Broadcom is touting the solid start to a controversial VMware partner sales, distribution and support program in Europe, claiming to have signed up dozens of outlets to support VMware services.

Broadcom reports that it has signed more than 50 VMware Cloud Service Providers (VCSP) as “Pinnacle Partners” through its Broadcom Advantage Partner Program. Those companies, which include Redcentric and Telia, are able to provide sales and support for VMware’s recently reconfigured services.

“Broadcom VCSPs are able to offer customers more options by delivering sovereign cloud services that support data residency, high levels of compliance and other jurisdictional controls, while helping customers quickly achieve maximum value for VMware Cloud Foundation [VCF] as they accelerate their transition to the cloud,” Broadcom explained.

Broadcom’s Advantage Partner Program went live earlier this year, which the vendor hyped as a financial opportunity for resale partners. It basically reclassified long-standing VMware resale partners under Broadcom’s preferred tier structure.

This was followed by the VCSP launch, which is targeted at allowing cloud providers and third-party resellers to offer and run the VCF platform. VCSP includes three specific tiers: Pinnacle Partners, Premier Partners and Registered Partners.

The Pinnacle tier referenced in the European expansion is held to higher standards and includes Broadcom helping to sell services into corporate customers. This tier is core to Broadcom CEO Hock Tan’s repeated focus on growing VMware revenues from large corporate accounts.

Broadcom executives noted the moves simplified VMware’s platform offerings.

“All VCSP partners will deliver services based on the same VMware Cloud Foundation software customers deploy on-prem,” Ahmar Mohammad, VP for partners, managed services and solutions go-to-market at Broadcom, explained in a blog post. “No more different versions of VCF for different environments. This is crucial to helping customers achieve a true hybrid cloud experience. Delivering services based on the same consistent VMware Cloud Foundation stack enables partners to focus less on infrastructure and more on differentiating their managed services and specialization.”

However, analysts have noted these changes are causing some consternation from long-time VMware customers and distribution partners.

“I just talked to a client that wasn’t really impacted by the new partner program because it uses a partner that was accepted into the new program, but they are really worried about everything that is going on,” Tracy Woo, principal analyst at Forrester Research, told SDxCentral in a recent interview. “And that call was about how to create a business case to tell to their executives as to why they should be moving off of VMware and also they needed a list of alternatives.”

Prashanth Shenoy, VP of cloud platform, infrastructure and solutions marketing at VMware, recently told SDxCentral that the past several months have indeed been a sometimes painful whirlwind both for VMware internally and for its customers. This has included a complete overhaul of VMware’s operational model, platform offerings and its focus going forward.

“With change comes challenges in terms of confusion, because when the pace of change and the amount of change is drastic, there’s obviously a definite confusion or challenge when we don’t communicate and articulate things in a broad amplified and consistent manner,” Shenoy admitted.

However, he added that these changes were necessary and a long-time coming.

“In the previous world, this would have taken us three to four years to make that change,” Shenoy said. “I joined VMware two years back and we tried this a few times, and we didn’t execute on that. So, for me, I was very glad to have made this business model transformation, portfolio transformation, route market transformation, all in a matter of months.”

Broadcom’s Europe expansion

Broadcom’s European expansion comes just months after published reports indicated European regulators had asked Broadcom about changes the company has made to VMware licensing provisions. That move followed a request from the Cloud Infrastructure Services Providers in Europe (CISPE) trade group for European regulators to impose new rules on Broadcom’s enforcement of those new contract terms.

“Several CISPE members have stated that without the ability to license and use VMware products they will quickly go bankrupt and out of business,” CISPE noted in a statement. “Some state that over 75% of their revenues depend on VMware software virtualization technologies. End customers, ranging from large national champions and public sector services to SMEs and start-ups, report that they will not be able to deliver some or all of their online services if this licensing issue is not resolved. In some cases, these include vital medical services.”

The group explained that VMware controlled almost 45% of the virtualization market last year, which puts Broadcom in a position to dictate contract terms, the availability of products and which third-party vendors are allowed to offer those services.

“Hundreds of products have been removed with no notice, and the remaining ones re-bundled through new contract terms, without any technical modifications or software developments in ways that unfairly increase costs for customers,” CISPE added. “In addition, vendors are unsure if they will even be invited to participate in Broadcom’s new partner programs. Those that are invited feel pressured into accepting unfair licensing terms by the short deadlines imposed to sign. New terms include minimum commitments amounting to tens of millions of Euros over three-year periods. Costs for licenses have increased by a factor of 12 (i.e.1,200%) in some cases.”

Tan at that time attempted to clarify Broadcom’s licensing moves and stated that VMware perpetual license holders could continue to use their VMware services based on those legacy license models but would not have access to ongoing maintenance and support of those services unless they move to a subscription license. However, Broadcom will offer “free access to zero-day security patches for supported versions of vSphere, and we’ll add other VMware products over time.”

The European move also comes as reports continue to indicate enterprise discontent with Broadcom’s changes at VMware.

CloudBolt Software recently commissioned a report from Wakefield Research that found of 300 enterprise IT decision makers surveyed, 95% stated Broadcom’s acquisition of VMware was “disruptive to their IT strategy.” The survey also found broad “anxieties” tied to uncertainty around the deal, including unknown impacts on support, relationship changes and pricing.