• There’s lots of “noise” about this newest and latest change to the program… the 2^nd in 18 months… so lots to unpack……

  1. Potential Service Disruption

  Many smaller VMware Cloud Services Providers (VCSPs) are being removed from the program unless directly invited by Broadcom.

  Only 14 providers in the U.S. remain in the program.

  If your current provider wasn’t invited, they can’t renew or extend contracts after October 31, 2025. If you are still in contract, then you are fine until the contract expiration… then the statement above takes effect.

  Depending on your renewal date, this could result in an urgent need to migrate or risk service termination if you're with an unapproved provider.

  2. Increased Costs

  Broadcom has already made major pricing changes this year.

  • Minimum core purchases jumped from 16 to 96
  • Late renewals now face a 20% penalty

  Customers may now be forced to switch to larger, authorized partners, who may charge higher prices or minimum commitments that smaller users can't justify.

  3. Forced Migrations or Consolidation

  If your provider is no longer supported, you may need to:

  • Migrate to an authorized VCSP,
  • Rebuild parts of your environment if white-labeled services were used (these end Oct. 31),
  • Switch platforms, such as:
  • 1. Hyperscalers: Azure, AWS, GCP
    2. Alternatives: Nutanix, OpenStack, KVM

Each of these paths carries operational risk, potential downtime, and cost.

• 4. Loss of Trusted Relationships

  Many customers built long-term relationships with regional or boutique partners who offered:

• • Custom support
  • Flexible pricing
  • Tailored cloud environments

• Now, many of those partners are excluded from the VMware ecosystem—leaving clients scrambling for alternatives.

   5. Confusion & Uncertainty

  Broadcom has made several changes in rapid succession (product packaging, licensing, now partners).

• • Customers are struggling to keep up and are unsure:
  • Who their provider reports to now
  • What future pricing or support looks like
  • Whether staying on VMware is sustainable

•  
  In Summary:

  If you're a VMware user, especially through a small or regional partner—you may be impacted by:

• • Contract expiration with no renewal option
  • Rising licensing and support costs
  • Migration headaches
  • The need to quickly find a new, approved provider

Next Steps:

Work with a trusted partner to understand ALL your options to start planning a transition or evaluating alternatives before October 31, 2025.

About the author: Seth Marsh brings over 30 years of hands-on IT industry experience, having lived through transformative eras—from the rise of mobile and cloud to the evolution of the OPEX model. His well-rounded background spans the full spectrum of tech sales, including leadership roles at a global security provider, VAR and manufacturer representation, and direct sales—giving him rare insight into every side of the channel.