VMware is ending its channel program in place of an invite-only system, alongside shuttering its smaller cloud service provider-focused White Label model.

As reported by The Register, the current Broadcom Advantage Partner Program for VMware partners will end on October 31 in favor of an invite-only system. The new changes were outlined by Interactive, an Australian VMware Cloud Service Provider (VCSP), with full details of the new partner program still pending.

Non-invited partners, Interactive shared, can continue to transact until the October 31 deadline, thereafter which “they may only service existing VCSP commitment contracts for the remainder of the current term.” No new commitment contracts or renewals will be permitted for these partners.

In addition, exiting partners “are encouraged to work with authorized VCSP partners to ensure a smooth transition for customers who seek to renew a service at the end of their current term.”

At risk is the ability to renew licenses through existing partners, alongside diminished support and service quality, and the likelihood of cost increases and delays to upcoming renewals, according to the Melbourne-headquartered IT services provider.

Bubble bubble, double trouble

The move is the second major change for VMware’s partners in 18 months, after its Broadcom acquisition saw the introduction of the VMware Cloud Service Provider (VCSP) program in March 2024. This included an Advantage Partner Program tier that was reported as leaving smaller cloud service providers (CSPs) in the shade.

Following some backlash, a concession was made in the form of a “white label” model that allowed those CSPs to work through Pinnacle or Premier partners. But with the new changes, the White Label Program will also end on October 31, under the same conditions as those of the departing Broadcom Advantage Partner Program.

According to The Register, “some mid-size partners won’t be invited to the new program.” In response to queries from the title, VMware didn’t dispute the reporting, adding that “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 [...] enable a truly competitive offering to the hyperscalers through our CSPs," it continued.

VMware also confirmed that co-termed capacity orders may still be supported by non-renewing partners for existing customers until the end of the current commit contract term. Those partners are also encouraged by VMware "to work with authorized VCSP partners to ensure a smooth transition” for any customers seeking renewal thereafter.

The changes are the latest in the increasingly strained relationship between Broadcom and the existing ecosystem as VMware pivots to a subscription-based model.

Nutanix CEO Rajiv Ramaswami told SDxCentral recently that VMware’s business model has “completely changed” post-Broadcom acquisition to focus on “creating value for their shareholders at the expense of their customers.”

“It’s a logical thing for them to do given where they are in terms of their lifecycle, so business-wise it makes sense,” Ramaswami continued.

"But it’s no longer going to be there for the company that it was. It was a trusted, go-to partner for a lot of companies, now it won’t be.”

In a seeming response, Microsoft announced this week that it is expanding partner incentives to migrate VMware customers to its Azure cloud platform.

The cloud giant has started an initiative called Azure Accelerate, aimed at VMware clients not looking to renew their services in the current status quo.