Broadcom's CSP Shake-Up: What VMware Customers Need To Know

Broadcom's recent, dramatic changes to its Cloud Service Provider (CSP) program have sent ripples through the industry, leaving many clients and businesses in need of immediate guidance and new solutions, especially if you were a VMware customer.  Here’s what you need to know:

What's Happening? A Major Program Restructuring

Broadcom has effectively streamlined its CSP program, with nearly all partners removed from its roster – an astonishing 100% of Registered and 95% of Premier partners. This bold move means that over 3.6 million cores of cloud infrastructure are now "in play," directly impacting a vast number of end customers across critical sectors like healthcare, finance, and SaaS. These businesses, who have relied on their established CSP relationships for their mission-critical operations, are now facing unexpected uncertainty and the urgent need to find new service providers.

The clock is now ticking…with a timeline that is pressing as you can see below:

• October 31, 2025 (just over 3 months away): This is the final day for impacted CSPs to place core orders. After this date, your current provider's ability to expand your existing environment or provision new services will cease. This means if you have growth planned or an unexpected surge in demand, your current provider may not be able to meet it.
• November 1, 2025 (just over 3 months away): Broadcom's new, highly selective CSP program takes effect. From this date forward, non-invited CSPs will no longer be able to onboard any new customers. If you need to transition to a new provider after this date and your current  isn't in the new Broadcom program, you will face significant hurdles.

• March 31, 2027 (less than 2 years away): All existing agreements with the now-impacted CSPs will officially terminate. This is not a renewal; it is an absolute end-date, necessitating a complete transition of your cloud infrastructure before this point. Procrastinating until then is not an option – migrations of this scale require significant planning and execution.

In addition to this tight timeline, many are likely facing questions like:

• Will my current services continue without disruption?
• Will my costs increase?
• How do I ensure compliance and security during a transition?
• Who can I trust to guide me through this complex process?

The good news is that solutions still exist. Many top-tier providers will remain authorized within the Broadcom CSP program, and others offer robust alternatives.

The key is to act proactively.  Here’s how:

1. Know Your Options: A small set of top-tier providers will remain in the Broadcom CSP program, including many known powerhouses in the cloud computing space. These options provide multiple, immediate "landing zones" for impacted customers, potentially providing new solutions that are more efficient and effective for clients.
2. Understand The Impact to You: The disruption disproportionately affects verticals with heavy VMware footprints – notably healthcare, finance, and SaaS. These industries have complex compliance requirements and low tolerance for downtime, making expert guidance from technology advisors indispensable.
3. Seek Support: Enterprises are being blindsided and seeking direction to help them navigate this complex transition, assess their options, and ensure business continuity. This opens the door for strategic, high-value conversations with trusted Technology Advisors who know and operate in this environment.

Broadcom's recent changes to its Cloud Service Provider (CSP) program is not just industry news; these are a direct and urgent call to action for your business. If you rely on Broadcom/VMware-based cloud services, your current arrangements will likely be impacted, and you need to act quickly to ensure continuity.

This can, however, actually create an opportunity for you to reassess your current needs, current solution and potentially structure a more effective and efficient solution…making lemonade out of lemons.

This is where TenrecX can help.  TenrecX is able to provide you with a number of CSPs from which you can successfully continue your licensing and support going forward’ as opposed to listing specific partners.

With our vast network of solutions providers we have the expertise to guide you smoothly through a potential change.  Our mission is to help our Clients bridge the gap between complex technology options and real business needs - simplifying their choices.  We are here to ensure you achieve efficiency, scalability and to ultimately succeed.

Connect with TenrecX to explore the possibilities.

Simplify.     Scale.    Succeed.

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