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Broadcom’s decision to end the Advantage Partner Programme for VMware Cloud Service Providers, set for 2026, risks shrinking Europe’s cloud ecosystem, sparking legal challenges and concerns over data sovereignty and reduced customer choice.
Broadcom has told VMware Cloud Service Providers that the Advantage Partner Programme will not be renewed, with the change taking effect on January 26, 2026, a move that will sharply narrow the pool of authorised partners and hit many European providers. According to industry reporting, the shift converts what had been an open reseller channel into a far smaller, selective group of partners. [2],[6]
The decision will deprive hundreds of European cloud service providers of the right to resell VMware software through the previous VCSP channel, prompting warnings from sector bodies that customers could face fewer choices and higher bills. CISPE and other critics say the consolidation risks eroding data sovereignty for European businesses by concentrating supply in the hands of a handful of large providers. [2],[4]
CISPE has already mounted legal challenges to the wider Broadcom-VMware transaction, arguing the European Commission failed to assess properly the competitive and sovereignty risks when it approved the takeover. The cloud provider group has taken its concerns to the General Court of the European Union, alleging procedural and analytical errors in the Commission’s review. [4],[7]
Industry figures have voiced sharp criticism. Kristian Liivak, chief technology officer of WaveCom, described Broadcom as a “bulldozer named Broadcom”, accusing the company of effectively sidelining the bulk of EU cloud partners. WaveCom recently joined CISPE, linking its membership to worries about European cloud sovereignty. [2]
Broadcom frames the change as aligning with “evolving customer requirements” and points to increasing uptake of VMware Cloud Foundation as justification for tightening the partner roster. Observers note this is the latest in a string of partner-programme adjustments: Broadcom removed VMware’s Registered partner tier in mid-2025 and introduced a more restricted, invitation-only cloud provider programme late that year. [3],[6]
Critics say the cumulative effect of cancelled contracts, tightened entry criteria and new licensing terms seen since the acquisition, including reported price increases and longer mandatory commitments, is to squeeze smaller providers and push customers toward a concentrated set of suppliers. Some point to the U.S. market, where only a limited number of VCSPs remain, as a preview of what may unfold in Europe. Broadcom maintains its changes will simplify procurement and deliver greater value, but dissatisfaction among partners and customers remains pronounced. [5],[2]
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Source: Fuse Wire Services
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