Broadcom is cutting back on the VMware partner channel. European cloud providers fear forced customer migrations.
Broadcom has once again made sweeping changes to the VMware partner ecosystem. This time, it is mainly European cloud service providers that are feeling the impact. Many parties that provide VMware services through the VMware Cloud Service Provider (VSCP) program are losing their partner status. This means that they can fulfill their existing contracts, but are no longer allowed to enter into renewals or new long-term commitments. Moreover, the time to complete ongoing deals is limited.
According to The Register, this affects hundreds of cloud providers across Europe. For customers, this could result in a forced reorientation of their supplier, with potentially significant consequences for existing environments, contracts, and long-term plans.
The move is part of a broader course correction that Broadcom had already initiated after the acquisition of VMware. At the beginning of 2024, existing reseller and solution provider programs were terminated and replaced by a model in which partners can only participate in the Broadcom Advantage Partner Program by invitation. At the same time, Broadcom radically changed its licensing model, with new bundles and modified terms for customers with perpetual licenses.
White Label model in Europe
At the end of October, it was announced that the VCSP program would be phased out and that the White Label model would disappear within the European Economic Area. This week, many partners received formal notification that their contracts would not be renewed after January 2026. Until then, they may still enter into new contracts, as long as their terms coincide with existing agreements with Broadcom. The company is encouraging partners to complete any outstanding projects before the end of March 2026.
In accompanying documentation, Broadcom states that the changes are necessary due to changing customer needs and the desire to position VMware Cloud Foundation more strongly as a core platform for private cloud. According to The Register, Broadcom has indicated that it wants to work more closely with a smaller number of partners who focus specifically on this platform.
Industry organization is critical
For many European cloud providers, this feels like an abrupt break. Industry organization CISPE calls it a worrying development. CISPE has long been critical of Broadcom’s acquisition of VMware and is in talks with the European Commission about this.
In its documentation, Broadcom states that partners whose contracts are not being renewed should collaborate with the remaining VCSPs. This is to ensure a smooth transition for customers. However, not all providers are willing to simply hand over their customers to competitors. They emphasize that they are responsible for the continuity of their services and will not simply disappear from the scene.
According to The Register, other sources in the sector even speak of market control rather than partner management. By severely limiting the number of authorised providers, they believe Broadcom is restricting customers’ freedom of choice. This could have consequences for costs, data sovereignty and compliance. This certainly applies to organisations that have consciously opted for European cloud providers.
Broadcom itself maintains that the changes are necessary to simplify the ecosystem. The company is focusing on partners who have built their cloud services entirely around VMware. According to Broadcom, this should lead to greater consistency, better execution, and a stronger alternative to hyperscalers.