Broadcom Shuts Down VMware's CSP Partner Program, Sparking Antitrust Complaint
Cloud service providers file EU antitrust complaint over Broadcom's elimination of VMware's partner program, favoring larger enterprises over SMBs.
Broadcom's acquisition of VMware has led to a dramatic reduction in the number of cloud service providers (CSPs) partnering with the virtualization company. The trade association of CSPs has now filed an antitrust complaint with the European Union's European Commission (EC), alleging that Broadcom's actions are anticompetitive.
Prior to the acquisition, VMware had over 4,000 CSP partners worldwide. However, Broadcom has since introduced a new requirement that CSP partners must operate at least 3,500 cores, rendering hundreds of CSPs ineligible for partnership. This move has significantly reduced the pool of VMware's CSP partners, with the company now reportedly having only 19 CSP partners in the US and about 9 in the United Kingdom.
The elimination of VMware's partner program and its replacement with an invite-only alternative that favors larger partners working with enterprise-sized clients has been a point of concern for the CSP trade association. This shift has left many small-to-medium-sized businesses (SMBs) without access to VMware's services, potentially disrupting their operations.
Source: Ars Technica
