VMware cloud partners have been given notice by Broadcom as the chip giant phases out its Advantage Partner Program for VMware Cloud Service Providers (VCSP).

According to an email seen by The Register, Broadcom has given formal notice to some partners that as part of its VCSP shuttering, it would not be renewing contracts as of Jan 26, 2026.

"You may continue to transact new and existing coterminous customer opportunities through the end of your current commitment contract term,” Broadcom said in its partner missive. “The term for any new contracts executed during this period must be coterminous with a current active commitment contract that you have with Broadcom. However, we encourage you to close any open opportunities you may be pursuing by March 31, 2026."

For customers working with disposed VCSPs, a Broadcom FAQ document seen by The Register advised: "Non-renewing partners are encouraged to engage with retained VCSP partners to ensure a smooth transition for customers."

Broadcom ended VCSP in October in favor of an invite-only system, leaving 19 U.S.-based providers out of thousands, according to one source who spoke to the title. The thin-out is another major change for VMware’s partners since the introduction of the VCSP program program in March 2024. This included an Advantage Partner Program tier that was reported as leaving out smaller cloud service providers (CSPs), which led to the introduction of the White Label model to allow such CSPs to work through Pinnacle or Premier partners.

That program was also retired in Europe, leaving hundreds affected by last month’s move, according to sources.

With the new development, Broadcom is calling time on certain authorized VCSPs to "work more closely with a focused set of partners," according to the document. This was put down due to unspecified changing customer requirements, as well as to galvanize increased adoption of VMware Cloud Foundation (VCF) as the core private cloud platform for clients.

"Broadcom’s latest move will be detrimental to VMware customers and partners because it effectively 'bulldozes' the existing ecosystem by terminating nearly all current CSP contracts in favor of a much smaller, invite-only program," ZK Research principal analyst Zeus Kerravala told SDxCentral.

"For partners, this forced consolidation excludes hundreds of smaller providers who have spent years investing in VMware expertise, leaving them unable to renew licenses or support their clients and potentially driving them out of business or toward competitors like Nutanix and Microsoft," Kerravala added. "However, this is what Broadcom does. Buy companies with a locked in customer base, raise prices, and bully those that do not comply."

Customers in potential limbo

In its email, Broadcom told vendors they could execute new coterminous customer contracts and continue servicing existing customers in line with their VCSP commitments for the remaining duration of the contracts with either Broadcom, their Cloud Commerce Manager, or their Primary White Label Provider partners.

Broadcom’s notice added that vendors may not execute any new aggregate commitment contracts or renewals for existing commitment contracts, so “that a timely and orderly wind-down of the current program can become effective at the end of your existing commitment contract term(s)."

In an official statement, Broadcom did not clarify how many providers would be part of its invite-only platform, nor how many did not make the grade, instead commenting that its strategy since closing the VMware acquisition has been to “drive simplification, consistency, and innovation across the VMware ecosystem," including VCSPs.

“Recent changes to this ecosystem are consistent with this strategy. Broadcom is focusing more and going deeper with the VCSPs who have demonstrated commitment to their cloud services built on VMware. This will enable us to deliver greater value, stronger execution, and a more streamlined experience for Broadcom's customers and enable an alternative competitive offering to the hyperscalers through our VCSP partners," Broadcom added to The Register.

The company also left unclear what happens to customers who do not wish to migrate to one of its mandated partners.

"For customers, this transition creates a massive supplier shake-up that reduces choice, threatens data sovereignty, and increases costs as they are often forced to migrate away from trusted local partners to a few large, authorized providers or adopt expensive 'full-stack' subscription bundles they may not need," Kerravala added.

In a Broadcom blog post from September, Ahmar Mohammad, VCF partner VP, said the firm was deepening its commitment to partners it felt were “best equipped to drive customer value,” with program changes designed to steer current VCF licensees to invited partners, as opposed to relying on goodwill from expiring VCSPs.

Mohammad added that VCSP partners retained by Broadcom could look to consolidate those that didn’t “to further improve their scale, skills, and competitive differentiation.” In turn, ex-VCSPs were encouraged to reach out to Broadcom’s favored vendors “for seamlessly transitioning impacted customers or transferring the VMware book of business to ensure zero disruption to their existing customers.”