Broadcom dropped a bombshell on its VMware partners, telling them they are all sacked and must reapply for their jobs.
The tech giant, which bought VMware for a whopping $61 billion last year, is axing all of its partner agreements with VMware resellers and service providers.
Broadcom will only let a select few join its new invite-only partner programme, which it claims will offer more profits and perks.
Thousands of smaller partners are waiting to find out if they can still sell VMware’s virtualisation software.
In an email titled “VMware Partner Programs Termination Notice”, Broadcom told partners to update their contact details on its portal as they prepare for the chop.
The email, signed by the Broadcom Partner Program Office, said: “Broadcom remains committed to creating value within our combined ecosystem, which has been made more substantial with the addition of VMware partners.
“Effective February 5, 2024, Broadcom will be transitioning VMware’s partner program to the invitation-only Broadcom Advantage Partner Program.
“Based on recent discussions with hundreds of partners globally, this transition will help our partners achieve even greater opportunities for profitability through simplified bundled offerings and more opportunities for service revenues.”
It would appear that only those who make between $500,000 and $1 million or more in revenue will get an invite, which could mean smaller partners left out in the cold.
VMware is understood to have leaned on 4,000 VMware service provider partners worldwide.
Partners said they were blindsided by the announcement just before the Christmas holiday.
