Navigating Changes: Broadcom Shifts VMware Partner Landscape
In a significant development, Broadcom is set to terminate all existing partner agreements with VMware resellers and service providers on February 4. This move will dissolve VMware’s partner program and sales incentives, requiring partners to reapply for their roles. The transition, effective February 5, 2024, will see Broadcom shifting VMware’s partner programs to the invitation-only Broadcom Advantage Partner Program.
Partners are urged to act promptly and apply to discover whether they will retain permission to sell VMware through Broadcom. There’s a particular concern for partners generating below $500,000 in annual VMware revenue, as they may be at risk of losing their partner status.
In a statement to CRN, Broadcom reaffirmed its commitment to strengthening the combined ecosystem and emphasized the benefits of the transition, aiming to offer partners greater opportunities for profitability through simplified bundled offerings and increased service revenue prospects.
Partners receiving invitations to join the Broadcom Advantage Partner Program can anticipate simplified profitability opportunities, including Broadcom’s net margin model, compensation for renewals, deal registration discounts based on program tier, performance-based incentives for renewal business, and simplified certification requirements with free training.
While this transition to an invite-only program may raise concerns, it appears to be geared towards partners in good standing, making substantial revenue. However, there’s acknowledgment of potential challenges for smaller partners, and hopes are high for the possibility of a tier two program to assist them in navigating this transition collaboratively with larger partners.
For those impacted by these changes, ensuring accurate company contact information in the ‘My Company’ section of the Partner Connect portal is recommended. As the landscape evolves, partners await the outcome of their reapplications, with the shift signalling a new phase in the partnership dynamics between Broadcom and VMware
