The VMware Partner Shake-Up: What’s Happening and How It Affects You

TL;DR

• Broadcom is closing the current program for VMware Cloud Service Providers (VCSPs) and sunsetting the White label model on October 31, 2025 and replacing it with an invite-only VCSP program effective November 1, 2025 .

• Non-renewing partners may continue as normal servicing both existing and new customers until October 31, 2025, but cannot sign new commitments or renewals afterward .

• The move follows the launch of VMware Cloud Foundation 9.0, which Broadcom says “underpins a small number [of] hyperscale private cloud platforms in each region,” and is intended to “drive simplification, consistency, and innovation” across its cloud partner ecosystem .

• Call to action: review your VCSP agreements, engage early with authorized VCSPs, and align your roadmap to avoid service disruption .

Broadcom is making waves across the VMware partner ecosystem, and it’s more than just a routine update. By the end of October 2025, the existing VMware Cloud Service Provider (VCSP) program will be retired, and with it, a large number of partners will no longer be authorised to support or sell VMware solutions.  

Although Broadcom has yet to release the full details of the updated partner program, Broadcom confirmed that Macquarie Cloud Services will continue as an Authorised VMware Cloud Services provider (VCSP) partner under the updated Broadcom Advantage Partner framework, effective November 1^st, 2025.  
  
This positions us among a select group of cloud providers in Australia authorised to deliver a Managed VCF services, ensuring our customers retain access to trusted, enterprise-grade private cloud solutions in new Broadcom ecosystem.    
  
This shift is part of Broadcom’s strategy to streamline the partner landscape and double down on high-impact relationships. The goal? Fewer partners, stronger capabilities, and a more focused delivery model built around VMware Cloud Foundation (VCF).  

So, where does this leave your business?  

If you currently rely on a VMware partner who hasn’t been invited into Broadcom’s future program, you could soon face a range of challenges, from disrupted renewals and support gaps to cost surprises during migrations.  

That’s why this moment calls for clarity, forward planning, and the right partner.  

Here’s what we know:  

• The partner ecosystem is being trimmed: Broadcom will work only with a select group of VCSPs going forward. This isn’t a gradual shift, it’s a hard stop. Non-renewing partners have already been notified and will exit the program after October 31, 2025. Following that date, partners can continue to service their current VCSP commitment agreements until they expire, but they won’t be able to enter into new commitments or renewals.  

• White Labelling is being phased out: The ability to operate under another provider’s license (known as White Label) is also ending. From November, partners can continue to service their current VCSP commitment agreements until they expire.  

• VMware Cloud Foundation takes center stage: The future of VMware in Broadcom’s vision is centred on VCF, positioning it as the core of scalable, managed private cloud services. Broadcom is betting on a hyperscale approach, delivered by fewer, more capable providers in each region.  

What this means for you:  

If you’re working with a partner who hasn’t been retained, you may soon run into issues like:  

• The inability to renew or expand your current VMware footprint.  

• Potential loss of technical support continuity.  

• Higher costs due to reduced bundling options or migration overheads. 

• Uncertainty during renewals or SLA rollovers.  

These risks are real, but they’re also avoidable.  

Where we fit in:  

Macquarie Cloud Services remains a fully authorised VMware Cloud Service Provider under Broadcom’s updated program and we’re not going anywhere.  

We’re proud to be able to help our customers navigate these changes with confidence and control.  

Whether you’re looking to renew, re-evaluate, or completely re-architect your VMware strategy, we’re ready to help.  

What to do now:  

1. Ask the tough question: Is your current VMware partner still authorised beyond October 2025?  

2. Take stock: Review your current licensing agreements, upcoming renewals, and dependencies.  

3. Let’s talk: Even if you’re unsure, reach out. We’ll help assess your risk and outline your options, no pressure, just clarity.  

The VMware world is changing, but with the right partner, your path forward doesn’t have to be complicated.  

How Macquarie Cloud Services can help:  

Infrastructure Optimisation: Given Broadcom’s shift to metering based on physical cores.     

Licensing and Procurement: Navigating the new licensing models and procurement options.     

Evergreen Operations: Ensuring your operations remain up-to-date and efficient.     

Cost and Environmental Predictability: Managing costs effectively while considering environmental impacts.     

Certified VCF Architecture: Explore the full benefits of the VMware Cloud Foundation suite.     

Integrated Backup and DR Services: Native or partner-based Disaster Recovery and Backup-as-a-Service, ensuring resilience and business continuity.  

Hybrid Cloud Connectivity: Seamless extension between on-prem, Macquarie Cloud, and public cloud via Cloud Services gateway and VPN options.  

Risk, Governance, and Compliance: Addressing new risks and compliance requirements in this changing landscape.    

Authorised License Portability Partner: Secure your existing license investment when transitioning to Macquarie cloud.     

Proven Migration Expertise: Structured transition programs to minimise risk and downtime. 

FAQs

1. What is changing with the VMware Partner Program? 

Broadcom is terminating most existing VMware partner agreements in Australia effective from November 1, 2025. Managed Service Providers (MSPs) who are not in the invite-only Broadcom program will no longer be able to sign new VMware commitments or renewals. By April 2027, all VMware workloads must be transitioned. 

2. What does the notice period mean for my MSP? 

Until October 31, 2025, non-invited VCSP partners can still transact as usual including contract renewal and added capacity. After that date, they may only service existing VCSP contracts. However, all contracts must end by March 2027 at the latest.  

3. What happens after November 1, 2025? 

From November 2025, MSPs can only service existing customers on existing commit contracts. MSPs cannot sign new customers or expand beyond the co-terminus date of March 2027. The focus of MSPs after November 1, 2025 shifts to winding down operations and preparing for migration to an authorised VMware VCSP partner, such as Macquarie Cloud Services. 

4. When is the final cut-off date? 

The final cut-off date is April 2027. After that date, Broadcom-based cloud services from retired partners will no longer be supported all workloads must migrate off the old program. There is a transition period from October 3, 2025 to March 3, 2027. 

5. How does this affect existing VMware customers who are not supported by an authorised VMware VCSP partner? 

1. Customers won’t be able to renew or expand their VMware footprint with their current CSP beyond March 2027. 

2. Customers may face disruption in technical support and SLAs. 

3. All migration risks and expenses will become the responsibility of the existing CSP, with direct impact onto customers. 

6. Can MSPs still add capacity for existing customers? 

Yes, but only until March 2027, and only under the co-terminus requirement with existing commit contracts. After this date, MSPs must migrate VMware customers to an authorised VMware VCSP partner, such as Macquarie Cloud Services. 

7. What are my options as a transitioning MSP? 

1. Re-platform customers to alternative private/public cloud environments. 

2. Partner with a continuing Broadcom partner or white-label provider, such as Macquarie Cloud Services. 

3. Explore migration incentives from providers offering transition support. 

8. What risks do customers face if non-invited CSPs don’t act now? 

Customers risk losing continuity, being forced into rushed and more expensive migrations, and suffering gaps in compliance, SLAs, and security post-2027. 

9. What is the “VMware cliff” and why is it a problem? 
The VMware cliff refers to the hard deadlines in 2025 and 2027 that force MSPs to re-platform customer workloads. Waiting until renewals bite creates high costs, migration risk, and potential customer churn. To avoid the VMware cliff, it’s recommended to transition all customers to an authorised Broadcom VMware Cloud Service Provider as soon as possible to reduce customer costs and risks.  

10. How will these VMware changes impact MSPs? 
MSPs risk losing recurring revenue, customer contracts, and reputation. Without an authorised partner, you can only service existing VMware agreements until they expire, leaving you exposed to churn and margin erosion. 

11. What opportunities does the Broadcom VMware change create for my MSP? 

While disruptive, the Broadcom VMware change creates a chance to: 

1. Secure customers trust by proactively leading their transition. 

2. Differentiate on service continuity, SLAs, and long-term stability. 

3. Bundle value-added services, such as cost optimisation, automation, managed Azure to win share during the forced migration window. 

12. How can Macquarie Cloud Services help? 

Macquarie Cloud Services is an authorised Broadcom VMware Cloud Service Provider.  

As Australia’s most recommended cloud provider (live NPS +94), we offer Partner Exit Support packages, including: 

1. Free migration consultations. 

2. Discounted onboarding and workload optimisation. 

3. Co-branded customer communication to ease transitions. 

4. Partner-first commercials to protect MSP margins 

5. Local 24/7 support, backed by an industry-leading NPS of +94 

6. A proven track record supporting MSPs like Virtual IT Group (VITG).