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VMware’s new era leaves smaller partners behind and customers in the crossfire

Broadcom is back in the headlines, not for innovation but for another seismic shift in the VMware ecosystem—one that’s quietly pushing smaller partners out the door. Effective July 15, 2025, VMware will end its current VCSP channel program, and it will exclude any partner it does not formally invite back. For the hundreds of mid-tier providers that once powered local IT infrastructure across the globe, this is the final blow.

Interactive, an Australian IT firm, broke the news to clients with a simple truth: only a select few will remain in VMware’s new circle. White label programs? Gone. Renewals? Ending. And the grace period? Just until October 31, 2025. After that, stranded customers will have to navigate complex migrations—likely at a higher cost, with fewer service options.

The move is not just about streamlining; it’s a controlled squeeze toward a hyperscale cloud monopoly. With VMware Cloud Foundation 9 now targeting a few elite providers per region, Broadcom is redrawing the map. Broadcom is erasing smaller players who once formed the backbone of VMware’s channel.

For customers, this means more than just switching vendors. Customers are losing trusted support relationships, confronting sudden service gaps, and entering unfamiliar and potentially more expensive contracts. Some, like Aussie Broadband, are scrambling to assure clients of continuity, but even they admit a “long-term solution” is still unclear.

This marks the second partner culling in 18 months. Last year’s 3,500-core requirement was disruptive enough, but this round feels colder—clinical, even. The Register reports that many partners feel blindsided, especially after Broadcom had praised its revamped partner model just months earlier.

Whether this strategy boosts profits is irrelevant to the customers now caught in limbo. They need stability, not quarterly reinvention. But as things stand, the VMware many grew up with is quietly vanishing.

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