Broadcom's First Month with VMware: Layoffs, Partner Turmoil, and Strategic Chaos

Broadcom's acquisition of VMware, closed a month ago, since, there has been a whirlwind of changes, challenges, and uncertainties, particularly for VMware partners and resellers.

Here's a summary of key developments and their implications:

?? Halting 'Commingled' Carbon Black Deals: Broadcom instructed VMware partners to immediately stop bundling VMware products with those from Carbon Black and VMware End-User Computing. This directive came as Broadcom considered “strategic alternatives” for these units, indicating potential spin-offs or sales.

?? Impact on VMware Partners: The move to halt bundled sales affected VMware resellers' strategies, removing a key sales lever, and possibly necessitating repricing or separation from other product lines.

?? Layoffs and Restructuring: Post-acquisition, VMware faced significant layoffs and restructuring. Over 2,000 jobs were cut across several states, including California, Colorado, Georgia, and Massachusetts, as Broadcom sought to streamline operations. This led to operational difficulties for partners, with delays in deal approvals and pricing.

?? Reapply to Partner Program: Broadcom announced the termination of existing VMware partner agreements, effective February 4, 2024. Partners are required to reapply to see if they would be permitted to continue selling VMware products. This move particularly jeopardized smaller partners, potentially altering the VMware reseller landscape significantly.

?? Strategic Customer Segments Taken Direct: Broadcom decided to take about 2,000 top VMware accounts direct, eliminating opportunity registrations for these accounts from partners. This shift indicates Broadcom's intention to manage key accounts in-house, further impacting the partner ecosystem.

?? Uncertainty and Partner Response: The rapid and sweeping changes led to widespread uncertainty and concern among VMware partners. Some began considering alternatives, while others expressed frustration with the lack of communication and clarity from Broadcom.

?? The Future of VMware Under Broadcom: The acquisition and subsequent actions suggest a significant shift in VMware's operations and partner strategies. While Broadcom aims for streamlined operations and profitability, the changes have disrupted the established VMware partner network, with long-term implications yet to unfold.

Broadcom's acquisition of VMware marks a period of intense transition, marked by strategic shifts, layoffs, and a redefinition of partner relationships. This tumultuous phase poses challenges for VMware partners, reshaping the virtualization software landscape and leaving many questions about the future direction under Broadcom's leadership.

In conclusion, as the winds of change sweep through the virtualization landscape following Broadcom's acquisition of VMware, ComputerVault stands ready to empower resellers and customers in navigating these challenges. ComputerVault aims to fortify the resilience of the VMware ecosystem. By proactively engaging with customers and offering tailored solutions, we aspire to transform uncertainties into opportunities, ensuring a seamless transition and fostering success in the evolving landscape shaped by Broadcom's strategic shifts. Together, let's forge ahead into a future where adaptation and innovation pave the way for sustained growth and prosperity.