Broadcom Announces Removal of the Entry-Level Partner Tier in Certain Regions
In a recent strategic move, Broadcom has made the decision to eliminate its lowest tier of its partner program, known as the “Registered” level. Instead, the company will now focus solely on the three higher tiers: Select, Premier, and Pinnacle. According to Broadcom, these upper tiers generate the majority of their business activity and are thus prioritized for the company’s channel development efforts.
This change, however, is currently limited to the Americas and Asia-Pacific regions—including Japan—and does not affect the European market. Analysts suggest that this regional differentiation may be linked to broader regulatory and compliance pressures that Broadcom faces in these territories.
There is speculation that the decision may also be influenced by ongoing scrutiny from the European Union, which has recently shown increased interest in Broadcom’s activities. The European Commission has requested additional information regarding Broadcom’s dealings—particularly concerning its VMware acquisitions—but has yet to open a formal investigation. Additionally, a complaint was filed with EU authorities by VOICE, a German association of CIOs similar to the French Cigref, underscoring the regulatory environment’s tightening grip.
The “Registered” tier of the program, which requires partners to meet a fundamental set of criteria, has historically served as an entry point for partners to engage with Broadcom. To advance to higher levels such as Select, Premier, or Pinnacle, partners must fulfill more stringent requirements, which Broadcom considers essential to maintain higher standards of technical quality and commercial reliability. This strategic push also appears to align with Broadcom’s goal to promote its VCF (Virtual Cloud Framework) bundle more aggressively.
Partners currently holding the “Registered” status have begun receiving formal notices about the changes, with a 60-day transition period. Broadcom has stated it will “work with affected customers to facilitate their transfer to other partners.” To retain their partner status beyond the upcoming deadline, these partners will need to demonstrate ongoing engagement—such as closing new deals, participating in joint sales activities, and maintaining up-to-date skills and certifications.
Previous Changes to the VMware Partner Program in 2024
While Broadcom has not explicitly confirmed whether these modifications also impact VMware Cloud Service Provider (CSP) partners, it is notable that last year, the company significantly overhauled its VMware CSP partner program. That initiative resulted in a “size reduction” of the program, as Broadcom described it, with similar aims: to ensure that partners can deliver consistent services based on VCF.
The last year’s restructuring involved aligning partners across three levels—Pinnacle, Premier, and Registered—and introduced a new designation, VMware Cloud Commerce Partner. This status enables Premier partners to expand their offerings to include technical support and go-to-market assistance, including white-label arrangements with lower-tier Registered CSPs. For these CSPs, maintaining membership in the program was only possible until May 31, 2024, unless they transitioned to a higher tier or qualified for exemptions prompted by regulatory or legal constraints.
Overall, Broadcom appears to be refining its partner ecosystem, emphasizing quality and strategic alignment, possibly in response to regulatory pressures and the desire to streamline its partner network. The elimination of the Registered level signifies a move towards a more selective partnership model, focusing on partners capable of delivering higher standards of service and support within the company’s ecosystem.
