- Broadcom’s Recent Acquisition of VMware: Key Updates and Implications
- Overview of Changes: The recent acquisition of VMware by Broadcom, which occurred in December 2023, has led to significant modifications in product offerings, partnerships, and cloud hosting approaches. This development transitions the sales model from perpetual to subscription-based licenses and imposes new restrictions on license sales and hosting, impacting primarily smaller VMware partners and their customers.
Implications for Small VMware Cloud Provider Partners:
- Notice to VCPP Participants: If you are part of the VMware Cloud Provider Program (VCPP), please note that your ability to transact will end on April 24, 2024. Broadcom is incorporating selected VCPP members into its Broadcom Advantage Program for VMware Cloud Service Providers (VCSP). If you are not part of this select group, you will need to work with an approved Partner to continue offering VMware cloud services.
For VMware Resellers & Direct Customers:
- End of Reseller Agreements: Reseller agreements with VMware were discontinued on February 4, 2024. Active resellers are now transitioning to the new Broadcom Advantage Partner Program as Resellers.
- Impact on Direct Customers: Customers managing VMware solutions internally or through external hosts will experience changes due to these policy updates.
Advancements with VMware under Broadcom:
- IT Vortex’s Role: Having collaborated closely with VMware for over 15 years, IT Vortex has achieved Premier Partner status within the Broadcom Advantage Partner Program for VMware Cloud Service Providers. This allows IT Vortex to provide white label resale services to VMware hosting providers not included in the program. We invite those not part of the Broadcom Partner Program, or those struggling to meet primary obligations, to discuss workload migration with us.
Guidance on Navigating the Transition:
- Commitment to Clarity: IT Vortex is dedicated to demystifying these changes and ensuring uninterrupted operations for our clients. We stay abreast of Broadcom updates and commit to sharing essential information swiftly.
Engage with IT Vortex’s VMware Experts:
- We encourage you to connect with our specialists for comprehensive details on IT Vortex’s white label VMware hosting solutions.
Frequently Asked Questions (FAQs):
- What’s happening?: Broadcom’s takeover of VMware has reshaped the landscape for software sales, aiming for a streamlined experience for Cloud Service Providers through the VMware Cloud Foundation.
- Timeline of Changes: Notable dates include the commencement of program adjustments on February 5, the deadline for final VMware service consumption under the old program by March 31, and various key dates in April for final orders and system transitions.
- Advice for Non-Invited CSPs: VMware introduces a White Label pathway for smaller CSPs to work with larger partners, ensuring continuity of operations while gaining access to necessary licenses and support.
- Cost Management and Efficiency: Transitioning to a unified licensing model aims to improve infrastructure efficiency and align customer usage with cost, promoting long-term benefits. IT Vortex stands ready to assist partners through these changes, focusing on reducing licensing expenses while maximizing VMware investments.
- Why Choose IT Vortex?: Offering specialized solutions for non-Premier and non-Pinnacle partners, IT Vortex supports the maintenance of services and brand identity while providing expert guidance in environment optimization and cost management.
For more information, please contact Lou Corriero at IT Vortex – lou.corriero@theitvortex.com.