The recent changes announced by VMware, now under Broadcom, have brought significant disruption and uncertainty to the UK managed service provider (MSP) ecosystem. As Broadcom streamlines the VMware partner programme, many Premier Partners and Cloud Solution Providers (CSPs) are directly impacted, with far-reaching effects on licensing, service provision and the future shape of cloud offerings.
Key Dates and Milestones in the Transition
The transition is structured around several critical dates, each marking a new phase in the partner landscape. Here’s what you need to know:
- July 15th: Partners are notified of impending changes within the VMware partner ecosystem, including programme reductions and licensing restrictions.
- November 1st: Impacted partners will no longer be able to raise new orders, ultimately limiting their ability to grow their VMware cloud business.
- April 2027: For most impacted partners, this is the deadline when changes to partner status, licensing and service provision are fully enforced. MSPs will no longer be able to transact VMware licenses directly for cloud service provision, nor participate in white label programmes.
During this transition, ongoing support for VMware products continues until current agreements expire. After that, the only route to direct support is through Pinnacle Partners, a significantly reduced group within the new structure.
What Do the Changes Mean for MSPs?
The reduction of the partner programme, the removal of white label options, and the move from perpetual to subscription-only licensing models mean that many MSPs will face disruption to their cloud offerings. The ability to serve end users and maintain existing cloud services could be significantly compromised, with wider revenue risks and the necessity to seek alternative technological solutions sooner rather than later.
Impact Areas
- Loss of direct license access for cloud service provision
- End of white label programmes for VMware licensing
- Potential customer and revenue loss if alternatives aren’t deployed in time
- Significant engineering resource requirement to re-platform
- Impact to product commercials and platform margins
Recommendations: Navigating the Transition
At ANS, we understand the challenges these changes introduce. Our aim is to support impacted partners and MSPs throughout the transition, ensuring you find a solution that aligns with your business needs, mitigates disruption and unlocks opportunities for growth.
Immediate Actions for MSPs
- Review Your Options: Take the next three weeks to examine which journey is best for your business and customers. Consider replatforming, partnering with a Pinnacle Partner, or exploring new technologies.
- Commercial Analysis: Within two to three months, assess the commercial impact of each option, including potential cost increases for your customers and what your new offering will look like.
- Migration Planning: Over a six to twelve month period, develop a migration roadmap. Whether shifting to a new cloud technology or working with a Pinnacle Partner like ANS. It is critical to have a robust plan in place sooner rather than later, to ensure a seamless transition with minimal customer disruption.
- Stay Informed: Subscribe to regular updates, join forums and advisory boards, and bookmark trusted help hubs to keep up to date with the latest changes and industry insights.
Strategic Considerations
- Assess your technical capabilities and readiness for new platforms, allowing for a minimum of 8 months to action these changes.
- Understand the compliance, security and support implications of different solutions and how compatible they are with your current infrastructure.
- Align your operating model and business case with long-term digital transformation goals.
- Engage with customers early to communicate changes and reassure them of continuity.
How ANS Can Help
At ANS, we understand that every MSP and customer has unique needs in the evolving VMware by Broadcom landscape. With our deep expertise across cloud platforms, we offer tailored guidance whether your best option is to remain on a VMware-based solution, transition to public cloud services like Microsoft Azure or Amazon Web Services, or adopt a hybrid approach that blends private and public resources.
We recently launched the Broadcom Navigator – specifically designed to offer impacted partners a tailored pathway through the VMware by Broadcom transition. Through a detailed assessment of each partner’s infrastructure, product portfolio, capabilities, and licensing position, ANS delivers a bespoke roadmap aligned to strategic goals. Crucially, the service helps partners understand their evolving licensing entitlements and future eligibility, empowering them to make informed decisions about their next steps
Ryan Martin, Head of Indirect at ANS, said, “The Broadcom Navigator Service is a necessary compass, helping channel partners navigate uncertainty amid the VMware Broadcom transition. We’re in the perfect position to help resellers and MSPs assess their options, pivot their cloud strategy, and confidently chart a path forward.”
Get in Touch
For personalised advice, migration planning, or to join our workshops and forums, reach out to our team at [email protected] or call 0800 458 4545. Let’s work together to navigate these changes and unlock new opportunities for your business.
Chris Folkerd, Director of Platform at ANS, said, ‘’The impact of these changes will be significant on affected partners but for most the impact of the change won’t be felt for another 18 months. Large-scale platform migrations can take a significant amount of time, and the key to success is early fact-finding to decide the best path for your business. VMware is still a viable option for many, but will now need to be consumed in a different fashion through the Pinnacle Partners. When considering your options, finding a new partner that is right for you and your technological and commercial needs is critical.’’