VMware's New Chapter: Navigating the Broadcom Acquisition and Its Impact On Customers

February 19, 2024 || Strategix

The acquisition of VMware was finalised towards the end of 2023 and since then there has been plenty of speculation and concern around how VMware will perform for customers and support partners. Since November, VMware by Broadcom has made a series of announcements to changes in the structure of the company’s licensing and partner programmes. The first is a move to a subscription-based model, the second is the cancellation of all existing VMware partner agreements as of 04 February 2024.

Channel partners were asked to reapply to VMware by Broadcom to continue selling the company’s popular suite of services. As of 05 February 2024, the old partner programme moved to the invitation-only Broadcom Advantage Partner Program which has an entirely new structure and approach to customer and partner management.

In its official statement unpacking the Broadcom Advantage Partner Program, the company said that more than 18,000 active VMware resell partners have been invited to join the program which will align strongly with what partners want and need. Using feedback provided by partners, the programme has been evolved to include several key factors:

  • A new net margin model that shows discounts upfront and provides partners with more visibility into their deals and earnings.
  • A simplified pricing model that has dropped the number of SKUs down to three key bundles: VMware Cloud Foundation, vSphere Foundation and vSphere Essentials.
  • The company has introduced ‘incumbency protection and deeper up-front discounts’ to help partners drive profitability while protecting their deals.
  • A simplified administration system with one centralised platform for all partner resources and a role-based, single sign-on access to relevant sales tools, dashboards and systems.
  • Redefined segments within the customer base and a redesigned internal structure that improves resourcing and support for partners and customers.

What does this mean for the VMware customer?

While the acquisition of VMware has caused industry-wide ripples across the globe, it is not the end of your organisation’s use of VMware or the service you receive, especially if you work with Strategix.

Strategix has been invited by VMware by Broadcom to become a premier Cloud Services Provider and reseller partner because of our track record and expertise. We remain deep within the VMware by Broadcom ecosystem and can help you deftly navigate the changes taking place, whether this is your move to the subscription-based licensing model or examining your VMware investments and optimising them based on the new product portfolios.

In collaboration with VMWare by Broadcom, we can help you eliminate unnecessary expenses on unused products while streamlining your licensing expenditure. While the implications of the transition to the new Cloud Services Provider costing model have yet to be felt, we will work with you to ensure that you find a smart and agile way forward that best fits your business and your VMware by Broadcom expectations.

Contact Strategix Today To Navigate this Transition With Confidence

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