Digital Event Horizon
In a move that has significant implications for small-to-medium sized businesses, Broadcom has announced that it will be launching a new invite-only channel program for CSPs on November 1st, bringing an end to its current VMware channel partner program. Industry insiders are warning that the changes could lead to increased costs and reduced competition in the market, while Broadcom officials argue that the move is part of a broader strategy to drive innovation and deliver value to its customers.
Summary:
The shake-up in Broadcom's VMware channel partner program has significant implications for small-to-medium sized businesses that rely on cloud platforms based on VMware technology licensed through CSPs. Industry analysts are warning that the changes could lead to increased costs and reduced competition in the market, while Broadcom officials argue that the move is part of a broader strategy to drive innovation and deliver value to its customers.
Broadcom is ending its current VMware channel partner program in favor of a new invite-only channel program for cloud service providers (CSPs) on November 1st. The move aims to simplify, consistent, and innovation across the VMware ecosystem, but industry analysts warn it may harm small-to-medium sized businesses. Smaller companies that rely on cloud platforms based on VMware technology licensed through CSPs may be forced to navigate a complex migration process. The new program will only allow more committed partners to participate, creating a closed ecosystem with potential implications for competition and pricing in the market.
Ars Technica has been keeping a close eye on the recent developments in the world of cloud service providers (CSPs) and their relationships with VMware. In a move that is being closely watched by industry insiders, Broadcom has announced that it will be launching a new invite-only channel program for CSPs on November 1st, bringing an end to its current VMware channel partner program.
The decision to cut ties with smaller partners is part of Broadcom's broader strategy to drive simplification, consistency, and innovation across the VMware ecosystem. According to officials, this change will enable the company to deliver greater value, stronger execution, and a more streamlined experience for its customers of all sizes.
However, not everyone is pleased with this move. Industry analysts are warning that the changes could have significant implications for small-to-medium-sized businesses (SMBs) that rely on cloud platforms based on VMware technology licensed through CSPs. These companies may be forced to navigate a complex and costly migration process in order to continue serving their customers.
One such company is an Australian IT service provider who has spent over $402,500 per year on licensing through a VMware white-label partner. According to this individual, the news of the end of the white-label program has left them "astounded" with only six months to design and procure a new platform that will support millions in revenue.
Industry experts are cautioning that this move is likely to have a disproportionate impact on smaller businesses. By reducing the number of CSPs eligible for its VMware channel partner program, Broadcom is essentially creating a closed ecosystem where only the most committed partners will be able to participate.
As one analyst noted, "Broadcom seems intent on destroying what was one of the most successful partner ecosystems in the industry." This sentiment is shared by others who believe that the changes will lead to higher pricing for VMware customers and reduced competition in the market.
Gartner VP Michael Warrilow has also weighed in on the issue. In a statement to The Register, he said, "We expect Broadcom's actions to result in increased costs for their customers." This warning echoes concerns raised by other industry insiders who are worried about the implications of this move for small-to-medium sized businesses.
On the other hand, Broadcom officials argue that the changes will enable them to deliver greater value and stronger execution for its customers. In a statement explaining the reasoning behind the changes, the company stated that "Broadcom's strategy since closing the VMware acquisition has been to drive simplification, consistency, and innovation across the VMware Go To Market ecosystem."
This strategy is also reflected in the launch of a new invite-only channel program for CSPs on November 1st. According to officials, this program will enable Broadcom to deliver greater value and stronger execution for its customers while maintaining its focus on delivering innovative solutions.
However, it remains to be seen whether this vision will come to fruition or whether the changes will ultimately harm small-to-medium sized businesses that rely on cloud platforms based on VMware technology licensed through CSPs. As one analyst noted, "The impact of this move will become harder to ignore as Broadcom continues to whittle away at VMware's remaining partner base."
In conclusion, the shake-up in Broadcom's VMware channel partner program has significant implications for small-to-medium sized businesses that rely on cloud platforms based on VMware technology licensed through CSPs. While Broadcom officials argue that the changes are part of a broader strategy to drive innovation and deliver value to its customers, industry analysts warn that the move could lead to increased costs and reduced competition in the market.
Ultimately, it remains to be seen whether this vision will come to fruition or whether the changes will ultimately harm small-to-medium sized businesses. One thing is certain, however: the future of cloud computing has never been more uncertain, and small-to-medium sized businesses must remain vigilant as they navigate the complex and rapidly changing landscape.
Related Information:
https://www.digitaleventhorizon.com/articles/Broadcoms-VMware-Channel-Partner-Program-Shake-Up-A-Game-Changer-for-Small-to-Medium-Sized-Businesses-deh.shtml
https://arstechnica.com/information-technology/2025/07/more-vmware-cloud-partners-axed-as-broadcom-launches-new-invite-only-program/
Published: Wed Jul 16 18:49:47 2025 by llama3.2 3B Q4_K_M
