Navigating VMware’s Shift: What Partners Need to Know
The VMware–Broadcom changes have left many MSPs, system integrators, and resellers facing tough choices. Rising costs, restrictive licensing, and a lack of clarity about what comes next are putting pressure on both partners and their customers.
This page is designed to cut through the noise. Here you’ll find clear insights into what VMware’s decisions mean for the channel, how they impact margins and trust, and what options partners have moving forward. Our goal is simple: to provide context, clarity, and trusted pathways so you can make informed decisions for your business and your clients.
Explainer: Cut through the noise
What VMware Changed — and Why It Matters
Summary: Broadcom’s acquisition of VMware in late 2023 triggered sweeping changes that reshaped licensing and partner programs.
Perpetual licences have been phased out in favour of costlier subscription models with stricter minimums. Features once sold separately are now bundled into large suites like VMware Cloud Foundation, often forcing partners to pay for more than they need.
The partner ecosystem has also been cut back, with fewer tiers and many programs shifted to invite-only — leaving MSPs, resellers, and integrators without clear renewal paths. Renewal costs have in many cases doubled or tripled, straining client budgets and squeezing partner margins.
In short, Broadcom’s changes have created real disruption. Understanding these shifts is essential to protecting your business, maintaining trust, and planning sustainable alternatives.
Explainer: chain of changes
The Bigger Problem: Uncertainty and Trust
Summary: The real challenge for partners isn’t just higher licensing costs — it’s the uncertainty those changes create. When programs shift overnight and renewal prices spike without warning, partners lose the predictability they rely on to run their business.
That uncertainty quickly becomes a trust issue. Clients expect their MSP or reseller to guide them with clarity and confidence. But when the vendor changes the rules, partners are left managing awkward conversations, shrinking margins, and strained relationships.
For many in the channel, the question is no longer “What does VMware cost?” but “Can we still trust this as a long-term foundation for our business and our customers?”
Explainer: isn’t just higher licensing costs
A Stable, Experienced Partner You Can Trust
Summary: Overview Text (Web + Script)For more than 22 years, RackCorp has been helping Australian organisations — from government departments to universities to hundreds of MSPs — deliver secure, reliable cloud services.
We’re 100% channel-driven, which means we never compete with you. Instead, we strengthen your offering by giving you the tools and platforms to serve your clients better — from expanding your cloud services to automating customer billing.As VMware’s changes create disruption and uncertainty,
RackCorp offers something different: a local, experienced partner who understands the channel and is committed to your success. With RackCorp, you gain stability, flexibility, and the confidence that your clients will keep getting the service they expect — without rising costs or broken trust.
Explainer: 100% channel-driven
Your VMware Alternative — Seamless, Proven, Cost-Effective
Purpose: RackCorp’s VMware alternative is designed to take the pain out of transition. We provide a hosted VMware offering that makes it simple for partners to move away from Broadcom’s rising costs and restrictive licensing — without disrupting client services.
Partners who switch can cut costs by up to 60% compared to VMware’s new pricing, while gaining access to a broader set of cloud services, automated billing tools, and a local support team that understands the channel.
The process is straightforward: our team works with you to map your current VMware environment, plan the migration, and ensure your clients experience zero downtime. Many partners are already using RackCorp to protect margins, strengthen their services, and rebuild trust with customers.If you’re ready to explore your options, book a quick call with us. You’ll know within 10 minutes whether we’re the right fit — and if we are, you’ll walk away with a clear pathway to lower costs, better services, and a true channel-only partner.