On 15 July 2025, Broadcom sent termination notices to VMware Cloud Service Provider (VCSP) partners worldwide. That same day, they quietly released a FAQ confirming the plan: the current VCSP program is ending. Only a small, handpicked group of partners will continue under a new, exclusive model.
If you’re a managed service provider (MSP), cloud service provider (CSP), or a white-label or secondary partner under an upstream VCSP, this decision affects you immediately. Whether you held a direct commit or worked through someone else, your ability to sell, renew, or expand VMware services will be cut off by 31 October 2025.
For MSPs, CSPs, and White-Label Partners: The Curtain Has Fallen
Many smaller MSPs and regional CSPs never had the option to sign direct VCSP agreements. Instead, they were pushed into white-label arrangements just to keep access to VMware. These secondary partners had no control over pricing or licensing and were left out of strategy discussions entirely.
This wasn’t a business model. It was a lifeline.
Now that lifeline is gone. From November 1st, all white-label deals will have their fate set. If you used another provider’s VCSP agreement, you will no longer be allowed to sell, host, or renew VMware services. There is no fallback.
You Still Have Commit Contracts, But the Clock Is Ticking
Broadcom expects all current partners to honour their commit agreements, even after transaction rights are removed. If you have a contract with time left on it, you are still required to pay every dollar until the end date.
There is one limited exception. CSPs running shared infrastructure under an aggregate commit may still onboard new customers, but only if strict conditions are met:
- The workloads must run on infrastructure covered by your existing commit
- The customer contract must end when your VMware commit ends
- You are not allowed to extend the contract past that date
This rule applies only to committed platforms. It does not allow new commit contracts, white-label partners, or flexible renewals.
Customers Will Hear About This and You Should Speak First
Waiting is risky. Customers will hear rumours. Some will ask direct questions. Others will quietly look for another provider.
If you don’t explain what’s happening and how you’re managing it, someone else will. Probably your competitor.
Your job right now is to control the message. That means transparency, clear communication, and a plan that protects your clients and your reputation.
Why So Many Providers Are Turning to Proxmox VE
Proxmox VE is becoming the platform of choice for service providers exiting VMware. It is fully open source, mature, and built for virtualised environments.
The platform offers everything most MSPs need:
- High availability
- Live migration
- Ceph-based storage
- Centralised web-based management
- Powerful API integration
Proxmox does not rely on expensive bolt-ons or partner lock-in. It offers clear subscription pricing, available in Australian dollars, and no hidden traps.
Many providers have already moved to Proxmox to regain control of their infrastructure and licensing future.
What You Should Do Over the Next 90 Days
The October cut-off is not far away. Here’s what every MSP, CSP, and secondary partner should be doing right now:
- Review your VMware contracts. Know how much liability remains and when it ends.
- List all customers tied to VMware. These will need a platform change or a different support plan.
- Set up a Proxmox test cluster. This allows your team to explore the platform without pressure.
- Brief your customers. Honest updates build trust. Delays create doubt.
- Bring in a migration partner. Experienced teams reduce risk and keep your transition on track.
Instelligence Helps You Move Forward.. On Your Terms
At Instelligence, we work extensively with Australian MSPs, CSPs, and secondary providers affected by the Broadcom changes. We help you shift off VMware cleanly and confidently, without losing revenue or customer loyalty.
We provide:
- Proxmox VE subscriptions in AUD
- Strategic migration planning
- Engineering support to re-platform workloads
- Ongoing L2 and L3 support, delivered by local Instelligence engineers
If you need help building your post-VMware future, we are ready. Book a 30-minute strategy call and let’s get to work.
