Broadcom’s latest changes to the VMware partner ecosystem are prompting significant concerns across the cloud services landscape, particularly among small and mid-sized cloud service providers (CSPs) and their customers. This week, VMware CSP partners were notified that Broadcom will launch a new invite-only partner program on November 1, effectively cutting out a considerable number of existing partners.
CSPs that did not receive an invitation by today will be formally removed from the program and issued non-renewal notices. These providers may continue operating under current agreements until October 31, after which they will be excluded from VMware’s official channel. The changes are expected to cause considerable disruption for end-user organizations relying on VMware-based infrastructure through affected CSPs.
Businesses dependent on these CSPs now face an uncertain path, with potential obstacles in renewing VMware licenses, accessing support, and maintaining service continuity. As partner options narrow, customers may also see higher costs related to migration, re-onboarding, and the loss of competitive bundling options that smaller providers often offered. Additionally, organizations operating under tight compliance or regulatory frameworks may encounter complications when forced to shift providers with little lead time.
3,500+ Processing Cores
The move is part of a broader strategic consolidation following Broadcom’s acquisition of VMware. In January 2024, Broadcom replaced VMware’s legacy partner structure with the Broadcom Advantage Partner Program, raising the bar for participation by requiring CSPs to manage at least 3,500 processing cores. This threshold effectively excluded many smaller providers from continuing their VMware-related services.
To temporarily bridge the gap, Broadcom introduced a white-label model allowing smaller CSPs to resell services through larger, qualified partners. However, this workaround is also being phased out as of October 31, further tightening the ecosystem.
With these developments, organizations utilizing VMware environments via white-label or smaller CSP channels could be forced into rapid migrations. Such transitions often carry high technical, financial, and operational risks, especially if completed under time pressure.
Industry experts suggest Broadcom’s changes are aimed at streamlining VMware’s partner network and focusing on high-volume enterprise relationships. However, the abrupt shift has left many providers and customers scrambling for solutions, raising broader questions about market competition, pricing stability, and the long-term impact on the cloud infrastructure landscape.
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