VMware is removing the lowest partner tier from its channel program. Europe is the only region spared from the changes for now. The changes are in line with Broadcom’s focus on large customers and were therefore to be expected.
VMware uses a four-tier structure with Pinnacle, Premier, Select, and Registered partners. The latter category is being eliminated. Brian Moats, Senior Vice President at Broadcom, says that this tiering is being changed to align with the company’s “strategic direction.”
Europe will remain unaffected for the time being. VMware has confirmed to The Register that there are “no program changes to announce in Europe.” European regulators have already criticized Broadcom’s approach and called on the European Commission to investigate. This may have put the brakes on the changes within Europe; we can’t think of any other simple explanation.
Higher requirements for remaining partners
The remaining three partner tiers will be subject to stricter requirements. Pinnacle partners must now have Expert Advantage Professional Services Partner status. Premier and Pinnacle partners will need dedicated sales and technical resources. They will also have to implement joint business plans with VMware. In other words, the only partners left are those who are committed to VMware in a way that many cannot afford.
According to Laura Falko, Head of Global Partner Programs at Broadcom, most Registered partners are inactive and lack the capabilities to support customers. She told The Register that partners will have 60 days before their authorization is revoked.
Focus on private cloud
The changes are entirely in line with Broadcom’s VCF strategy. The company wants partners who can guide customers to VMware Cloud Foundation. According to Falko, vSphere customers have nothing to fear, but the focus is on “modernizing customer environments” through partners.
This is not the first time VMware has changed its partner structure. The company previously discontinued some cloud service providers, and Ingram Micro ended the partnership, clearly with great dissatisfaction. Gartner analyst Michael Warrilow says the ESXi hypervisor is still popular, despite the drastic price increases.
According to Warrilow, interest in VMware alternatives is so high that customers are asking about them every day. However, Broadcom seems determined to continue on its course, targeting large customers who want the full private cloud experience. We do not see this changing, even if the European regulator has a dampening effect.