VMware partners face more disruption with latest Broadcom changes

VMware is rejigging its cloud channel program once again – and as of yet it’s unclear which partners will be invited to join the new version.

First reported by The Register last week, Australian reseller, Interactive, revealed Broadcom has contacted VMware Cloud Service Providers to alert them that a new Cloud Service Provider program will begin in November.

The new framework is invitation only and will slash the number of authorized partners — with suggestions that Broadcom is choosing to focus on bigger players.

Any existing partners who will not be included have already been sent a notice of non-renewal, Interactive said in its post.

This means they will be able to continue offering services until 31 October. However, after that they'll only be able to continue servicing existing contracts until the end of their terms, with no new contracts allowed.

Interactive added that Broadcom is ending its white label program, which was only started last year to help alleviate concerns in the partner community.

The move basically means some partners will lose their VMware business, while their customers will need to find a new supplier ahead of the end of their contract, if affected, and migrate their systems.

Why the change?

According to Interactive, the change is part of Broadcom’s continued efforts to “align the VMware partner ecosystem with its strategic efforts and the needs of customers”.

In a statement given to ITPro, a spokesperson confirmed the move, noting that the new strategy forms part of its goal to drive simplification, consistency, and innovation across the VMware Go To Market ecosystem”.

“Recent changes to this ecosystem are consistent with this strategy. Broadcom is focusing more and going deeper with the VCSPs who have demonstrated commitment to their cloud services built on VMware,” the spokesperson added.

“This will enable us to deliver greater value, stronger execution, and a more streamlined experience for Broadcom's VMware customers of all sizes and enable a truly competitive offering to the hyperscalers through our CSPs."

Broadcom changes have spooked VMware customers

The change to the VMware Cloud Service Providers system is the latest disruption in the wake of Broadcom's $61 billion acquisition of the virtualization giant.

Since the acquisition, Broadcom has introduced a series of licensing tweaks that have frustrated customers and partners.

A report by the European Cloud Competition Organisation — set up to monitor Microsoft's compliance with a licensing complaint settlement — said in May that some VMware licensing costs had climbed by as much as 1,500% since the acquisition.

Most recently, in June Broadcom said it would "streamline" its partner program for VMware resellers to help improve support — and that meant reducing the number of approved partners and removing an entire tier of resellers.

That meant some customers would have to find new resellers.

One survey last year found more than half of VMware customers were considering ditching the company after Broadcom's acquisition. As a result, a host of major industry players have stepped in with rival options, HPE, Pure Storage and NetApp.

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