Broadcom has taken 2,000 of VMware’s best customers in a direct-only sales model drive.
It also told partners they would reject any deal they tried registering for a strategic account.
“If you send new opportunity registrations for strategic customer accounts, they will be turned down,” Broadcom told shocked VMware partners.
If a VMware partner’s deal with a strategic account is waiting, it “will be turned down,” Broadcom wrote.
Broadcom said they would reject those deals that have been approved but are “without a quote.”
Several sources said the number of top accounts being taken directly is around 2,000 worldwide, which matches what Broadcom CEO Hock Tan warned two weeks ago.
Broadcom announced two weeks ago that it would axe VMware’s partner programme and plan to invite some partners back.
Those VMware partners who make the cut will get an invitation to Broadcom’s partner programme starting 15 January.
According to sources, the qualifying level is based on partners making at least $500,000 or more yearly revenue.
At a meeting last Thursday, Broadcom bosses laid out new rules of engagement, according to partners on the call.
They said current VMware partners will still qualify and be allowed to keep registering deals in VMware’s partner connect portal until 4 February.
Broadcom said Advanced, Principal and Pinnacle partners are still eligible for deal protection, Ad+ discounts and preferred pricing until then.
VMware’s OEM partners are eligible for enterprise license agreement benefits only. Broadcom also said eligible product discounts will last until 4 February.
Some partners say they will stick with VMware, even if they are not partners. Instead, they will buy and support the product because they have too much of it installed.
