Broadcom major channel partner shakeup

Dwight Taylor • July 22, 2025

Broadcom major channel partner shakeup

Broadcom is significantly reshaping the VMware Cloud Service Provider (VCSP) program, moving towards a more exclusive, invite-only model and reducing the number of authorized partners. This change involves ending the white-label program and transitioning to a model where customers primarily purchase managed infrastructure through larger, strategic partners. These changes mean many existing CSPs will lose their authorization, requiring customers to migrate workloads or find new providers. [1, 2, 3]

Here's a more detailed breakdown:

  • Reduced Partner Count: Broadcom is drastically reducing the number of authorized VMware CSP partners, effectively cutting off many existing providers, especially smaller and mid-sized ones. [1, 1, 2, 2, 4, 4]
  • Invite-Only Program: The new VCSP program will be invite-only, meaning partners must be invited by Broadcom to participate. [2, 2, 4, 4]
  • End of White-Labeling: The white-label program, which allowed some partners to continue operating under larger partners, is also being eliminated. [1, 1, 3, 3]
  • Customer Impact: Customers who relied on now-departed CSPs will need to migrate their workloads, potentially facing increased costs, complexity, and vendor lock-in. [1, 1]
  • Limited Notice: Many partners and customers were given limited notice about these changes, causing uncertainty and disruption. [1, 1]
  • Focus on Larger Partners: Broadcom is focusing on fewer, larger, and more strategic partners like Interactive, who can provide a broader range of services and support, according to Interactive. [1, 1, 2, 3, 3]
  • Transition Period: While partners who are not invited to the new program can continue to support existing contracts until their expiration date, they will not be able to sign new commitments or renewals after October 31, 2025. [3, 3, 4, 4]
  • Broadcom's Rationale: Broadcom states these changes are part of their ongoing efforts to simplify and optimize the VMware partner ecosystem, aligning it with their strategic goals. [1, 1, 3, 3, 4, 5, 6]


Popular VCSP positions affected:

Yes, it is highly likely that CDW will continue to be a Broadcom partner, particularly concerning VMware solutions. 

Reasons for this likelihood


• Award Recognition: CDW has recently been recognized by Broadcom with two Partner Awards for their contributions and accomplishments with Broadcom's VMware software, including the VMware Highest Performer and Largest Deal in the Americas awards for 2024.


• Long-Standing Partnership: CDW and VMware have a history of successful collaboration, with CDW being named Global VMware Partner of the Year in 2023.


• Focus on Value-Based Partnerships: Broadcom has indicated a strategy of focusing on and deepening relationships with partners who are committed to delivering valuable customer experiences and are making significant investments in their VMware capabilities. CDW's performance suggests they align with this strategy. 

However, it's important to note Broadcom's recent changes to the VMware partner program:


• Reduced Partner Pool: Broadcom has significantly reduced the number of authorized VMware partners and the new program will be invitation-only, according to Channel Insider and Techzine Global.


• Impact on Smaller Partners: Many smaller partners, particularly those serving mid-sized and SMB customers, have been excluded from the new program, according to GraphOn.


• Focus on VMware Cloud Foundation (VCF): Broadcom's strategy emphasizes larger, private cloud-first deployments built on VCF, according to Civo.com. 


Despite these changes, CDW's history of success with VMware, recent award recognition from Broadcom, and strong commitment to the partnership strongly suggest their continued inclusion as a Broadcom partner for VMware solutions.



Broadcom and VMware partner program changes and impact on CDK Global

Broadcom's acquisition of VMware has led to significant restructuring of the VMware partner program, impacting many existing partnerships, including potentially CDK Global. 


Here's what is currently known:

• Broadcom has transitioned the VMware partner program to an invitation-only model called the Broadcom Advantage Partner Program.


• This new program is designed to significantly reduce the number of authorized partners.


• Current VMware partners who were not invited to the new program have received (or will receive) notices of non-renewal.


• These non-invited partners can continue to service existing contracts until October 31, 2025, but cannot enter into new agreements or renewals. 


CDK Global, as a major player in automotive retail technology, previously leveraged VMware solutions, and as such would have been affected by these changes to the partner ecosystem. 


Important to note


• The information available online does not explicitly state whether CDK Global has been invited to the new Broadcom Advantage Partner Program or not.


• It's important to monitor official announcements from both Broadcom and CDK Global for any updates on their partnership status.


In the interim, businesses utilizing VMware products through a partner should actively verify their partner's status with Broadcom to ensure service continuity. 


Yes, Windstream is expected to continue its partnership with Broadcom, specifically within the context of VMware solutions. 


Here's why:


• Long-standing partnership: Windstream has been a partner to VMware (now Broadcom) since 2016, providing SD-WAN technology to customers. (Your Trusted Advisor from Halolution was in fact part of the Design, Build, Deploy and senior mentor for many Engineers on the NIE team up until 2024)


• Positive outlook on the new program: Windstream's CTO, Art Nichols, expressed enthusiasm for the new Broadcom Advantage Partner Program for VeloCloud Titan Partners, citing benefits like exclusivity, license pooling, and a comprehensive service creation partnership.


• Commitment to collaboration: Nichols emphasized their anticipation of continuing the collaborative partnership and empowering more businesses in the future. 


While Broadcom has made changes to its VMware partner program, including reducing the number of authorized partners, it appears that Windstream has been retained as a partner, especially in the context of VeloCloud solutions. Windstream's positive statements indicate their intent to maintain this relationship.



Critical Dates

 

October 31, 2025: Last day for impacted CSPs to place new core orders

November 1, 2025: No new customer onboarding for discontinued providers

March 31, 2027: Estimated date all impacted CSP agreements terminate 


Have you been given the cloud pink slip from your VCS Provider? Migration time is the time to consider your trusted advisor Halolution for guidance. With Broadcoms recent unveiling of VeloRAIN (The First for Robust AI Networking beyond the Data Center) and now VMware Cloud Foundation 9 (VCF), Licensing costs 8 to 15 times higher since Vmware came under Broadcom. Now an exclusive club tailoring to specific needs this will be out of reach for most wanting to keep SD-WAN as their top Technology go forward plan. Maybe time to consider SASE in your migration plan? Or some other Zero Trust Solution. Keep in mind that we still have some of these top providers on our list but also for those wanting or needing to migrate we have a dozen or so alternatives. Contact Halolution today!


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