How VMware’s Partner Program Shakeup is Reshaping MSP Strategies

Now that Broadcom’s adjustments to the VMware partner model are in full effect, MSPs who no longer qualify as VMware cloud service providers are seeking alternative agreements for their customers.

This Q&A with Dante Orsini, the CRO of 11:11 Systems, dives into how MSPs can work with partners like 11:11 Systems to build mutual success for the businesses that rely on VMware technologies.

Common pain points include confusion and frustration around changing services model

What are the most common pain points MSPs are bringing to you since the VMware licensing and partner program changes?

As Broadcom continues to clarify its Cloud Service Provider program, licensing model, and product innovation agenda — with another major partner program change having just launched — Managed Service Providers (“MSPs”) are re-evaluating how to sustain and scale their cloud businesses. 

Key considerations include:

• Scaling VMware-based customer environments while maintaining compliance with new licensing and partner models.
• Ensuring continuity of support and service within the evolving partner framework.
• Safeguarding existing infrastructure investments to prevent disruption and loss.
• Protecting profitability as licensing, platform, and cost models shift.

What advice would you give MSPs that are still on the fence about diversifying their infrastructure stack?

MSPs that are not part of Broadcom’s new Cloud Service Provider (“CSP”) program face an important inflection point in determining how to best serve their customers’ evolving infrastructure needs. The key is to take a strategic, rather than a reactive, approach — one grounded in long-term business goals, customer expectations, and operational capabilities.

There are several viable paths forward:

• Forming a reseller partnership with an authorized VMware partner to maintain service continuity while reducing operational overhead.
• Migrating workloads to another Broadcom CSP’s platform that aligns with the MSP’s target market, growth objectives, and margin profile.
• Selling or transitioning VMware-based assets to an authorized partner as part of an orderly exit or consolidation strategy.

Each approach has distinct advantages and trade-offs related to cost, control, and customer retention. The most successful MSPs will take the time to evaluate their options holistically — balancing short-term stability with long-term competitiveness and scalability.

Where are MSPs struggling most? Skills, migration planning, pricing models, or something else?

The greatest challenge MSPs face today is strategic direction — determining whether to stay within the VMware ecosystem through reseller partnerships that preserve the ability to provide managed services, diversify to new platforms, or pursue an exit strategy. This decision underpins every other consideration, from pricing and profitability to customer continuity and technical enablement.

While migration planning, evolving pricing models, and skills readiness all present difficulties, most stem from this core question: what’s the right long-term path forward to sustain customer trust, protect margins, and position the business for growth?

The end customer angle: communicating changes without causing fear

How should MSPs talk to their customers about these changes without creating panic, but while being transparent?

MSPs should reassure their customers that their environments are secure, supported, and that they have a clear plan forward. Transparency is key.

By acknowledging that the Broadcom changes are part of a larger evolution toward modernization, MSPs can demonstrate leadership rather than alarm. The most effective approach is to communicate early, focus on the benefits of alignment and innovation, and emphasize their commitment to maintaining service continuity and optimizing value.

How are end customers reacting to the price increases and partner consolidation? Are they pressuring MSPs to seek alternatives?

While some customers initially expressed concern over pricing adjustments tied to VMware’s transition under Broadcom, many are recognizing that VMware-based environments remain highly cost-competitive compared to equivalent hyperscaler deployments, especially considering the cost and effort required to re-platform. 

Moreover, Broadcom’s clarified licensing framework and renewed product innovation agenda — particularly around AI and automation — are reinforcing confidence in the platform’s long-term value and stability.

How 11:11 Systems is helping partners through these challenges 

How is 11:11 Systems differentiating itself in helping MSPs navigate these changes without adding complexity or cost?

11:11 Systems brings a unique combination of scale, expertise, and strategic alignment to help MSPs adapt confidently to Broadcom’s evolving VMware ecosystem — without introducing unnecessary complexity or cost.

As one of the largest, global, private, authorized Broadcom Cloud Service Providers, 11:11 has deep, hands-on experience supporting thousands of MSPs through licensing and platform transitions. 

Over the past three years, 11:11 has acquired five major VMware-based businesses — iland Cloud, Green Cloud, Unitas, Sungard AS, and Faction — giving us an unparalleled understanding of both the operational and commercial realities MSPs face.

In addition, as a founding member of the VMware Cloud Service Provider (VCSP) Advisory Board, we work directly with Broadcom to shape and interpret partner strategy. This enables us to collaborate with MSPs on long-term, compliant, and profitable paths forward — whether that means forming a reseller partnership, maintaining VMware-based services, or exploring diversification options.

Our goal is simple: to help MSPs preserve customer continuity, protect their businesses, and plan for growth.

If you had to summarize the “ideal MSP playbook” for the post-VMware era in three points, what would they be?

The most successful MSPs will treat the post-VMware era not as a disruption, but as an opportunity to redefine their value. The “ideal playbook” can be distilled into three guiding principles.

First, set a clear strategic direction. MSPs must decide where they will compete—whether by remaining aligned with Broadcom’s VMware ecosystem, partnering through authorized programs, or diversifying their platform mix. This clarity of purpose informs every operational and investment decision that follows.

Second, protect customer trust through continuity. Transparency, communication, and thoughtful transition planning are critical to maintaining confidence as licensing, pricing, and delivery models evolve.

Finally, innovate for differentiation. MSPs that embrace automation, AI, and multi-cloud architectures will not only offset margin pressures but also create new, scalable revenue streams.

In short, agility, clarity, and innovation will define the MSPs that lead in the post-VMware landscape.

Looking ahead: how MSPs can build now for success in the future

Where do you see the greatest growth opportunities for MSPs that are willing to pivot quickly?

Broadcom’s realignment of the VMware ecosystem is creating both disruption and opportunity—and MSPs that move quickly stand to gain the most. Those willing to pivot can position themselves as trusted advisors, guiding customers through the transition while modernizing their own service portfolios.

Growth will come from expanding cloud and platform diversity, strengthening managed security and compliance offerings, and leveraging automation and AI to improve efficiency and differentiation. By forming strategic partnerships within the Broadcom ecosystem, MSPs can maintain continuity, scale efficiently, and access new technologies.

Ultimately, those who view Broadcom’s changes as a catalyst rather than a constraint will capture new revenue streams, deepen customer trust, and lead the next phase of the cloud services market.

What steps should MSPs take now to ensure they’re not caught off-guard by further licensing or partner program changes?

To stay prepared for future licensing or partner program shifts, MSPs should take a proactive and strategic approach to business planning. Key actions include:

• Engage with authorized Broadcom partners: Work closely with a trusted and authorized partner that has proven VMware expertise and a strong history of supporting MSPs through transitions. These relationships provide valuable insight, continuity, and guidance in navigating ongoing ecosystem changes.
• Develop a flexible strategy: Build a business model that can adapt to evolving licensing structures and partner frameworks. This includes diversifying service offerings, evaluating multiple platform options, and maintaining the operational agility to pivot as market conditions evolve.
• Stay informed and connected: Maintain close communication with authorized Broadcom partners, advisory groups, and peer networks to anticipate program updates and understand their implications before they take effect.

By taking these steps, MSPs can safeguard their operations, protect profitability, and position themselves for growth—regardless of how the partner landscape continues to evolve.