VMware VCSP Program Changes

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VMware VCSP Program Changes: Critical Information for Your Business

Ryan Robertson, Senior Account Executive at LAVA Technology Services | June, 2025

On July 15, 2025, Broadcom announced a major consolidation of the VMware Cloud Service Provider (VCSP) Program that has sent shockwaves across the IT ecosystem. As your trusted technology consulting partner, we want to ensure you’re fully informed about these changes and understand how they may impact your business operations.

What’s Changing?

The immediate impact centers around the significant reduction in the amount of providers who will be allowed to continue in the VCSP program long term. It will shrink from a few hundred providers, to a few dozen.

Providers who are not in the long-term plans will be able to add to their agreements with their clients until October 31st, 2025, and beyond that date, will only be allowed to manage their existing contracts for the remainder of that term, and will not be allowed to renew the contracts for their existing clients.

Another notable shift is the sunsetting of all abilities for current providers using the recently created White Label model.  This change will impact the smaller CSP’s who’s clients will now be forced to find another provider remaining in the VCSP program, or find a replacement for VMware.  

Under Broadcom’s new consolidated model, the implications are significant:

For affected VMware Cloud Service Providers:

  • No new customer onboarding after October 31, 2025
  • Loss of access to VMware Cloud Foundation (VCF) licensing once existing Broadcom contracts expire
  • Fundamental disruption to their own business & VMware-based service delivery models
 

For Your Business: This creates potential risks to your VMware infrastructure and operations and leaves little time to find alternative solutions. Many service providers now face uncertainty about their ability to continue supporting and scaling VMware environments long-term.

What This Means for You

If you’re currently using a VMware service provider, this situation requires your immediate attention. Your provider may be impacted by these changes, which could affect:

  • Your ability to expand or modify your VMware environment
  • Upcoming contract renewals of your existing VMware licensing
  • 3rd party integrations, i.e. Disaster Recovery platforms
  • Long-term support and maintenance of your existing infrastructure
  • Future cloud and virtualizations strategies
  • Access to new VMware features and updates
  • Overall service continuity and reliability

If you’re considering VMware solutions, the landscape has become more complex. It’s crucial to understand which providers will maintain their ability to deliver VMware services and which alternative solutions might better serve your needs.

Taking Action: What We Recommend

For Current LAVA Clients: Review your current VMware arrangements, including 3rd parties that may be utilizing VMware, and the LAVA team will be reaching out to discuss any potential impacts and recommended actions. Your business continuity is our priority, and we’re here to ensure you have a clear path forward.

For Organizations We Don’t Currently Support: Now is the time to assess your VMware strategy and provider relationships. Consider these critical questions:

  • Are your current providers impacted by the VCSP consolidation?
  • What’s their plan for maintaining VMware licensing and support capabilities?
  • Do you have contingency plans if your provider loses VMware access?
  • Are there alternative solutions that might better serve your long-term needs?
How LAVA Technology Services Can Help

Whether you’re already our client, considering our services or simply want more information in order to de-risk your business, we’re here to help you navigate this challenging situation by offering consulting expertise in a few different ways:

Assessment & Strategy:

  • Evaluate your current VMware provider’s long-term viability
  • Analyze your infrastructure needs and identify optimal solutions
  • Develop contingency plans to protect business continuity

Implementation & Migration:

  • Plan and execute migrations to stable VMware providers
  • Implement hybrid or multi-cloud strategies that reduce vendor dependency
  • Deploy alternative virtualization solutions when appropriate

Ongoing Support:

  • Provide continuous monitoring and updates of the evolving VMware landscape
  • Ensure your infrastructure strategy adapts to market changes
  • Maintain focus on your business objectives, not just technology trends
The Bottom Line

The VMware ecosystem is experiencing unprecedented change, and organizations that act proactively will be best positioned for success. Whether you’re our client or not, we believe every business deserves to understand how these changes might impact their operations.

Don’t let uncertainty about your VMware environment create business risk. The sooner you assess your situation and develop a strategic response, the more options you’ll have available.

Need guidance on how these VMware changes might affect your business? Contact LAVA Technology Services for a confidential consultation. We’re here to help you navigate these challenges and ensure your technology infrastructure continues to support your business goals

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LAVA helps enterprise business leaders evaluate the global market of all things As a Service and Managed Service Solutions. We examine customers current environments and ways we can advance their technologies while reducing cost and complexity along the way. We are the CIO's most Trusted Advisor.

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