January 11, 2024 Broadcom’s hefty $61 billion acquisition of VMware is turning the virtualization world upside down, especially for Cloud Services Providers (CSPs). The big shake-up comes as Broadcom gears up to fold VMware into its own divisions, as reported by The Register. What’s grabbing headlines is Broadcom’s decision to pull the plug on the VMware Cloud Services Provider program by April 30, 2024. This move hits smaller cloud operators, who deal in VMware-based services, the hardest.
The industry is abuzz with talks of Broadcom’s new strategy: zooming in on bigger, more lucrative customers and possibly sidelining the smaller players. It’s a classic case of David versus Goliath, only this time, Goliath seems to be holding all the cards. Roy Illsley, the chief analyst at Omdia, sees this as a tactical move by Broadcom to boost VMware’s profitability and better integrate it into its larger business vision.
This decision throws a curveball at smaller providers and their clients, who now face a murky future. There’s a growing concern about the need for a hasty switch to new service providers, leaving many in a state of flux and uncertainty.
