The cloud landscape is constantly evolving, and at Broadcom, our commitment is to deliver on the promise of the private cloud. This requires precision and a deep focus on delivering customer value. Coming out of VMware Explore 2025, and with the availability of VMware Cloud Foundation (VCF) 9.0, we are on the right path.
To achieve this approach, we continue to optimize our VMware Cloud Service Provider (VCSP) ecosystem and are reducing the number of authorized VCSP partners in most markets effective in Broadcom’s new fiscal year in November. With this action, we are deepening our commitment to partners we feel are best equipped to drive customer value. Our goal is to cultivate an environment where highly capable and highly trained partners can deliver exceptional value and a superior experience to customers.
Elevating the Customer Experience
We understand that transitions can be challenging, and we are proactively assisting both partners and customers to ensure these moves are as seamless as possible and bring real value as quickly as possible, addressing any temporary issues head-on. Ultimately, this strategy is designed to benefit our customers. While some customers may need to transition to new partners, this change is being orchestrated to deliver superior customer experience. Customers will engage with partners who are better equipped to provide:
- Consistent Engagement: Reliability and continuity in service delivery.
- Trusted Guidance: Expert advice throughout their cloud journey.
- Full VCF Value: Partners who can truly unlock the comprehensive capabilities of VMware Cloud Foundation.
The Evolution of our VCSP Program
The result of this initiative will be a more focused, consistent, and higher-performing VCSP ecosystem. This refined approach allows us and our partners to align strategically with customer outcomes and innovation, fostering managed services opportunities that promise greater growth and profitability potential for our retained partners. We're focusing on those who we feel have demonstrated:
- Historical Performance: A proven track record of success.
- Technical & Relevant Expertise: Deep knowledge and capability in VMware technologies, especially those that will accelerate VCF managed services.
- Investment Capacity: The ability to make the necessary investments in infrastructure and services to meet high customer expectations.
For our valued partners who remain within this refined program, the benefits to them are as substantial as it is to our customers, including:
- Larger Share of Opportunity: With a more focused network, retained partners gain a greater share of the growing private cloud market.
- Stronger Support & Enablement: Broadcom can provide more direct, in-depth enablement and support to a concentrated strategic group, fostering long-term growth.
- Increased Visibility: Selected partners will benefit from enhanced visibility within our ecosystem and to customers seeking top-tier private cloud solutions.
- Strategic Alignment: Partners will be working hand-in-hand with Broadcom to deliver our vision of VMware Cloud Foundation as the premier private cloud platform, enabling them to scale up to meet increased demand.
Additionally, going forward, customer entitlement to port VCF licenses to public cloud services will be only to those that are on the then-current Certified Cloud Services, which will include the then-current active VCSP and Hyperscale cloud partners. To be clear, this also means that non-renewing partners will not be certified for VCF license portability.
Better Together - Collaboration Through Consolidation
This shift to value-based specialization is consistent with our overall strategic vision for our VMware portfolio – creating a stronger, more aligned VCSP channel focused on critical customer outcomes. For both retained and non-renewing partners alike, the opportunities presented by the potential for CSP industry consolidation are both tangible and real. By exploring strategic options with non-renewing partners, our retained VCSP partners have the opportunity to further improve their scale, skills, and competitive differentiation. And for non-renewing partners, now is the time to create value by evaluating strategic alternatives with retained partners for seamlessly transitioning impacted customers or transferring the VMware book of business to ensure zero disruption to their existing customers.
Forward Together with our Strategic Partners
Broadcom's commitment to VCF and its partner ecosystem is unwavering. By focusing on quality, strategic alignment, and the delivery of high-value managed services built around VCF, we are confident that our refined VCSP program will drive greater success for our partners and deliver unparalleled outcomes for our customers worldwide. We're excited about this next chapter and the powerful private cloud alternatives we and our partners will build together for our customers.