Digital Event Horizon
Broadcom has cut the lowest tier in its VMware partner program, a move that risks more migrations from users and partners. The decision will allow Broadcom to focus on deeper relationships with top-tier partners but also reduces competition for end consumers.
Broadcom is eliminating the lowest tier of partners in its VMware partner program, reducing the number of tiers from four to three. The decision aims to focus on deeper relationships with top-tier partners that demonstrate strong historical performance and technical expertise. The move has sparked concerns about increased competition for end consumers and potential investment costs due to restricted competition. Affected partners will receive 60 days' notice, and most of the removed partners were deemed inactive or lacking capabilities to support customers. The changes are part of Broadcom's broader effort to strengthen its partner ecosystem and reflect the shifting landscape of the technology industry.
Broadcom, a leading technology firm, has made a significant change to its VMware partner program. The company has announced that it will be eliminating the lowest tier of partners in the program, effectively reducing the number of partners from four tiers to three. This move is part of Broadcom's "strategic direction" and "comprehensive partner review," as stated by Brian Moats, a Broadcom executive.
The decision to eliminate the lowest-tier partners has sparked concerns among VMware users and partners. The reduced tier structure will allow Broadcom to focus on deepening relationships with channel partners that demonstrate preferred "historical performance levels, technical and other relevant expertise, and ability to make the investments necessary to offer customers the levels of service they expect and deserve," according to Moats.
However, this move has also raised concerns about increased competition for end consumers. Sumit Bhatia, an infrastructure solutions architect at SLB, a technology company focused on energy, believes that the changes may evoke "a sense of betrayal" among lower-tier partners. He also notes that the reduced tier structure could lead to "significant investment costs for end consumers" due to restricted competition.
The changes are expected to affect VMware's Americas, Asia-Pacific, and Japan geographies, with affected partners receiving 60 days' notice. Laura Falko, Broadcom’s head of global partner programs, marketing, and experience, told The Register that most of the removed partners were "inactive and lack the capabilities to support customers through VMware’s evolving private cloud journey."
The decision to eliminate lower-tier partners is not without precedent. Prior to joining forces with VMware, Broadcom made it harder for resellers to work with the company by reducing the number of partners invited into the new reseller program. This move has been criticized by some, who believe that it will have a negative impact on the industry.
As part of its ongoing effort to strengthen its partner ecosystem, Broadcom is introducing new requirements for VMware partners. These requirements include maintaining Expert Advantage Professional Services Partner status or having a "dedicated Small and Medium Business practice that supports scalable adoption."
While some see this move as an opportunity for Broadcom to acquire new customers, others are concerned about the potential impact on lower-tier partners. The decision to eliminate these partners raises questions about the future of VMware's partner program and how it will continue to support its customers.
In a broader context, the changes to VMware's partner program reflect the shifting landscape of the technology industry. With the rise of cloud computing and artificial intelligence, companies are constantly evaluating their strategies to stay competitive. The decision by Broadcom to focus on deeper relationships with its top-tier partners may be seen as an effort to optimize its resources and investments.
As the technology industry continues to evolve, it will be interesting to see how Broadcom's VMware partner program adapts to these changes. Will the company's efforts to strengthen its partner ecosystem pay off, or will they lead to increased competition and reduced loyalty among customers? Only time will tell.
Related Information:
https://www.digitaleventhorizon.com/articles/Broadcoms-VMware-Partner-Program-Purge-A-Move-That-Risks-More-Migrations-and-Reduces-Competition-deh.shtml
https://arstechnica.com/information-technology/2025/06/broadcom-ends-business-with-vmwares-lowest-tier-channel-partners/
Published: Mon Jun 2 18:28:03 2025 by llama3.2 3B Q4_K_M
