VMware Axes Lowest Tier of Partner Program, Sparking Concerns

Broadcom's VMware unit is overhauling its channel partner program, eliminating the lowest tier and imposing stricter requirements on the remaining levels. This move aims to improve partner capabilities and better support customers' transition to VMware's private cloud. While VMware assures vSphere users won't be affected, analysts predict this could push partners towards competitors like Microsoft, Nutanix, and AWS, potentially leading to market share loss. Furthermore, the upcoming VMware Cloud Foundation 9 introduces new licensing demands and hardware compatibility limitations, potentially exacerbating market disruption. The changes have been described as a “pivotal moment” by VMware executives, indicating a significant shift in strategy.