Broadcom’s overhaul of VMware’s partner ecosystem has cloud service providers in Europe sounding the alarm. The move has slashed the number of partners drastically, sparking calls for regulatory action to reinstate the old program and protect competition.
Sharp Decline in VMware Partners Sparks Concern
Since Broadcom acquired VMware, the number of cloud service providers (CSPs) affiliated with VMware has plunged. Before the takeover, VMware supported over 4,000 CSP partners globally, including a strong European presence. Now, only a handful remain active, with reports showing just 19 CSP partners in the U.S. And nine in the U.K.
Broadcom’s decision to shutter VMware’s longstanding CSP partner program has hit smaller and medium-sized providers hardest. The old program, which was open to a broad range of partners, was replaced by an invite-only scheme favoring large players with enterprise clients. Plus, the new rules require CSPs to operate at least 3,500 cores — a bar many can’t meet.
That shift has pushed many European CSPs out of the VMware ecosystem. The pressure on these businesses is more than just market exclusion.
It threatens to reshape how cloud services are offered across the continent, potentially limiting choice and innovation.
Trade Group CISPE Steps Into the Fray
The Cloud Infrastructure Services Providers in Europe (CISPE) has been vocal about the fallout. Representing nearly 50 members, CISPE has taken its fight to the European Commission, filing an antitrust complaint to block Broadcom’s changes.
CISPE’s complaint demands the European Commission impose interim measures. These would require Broadcom to reopen the partner program, reinstate displaced CSPs, and halt any retaliatory actions against them. The complaint highlights that Broadcom’s moves risk harming competition and the broader cloud market in Europe.
According to CISPE, the changes under Broadcom’s leadership have created a “highly exclusionary” partner model. The group says That could have serious consequences for providers and end users, potentially driving up costs and reducing service options.
Legal and Ethical Concerns Over VMware’s New Model
Beyond the partner program cuts, CISPE and its allies criticize the new VMware subscription model introduced by Broadcom. A report from the European Cloud Competition Observatory (ECCO), which includes CISPE members and European customer groups, describes the model as “legally and ethically flawed.”
Moving to subscriptions bundled across multiple products has imposed “substantial financial burdens and operational disadvantages” on VMware’s customers. The report warns that the model poses risks not only for customers but also for VMware shareholders if regulators decide to challenge its legality.
The report also points to Broadcom’s aggressive legal stance. Customers and partners have seen cease-and-desist letters and lawsuits, including a notable dispute with Siemens over alleged software piracy. VMware’s CSP partners fear becoming targets of similar legal actions.
Regulators Take Notice, but Broadcom Stays Quiet
The European Commission confirmed it received CISPE’s complaint and is reviewing it under standard procedures. So far, Broadcom hasn't publicly responded to requests for comment.
The Commission’s decision will be closely watched. It has the power to halt Broadcom’s changes temporarily and require the reinstatement of the partner program. Such measures could protect the European cloud market’s competitive landscape.
But the stakes are high. Broadcom’s vision for VMware aims to streamline operations and focus on big enterprise clients. Reversing course could complicate those plans and reshape the relationship between software vendors and cloud partners.
At the same time, the broad exclusion of smaller CSPs risks consolidating power among a few large providers, potentially hurting customers who rely on diverse offerings and pricing options.
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With negotiations stalled and legal challenges mounting, the future of VMware’s partner ecosystem in Europe hangs in the balance. The European Commission’s next steps will be a major test of how regulators balance corporate restructuring with market fairness and customer choice.
This article was created with AI assistance.
