Broadcom Set to Monetize VCF Platform

In an earlier post, we had discussed the challenges that Broadcom faced post its much-hyped acquisition of VMWare. For starters, the partnership program that the company brought forth for VMware left a few eyebrows raised as it gave the latter’s existing partners just about a blink of an eye time to get on board or ship out.

Now, Broadcom has formally rolled out its partner strategy for VMware’s Cloud Foundation (VCF) platform with the likely twin benefits in the form of addressing the existing partner ecosystem concerns and accelerating its own attempts to monetize what has already been called a white-elephant acquisition (it cost $69 billion). 

But, make no mistake as Broadcom is likely to leave no stone unturned to make the VMware Cloud Service Provider program, aimed at allowing providers and third-party resellers to offer and run the VCF, to be successful. So what, if it comes on top of something that VMware had prepared prior to its acquisition that saw its premature shelving. 

The two-pronged strategy envisaged by Broadcom

The new program, which includes Broadcom’s own Advantage Partner Program launched early last month, allows qualified partners to offer VCF and any of its cloud or managed services. Of course, there are a few murmurs floating around amongst VMware fans, but then that’s the way Broadcom plans to function. 

Not surprising therefore that a blog post from Ahmar Mohammed, VP for partners, managed services and solutions GTM at Broadcom believes that this new combo would generate a better consistent performance and go-to-market for VCF. Of course, we will never know what would have been its fate when VMware was the guiding entity. 

Here’s what Mohammed says, “All VCSP partners will deliver services based on the same VMware Cloud Foundation software customers deploy on-prem. No more different versions of VCF for different environments. This is crucial to helping customers achieve a true hybrid cloud experience. Delivering services based on the same consistent VMware Cloud Foundation stack enables partners to focus less on infrastructure and more on differentiating their managed services and specialization.”

Nothing’s changed, save Broadcom calling the shots

The VCSP comes with a pre-core subscription license that provides “a more consistent VCF experience for end-users” is the claim. Broadcom also notes that it will allow partners to compete and differentiate based on the value-added services they bring to the table for customers as a whole. 

While existing VCF customers could shift lock-stock-and-barrel to VCSP environments which would enable the partners to support customers interested in such shifts from what was a self-managed to a completely outsourced managed services model. Sounds like a great plan for the enterprise-level customers, doesn’t it? 

If that is the case, we wonder why the Broadcom official was so keen to utilize his blog post to prop up the Broadcom Advantage Partner Program itself? Readers would recall that this launch resulted in former VMware program partners being excluded from the new offering. Remember, the reference to the blink of an eye earlier?  

This is what Mohammad says, “Reducing the overall size of the VCSP program will ensure we have the right partners who are capable of delivering consistent VMware Cloud Foundation-based services to customers worldwide. This change will also give VCSP partners more chances to pursue opportunities for VMware Cloud Foundation in the regions they are authorized to serve,” 

The three-tier program of the two-pronged approach

Once again this makes it clear as to who’s in charge and what they have set out to achieve. Of course, some of you might say that it’s the prerogative of the acquirer, but dare we remind Broadcom that such an aggressive push could well kill the very brand that you acquired and the reasons customers stuck with VMware. 

Now coming to some details of the program itself, it appears that the VCSP will run on three tiers, viz., Pinnacle Partners, Premier Partners and Registered Partners. The first of these will have Broadcom helping to sell into corporate customers, which means it is priority number one for CEO Hock Tan’s revenue growth plans for the VMware division. 

Premier sales has a regional bias whereby partners with highly developed VMware practices and a good track record of delivering customer satisfaction are the target. The third tier – Registered Partners – simply hit the minimum benchmarks of the Advantage Partners Program and get into the VCF access ecosystem.