Broadcom acquires VMware, what’s next?

Latest update time：2024-04-14

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Source : Content compiled from Forbes&theregister by Semiconductor Industry Observation (ID: i c bank), thank you.

Broadcom's recent acquisition of VMware is changing the cloud computing landscape, sparking widespread debate and concern. The strategic shift is sending shockwaves throughout the industry, marking a milestone not just for VMware but for its extensive network of more than 10,000 managed service providers (MSPs) and resellers, which has now shrunk to 500 significant changes. This dramatic integration leaves many long-time VMware partners in a precarious position as they face the daunting prospect of navigating uncharted territory without clear guidance. Despite the initial upheaval, deeper analysis reveals the landscape to be full of new possibilities and pathways for adaptation and growth.

Redefining partnerships in the VMware ecosystem

Broadcom's overhaul of the VMware partner model marks a significant departure from traditional practices and fundamentally changes the landscape of collaboration and service delivery within the cloud computing industry. This strategic shift aims to draw a clear line between entities that can adapt to the new dynamics and those that risk marginalization. With the list of partners offering enhanced services significantly reduced, it becomes more difficult for businesses to obtain the necessary support. As VMware shifts to more direct interactions with customers, former allies and competitors accustomed to the previous model may find it challenging to secure their place in the evolving ecosystem.

Revisions to the VMware Cloud Connect Partner Program will take effect in May 2024, promising to reshape the market with several key changes:

Transition from traditional perpetual licensing to a subscription-based licensing model.
Moving from RAM-based pricing to CPU core-based pricing changes the cost structure.
Introducing limited new product portfolio options may complicate service offerings.
As the scope of VMware partners narrows, search for alternative licensing and service providers is encouraged.

These adjustments are not just operational; They mark a significant shift in strategy that could redefine future market participation and competitive dynamics.

Navigating the New VMware Landscape: Challenges and Opportunities for Enterprises

Broadcom's acquisition of VMware poses significant challenges to VMware's competitors and the more than 10,000 partners who have not been selected into its Premier Partner tier. This development has triggered multiple chain reactions throughout the cloud computing industry:

Market restructuring: New partner hierarchies may cause many MSPs and resellers to lose their previous advantages, forcing them to re-evaluate their strategies.
Competitive dynamics: Competitors face a more unified and potentially powerful competitor in the cloud and virtualization space thanks to Broadcom's VMware.
Innovation and Adaptation: Organizations that are slow to innovate or adapt may struggle to stay relevant in a rapidly changing marketplace.

For enterprises using VMware, key changes arriving in May 2024 could disrupt their cloud strategy and operational dynamics and potentially lead to increased costs. Many managed service providers (MSPs) and cloud service providers (CSPs) will no longer be able to resell or support VMware after May, meaning potential disruption and migration to alternative platforms, as well as adapting to new licensing models and cost structures challenges.

However, this shift also provides opportunities to modernize cloud infrastructure and discover cost-effective solutions. Choosing a trusted cloud and security advisor, especially from a top VMware cloud provider partner, is critical to navigating these changes. Such partners can provide:

Seamless migration: Help move to the best cloud solution, whether it's a secure private, public or hybrid cloud.
VMware Expert Support: Ongoing, professional support to ensure your existing VMware environment remains efficient and applications are optimized.
Cost-saving optimization: A cloud-agnostic approach to finding the most effective solutions for your organization’s specific needs.

Despite the challenges of VMware's strategic shift, the path to successfully navigating it remains:

Form strategic alliances: New or strengthened alliances, especially with key Broadcom program participants, can bring new opportunities for white label services from key VMware partners.
Diversify your offerings: Exploring alternative revenue streams, such as OpenStack or Nutanix, can reduce reliance on any single vendor or model. However, it's worth noting the complexity of OpenStack and the higher cost of Nutanix.
Focus on core competencies: Focusing on what your company does best can improve your market position and attract new customers.

Seize the moment: Establish strategic partnerships now

Broadcom's acquisition of VMware marks a critical transition in the world of cloud computing, reshaping the industry's framework and calling to action for smaller MSPs, CSPs and their customers. If you find your enterprise is on the edge of this new VMware ecosystem, or you are a customer of one of these smaller MSPs, the imperative is clear: adapt now, embrace innovation, and act quickly. Now is a critical time to identify and align with strong, reliable partners who have secured a spot in VMware's updated partner program.

This period of change presents an unparalleled opportunity for smaller service providers to form alliances with top providers in the VMware Partner Network. Aligning with a partner who shares your values and commitment to innovation can unlock significant advantages in an ever-changing environment, allowing you to respond to market uncertainty with confidence and agility.

For smaller MSPs and CSPs, the message is even more urgent: Explore strategic partnerships today to increase your resiliency, adaptability, and long-term success in an industry where change is the only constant. By proactively joining forces with established, values-aligned VMware partners, your organization can thrive in transformation and be prepared to meet the challenges and opportunities of tomorrow's cloud computing landscape.

VMware’s new brand: Omnissa?

According to a report from theregister, VMware's end-user computing product may be renamed Omnissa after the sale.

Broadcom decided to sell off its desktop and application virtualization portfolio after acquiring the VMware business, believing the products exceeded demand. They were acquired by private equity firm KKR for about $4 billion.

The Omnissa name appears in a VMware Knowledge Base article published on April 11, suggesting that starting on May 6, users of the product will be able to access support services through customerconnect.omnissa.com.

VMware had previously sought to register the "Omnissa" trademark, defining the term as describing "computer services that provide end-user computing to personal computers, tablets, and mobile devices, i.e., to provide a remote work experience to individual members of an organization."

The creation of a post on the Omnissa Subreddit (specifically for previous VMware products) is another sign that Omnissa is coming soon (say, five times faster).

Despite the presence of Omni Space Situational Awareness (which uses the abbreviation OmniSSA), KKR is presumably confident that it will be able to obtain the trademark.

The Register will be concerned about KKR's lawyers, but we are more sympathetic to the plight of the technical staff at Broadcom and its VMware business unit. The knowledge base article also revealed that they were about to launch a migration project with a tight deadline at a very tricky time.

The article is titled "VMware Supports Transition to Broadcom" and explains that on Tuesday, April 30 at approximately 5:00 PM PT, the online tool allows user registration, license management, account management, registration for learning courses, and "purchase or the upgraded product " " will not be available.

According to CRN, VMware will migrate its own SAP systems to Broadcom's Oracle software, and the migration is scheduled to end "at approximately 7:30 pm on Sunday, May 5, 2024."

VMware said similar features and functionality will be available to VMware customers at support.broadcom.com by 08:00 Monday morning.

The outage happens to occur toward the end of Broadcom's second quarter of 2024. So, given the lack of opportunities to purchase or upgrade products during the migration window, the tech group wants to ensure it gets all of its planned support revenue before the system is shut down.

Migration teams will be under a lot of pressure to complete the work within the narrow window defined by VMware, and delays of even a few days may reduce revenue.

Broadcom is also under pressure to ensure a good support experience because its strategy with VMware has been to only do deals that bundle product and support - an arrangement it insists will allow customers to realize more value faster.

But if the move causes confusion, users who see VMware's costs rising will have reason to complain that they're not getting what they were promised.

Original English text

https://www.forbes.com/sites/emilsayegh/2024/04/09/navigating-the-new-vmware-landscape-post-broadcom-acquisition/?sh=698fde522945
https://www.theregister.com/2024/04/12/vmware_omnissa_support_pause/?td=rt-3a%EF%BC%89

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