Broadcom has cut the lowest tier in its VMware partner program. The move allows the enterprise technology firm to continue its focus on customers with larger VMware deployments, but it also risks more migrations from VMware users and partners.

Broadcom ousts low-tier VMware partners

In a blog post on Sunday, Broadcom executive Brian Moats announced that the Broadcom Advantage Partner Program for VMware Resellers, which became the VMware partner program after Broadcom eliminated the original one in January 2024, would now offer three tiers instead of four. Broadcom is killing the Registered tier, leaving the Pinnacle, Premier, and Select tiers.

The reduction is a result of Broadcom's "strategic direction" and a "comprehensive partner review" and affects VMware's Americas, Asia-Pacific, and Japan geographies, Moats wrote. Affected partners are receiving 60 days' notice, Laura Falko, Broadcom’s head of global partner programs, marketing, and experience, told The Register.

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VMware's business model under Broadcom is "legally and ethically flawed," a group of cloud service provider (CSP) customers and partners alleged in a report released today.

The report (PDF) comes from the European Cloud Competition Observatory (ECCO), which describes itself as "independent monitoring body" composed of members of the Cloud Infrastructure Services Providers in Europe (CISPE) trade association, "with the support—acting as observers—of European customer organizations." ECCO says its goals include "highlighting ongoing or new unfair software licensing practices from any software vendors in the cloud sector," and it has previously written similar reports about Broadcom and Microsoft.

In its announcement of the report, ECCO said that CISPE members have met with Broadcom once about the changes it has made to VMware's business model, which is now built around subscriptions of bundled products, but didn't see any changes.

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