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

In response to the white label program ending, a Reddit user who claimed that their organization spent 300,000 pounds (about $402,500) a year on licensing through a VMware white-label partner, said:

I now have 6 months to design / procure / build a new multi region service provider virtualisation platform to support millions in revenue and an additional 12 months to migrate all our VMware clients.

I’m just astonished.

In a statement to The Register, Broadcom encouraged CSPs cut from VMware’s channel to work with authorized partners to “ensure a smooth transition for customers who seek to renew a service at the end of their current term,” but it offered no incentive or resources.

“Stronger execution”

News of additional partner cuts follows last month’s debut of VMware Cloud Foundation (VCF) 9.0. The blog post by VMware partner Interactive posited that Broadcom is paring down its CSP partner program in relation to VCF 9.0, which it said “underpins a small number [of] hyperscale private cloud platforms in each region.”

In a statement to The Register explaining the changes, Broadcom said:

Broadcom’s strategy since closing the VMware acquisition has been to drive simplification, consistency, and innovation across the VMware Go To Market ecosystem, including VMware Cloud Service Providers (VCSPs).

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. 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 hasn’t shared how many partners it has shed through previous VMware channel changes. Last month, it cut members of the VMware reseller program’s lowest tier and claimed that most affected partners were inactive.

When Broadcom dropped those resellers last month, there was concern that its partner reductions were too extreme. At the time, Gartner VP analyst Michael Warrilow, for example, told The Register: “Broadcom seem intent on destroying what was one of the most successful partner ecosystems in the industry.” Sumit Bhatia, co-author of the book Navigating VMware Turmoil in the Broadcom Era, told Ars Technica that he expected the partner cuts to result in higher pricing for VMware customers.

As Broadcom continues to whittle away at VMware’s remaining partner base, the impacts of a smaller partner program will become harder to ignore, particularly for small-to-medium-sized businesses. The change aligns with the perception that Broadcom is mostly interested in conducting VMware business with large customers, despite repeated claims that its VMware changes benefit “customers of all sizes.”