Broadcom has strongly rejected allegations from a European cloud association regarding changes to its VMware partner program, saying the criticism “misrepresents the realities of the market.”
Dispute Over VMware Cloud Program
The controversy centers around Broadcom’s overhaul of the VMware Cloud Service Provider (VCSP) program in Europe.
According to reports, Broadcom has:
- Reduced the number of approved cloud partners
- Shifted to an invite-only model
- Focused on larger, high-investment partners
European Group Raises Concerns
The CISPE (Cloud Infrastructure Services Providers in Europe) has urged EU regulators to intervene, claiming:
- Many European cloud providers are being excluded
- The move could harm competition
- Customers may face limited choices
The group has even requested temporary regulatory action to halt the changes.
Broadcom Responds
Broadcom has dismissed the claims, stating:
- CISPE is influenced by major hyperscalers like Microsoft and Amazon Web Services
- The allegations are misleading
- The strategy is aimed at improving efficiency and innovation
The company emphasized its commitment to European partners and customers.
New Strategy: Fewer but Stronger Partners
Broadcom’s revamped approach focuses on:
- Partnering with select, high-capability providers
- Encouraging consolidation among smaller partners
- Building stronger alternatives to hyperscalers
The company believes this will create a more robust and competitive ecosystem.
Industry Impact
The changes could significantly reshape the European cloud landscape:
- Smaller providers may lose access to VMware solutions
- Larger partners could gain more market control
- Regulatory scrutiny may increase
Financial Context
Broadcom continues to see strong growth:
- Reported $19.3 billion revenue in Q1 2026
- Year-over-year growth of 29%
This reflects the company’s aggressive strategy following its VMware acquisition.
