By ByteBot
“A bulldozer named Broadcom has finally rolled over the remaining EU cloud service providers.” That’s how Kristian Liivak, CTO of Estonian cloud provider WaveCom, describes what just happened to hundreds of VMware partners across Europe. On January 26, Broadcom terminated its VMware Cloud Service Provider program, giving affected partners until March 31 to close any open deals. After that, they’re done.
This isn’t a gentle phase-out. Broadcom shut down the Broadcom Advantage Partner Program entirely, cutting off hundreds of European cloud providers who’d spent years building VMware practices. In the US, only 19 providers reportedly remain from thousands. The same pattern is now hitting Europe, with a March 31 deadline that’s weeks away.
The Price Shock
The partner purge comes alongside price increases that can only be described as predatory. European customers are seeing VMware licensing costs jump 800% to 1,500% under Broadcom ownership. That’s not a typo—some businesses are paying ten to fifteen times more than before the acquisition.
CISPE, which represents 37 cloud providers across Europe, has documented these increases in complaints to the European Commission. Moreover, most of their members were forced to renew contracts under significant pressure, influenced by a lack of alternatives and abrupt termination threats. Broadcom sweetened the pill with rebates—but only for customers willing to commit to multi-year agreements at the inflated rates.
For companies relying on partners to manage their VMware infrastructure, the math is brutal: go direct to Broadcom at 10x the cost, find one of the handful of remaining “authorized” partners, or start planning your migration out of VMware entirely.
The Legal Backlash
However, European cloud providers aren’t taking this quietly. CISPE filed a case with the EU General Court in July 2025, seeking to overturn the European Commission’s 2023 approval of Broadcom’s $69 billion VMware acquisition. Their argument? The Commission handed Broadcom “a blank cheque to raise prices, lock-in, and squeeze customers” without examining antitrust risks or imposing protective conditions.
Germany’s IT customer association VOICE filed a separate competition complaint with the European Commission, adding regulatory pressure. Furthermore, both organizations argue that the merger approval process ignored obvious red flags about post-acquisition price gouging and ecosystem destruction.
Will these legal challenges reverse the merger? Unlikely. Nevertheless, they may result in fines, restrictions, or—more importantly—make the EU Commission think twice before rubber-stamping the next mega-merger.
What Comes Next
Gartner predicts VMware will lose 35% of its workload over the next two years. That might be conservative. When you destroy your partner ecosystem and jack up prices by 1,000%, customers start planning their exits.
The catch? Migration isn’t simple. Gartner estimates it takes 18 to 48 months depending on complexity, and companies consistently underestimate the operational consequences. Meanwhile, with the March 31 deadline approaching and partners unable to sign new deals, businesses that were sitting on the fence are being forced to make decisions now.
Alternatives exist. Nutanix AHV offers a turnkey replacement for enterprises. Proxmox VE provides open-source virtualization without licensing nightmares. Microsoft Hyper-V is included with Windows Server. Additionally, for organizations willing to modernize, OpenShift Virtualization brings Kubernetes-native infrastructure. The exodus has already begun.
Broadcom’s Spin
Broadcom’s official line? This is about “evolving customer requirements” and focusing on “VCSPs who have demonstrated commitment” to provide “greater value, stronger execution, and a more streamlined experience.”
Let’s be clear: decimating your partner ecosystem while raising prices 1,000% isn’t about customer value. It’s about extracting maximum revenue from customers who can’t easily migrate away. Broadcom’s strategy is textbook vendor lock-in weaponization—use VMware’s market dominance to force customers into direct relationships at whatever price Broadcom demands.
The “bulldozer” metaphor captures it perfectly. This isn’t strategic repositioning. It’s corporate greed, enabled by regulatory failure, destroying hundreds of small businesses that helped build VMware’s market position in the first place.
The Takeaway
If you’re running VMware infrastructure through a partner that just got terminated, start planning your next move. The March 31 deadline is real, and waiting won’t make your options better. Similarly, if you’re on direct Broadcom contracts, expect more price increases—there’s no competitive pressure left to stop them.
This is a cautionary tale about infrastructure decisions. Proprietary platforms with high switching costs give vendors leverage to squeeze customers after acquisitions. The EU Commission should be embarrassed for approving this without safeguards. And Broadcom? They’re proving exactly why vendor lock-in is dangerous.
The silver lining: VMware’s monopoly position is finally cracking. When Gartner predicts a “once-in-decades transformation” in server virtualization, that’s usually bad news for the incumbent. Ultimately, Broadcom’s bulldozer might be the catalyst the industry needed to diversify away from single-vendor dependencies.
