EU Cloud Providers Urge Regulator to Revive VMware Partner Program After 95% Partner Cut
By Satoshi Itamoto • 2026-03-20T00:01:52.958135
A seismic shift has occurred in the cloud service provider landscape as a trade association of CSPs has lodged an antitrust complaint with the European Commission. The complaint centers on Broadcom's decision to drastically reduce the number of channel partners VMware collaborates with, following its acquisition of the company. This move has seen the replacement of VMware's partner program with an invite-only alternative, favoring larger partners catering to enterprise-sized clients over small-to-medium-sized businesses.
The implications of this change are profound, with the number of CSP partners working with VMware plummeting. Before the acquisition, VMware boasted over 4,000 CSP partners, according to a February 2024 report from The Register. In stark contrast, VMware now reportedly has a mere 19 CSP partners in the US and approximately nine in the United Kingdom. This significant reduction is largely due to Broadcom introducing a stringent requirement that CSP partners must operate at least 3,500 cores to be eligible for partnership, thereby rendering hundreds of CSPs ineligible.
The impact of this decision extends beyond the CSPs themselves, affecting the broader cloud computing ecosystem. For everyday users, this could mean reduced access to diverse cloud services, as smaller CSPs may struggle to compete without the support and resources provided by VMware's partner program. From an industry perspective, this shift could reshape how cloud services are delivered, potentially leading to a more consolidated market with fewer players.
The trade association's antitrust complaint urges the European Commission to reinstate VMware's original partner program, arguing that Broadcom's actions stifle competition and hinder innovation in the cloud computing sector. As the regulatory body deliberates on the complaint, the future of cloud service provision hangs in the balance. The outcome could have far-reaching consequences, influencing not only the cloud computing landscape but also the approach of regulatory bodies towards mergers and acquisitions in the tech industry.
In a market where flexibility and adaptability are key, the reduction of CSP partners could lead to a less dynamic ecosystem. This, in turn, may force smaller businesses and startups to seek alternative cloud solutions, potentially driving innovation in other areas of the cloud computing market. However, the immediate concern for many CSPs is the survival of their businesses in a landscape that seems increasingly hostile to smaller players.
The European Commission's decision on this matter will be closely watched, as it will set a precedent for how regulatory bodies balance the interests of large corporations with the need to maintain a competitive and innovative market environment. For now, the cloud service provider community waits with bated breath, hoping for a resolution that will allow them to continue providing diverse and innovative services to their clients.
The situation highlights the complex interplay between corporate strategies, regulatory oversight, and market dynamics. As the cloud computing sector continues to evolve, the importance of maintaining a balanced ecosystem that supports both large and small players cannot be overstated. The coming months will be crucial in determining the future trajectory of this critical sector of the tech industry.
The implications of this change are profound, with the number of CSP partners working with VMware plummeting. Before the acquisition, VMware boasted over 4,000 CSP partners, according to a February 2024 report from The Register. In stark contrast, VMware now reportedly has a mere 19 CSP partners in the US and approximately nine in the United Kingdom. This significant reduction is largely due to Broadcom introducing a stringent requirement that CSP partners must operate at least 3,500 cores to be eligible for partnership, thereby rendering hundreds of CSPs ineligible.
The impact of this decision extends beyond the CSPs themselves, affecting the broader cloud computing ecosystem. For everyday users, this could mean reduced access to diverse cloud services, as smaller CSPs may struggle to compete without the support and resources provided by VMware's partner program. From an industry perspective, this shift could reshape how cloud services are delivered, potentially leading to a more consolidated market with fewer players.
The trade association's antitrust complaint urges the European Commission to reinstate VMware's original partner program, arguing that Broadcom's actions stifle competition and hinder innovation in the cloud computing sector. As the regulatory body deliberates on the complaint, the future of cloud service provision hangs in the balance. The outcome could have far-reaching consequences, influencing not only the cloud computing landscape but also the approach of regulatory bodies towards mergers and acquisitions in the tech industry.
In a market where flexibility and adaptability are key, the reduction of CSP partners could lead to a less dynamic ecosystem. This, in turn, may force smaller businesses and startups to seek alternative cloud solutions, potentially driving innovation in other areas of the cloud computing market. However, the immediate concern for many CSPs is the survival of their businesses in a landscape that seems increasingly hostile to smaller players.
The European Commission's decision on this matter will be closely watched, as it will set a precedent for how regulatory bodies balance the interests of large corporations with the need to maintain a competitive and innovative market environment. For now, the cloud service provider community waits with bated breath, hoping for a resolution that will allow them to continue providing diverse and innovative services to their clients.
The situation highlights the complex interplay between corporate strategies, regulatory oversight, and market dynamics. As the cloud computing sector continues to evolve, the importance of maintaining a balanced ecosystem that supports both large and small players cannot be overstated. The coming months will be crucial in determining the future trajectory of this critical sector of the tech industry.