Understanding Broadcom’s Latest VCSP Update: Key Changes and Deadlines

On September 24th, Broadcom released an updated VMware Cloud Service Provider (VCSP) Transition and M&A FAQ, providing new details on how the VMware partner ecosystem will evolve between now and the October 31, 2025 transition deadline.

The update outlines how non-renewing partners can continue operating through the transition period, what limitations apply, and how mergers or acquisitions of VCSP businesses will be handled under Broadcom’s restructured model. It also introduces detailed guidance around hardware ownership, billing terms, and license portability—closing many of the gray areas from earlier communications.

In this article, we’ll break down:

• The implications for existing VMware customers
• What’s changing under the updated VCSP program
• The key deadlines and new billing rules
• What non-renewing VCSPs can and cannot do
• Transition paths available for partners

The Big Picture: A Much Smaller VMware Ecosystem

Broadcom’s intention is clear: to simplify the VMware delivery model by consolidating it under a smaller number of authorized providers with proven scale, operational maturity, and VMware Cloud Foundation (VCF) readiness.

For customers, this means greater consistency and performance across VMware environments, but it also means that only Authorized VCSPs will be able to transact, renew, and expand VMware services going forward.

What’s Changing

The latest FAQ introduces several key updates that redefine how the VMware partner ecosystem operates under Broadcom’s new structure:

• White Label sunset – The “White Label” model officially ends October 31, 2025 (outside the EEA). Smaller MSPs and resellers will no longer be able to indirectly offer VMware services through upstream VCSPs.
• Invitation-only program – Only Authorized VCSPs may transact directly with Broadcom or access VMware SKUs.
• M&A clarification – Authorized VCSPs may acquire a non-renewing partner’s customer base (“book of business”) without buying the entire company. Subscriptions must transfer as-is under Broadcom’s transition policy.
• License portability restrictions – Non-renewing VCSPs cannot serve as portability destinations. Only Authorized VCSPs and certified hyperscaler providers qualify.
• Hardware ownership clarified – Authorized VCSPs must own or lease the hardware delivering VMware Cloud Foundation services. Leasing qualifies as compliant ownership under Broadcom’s policy, and only Authorized VCSPs may host VMware environments or act as license portability destinations.

Key Deadlines

Broadcom’s timeline remains unchanged, but the latest FAQ adds important context around what happens after the deadline and how contracts can transition. Several important dates have been confirmed that partners and customers should keep top of mind as they plan their next steps.

• October 31, 2025 – Final day for non-renewing VCSPs to transact new customers or contracts.
• Before renewal – Partners can renew commit Orders up to 12 months before their end date, but existing commitments cannot be reduced mid-term. Annual and upfront billing are now the only options available.
• After November 1, 2025 – Non-renewing partners may only support existing customers until their license orders expire. Renewals and new orders are prohibited.
• Broadcom FY26 (November 2025) – The Hyperscaler program shifts to a license portability-only model.

Options for Non-Renewing VCSP’s

VCSPs still have a few options for supporting their existing customers under Broadcom’s new plan. The FAQ provides explicit detail on what’s permitted for non-renewing VCSPs, and closes several gray areas from earlier guidance.

Non-Renewing VCSPs can:

• Continue supporting existing customers until their active license orders end.
• Add co-termed capacity for current customers under existing agreements.
• Resell an Authorized VCSP’s VMware service while layering on their own managed services.
• Manage customer-owned hardware and licenses under the standard EULA.
  

Non-Renewing VCSPs cannot:

• Transact with new customers after October 31, 2025.
• Renew or extend existing contracts.
• Rebrand or sub-host an Authorized VCSP’s service (the “provider-of-a-provider” model is now prohibited).
• Act as a license portability destination.

This distinction is critical for customers—especially those who need clarity on whether their provider can legally support VMware workloads beyond 2025.

Paths Forward for Non-Renewing Partners

Broadcom’s FAQ outlines three primary paths available to non-renewing VCSPs:

1. Partner with an Authorized VCSP – Resell VMware Cloud Foundation services through a retained provider while maintaining your customer relationships.
2. Deliver managed services on customer-owned infrastructure – Continue supporting environments where customers hold the hardware and licenses.
3. M&A transition – Transfer customer subscriptions to an Authorized VCSP to ensure service continuity.

Each option has trade-offs, but all share one principle: customers cannot be left unsupported. Broadcom confirmed there will be no grace period for hardware ownership transfers, so both partners and customers should begin preparing early if transitions involve physical assets.

Implications for Customers

For customers of non-renewing partners, this FAQ confirms that renewals, expansions, and new deployments will no longer be available after October 31, 2025. That means transition planning is essential, not optional. Without a valid Authorized VCSP relationship, VMware environments could lose access to renewals, updates, or official support channels.

The FAQ also clarifies that Broadcom will not permit BYOL (bring your own license) hosting models or indirect resale of VMware Cloud Foundation through non-authorized partners. This effectively limits supported hosting and renewals to Authorized VCSPs only.

What to Do Next

Broadcom’s latest FAQ removes much of the uncertainty around the VCSP transition.

Now is the time to confirm your provider’s standing and define a path that supports your long-term VMware strategy.

Lightedge can help you stabilize your environment, mitigate risk, and align your roadmap with VMware Cloud Foundation. Reach out to our team to start the conversation.