Broadcom has cut the lowest tier in its VMware partner program. The move allows it to focus on larger VMware deployments but risks more migrations.

• Broadcom ousts low-tier VMware partners: In January 2024, Broadcom eliminated the original VMware partner program and replaced it with the Broadcom Advantage Partner Program. Now, it offers three tiers instead of four, eliminating the Registered tier. Affected partners receive 60 days' notice. Broadcom claims the vast majority of customer impact comes from the top three tiers, and most removed partners were inactive. Canadian MSP Members IT Group is one of the affected partners and will move to Hewlett-Packard Enterprise's VM Essentials.
• More stringent standards for VMware’s remaining partners: Some remaining channel partners may be at risk. "Consistent engagement" includes regular deal activity, proactive commitment, and training. Higher requirements are introduced for partners in the highest tier, and Pinnacle and Premier Partners need dedicated resources and to execute joint business plans. Some solution providers have faced longer wait times for quotes since Broadcom's acquisition, and distributor Ingram Micro reduced its VMware business.
• Broadcom’s risk: After making it harder to qualify as a VMware reseller, Broadcom is now culling the program. Some believe this will have a negative impact on the industry, with partners rushing to alternatives like Microsoft, Nutanix, and AWS. While there is an opportunity to acquire new customers, VMware users may be left without a solution provider.