Cloud Providers Urge EU to Restore VMware Program
▼ Summary
– A cloud service provider trade association filed an EU antitrust complaint against Broadcom for shutting down VMware’s CSP partner program.
– Broadcom has drastically reduced VMware’s channel partners by replacing the program with an exclusive, invite-only alternative favoring large partners.
– Broadcom imposed a requirement of 3,500 cores, making hundreds of CSPs ineligible and reducing partners from thousands to just a few dozen.
– The complaint specifically targets Broadcom’s termination of the CSP program in Europe and asks the EC to stop its closure.
– CISPE urges the EC to force Broadcom to reopen the program, reinstate partners, and prevent retaliation against them.
A major trade group representing cloud service providers has formally lodged an antitrust complaint with the European Commission. The action targets Broadcom’s decision to terminate VMware’s longstanding partner program for cloud providers, a move that has significantly reshaped the competitive landscape. The complaint argues that Broadcom’s restrictive new policies unfairly disadvantage smaller cloud firms and stifle market competition, urging regulators to intervene swiftly.
Following its acquisition of VMware, Broadcom initiated a sweeping overhaul of the company’s partner ecosystem. The widely accessible VMware Cloud Service Provider (CSP) program was shut down and replaced with an exclusive, invitation-only framework. This new model primarily caters to large-scale partners serving enterprise clients, effectively sidelining a vast number of small and medium-sized businesses that previously relied on the program. The shift represents a fundamental change in strategy, prioritizing a handful of major players over a broad, diverse partner network.
The consolidation has led to a dramatic reduction in the number of authorized cloud partners. Broadcom introduced a stringent requirement that CSP partners must operate a minimum of 3,500 cores, a threshold that disqualifies hundreds of providers. Prior to the acquisition, VMware boasted a network of over 4,000 cloud service provider partners globally. Current reports indicate that figure has plummeted to just 19 approved partners in the United States and approximately nine in the United Kingdom, illustrating the scale of the exclusion.
The immediate catalyst for the legal challenge was Broadcom’s January termination of the VMware CSP program across Europe. The trade association, CISPE, is now asking European regulators to halt the program’s dissolution. While existing transactions are being honored until March 31st, the group seeks urgent interim measures. These measures would compel Broadcom to reopen the partner program, reinstate the partners who were displaced, and prohibit any retaliatory actions against them. The complaint frames the issue as critical for maintaining a fair and innovative cloud market within the European Union.
(Source: Ars Technica)
