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Broadcom is giving small cloud service providers a lifeline after acquiring VMware

  • March 20, 2024
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Small cloud service providers who were not invited to Broadcom’s new partner program now receive a lifeline thanks to the white label program. The Register has learned in

VMware

Small cloud service providers who were not invited to Broadcom’s new partner program now receive a lifeline thanks to the white label program.

The Register has learned in the United Kingdom that VMware by Broadcom is launching a new “white label” program for small vendors following the discontinuation of the VCSP program. After the transition to Broadcom’s own Advantage partner program, many small providers found themselves sidelined. The new program provides a lifeline that allows them to continue serving their customers through core partners. It is not yet known whether this will also be transferred to Benelux partners.

VCSP program

VMware implemented a Cloud Services Provider (VCSP) program in which some partners offered various VMware applications and cloud-managed services. There was also a VMware Cloud Providers Program (VCPP), where channel organizations operated public clouds based on the Cloud Foundation’s hybrid cloud stack.

The VCSP program ended shortly after the VMware acquisition, when participants were told they would be invited to Broadcom’s own Advantage partner program. However, this only applies if they license at least 3,500 cores, which is much more than small, VMware-based clouds have in production.

“White label” program as a lifeline

Broadcom noted that this change created difficulties for small service providers. In response, Broadcom is reportedly working on a white label program. This allows cloud providers participating in the partner program to resell their capabilities to others that do not reach the 3,500 core mark.

According to documents viewed by The Register, the licensing rules outline the ability for vendors who are members of the partner program to work with “secondary VMware cloud service providers” that are not Broadcom partners. These secondary partners can resell the primary partners’ clouds or purchase their licenses for existing hardware from primary partners. The latter, in turn, can manage any number of second partners.

This new rule provides a lifeline for former VCSP and VCPP partners who were not invited to become Broadcom partners. This allows them to continue serving their customers by paying a primary partner for licenses instead of VMware.

Source: IT Daily

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