Broadcom kills off VMware Cloud Service Providers

(Image credit: Ferran Rodenas / Flickr)

In a dramatic shift following Broadcom’s $61 billion acquisition of VMware in November 2023, the virtualization giant’s partner programs look to be undergoing a major shakeup that could affect many of its Cloud Service Providers (CSPs).

The acquisition, which finally got the go-ahead after approval from Chinese authorities late last year, has been followed by a seemingly growing list of announcements about how Broadcom plans to restructure VMware’s offerings.

Sources familiar with the matter cited by The Register reveal that Broadcom is cutting ties with a number of its CSPs, after recently announcing that it would discontinue VMware’s channel program and transition some providers to its own invitation-only program early this year.

Broadcom’s VMware overhaul generates more uncertainty

According to The Register, some CSPs received a notice from Broadcom stating that their program under the Partner Connect Program would be terminated in April. Part of the letter seen by the publication reads:

“Effective April 30, 2024, the ability to transact as a VMware Cloud Services Provider, under the VMware Partner Connect Program, will come to an end. However, we want to emphasize that you may have the opportunity to join the Broadcom Expert Advantage Partner Program. This invite-only program has simpler requirements and offers expanded benefits, and we will begin inviting partners to join in early 2024.”

It has been reported that many CSPs have received no indication from Broadcom about their eligibility for the new program, and whether they have a future with the company, spelling out large-scale insecurity and uncertainty.

The move has raised concerns about the impact of Broadcom’s VMware acquisition on smaller providers, who appear to have limited rights.

Customers are also set to be affected by the change. One unnamed CSP told The Register that “hundreds, perhaps thousands of customers [would be affected], with zero notice, and zero details.”

TechRadar Pro has asked Broadcom to confirm the above, offering the company a chance to add its own comments and context. We did not receive an immediate response.

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Craig Hale

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!