Broadcom’s shakeup of VMware’s partners continues: after giving partners notice that the existing partner programme will terminate in February, the company has now also put VMware Cloud Service Providers (CSPs) on notice.
CSPs have received communications telling them the programme that allows partners to sell VMware cloud services will be terminated at the end of April.
As it is doing with the channel partner programme, CSPs will be invited to join a Broadcom programme – but there is no clarity on which partners will be invited to join, of what criteria will apply.
“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,” according to the letter send to CSPs. “However, we want to emphasise 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.”
Meanwhile, partners whose channel contracts will come to an end in February are still in the dark about whether they will be invited to join the Broadcom programme, and requests for details on how the moves will affect partners in South Africa have not been answered by Broadcom.
Meanwhile, other news has emerged of Broadcom taking some of VMware’s biggest customers direct, cutting partners out of the picture.
In the absence of firm details, rumour is that partners will lose their contracts with 2 000 of VMware’s most profitable customers.
The Broadcom acquisition of VMware was finalised on 22 December 2023. Just one month later, partners were served termination notices, followed by the CSP terminals notices in January.
Broadcom has also announced plans to streamline VMware’s product lines, and switch to subscription pricing.