VMware partners unsettled as Broadcom shifts programs, sparking industry-wide concerns and search for alternatives. (Getty Images)
In a recent turn of events, VMware's channel partners received an unsettling "termination notice" from Broadcom on December 22, leaving a cold holiday season for many, according to Jason Van der Schyff, the Chief Operating Officer at Softiron, a private cloud infrastructure vendor.
The notice, obtained by Channel Daily News, highlighted VMware's shift from a perpetual to a subscription-based business model, aligning with market trends towards cloud operating models. This shift was reinforced by the launch and evolution of VMware's Partner Connect Program, solidifying their commitment to partner profitability and success.
The termination notice, buried within the notification, announced Broadcom's plan to transition all of VMware's partner programs to its "by-invitation only" Broadcom Advantage Partner Program, effective February 5, 2024. Additionally, significant changes to VMware's partner programs were declared to exist until February 4, 2024, with the conclusion of all VMware Partner Incentive programs on or before the same date.
The "by-invitation only" aspect implies that invitations to join will commence issuance soon, varying based on partner type and route to market. Partners were advised to verify and update their contact information in the Partner Connect portal to receive these invitations.
Van der Schyff expressed concerns, citing Broadcom's history of restructuring CA and Symantec, reducing available SKUs and potentially limiting margins. He speculated that Broadcom might adopt similar strategies with VMware, aiming to generate immediate revenue and possibly neglecting the channel's significance.
The ripple effect extends beyond VMware partners, causing unease among end-user organizations. Andrew Moloney, Softiron's Chief Strategy Officer, noted that the Broadcom acquisition and subsequent restructuring created an inflection point in the industry, prompting IT leaders to reconsider their strategic options. Industry analysts have pointed out a growing quest for alternatives to VMware, especially concerning costly software licensing.
Moloney emphasized the dissatisfaction among VMware customers regarding licensing costs and the apprehension that these expenses might surge post-acquisition, considering Broadcom's financial commitments and market saturation. This situation has left many VMware customers anxious about their future with the company.
The situation highlights widespread concerns within the tech industry regarding VMware's future trajectory under Broadcom's leadership. As partners and end users grapple with uncertainties, the quest for viable alternatives and strategic reassessment seems imminent for many stakeholders.
