Broadcom & Symantec Enterprise: It’s All About the Portfolio

A prominent microchip manufacturer makes a strategic entry into the cyber security market by acquiring a suite of security software solutions.

Described like that, Broadcom Inc.’s recent $10.7 billion acquisition of Symantec’s Enterprise Security business might sound like a combination that’s been done before. In fact, it’s not.

Rather than a match designed to tap into perceived solution-set synergies, Broadcom and Symantec have come together for the purpose of creating sales synergies and providing a better experience for customers.

Coupled with its acquisition of CA Technologies in 2018 and Brocade in 2017, Broadcom now has an increasingly large and diversified portfolio of infrastructure, cyber security, and enterprise software that can be served up to a common set of customers in a way that’s more accessible and cost effective than dealing with myriad independent vendors and software silos.

At the crux of the Broadcom-Symantec value proposition is a new subscription-based model for purchasing enterprise software: Portfolio Licensing Agreements (PLAs).

Regardless of whether software is deployed in the cloud or on-premises, the world is shifting to a subscription economy.

Under the Broadcom PLA model, customers are presented with an easier way to access the company’s full-stack of software technologies, considered to be among the best-in-class in their respective categories. As part of a single bundled licensing agreement, customers can pick and choose whatever software platforms meet their needs. In this way, they can realize lower and more predictable annual costs while also gaining increased flexibility to experiment with new technologies and platforms with virtually no financial risk. Additional upsides to PLAs: They simplify the maintenance, upgrade, and renewal process and reduce friction in vendor and contract management.

The Broadcom PLA makes it easy to consume products and services, including through flexible access to a suite of offerings via an enterprise app store and a cost structure that rivals most cloud models. Broadcom also provides strategic customers a concierge approach that dedicates specific customer success managers to help them maximize their software investments.

With a Broadcom PLA, customers have even greater flexibility in how they license Symantec products. Symantec’s marquee offering—Integrated Cyber Defense (ICD)—is a best-in-class security platform that addresses endpoint security, web & email security, information security, including Data Loss Prevention (DLP), and identity security such as Identity and Access Management (IAM) and privileged access management solutions. Customers can opt for either a full PLA, which delivers access to the complete range of security solutions so they can adopt any technology at their own pace, or Segment PLAs, which let customers access solutions targeted to specific attack vectors, paying for additional offerings as they opt to expand.

Beyond the software licensing flexibility, Broadcom’s acquisition of Symantec’s Enterprise business addresses customer needs in other ways. For example, Broadcom encourages direct sales to those among its very largest enterprise customers who prefer to avoid a layered sales cycle, while continuing to strategically partner with resellers and distributors who add value for so many of our customers.

Moreover, Broadcom is known for an operating model that drives efficiency, simplicity, and fast decision-making, while investing in development of its core franchises. For example, the company spends about $4.7 billion on R&D annually. Those sorts of investments will help the Symantec ICD platform and solutions remain innovative by allowing the company to pursue R&D priorities driven by customer outcomes.

There is no tried-and-true formula for a successful high-tech partnership, but with its focus on catering to customer needs and simplifying the sales process, the unified Broadcom-Symantec strategy shows a whole lot of promise.