back to article VMware by Broadcom offers a lifeline to small cloud service providers

VMware by Broadcom appears to have made concessions to some of the cloud service providers it has previously indicated it will spurn. Pre-acquisition VMware ran a Cloud Services Provider (VCSP) program that saw some partners offer various VMware applications as cloudy managed services, plus a VMware Cloud Providers Program ( …

  1. Piro Silver badge

    Yeah, I know about this

    But it means, often, that you give a direct competitor a cut of your business. It's not a good program.

    1. abend0c4 Silver badge

      Re: Yeah, I know about this

      What's supposed to be in this for the "primary" providers? I suppose they might get access to smaller customers while subcontracting the hassle, but presumably if the the second tier just sinks they'd still get to pick up whatever chunk of the business they thought was worth salvaging from the wreckage. And for the secondary providers, it's presumably just a downhill slope with a gentler gradient.

    2. Anonymous Coward
      Anonymous Coward

      Re: Yeah, I know about this

      It means instead of buying licenses from the disty, like we have done for the last 15+ years, we now have to buy from a white label partner, who buys from the disty we used to buy from and adds their markup.

      We have been VMWare evangelists for years, but had an edict at the company today that we will no longer be selling any VMWare licenses and will be transitioning our hosted business to another provider.

      1. Dimmer Bronze badge

        Re: Yeah, I know about this

        The difference between perpetual license and yearly is you owning your business or they do.

  2. Antonomasia Coward

    Two weeks to go...

    Everyone this applies to has already got a plan to get off VMware at this stage due to the risk, and the increased cost and commitment, but whether they've been able to execute on it is another matter.

    They've blown it. With less than two weeks to go before the expiry of the existing agreements, this comes as too little too late.

  3. media.acc985

    Why keep screwing with VMware?

    Since the merger, they don't care about your business. It's clear. They are just trying to save revenue now. You were an after thought.

    Dump them for HyperV, AHV or any other number of hypervisor solutions that'll do what you need.

    We gotta show these corporate bullies that were done taking sh*t from them. They talk "partnership" and "loyalty" then turn around and screw you just as soon as they think they have a chance.

  4. kubernates

    Not all Partners are Good

    Just keep in mind that not all partners provide value, so if they didn’t get an invite, I wouldn’t be surprised that they weren’t doing any business with VMware to begin with

  5. Anonymous Coward
    Anonymous Coward

    VMWare has a lot of people by the balls

    There are technically sound Open Source alternatives, but they come with steep learning curves. We've got OpenStack hosts in-house, but most of our customers prefer to stick with VMWare. Once they get to know Broadcom, perhaps they'll re-evaluate their options.

  6. david1024

    Was waiting for this

    I wondered why this didn't happen organically and they had to announce it. However, this is still going to be a major cost upper as the middle tier has to absorb the license counts fully before they can sell.

    I'm guessing they don't care about all the money they are leaving on the table and that is going to others? Are they that sure the onprem is dead this year?

  7. Anonymous Coward
    Anonymous Coward

    Too little, too late. The show's over. Everyone who can move will move, as soon as they possibly can. On 31st March, it'll be like a global power cut as thousands of VM-metering hosts go dark. What an unbelievably stupid strategy. Broadcom's share price (as of yesterday) has fallen by c.$200 in the past two weeks. Cue tiny violins.

  8. Nadine P

    Addiotional facts that were left out from the article

    - L1/L2 support comes always from the Primary VCSP, L3 also when Secondary VCSP is running licenses on customer hardware or at customer premises. So you're not buying licenses only as you are buying value-added L1/L2/L3 services -> therefore we will see quite large pricerange and need to do price check with all the Primaries that support your area. Less than 2 weeks time to do this and do the agreements with the chosen one.

    - Its mandatory to tell the customers to Primary VCSP, no codes/hiding allowed - would you tell your customers to your competitor? No, therefore you try to pick Primary that will not call your customers (and tell "hey you can get this cheaper from us").

    - Primary VCSP commits to Secondary VCSP licenses for certain time, seems like 12/36 months (not yet told ofc) -> Secondary commits to the same, so it will be not monthly based as it used to be.

    - List of "potential" Primary VCSPs can be found here, should be updated daily (last upd May 15th) ... and yes, potential ... not certain ones. https://ent.box.com/s/4y69dq9yfgihmo4ethqh11zr9tf4mdar

  9. Vulture@C64

    As above you have to tell the white label provider who your customers are and then pay a massive cost, if you want pay as you go it's still US$400 minimum per core per year which is for most businesses 4x or 5x what they were paying before and you have to get support from the white labeler... who may not be used to providing support on the level you may need. Most of them have very good internal tech teams for their own cloud offering but aren't used to delivering that to external customers.

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