What should European cloud providers do now that VMware is ending the VCSP program?

Why is Broadcom canceling the VMware Advantage Partner Program for European CSPs in March 2026?

Broadcom has finalized its consolidation strategy. As of late January 2026, the company officially notified European Cloud Solution Providers (CSPs) that the “Advantage Partner Program” is ending.

If you are a European partner or a customer relying on one, the deadline is strict. Broadcom will stop selling VMware licenses to these vendors at the end of March 2026. This move completes the aggressive restructuring that began immediately after the acquisition.

The Context: A Timeline of Instability

The transition has been turbulent. Since Broadcom acquired VMware, partners and customers have faced constant disruption. The new leadership wasted no time implementing changes:

• License Shifts: Perpetual licenses were eliminated immediately.
• Product Focus: The portfolio narrowed to VMware Cloud Foundation (VCF).
• Cost Increases: Subscription pricing rose significantly for many users.

The partner ecosystem suffered the most. In 2024, Broadcom terminated all existing agreements. Partners had to re-apply. By mid-2025, even those new contracts were being cancelled. Broadcom made its goal clear: it prefers dealing directly with a small number of massive, hyperscale partners.

The Final Cut: March 2026 Deadline

Many European providers held onto hope. They believed the “White Label” program or EU competition complaints would protect them. That hope is now gone.

The January 26 Notification

On January 26, 2026, Broadcom sent a definitive email to European partners. The message was blunt:

1. The Advantage Partner Program for VCSPs is discontinued.
2. Agreements will not be renewed.
3. The White Label model for the European Economic Area is ending.

Operational Restrictions

Broadcom has set a hard stop. Ousted partners can service existing contracts until they expire. However, partners cannot sign new deals that extend beyond their current commitment term. Broadcom explicitly advised partners to close any open sales opportunities by March 31, 2026.

Broadcom’s Rationale vs. Market Reality

Broadcom describes this as “simplification.” Their stated strategy is to drive consistency by focusing deeply on a select group of partners who are fully committed to the VCF stack. They claim this creates a better alternative to public hyperscalers (like AWS or Azure).

The Partner Perspective

The market views this differently. Industry bodies like CISPE (Cloud Infrastructure Service Providers of Europe) describe the move as a forced consolidation. Critics argue this is not partner management; it is market control.

By eliminating thousands of smaller providers, Broadcom restricts customer choice. This raises serious concerns regarding:

• Data Sovereignty: Fewer local EU providers means fewer options for strict data localization.
• Compliance: Niche providers often handled specific regulatory needs that hyperscalers ignore.
• Cost: With competition removed, prices are likely to remain high.

Strategic Advice for Affected Businesses

If you are a customer currently hosting workloads with a terminated European VCSP, you must act immediately.

1. Audit Your Contracts: Determine when your current provider’s contract with Broadcom expires. This is your hard deadline for migration.
2. Evaluate Alternatives: The “Broadcom tax” and instability are driving a migration wave. Look at virtualization stacks based on Apache CloudStack, Xen, or localized solutions from providers like Vates.
3. Expect Friction: Migrating off VMware is technical and time-consuming. Do not wait until the final month of service.

The era of ubiquitous VMware availability is over. The ecosystem is now a closed garden, reserved only for the largest enterprises and the few partners Broadcom permits to remain.