VMware Cloud 2026:
What does the new Broadcom model mean for MSPs?

What's changing in the VMware partner landscape?

 

The biggest shift is in the way VMware Cloud is delivered through partners. The broad VCSP program, which includes hundreds of service providers VMware-solutions could be purchased and delivered, phased outIn its place comes a new, invitation-only program with one tier, the Pinnacle Partner status.

In concrete terms this means:

• The number of selected partners is shrinking drastically
• Only partners with demonstrable scale, expertise and investment willingness retain direct access
• For many MSPs it will no longer be possible to independently purchase VMware licenses for use in their own shared platform
• MSPs without partner status must organize their services through a selected Pinnacle Partner

So the landscape is consolidating: fewer providers, but with more responsibility and depth in their VMware-services.

 

VMware Cloud Foundation as a central platform

 

Central to the new strategy is VMware Cloud Foundation (VCF). This integrated platform brings together compute, storage, networking, automation, and lifecycle management into a single, consistent foundation.

VCF 9 offers:

• One consistent foundation for both on-premises data centers and hosted private cloud environments

• Standardization of all routes to market around VCF as a 'full stack' foundation

• A recognizable, hybrid cloud architecture with the same building blocks and management concepts, regardless of where workloads run

Broadcom aims to reduce the proliferation of individual products, license types, and customized structures. Most new investments and innovations focus on VCF as the foundation for private and hybrid cloud.

 

The most important questions for MSPs

 

For MSPs Without direct partner status, the impact primarily revolves around clarity about their position and opportunities. The urgent questions now are:

Can I continue using VMware during the term of my current contract until April 2027?

Yes, that is possible. Although it is no longer possible to add extensions to your 'aggregatesc' to do. You can only colors expand by means of a 'customer c'† This is a c specifically aimed at an end customer and at a Dedicated share infrastructure. The increase by means of a customer c always has the same end date as your existing contract.

Can I continue to offer my current VMware cloud and hosting services?

Not automatically. Without partner status you can VMware-services can no longer be purchased and delivered independently. You become dependent on a selected service provider for licenses and platforms.

Am I at risk of compliance or support gaps?

If you don't have a good route to the new VMware-model organizes, support gaps can arise around upgrades, security patches and life cycle management. This increases operational and compliance risks for your customers.

What is the timeline?

2027 This is the year in which contracts actually change. There's still time to formulate a strategy, but waiting reduces your options and increases the chance of unwanted surprises.

 

Impact on the business model of MSPs

 

The new VMware-approach brings about shifts in how MSPs purchase, bundle and price their services.

Dependence on selected partners

MSPs who lose their own partner status can VMware-services no longer purchase independently. They become dependent on a Pinnacle Partner for licenses, platform, and support. This requires a different way of collaborating and coordinating.

Need for differentiation

Generic 'VMware 'hosting' is becoming less obvious. MSPs must sharpen their added value with managed services, security, sector-specific solutions or additional services on top the platform.

Strategic alternatives

In short, there are three options that allmeal have a different impact on your business model as an MSP:

1. You can switch to another hypervisor
2. You can purchase VMware licenses in the customer's name (resell) and place them on dedicated hardware (so not multi-tenant)
3. You can enter into a partnership with a Pinnacle party and continue on the VMware technology 

 

Impact on MSP customers

 

For end customers, one main question matters: will my environment remain stable, supported and affordable?

Customers experience the impact when contracts are adjusted, prices change, or an MSP indicates that the underlying VMware structure is changing. This can create uncertainty about:

• Extensions and investment plans

• Continuity of support and updates

• Compliance and security of the environment

At the same time, the new situation also offers an opportunity. By consciously choosing a partnership model based on VMware Cloud Foundation customers can benefit from:

• A more consistent platform with predictable outcomes

• Better automation and lifecycle management

• Additional services such as DR, monitoring and security

• Opportunities to modernize and optimize workloads

The way an MSP communicates and guides about this determines whether customers see this period as a risk or as an opportunity for improvement.

 

Concrete steps for MSPs in 2026

 

To stay on top of the situation, it helps to use 2026 as a year of recalibration rather than waiting. Practical steps MSPs can take now:

Audit your VMware footprint

Map your entire VMware environment: which license types, contract terms, environments, and vendors are currently active? Where are the dependencies, and which contracts are expiring?

Validate the position of your current supplier

Check whether your current supplier is a Pinnacle Partner in the new program. If not, you'll need to arrange an alternative soon. Check what guarantees are in place for continuity, support, and access to VMware Cloud Foundation.

Work out scenarios

Compare the options: remaining within the VMware ecosystem through a selected Pinnacle Partner versus (partially) replatforming to alternatives. Calculate the impact on margin, SLAs, complexity, and customer communication for each scenario.

Develop a communications strategy

Prepare customer communications. Explain what's changing, what's staying the same, and what steps you're taking to keep their environment safe and stable. Transparency prevents uncertainty.

Start the conversation early

Contact a selected Pinnacle Partner to explore options, migration paths, and commercial frameworks. The sooner you do this, the more time you have to find a suitable solution.

By going through these steps systematically, you will avoid being surprised by contract changes or deadlines.