VMware channel partner 11:11 Systems acquired Australia-based Digital Sense, a move that continues 11:11 Systems consolidation of fellow channel partners squeezed by program changes instituted by VMware parent Broadcom.

The deal had 11:11 Systems acquiring Brisbane-based cloud provider Digital Sense from Aussie Broadband for a reported $18 million. The deal was tied to changes Broadcom has instituted in its VMware Cloud Service Provider (VCSP) channel program, specifically how partners are classified.

“For Aussie Broadband, this industry shift coincided with the launch of their ‘Look-to-28’ strategy, which clearly classifies the organization as a telecommunications provider rather than a broad technology company,” 11:11 Systems noted in a release on the deal. “Consequently, the decision was made to divest the Digital Sense cloud business to ensure customers continued access to best-in-class VMware cloud infrastructure.”

Aussie Broadband Transformation and Cloud GM Ben O’Shea added that the 11:11 Systems deal provides a clean segue for its customers.

“With the investment required to remain competitive in the cloud space and the upcoming changes to the partner ecosystem in 2027, we determined that 11:11 Systems was the right home for our cloud business," O'Shea noted in a statement. “Their deep specialization in VMware environments ensures our customers will receive the strategic focus they deserve, while we sharpen our focus on our telecommunications strengths.”

11:11 Systems keeps gobbling up VCSP partners

The deal marks 11:11 Systems’ seventh purchase of a former VMware partner, including deals for iland Cloud, Green Cloud Defense, Unitas Global, Sungard Availability Services, Faction, and Ntirety, and also continues what 11:11 Systems Chief Revenue Officer Dante Orsini told SDxCentral was an ongoing strategy following the Ntirety deal.

Orsini said that deal provided 11:11 Systems with more depth in database management “and being able to support a broader number of platforms. I think on the other side of that coin, what we're able to bring to their customer base is going to be very well received as well.”

Orsini, who came to 11:11 Systems as part of the iland Cloud deal, said that history has provided his current employer with a solid playbook for merging operations, a process that as noted has gathered steam over the past several months.

“We immediately are reaching out to the customer base, and that's our No. 1 priority,” Orsini said of the process. “And in the same sense, we're doing the exact same thing with the employee base, because we're welcoming everybody to our organization and this is something that I think we've gotten better and better at. And I think the system side is an area where we've got really skilled folks there that oftentimes can be a challenge for people, but we've done it so many times, there's a well-oiled process on that.”

That repetition has been fed by Broadcom’s well-publicized VCSP changes, which Orsini noted has indeed set the stage for merger and acquisition activity among partners.

“When you look at the changes they made in the last couple years of trying to really consolidate the space, you're seeing a lot of opportunity just depending on where these organizations sit … as far as what percentage of their revenue or their platform is predicated on VMware,” Orsini said. “They're really trying to find people that are purists in the sense where they're completely dedicated to that platform like we are.”

Orsini said this partner situation hit an inflection point for some in July 2025, when Broadcom moved to sunset its white label distribution model that was focused on smaller cloud service provider partners. That move was hinted at somewhat famously by Krish Prasad, SVP and GM for Broadcom’s VCF division, who in a blog post wrote that the vendor expects “that our partners will go all-in with us on helping customers unlock the full value of VCF.”

“That was a bit of an ‘a-ha’ moment for a lot of people that thought that they had a path forward,” Orsini said of that move.

For 11:11 Systems, that "a-ha" was that Broadcom was indeed serious in its support for VMware and that the market would start to see that opportunity.

“They shifted an aircraft carrier super-fast,” Orsini said of Broadcom's VMware stewardship. “Sometimes it takes someone like [Broadcom CEO Hock Tan] to make that happen, and to see the proof come out the other side … they are actually walking the walk, which is super important."

Orsini’s enthusiasm toward its VMware-based support echoes that from other partners that were part of a featured panel at the recent VMware Explore event in Las Vegas.

“What I love about it is the focus, one platform, one solution,” Stephen Moss, SVP of managed services at VCSP partner Insight, said of the new VMware platform structure, later noting that it was superior “versus the kluge, Band-Aid together 20 different products that were not built to work together.”

“And if you look at the partner program, the way it's structured, how you have a very clear goal-based system for certifications, if you're looking to build and become a VMware partner,” Moss added. “If you're not, it's a great opportunity because it's very well structured. There's great options for getting your team skilled up. If you're not, there's all this training available.”

Partner concern remains

That’s not to say that everyone is happy.

Equity research firm William Blair noted in an “Enterprise Tracker” report last year that some enterprises and go-to-market partners were continuing to look for ways to decouple themselves from Broadcom and VMware. The report stated that value-added resellers (VARs) had noted “customers are actively strategizing how to get off VMware, and the broader ecosystem (VARs, OEMs, ISVs) is moving away from VMware.”

That last point was bolstered by the research firm noting “newfound disillusionment from partners about Broadcom squeezing them on margins,” with a specific “partner that historically could expect to make 10 to 15 points of margin on reselling VMware is now making only five to six points.”

Orsini did acknowledge that there are providers out there that are perhaps not as solid in their relationship with Broadcom as 11:11 Systems might be, and thus have been vocal about their challenges.

"I think that if I look at what we've done and what we've built, and how we're excited about the VMware platform, and we continue to grow, not just through acquisition, but also organically ... I think we have a very strong relationship Broadcom, and I think it's based on delivery," Orsini said. "So I feel like anything else, you're only as good as your ability to continue to deliver."