Broadcom’s latest partner cull will leave smaller cloud services providers with “no route to market with VMware”, according to those close to the move.
The vendor giant yesterday informed some of its VMware Cloud Service Provider (VCSP) partners that it would not be inviting them to participate in its new Advantage Partner Programme.
The current Advantage Partner Programme for VCSPs will end on 31 October 2025, with the new iteration going live on 1 November.
In an FAQ sent to IT Channel Oxygen, Broadcom has confirmed that it will also sunset its VCSP white label model on the same date.
The white lable model was used by smaller VCSPs (ie those consuming less than 3,500 cores) to buy through higher-level Pinnacle or Premier partners.
Although departing VCSP partners will be able to support their existing customers beyond 1 November for the remainder of their commit contract (which could be up to three years), they will not be able to transact with new customers or execute new contracts from that date, Broadcom explained in the FAQ.
“No route to market”
The move will leave white label VCSPs “in limbo”, said one partner impacted, who wished to remain anonymous.
“Anyone that falls below 3,500 cores now has no route to market with VMware,” they told IT Channel Oxygen.
“You might be able to able to run for the next 18 months on your current commitment, but what if you win a huge deal where you need more cores? You’ve got nowhere to go, and so your business strategy has got to be to pivot away from Broadcom and VMware. There’s no way around it – unless your customers go to a provider that’s not at risk.”
One VCSP not impacted by the cull is Australian outfit Interactive. The new Advantage programme “significantly reduces the number of authorised partners”, it said in a a blog post as it confirmed it has been given the nod for the new regime.
One well-placed source IT Channel Oxygen caught up with said every single UK VCSP partner he’d spoken to had been canned.
“I don’t know any Advantage programme member at the minute that’s been invited into this new programme. They all got the same letter yesterday saying they’d been kicked out,” said the source, who also wished to remain anonymous.
“Broadcom just have no interest in dealing with small partners who are trying to grow.”
Jason Reid, MD of cloud-based backup and disaster recovery provider Assurestor, was among those to receive the letter of termination.
Assurestor – which sells exclusively to MSPs – will not be as badly impacted as some other VCSPs because its existing relationship with Pinnacle partner Softcat will remain in place until 2027, Reid said.
“Everyone in the whole channel thought the dust had settled [around Broadcom],” he told IT Channel Oxygen.
“Now this has come up, it throws in the air for any Broadcom partner what other changes are coming down the line.
“We’re seeing it as an opportunity for us to help MSPs that are in a sticky situation. Yes, it adds complication, but as a small business we thrive on responding rapidly.”
The move comes as Broadcom’s market value continues to soar in the wake of its $61bn acquisition of VMware in 2023 (it is now the world’s eighth most-valuable company).
In a statement sent to IT Channel Oxygen, a Broadcom company spokesperson 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.”
