What This Means for Your IT Strategy
June 2, 2025
In a significant move that’s reshaping the VMware ecosystem, Broadcom has announced major changes to its partner program that could directly impact how organizations access and implement VMware solutions. Here’s what IT leaders need to know about these developments and their potential implications.
The Big Picture: Partner Program Consolidation
Broadcom is reducing its four-tier VMware partner program down to three tiers, completely eliminating the “Registered” partner level across the Americas and Asia-Pacific regions. This move affects the lowest tier of VMware resellers, with Broadcom’s Global Channel Chief Brian Moats stating the company wants to “focus on deepening relationships with partners who are committed to delivering transformative customer experiences.”
What’s changing:
- Registered partners are being cut entirely (60 days notice given)
- The program now consists of Select, Premier, and Pinnacle tiers only
- Higher requirements across all remaining tiers
- European partners are currently exempt from these changes
Why This Matters for Your Organization
This consolidation reflects Broadcom’s strategy since acquiring VMware in 2023: streamlining operations while pushing customers toward VMware Cloud Foundation (VCF) and subscription-based models. For IT departments, this means:
Immediate Considerations:
- Your current VMware reseller relationship may be affected
- You might need to transition to a new partner if your current one loses authorization
- Expect more rigorous partner capabilities and potentially higher service standards
Long-term Implications:
- Fewer but potentially more specialized VMware partners in the market
- Partners may have more resources to dedicate to customer success
- Increased focus on VCF and modern private cloud solutions
Elevated Partner Requirements
The remaining partners face significantly higher standards:
- Pinnacle partners must now hold Expert Advantage Professional Services status or maintain dedicated SMB practices
- Premier and Pinnacle partners need dedicated sales and technical resources for lifecycle support
- All partners must execute joint business plans with VMware and remain “active and in good standing”
These requirements suggest Broadcom is prioritizing partners who can provide comprehensive, enterprise-level support for complex VMware implementations.
European Regulatory Scrutiny
Notably, these changes don’t affect European partners, which comes amid regulatory pressure from European trade organizations. The European Cloud Competition Observatory (ECCO) has criticized Broadcom’s business model as “legally and ethically flawed,” particularly regarding:
- Elimination of perpetual licenses
- Bundling thousands of products into fewer subscription packages
- Multi-year minimum commitments
- Significant price increases
This regulatory attention may influence how Broadcom approaches global partner and pricing strategies moving forward.
Strategic Recommendations for IT Leaders
1. Assess Your Current Partnership
- Verify your VMware partner’s tier status and authorization
- Understand their technical capabilities and VCF expertise
- Evaluate their commitment to ongoing VMware specialization
2. Plan for Potential Transitions
- Identify alternative authorized partners in your region
- Review current contracts and renewal timelines
- Consider how partner changes might affect ongoing projects
3. Evaluate Your VMware Strategy
- Assess whether VCF aligns with your infrastructure roadmap
- Consider the long-term implications of subscription-only licensing
- Plan for potential cost increases and contract restructuring
4. Diversification Considerations
- Review your virtualization strategy for over-dependence on VMware
- Evaluate alternative solutions for specific use cases
- Maintain flexibility in your infrastructure planning
Looking Ahead
Broadcom’s moves signal a clear direction: fewer, more specialized partners focused on VMware Cloud Foundation and subscription services. While this may lead to higher-quality support and more focused expertise, it also reduces choice and potentially increases costs.
Organizations should proactively engage with their current VMware partners, like GCSIT to understand how these changes affect their relationships and begin planning for any necessary transitions. The emphasis on VCF and modern private cloud solutions also suggests that traditional VMware deployments may become increasingly expensive or unsupported over time.
As the VMware ecosystem continues evolving under Broadcom’s ownership, staying informed about these changes and maintaining strategic flexibility will be crucial for IT leaders navigating this transition.
For more insights on enterprise IT strategy and vendor management, stay connected with GCSIT’s latest analysis and recommendations.