Broadcom Transitions VMware Partners To New Program

Broadcom’s $61 billion acquisition of VMware has sparked widespread discussion in the channel, with many wondering how the two partner networks will integrate and what it means for the broader ecosystem. To address these questions and explore the Broadcom Advantage partner program, CRNtv host Caleb Owen spoke with Tara Fine, Broadcom’s vice president of the Americas partner and commercial organization.

Caleb: Let’s start by defining Broadcom Advantage. How is this program different from the previous channel program? How do those changes reflect the new makeup of the company following the VMware acquisition?

Tara: I know it’s on everybody’s mind, so I’ll start by saying the design principles around this new and evolved program are really a direct response to the partner feedback we’ve received about VMware’s previous program. In addition to the best of what Broadcom brings to the table, it’s really focused on the principles of simplicity, predictability and profitability. Something we heard a lot from our partners was that we had significant channel conflict and a lack of understanding around incentives and compensation so what we’re really trying to do is address those issues. The new program prioritizes solving that conflict, re-evaluating new profitability around renewals, incentivizing long-term adoption of our products and simplifying what those products look like.

Caleb: There’s been talk that this is an invite-only partner program. Is that accurate and, if so, what’s the reasoning behind it?

Tara: The Advantage program is by invitation only, and we have invited all active VMware reseller partners that have transacted with us in the last three years. That is more than 18,000 partners we’ve invited to participate in the program. So, while it is invite-only, we did not exclude any partners that were doing business with us historically.

We’re really focused on the go-to-market approach and not competing with our partners. We’re intentionally looking for partners who provide expertise, capabilities and professional services that enable our customers to solve problems within their respective markets. We’re not going to try to be everything to everyone, and there will be big opportunities for our partners to step in, fill the gap, and really profit.

Caleb: What do you want VMware partners to know about the new program? How can they benefit from the transition?

Tara: A few of the things I really want our partners to know are that the new program provides a proven, simple, yet scalable framework for all of our business units and partner routes to market.

Partners can expect a net margin model, so all discounts will be systematically disclosed upfront. Partners will know exactly what they’re going to make on every deal across both new and renewal business. And then streamlined pricing—we’ve really simplified our pricing strategy to four SKU bundles to make it simple for partners to do business with us, understand what they’re selling and know how to sell it.

Those are some critical elements we want to make sure our partners are aware of.

Caleb: How do you expect the Broadcom Advantage Partner Program to unfold throughout 2024?

Tara: Over the next few months and throughout 2024, our partners can expect us to continue to listen and support them as we accelerate execution and drive expansion into the private and hybrid cloud for enterprise customers together. Partners can expect a continued radical simplification across our portfolio.

In our go-to-market and organizational structure, we will continue to work to make it easier to do business with us. Starting on Day Two, which is coming up in May, partners will be able to take advantage of the official transition from legacy VMware Partner systems to the Broadcom partner portal—the one-stop shop for resources partners need to do business with us in one unified platform. We couldn’t be more excited about this.

And last but not least, Broadcom will continue to invest in the program to ensure we’re creating a framework that helps partners be profitable, understand how to make money with us and add value to our mutual customers.

Learn more about the Broadcom Advantage Partner Program.