REGULATORY · COMPETITIVE · USA
Broadcom terminates VMware cloud service provider (CSP) partner program in Europe
Change
Broadcom terminated VMware's cloud service provider (CSP) partner program in Europe.
Why it matters
Broadcom terminated VMware's cloud service provider (CSP) partner program in Europe. Broadcom replaced the program with an invite-only alternative that favors larger, enterprise-focused partners. Broadcom introduced a requirement that CSP partners operate at least 3,500 cores, rendering hundreds of CSPs ineligible. Before Broadcom's acquisition, VMware had over 4,000 CSP partners; today VMware has about 19 CSP partners in the US and about nine in the United Kingdom. The trade association CISPE filed an antitrust complaint with the European Commission seeking an interim measure to reopen the CSP partner program and reinstate displaced partners; transactions under the program are being honored through March 31.
Implications
- · Small and medium cloud service providers lose an authorized VMware distribution channel and fail to meet the 3,500-core threshold for partnership.
- · Partnerships for VMware products concentrate among larger, enterprise-focused CSPs, reducing the number of third-party access points for customers.
- · Transactions processed under the terminated program will continue only through March 31.
Who is affected
- · Small and medium cloud service providers (CSPs)
- · Large enterprise-focused cloud service providers
- · Cloud channel and partner program managers
- · Enterprise cloud customers
What to watch
- · Transactions under the terminated program are honored through March 31
Source
Topics
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