How Partners Are Helping Partners Through Broadcom-VMware Shifts

If there is one story that has attracted ongoing attention in the channel over the last few years, it’s Broadcom’s acquisition of VMware. Now, with a new program deadline looming and VCF updates in the rearview, we take a look at how the partner ecosystem is adjusting to the new normal.

Timeline in review: Broadcom’s strategy on reformed partner program

Broadcom completed its acquisition of VMware in November 2023 and soon after discontinued the longstanding partner program model. The decision dramatically reduced the number of channel providers licensed to sell and service VMware products, and its repercussions have lingered ever since.

For many channel partners, the last two years have brought complexity and, at times, confusion to a technology many businesses (and providers) have leveraged for decades.

On July 15, Broadcom communicated further changes to the program. The giant has introduced a new, invitation-only model, which takes effect on November 1. The changes do not impact partners in the European Economic Area. It has again reduced the number of eligible partners, leaving many to spend their summers identifying ways to ensure their customers can maintain their VMware environments.

“With this action, we are deepening our commitment to partners we feel are best equipped to drive customer value. Our goal is to cultivate an environment where highly capable and highly trained partners can deliver exceptional value and a superior experience to customers,” reads a post on the Broadcom website dated September 22.

Broadcom has emphasized that this decision was made in accordance with its long-term channel strategy, which prioritizes a select group of partners to enhance the customer experience.

Why channel partners are showing strength in collaboration

While several vendors have made waves claiming to offer alternatives to VMware (and touting substantial growth as a result), Broadcom’s VMware offerings remain popular for many. The company announced VCF 9 to excitement recently and plans to see growth in AI and other key areas over time.

“Here is what I’m most excited about,” said CEO Hock Tan in an earnings call. “After two years of engineering development by over 5,000 developers, we delivered on a promise when we acquired VMware. We released VMware Cloud Foundation 9.0. It enables enterprises to run any application workload, including AI workloads, on virtual machines and on modern containers. This provides the real alternative to public cloud.”

Broadcom’s guidance on licensing, provisioning, and ongoing services clearly states that only authorized partners will be allowed to sell VMware licenses going forward. Partners can collaborate with approved VMware partners to offer complementary managed services to clients in a shared model, allowing users to retain their VMware solutions while maintaining their established provider relationships.

For providers like 11:11 Systems and others, this presents new opportunities to fulfill their mission of supporting customers across all their technology needs. It also provides a way to support their peers in a world where collaboration might be needed more than competition.

Moving forward, it is clear that while Broadcom has caused long-lasting ripple effects, the partners that retain their authorization are poised to capture market share and new opportunities as customers continue to seek VMware solutions and support. It is also clear that the channel ecosystem continues to deliver value through collaboration and shared best practices aimed at guaranteeing success for mutual customers.