According to CRN, Broadcom launched its new VMware Cloud Service Provider program on November 1, immediately following the termination of the previous program on October 31. The $61 billion acquisition of VMware in 2023 has led to monumental channel changes, with the new VCSP program being invite-only and excluding hundreds or potentially thousands of former partners. VMware’s Ahmar Mohammad stated they want “larger and bigger partners who can put up a fight” and are actively encouraging remaining partners to acquire the business of departing ones. Partners can no longer be both cloud service providers and resellers, while Broadcom also eliminated its white label model. Global channel chief Brian Moats emphasized that VMware is doubling down on “very technical pre-and-post sales” partners who can drive VMware Cloud Foundation 9.0 adoption.
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The Great Partner Purge
Here’s the thing about Broadcom‘s strategy: they’re not just trimming the fat, they’re performing major surgery. Cutting hundreds or potentially thousands of partners isn’t a minor adjustment—it’s a complete ecosystem overhaul. And the invite-only approach means Broadcom gets to handpick exactly who stays in the game. Basically, if you weren’t already deeply technical and all-in on VMware Cloud Foundation, you’re probably out. That’s a brutal wake-up call for partners who built their business around simpler reselling models.
Technical Specialization or Bust
Brian Moats couldn’t be clearer about what Broadcom wants: partners who can “walk a customer through the VMware Cloud Foundation journey.” That means designing, implementing, supporting, and managing VCF—the whole lifecycle. So what happens to partners who mainly did basic reselling or white labeling? They’re essentially being told to either level up dramatically or get out. The message is stark: become VCF experts or find another vendor. But here’s the question—can the remaining partners scale fast enough to fill the massive gap left by all those departed partners?
Get Ready for Consolidation
Ahmar Mohammad’s comments about wanting partners to “acquire the business of departing partners or buying them outright” signals something bigger. Broadcom seems to be engineering a wave of channel consolidation. They want fewer, larger, more powerful partners who can compete aggressively. This isn’t just about technical capability—it’s about financial muscle too. Smaller MSPs and solution providers who made the cut might suddenly find themselves acquisition targets. Or they might need to merge just to stay relevant in this new, more demanding ecosystem.
Where This Is Heading
Looking ahead, this feels like Broadcom applying its typical playbook: streamline, specialize, and dominate specific market segments. They’re betting that having fewer but more capable partners will drive deeper VCF adoption and create stronger competitive moats against emerging edge computing competitors. The risk? They might be cutting too deep, too fast. If customer coverage gaps emerge or implementation capacity shrinks, that could backfire spectacularly. But if it works, the remaining partners could indeed “prosper beyond what you’ve ever experienced with VMware” as Moats promised. The next six months will tell whether this bold gamble pays off or leaves customers scrambling for alternatives.
