Broadcom’s deal to buy VMware could lead to less innovation and drive up the cost of computer parts used by the government, banks and telecoms.

Broadcom, a leading US-based technology company, makes and sells specialist hardware components – such as network interface cards (NICs) and storage adapters – used in servers. VMware specialises in software products and services, including server virtualisation software, which enables servers to be used more efficiently by separating them into multiple virtualised servers. VMware’s customers include major banks, telecom firms, UK government departments and other public institutions.

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