VMware Drops the Lowest Tier of Its Partner Program, Except In Europe
An anonymous reader quotes a report from The Register: Broadcom's VMware business unit has dropped the lowest tier of its channel program, a move one analyst told The Register will benefit its rivals. The virtualization pioneer currently operates a four-tier channel program spanning Pinnacle, Premier, Select, and Registered partners. On Sunday the business unit announced the retirement of the Registered tier. A blog post written by Brian Moats, Broadcom's Senior Vice President for Global Commercial Sales and Partners, states VMware made the decision because "the vast majority of customer impact and business momentum comes from partners operating within the top three tiers."
Laura Falko, Broadcom's Head of Global Partner Programs, Marketing & Experience, told The Register "The vast majority of these [Registered] partners are inactive and lack the capabilities to support customers through VMware's evolving private cloud journey. That's why the Registered tier is being retired to ensure every active partner meets a higher standard of technical, sales, and service readiness." Falko told us VMware will give Registered partners 60 days' notice before deauthorization and then "work proactively with affected customers to transition them to qualified partners in the new ecosystem, ensuring continuity and support throughout the change."
VMware has also introduced new requirements for partners in its remaining tiers. The virtualization giant will require Pinnacle and Premier partners to maintain dedicated sales and technical resources, and to "execute joint business plans with VMware to ensure alignment and delivery with mutual results." The Broadcom business unit is also "beginning the process of transitioning partners who no longer meet the minimum program requirements or have not demonstrated consistent engagement," suggesting even Pinnacle, Premier, and Select partners are not safe. The Register asked VMware to define "consistent engagement" and Falko told us it includes "regular deal activity," ongoing participation in joint sales activities, staying up to date with training, and "sustained, proactive commitment to a partner's VMware customer base." The changes will only apply in its Americas, and Asia-Pacific and Japan regions. Broadcom didn't explain why Europe was excluded.
The Register notes that trade associations in Europe have criticized Broadcom's changes at VMware and urged the European Commission to investigate the company.
Read more of this story at Slashdot.