Why Did Broadcom Eliminate VMware’s Lowest Partner Tier Everywhere Except Europe?

Is Broadcom’s Controversial VMware Partner Purge Creating Dangerous Market Disruption?

Broadcom has eliminated the lowest tier of its VMware partner program across the Americas, Asia-Pacific, and Japan regions, while notably exempting European partners from these changes. This latest restructuring represents another significant shift in Broadcom’s ongoing transformation of VMware’s channel strategy since acquiring the virtualization giant in November 2023.

Strategic Restructuring of Partner Tiers

The company announced on June 1, 2025, that it would streamline its four-tier Broadcom Advantage Partner Program for VMware Resellers down to three tiers by eliminating the Registered tier entirely. The remaining structure now consists of:

• Pinnacle (highest tier)
• Premier
• Select (new lowest tier)

Brian Moats, Broadcom’s Senior Vice President for Global Commercial Sales and Partners, justified this decision by stating that “the vast majority of customer impact and business momentum comes from partners operating within the top three tiers”. Laura Falko, Broadcom’s Head of Global Partner Programs, explained that most Registered partners were “inactive and lack the capabilities to support customers through VMware’s evolving private cloud journey”.

Elevated Requirements for Remaining Partners

Broadcom is simultaneously raising the bar across all remaining partner tiers with stringent new requirements:

Pinnacle Partners must

• Hold Expert Advantage Professional Services Partner status demonstrating advanced VMware Cloud Foundation (VCF) deployment capabilities
• Alternatively, maintain a dedicated Small and Medium Business (SMB) practice supporting scalable adoption

Both Pinnacle and Premier Partners must

• Maintain dedicated sales and technical resources for complete customer lifecycle support
• Execute joint business plans with VMware ensuring alignment and mutual deliverables
• Demonstrate consistent engagement through regular deal activity and ongoing training

European Exception Raises Questions

The most intriguing aspect of this restructuring is the complete exemption of European partners from these changes. Broadcom confirmed to The Register that it has “no program changes to announce in Europe”. This geographic selectivity appears particularly significant given recent regulatory scrutiny from European authorities.

The Cloud Infrastructure Services Providers in Europe (CISPE) recently issued a report suggesting that Broadcom’s VMware licensing model potentially violates European competition regulations. The European Cloud Competition Observatory gave Broadcom a “red” status ranking for policies that “force partners to choose between being a service provider or a reseller”.

Industry Impact and Partner Frustration

This latest change continues a pattern of constant upheaval that has characterized Broadcom’s management of VMware since the acquisition. According to Canalys analyst Alastair Edwards, over 60% of VMware partners surveyed at the start of 2025 were unhappy with their relationship, with more than one-third expressing “extreme dissatisfaction”.

The affected Registered partners will receive 60 days’ notice before deauthorization, with Broadcom promising to “work proactively with affected customers to transition them to qualified partners”. However, industry analysts suggest this move will benefit VMware’s competitors as displaced partners and customers seek alternatives.

Broader Strategic Context

This partner program reduction aligns with Broadcom’s broader strategy of focusing on larger enterprise customers and emphasizing VMware Cloud Foundation over traditional vSphere products. The company has consistently prioritized partners who can support customers’ transition to private cloud environments and demonstrate substantial revenue commitments.

The timing and geographic limitations of these changes suggest Broadcom is navigating complex regulatory landscapes while attempting to streamline its operations for maximum profitability—a strategy that has characterized the company’s approach to previous acquisitions including Symantec and CA Technologies.