Broadcom Streamlines VMware Partner Programme,Sparks Concerns
Broadcom Cuts Lowest Tier,Shifts Focus to Larger deployments
Broadcom has reduced the tiers in its VMware partner program,a move designed to concentrate on customers with substantial VMware deployments. However, this decision carries the risk of prompting more users and partners to migrate away from VMware.
Details of the Program Change
The Broadcom Advantage Partner Program for VMware Resellers, which replaced the original VMware partner program in January 2024, now features three tiers instead of four. The Registered tier has been eliminated, leaving Pinnacle, Premier, and Select tiers.
Did you know? Broadcom acquired VMware in a deal finalized in November 2023, marking a significant shift in the virtualization landscape.
Brian Moats, a Broadcom executive, announced the change in a blog post, citing a “strategic direction” and “complete partner review” as the driving forces. The changes affect VMware’s operations in the Americas, asia-Pacific, and Japan. Laura Falko, Broadcom’s head of global partner programs, marketing, and experience, told The Register that affected partners would receive 60 days’ notice.
Broadcom’s Rationale
Broadcom asserts that the majority of its business comes from partners in the top three tiers. Moats stated that the vast majority of customer impact and business momentum comes from partners operating within the top three tiers.
Falko echoed this sentiment, telling The Register that most of the removed partners were inactive and lack the capabilities to support customers through VMware’s evolving private cloud journey.
When asked to specify the number of inactive partners and the capabilities they lacked, Broadcom directed inquiries back to Moats’ blog post.
Partner Reaction and Migration Plans
Members IT Group, a Canadian managed services provider (MSP) and long-time VMware partner, is among those affected by the change. Dean Colpitts, CTO of Members IT Group, noted that his firm has been a VMware partner for over 19 years and is also a VMware user.He attributed the decline in their VMware business as Broadcom’s acquisition to Broadcom’s policies.
The only reason we were “inactive” is because of their own stupid greed. We and our customers would have happily continued along even with a 10 or 20 percent increase in price. 50 percent and more with zero warning last year after customers already had their FY24 budgets sets was the straw that broke the camel’s back …
Dean Colpitts, CTO, Members IT Group
Colpitts added, We have transacted a couple of deals with [VMware] since the program change, but nothing like we previously would have done before broadcom took over.
Pro Tip: When considering virtualization solutions, evaluate long-term cost implications, vendor support, and alignment with your business strategy.
Members IT group plans to migrate its client base to Hewlett packard Enterprise’s VM Essentials virtualization solution.
