I wasn’t aware of the shifts over at VMWare since the Broadcom acquisition, so I’m noting an article in Channel Futures. Broadcom’s acquisition of VMware has left many VMware partners stranded as Broadcom turns its back on them. Smaller companies are supporting these partners and providing safety nets for the channel and end users. The remaining partners who generate less than $500,000 in annual VMware revenue may not receive invitations to join the Broadcom Advantage Partner Program. This move by Broadcom to focus on its top 2,000 customers and cut off smaller partners has created turmoil in the channel. Rival vendors are now stepping in to rescue VMware partners, offering alternative solutions to replace the VMware stack.
Why do we care?
This does highlight the risk for smaller players in channel ecosystems, especially when reliant on a few large vendors. Smaller channel partners should develop strategies to mitigate the risks of over-reliance on a single vendor. This could include diversifying their product offerings or forming new alliances.. which is, of course, difficult when you are smaller. Managing your vendor risk is part of the requirements in today’s market.