Broadcom once again takes a heavy brush to the VMware partner program. On October 31, a slew of smaller partners will be dropped, with consequences for customers.
It’s no secret that Broadcom doesn’t shy away from stepping on toes. Despite the anger of customers, partners, and industry organizations, it relentlessly continues with the VMware reforms. The heavy brush is applied not only to the portfolio but also to the partner program. Many partners risk being cut on October 31, writes The Register.
Second Round
In early 2024, Broadcom already conducted an initial “selection” for resellers allowed to offer VMware services via cloud licenses. Before the acquisition, VMware had around four thousand partners serving companies of all sizes. This approach no longer fits Broadcom’s philosophy, which is only interested in the largest companies and partners that can reach them.
Broadcom reportedly informed partners this week who are moving on to the next round. For providers who haven’t heard anything yet, the outlook is not good. They will soon receive the unfortunate news that they didn’t make the selection. Broadcom provides a transition period until October 31.
Additionally, Broadcom is also ending the “White label” program. This program was intended to keep smaller cloud providers on board and was announced with much fanfare last year. Broadcom asks each dismissed reseller to assist their customers in transitioning to a recognized partner.
Customers Left out in the Cold
Broadcom’s aggressive approach is not only troublesome for VMware providers losing (part of) their business from November 1, but also for their customers. They now have to urgently find a new provider. For some, it may be the last straw, but even then, a VMware migration is a painful affair.
The Australian company Interactive, which did make the selection, warns that switching VMware partners brings “delays and confusion”. The keys to the VMware environment must be handed over to a new partner, along with renewing the license, which can incur additional costs.
Broadcom continues to stick to the narrative that it is simplifying the VMware portfolio. As long as the most lucrative customers remain satisfied, it accepts the discontent of the rest.