Broadcom is ending a partner program that allows small cloud providers to sell VMware services. There will be a new program, although it is unclear who will be able to participate.

Authorized resellers of VMware Cloud Services received unpleasant news just before the holidays. “Effective April 30, 2024, the ability to do business as a VMware Cloud Services Provider under the VMware Partner Connect program will end.”, can be read in a letter from Broadcom seen by The Register. The partner program gave small, independent providers the opportunity to offer VMware services on their own behalf.

Affected parties complain to The Register. First, they are not happy with the timing of the announcement, just before the holidays. They also haven’t heard from Broadcom since the announcement. The letter states that the current program will be replaced by a new invitation-only partnership program, but it is unclear who will be eligible.

“How can they just cancel a large program that affects hundreds, perhaps thousands of customers, with no notice and no details? They sent the messages on the Friday before the holiday with no follow-up, making the situation even more scandalous. What should we tell our customers? It’s mind-blowing,” an anonymous source told The Register about Broadcom.

The coarse brush

Since the completion of the acquisition, Broadcom has not hesitated to take a look at VMware’s offer after a long saga. Among other things, Carbon Black was sold and one-off licenses were replaced with subscriptions. With this latest move, Broadcom appears to confirm fears that it is only looking at larger, more lucrative customers. Small resellers and their customers are then considered “collateral damage”.

So the predicted exodus of VMware customers appears to be coming true, thanks in part to the actions of Broadcom itself. Competitors like Nutanix are happy about this.