VMware: Broadcom approaches cloud providers

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With changes to the Cloud Provider Partner Program (VMware Cloud Service Provider - VCSP), Broadcom wants to address the critics of the restructuring that began after the acquisition of VMware. Specifically, the provider is taking four steps: extending the Premier Tier to all previously qualified partners, extended access to white label services for registered partners, an extended deadline for the transition and a new deadline until the end of service for existing partners.

For cloud providers

But what criticism is Broadcom actually addressing here? It is explicitly not about the license changes in the direction of a subscription, which affects the majority of existing customers. Rather, the provider is taking a step towards cloud providers who saw their business threatened after the unilateral termination of the partner program due to significantly higher costs. Not least many EU cloud providers, organized in the CISPE, turned to the public with harsh words.

Now all VCSP partners who were already qualified before the takeover can participate in the new Premier Tier. And even those who do not fall into this category may be able to become such a cloud partner - because Broadcom provides exceptions for companies that fall under special regulations. The announcement cites data sovereignty regulations in the European Union as an example. Even if Broadcom does not mention the CISPE by name, the provider is addressing a key point of criticism from the industry association.

One year for the change

However, this does not dispel all the concerns raised by CISPE, not to mention the broken china due to Broadcom's dubious communication - and those who do not see their future with VMware for this reason or despite this can now offer their services on the basis of the existing products until the end of April 2025. This means that there is now one year left until the new infrastructure must be in place. The new deadline includes regular support from the provider. Here too, Broadcom obviously wants to address its critics: Many (former) partners saw the surprising and too short deadline for a changeover as unrealistic.

Finally, Broadcom is also extending the deadline for partners to decide whether they want to be part of the new VCSP program or book with a white label provider. However, they must contact the provider by May 31, 2024. Otherwise, they will automatically drop out of the program. Broadcom also wants to give those who decide to do so time to make the switch. The announcement does not provide details on how much time partners will have afterwards.

Is that enough?

It remains to be seen whether these concessions will be enough to appease at least this part of the customer base - the CISPE has yet to respond to an inquiry from the iX editorial team. Of particular interest is the question of how the VCSP changes will affect price estimates: While Broadcom is talking about significantly reduced fees, the cloud providers are instead assuming up to a twelve-fold increase in costs.

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