Broadcom appears to have softened its stance somewhat by giving some VMware customers a peace offering.
An exclusive report by The Register notes the shift comes several weeks after the company decided to terminate VMware’s Cloud Services Provider (VCSP) program, among other fairly significant shakeups.
The news also comes just a few days after the company’s CEO, Hock Tan, addressed customer unease following Broadcom’s $61 billion acquisition of VMware at the end of 2023.
Broadcom softens the blow for some VMware partners
Previously, VCSP assisted partners in offering VMware applications as managed services; however, Broadcom’s move left many partners in limbo, facing the prospect of not being able to continue offering VMware-powered services.
In response to feedback, Broadcom is now reported to have introduced a ‘white label’ program that would allow cloud providers that do not meet Broadcom’s core licensing requirements to continue operating by partnering with established affiliates.
This peace offering does two things: it preserves existing partnerships and allows smaller providers to continue operating their businesses, but it also ensures that VMware services continue to serve their customers and end users.
The decision comes just in time, before the looming deadline for terminating VMware’s CSP program, and offers a viable alternative for those who had been threatened with partner status termination.
Though the move does address some key concerns, Broadcom continues to be monitored by industry analysts globally, and it remains to be seen whether the company is indeed on track to boost VMware’s profitability.
However, many are wondering whether this is too little too late, with customers already jumping ship to switch to other hypervisor alternatives.
