More VMware cloud partners axed as Broadcom launches new invite-only program

In a significant shake-up, Broadcom is set to remove several cloud service providers (CSPs) from its VMware channel partner program, casting a shadow of uncertainty over the future of many businesses, particularly those on the smaller side. This week, Broadcom announced the launch of an exclusive, invite-only channel program for CSPs, scheduled to begin on November 1. The new program is expected to drastically reduce the number of eligible CSPs, with reports indicating that several mid-sized partners will not receive invitations. Existing VMware CSPs that do not get an invite by today will find themselves cut from the program, facing notices of non-renewal. Until October 31, these CSPs can continue their operations, but significant disruptions are anticipated afterward, affecting both the CSPs and the clients relying on VMware-based services. An Australian IT service provider, also a VMware CSP, expressed concerns that companies using VMware technology through affected CSPs will need to seek new methods for license renewals. This transition may lead to delays and confusion regarding service requests and support, causing further complications for businesses. Moreover, the consolidation of partners could result in increased costs. As firms navigate the migration process and re-establish relationships with new partners, they may face additional expenses that could negate the cost efficiencies previously enjoyed. Since acquiring VMware, Broadcom has been actively reducing the number of businesses permitted to resell and support VMware products. Earlier this year, the company introduced the Broadcom Advantage Partner Program, which replaced the former VMware partner program and eliminated many partners. Notably, new restrictions require CSP members to operate a minimum of 3,500 processor cores, further limiting participation. In a previous report, it was noted that hundreds of CSPs were not invited to the new program, with VMware once hosting over 4,000 small CSP partners before the acquisition. Although Broadcom initiated a white-label program to allow smaller CSPs to collaborate with existing VMware partners, this initiative is also coming to an end on October 31. As a result, businesses relying on cloud services through this white-label solution may be compelled to undertake a hurried migration, which carries its own set of risks and costs.