation. Understand the specific functions it performs, its role within your cybersecurity framework, and any technical dependencies that exist. Read More: How to Conduct a Cybersecurity Assessment 
2. Evaluate a Competitive Displacement Plan: Research alternative solutions that can replace Carbon Black without compromising your security effectiveness. Consider factors such as feature parity, integration capabilities, and total cost of ownership. Read More: Top Endpoint Detection and Response Solutions 
3. Identify a Competitive Supplier: Approach suppliers who are willing to offer competitive pricing that offsets any potential switching costs. Ensure that these suppliers can meet your security needs and provide adequate support. Read more: How to Choose the Right Cybersecurity Vendor
4. Approach Carbon Black Early for Renewal Pricing Discussions: Initiate conversations with Carbon Black about renewal pricing well in advance. Doing so allows you to negotiate and prepare for any price changes, ensuring you have the necessary time to switch if needed.
5. Decision Time – Renew or Switch: Based on the outcomes of your negotiations and evaluations, make an informed decision. If Carbon Black’s renewed cost and value align with your expectations, proceed with the renewal. If not, be prepared to switch to your identified alternative. Read More: Negotiating Tech Contracts 

Take Action Now to Safeguard Your Future

Broadcom's strategic maneuver to integrate Carbon Black and Symantec presents both opportunities and challenges. By embracing a proactive approach, assessing your dependencies, and having a well-thought-out backup plan, you can ensure a seamless transition at renewal time.

Don’t wait until the last minute. Start planning now to stay ahead in the cybersecurity game. Contact us today to get expert advice and resources tailored to your specific needs, and secure your enterprise’s future effectively.

Conclusion

Get proactive by engaging with us today for a consultation on navigating the upcoming changes with Carbon Black and explore the best path forward for your organization. Stay proactive, stay secure. Read More: Understanding Broadcom’s Acquisition Strategy

By taking these steps, you're not just reacting to industry changes — you're staying ahead of them. Remain vigilant and informed to continue safeguarding your enterprise in an ever-evolving cyber landscape.

Call to Action

The relentless pursuit of profit by IT vendors, often at the expense of product quality and customer service, has created a chasm between the value delivered and the costs incurred by enterprise customers. This unsustainable imbalance not only erodes customer profit margins but also stifles innovation and competitive advantage. It's a moral and financial imperative to break free from this cycle of exploitation, reclaiming control over IT expenses and redirecting those funds into strategic initiatives that drive growth and success. The financial rewards of disrupting this status quo are immense. By demanding better terms, exploring alternative solutions, or even severing ties with underperforming vendors, enterprises can unlock significant cost savings, enhance operational efficiency, and gain a competitive edge. The time for complacency is over. It's time to take charge, challenge the norm, and reshape the vendor-customer relationship. Are you ready to seize this opportunity? NET(net) is your partner in this transformative journey, providing the expertise and support you need to achieve your goals. Let's redefine the rules of the game and create a future where technology truly empowers the future of your business, rather than keeping you in bondage as a slave to the past.

NET(net) can help you achieve success, so Act Now.

About the Author

Steven C. Zolman is a leading expert in technology investment optimization and the founder, owner, and executive chairman of NET(net), Inc., the world's leading technology investment optimization firm. With over 30 years of industry experience, Mr. Zolman has helped client organizations of all sizes maximize the value of their technology investments by minimizing cost and risk and maximizing the realization of value and benefit.

About NET(net)

Founded in 2002, NET(net) is the world’s leading IT Investment Optimization firm, helping clients find, get, and keep more economic and strategic value in their technology supply chains. Over the last 20 years, NET(net) has influenced trillions of investment, captured hundreds of billions of value, and has helped clients cost and value optimize all major areas of IT Spend, including XaaS, Cloud, Hardware, Software, Services, Healthcare, Outsourcing, Infrastructure, and Telecommunications, among others. NET(net) has the experience you want, demonstrates the expertise that you need, and delivers the performance you demand and deserve. Contact us at info@netnetweb.com, visit us online at www.netnetweb.com, or call us at +1 (616) 546-3100 to see if we can help you capture more value in your IT investments, agreements, deployments, and relationships.

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