VMware Partners Optimistic about Broadcom ending the Existing program

Broadcom is set to terminate existing VMware partner agreements on February 4. Partners must promptly apply to ascertain their eligibility for continued sales of VMware by Broadcom.

This development underscores the need for swift action by affected partners to secure their ongoing collaboration with VMware through Broadcom, emphasizing the urgency for application submissions before the stipulated deadline. The dynamic landscape prompts partners to navigate these changes diligently to safeguard their business relationships and revenue streams.

Broadcom has announced its decision to terminate all of its partner agreements with VMware resellers and service providers. This move would effectively put an end to VMware's partner program and sales incentives. According to Broadcom, existing partners will be required to reapply for their roles. The implications of this decision on the broader business landscape remain to be seen, but it is clear that it will have a significant impact on VMware and its partners. Businesses and academic institutions alike may want to keep a close eye on developments in this area in the coming weeks and months.

Broadcom is set to inform its partners next month about their eligibility to continue selling its virtualization software.

“Broadcom remains committed to creating value within our combined ecosystem, which has been made stronger with the addition of VMware partners. Effective February 5, 2024, Broadcom will be transitioning VMware’s partner programs to the invitation-only Broadcom Advantage Partner Program,” according to a statement provided by Broadcom. “Based on recent discussions with hundreds of partners globally, this transition will help our partners achieve even greater opportunities for profitability through simplified bundled offerings and more opportunities for service revenues.”

Broadcom Claims Greater ‘Opportunities For Profitability

In an email sent to its 65,000 global partners on Friday, Broadcom conveyed that resellers and service providers can anticipate enhanced "profitability opportunities" through a streamlined model. The emphasis lies on a reduced number of "bundled offerings," aiming to simplify the partner experience and promote increased business prospects.

They highlighted that this approach offers partners predictable up-front discounts and opens up additional avenues for revenue through services delivered by partners.

“Broadcom and VMware are driven by technology and innovation and have a shared passion for, and commitment to, partner profitability and success,” Broadcom’s Partner Program Office wrote in its email Friday. “You are now well-positioned to capture substantial growth opportunities for delivering advanced, innovative cloud infrastructure and associated services wherever your customers need.”

VMware existing channel partners are optimistic about this transition

In an exclusive chat with DQ Channels, Gurpreet Singh, Founder and Managing Director, of Arrow PC Network Pvt Ltd., stated, "We are optimistic about it. We are surely looking forward to the new announcements in February 2024 and expecting a partner-friendly approach from Broadcom. We wish to keep the relationship and expect the opportunities to get more services business in the future. Partner ecosystem is imperative to OEMs as we add value to the products and solutions with our flexible and efficient service offerings."