Broadcom Cuts VMware Service to Small Businesses: What To Do If You Are Affected

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Broadcom has been restructuring VMware since acquiring it, and its recent move has serious consequences for small businesses that depend on the software.

According to industry analysts, Broadcom’s decision to cut hundreds of VMware Registered Partners is “ruthless but strategic,” focusing sharply on maximizing profits by serving only the largest enterprise clients. This move has left many small and mid-sized businesses suddenly dropped by their MSPs or facing sharply increased licensing costs and less flexible contract terms.

The Changes Hitting Small Businesses

  • Partner cuts hit SMBs hard:Broadcom retired VMware’s Registered Partner tier, eliminating hundreds of smaller MSPs who traditionally supported SMBs. Many businesses now find themselves without familiar IT partners who understand their unique needs.
  • New licensing rules raise the bar:VMware’s new licensing bundles require upfront purchases of large “core” packages, pricing out many smaller businesses that operated with more flexible, smaller-scale agreements.
  • Price hikes and penalties:Steep penalties for late renewals, fewer à la carte options, and overall price increases are squeezing already tight IT budgets.
  • Enterprise-only focus:Broadcom’s strategy is to target only big contracts with Fortune 500 companies, leaving small and midsize businesses out on their own.

This move has been a disaster for smaller businesses, leaving them about 60 days to adjust or face penalties.

Small Businesses Are Feeling the Impact

VMware has long been a go-to solution for businesses of all sizes thanks to its scalable and flexible virtualization capabilities. But Broadcom’s sweeping changes now threaten to undermine that reliability, especially for small and mid-sized businesses.

With increased licensing costs, fewer support options, and shortened timelines for compliance, many businesses can face a hit to their operations and IT budgets. And even if your company doesn’t use VMware directly, these changes could still affect your broader tech ecosystem, as many IT providers, cloud platforms, and vendors rely on VMware behind the scenes.

Baroan: Helping You Stay Running

At Baroan, we’re laser-focused on helping businesses use technology to boost efficiency, profitability, and peace of mind. We believe small businesses deserve enterprise-grade IT strategies that are flexible, secure, and affordable.

Here’s how we can help you navigate this VMware shake-up and come out stronger:

  • Assess your current VMware setupto identify hidden risks and urgent licensing needs
  • Recommend cost-effective cloud and virtualization alternativesthat fit your business, not a Fortune 500 mold
  • Deliver 24/7 managed IT servicesto keep your infrastructure running without interruption
  • Provide SMB-focused cybersecurity solutionsthat protect your systems, data, and bottom line

Let’s Build an IT Strategy That Works for You

Don’t let Broadcom’s focus on big enterprises slow you down. Baroan is here to help you stay resilient, agile, and ahead of the curve.

👉 Schedule your free consultation today

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Baroan is a complete IT services & IT support company working with organizations in Elmwood Park and across the United States of America.

Written by Guy Baroan 
By: Guy Baroan