VMware by Broadcom offers a lifeline to small cloud service providers

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VMware by Broadcom offers a lifeline to small cloud service providers
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'White label' program also means retaining customers

Pre-acquisition VMware ran a Cloud Services Provider program that saw some partners offer various VMware applications as cloudy managed services, plus a VMware Cloud Providers Program that saw channel orgs operate public clouds based on the Cloud Foundation hybrid cloud stack that Broadcom has made its hero product.the VCSP program. Participants were told they may be invited to Broadcom's own Advantage Partner Program, with a requirement to license at least 3,5000 cores.

Former VCSP partners would then find themselves with hardware they had acquired – and assumed they could amortize over many years – but without the VMware software for which their customers had signed up.understands smaller cloud operators despaired at this situation, and that it has dawned on Broadcom that it was creating a moment in which customers of those small clouds would be forced to consider their future as VMware users.

Secondary partners can resell Primary partners' clouds. Or Secondary partners can acquire licenses for their existing hardware from Primary partners. This arrangement is a lifeline to former VCSP and VCPP partners who have not been invited to become Broadcom partners, as it means they can continue to serve their customers as before – while paying a Primary partner for licenses instead of paying VMware.

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