EU Cloud Lobby Asks Regulator To Block VMware From Terminating Partner Program

An anonymous reader quotes a report from The Register: A lobbying trade body for smaller cloud providers is asking the European Commission to impose interim measures blocking Broadcom from terminating the VMware Cloud Service Provider program, calling the decision a death sentence for some tech suppliers and an illegal squeeze on customer choice. As The Reg revealed in January, Broadcom shuttered the scheme, a move sources claimed affects hundreds of CSPs across Europe and curtails options for enterprises buying VMware software and services. The Cloud Infrastructure Service Provider in Europe (CISPE) trade group, representing nearly 50 tech suppliers, filed the complaint today with the EC Directorates-General, accusing Broadcom of bully-boy tactics, and calling for authorities to halt what it terms as "ongoing abuse."

Francisco Mingorance, CISPE secretary general, said of the complaint: "Businesses -- both cloud providers and their customers -- are being irreparably damaged by Broadcom's unfair actions, which we believe are illegal. "After imposing outrageous and unjustified price hikes immediately following the acquisition of VMware, Broadcom is now applying the 'coup de grace'. We need urgent intervention to force them to change. The only way to stop bullies is to stand up to them." CISPE claims that, since Broadcom completed its $69 billion takeover of VMware in October 2023, prices have risen tenfold, payment is demanded upfront, products are bundled regardless of customer need, and minimum commitments are based on potential rather than actual consumption.

The VMware Cloud Service Provider (VCSP) program officially closed in January and all transactions must be complete by March 31. After that date, only a select group of suppliers will be able to sell VMware subscriptions -- either standalone or as part of a broader service. Across Europe, we're told this equates to hundreds of businesses losing their authorization. For some, the loss of VCSP status effectively destroys their market. Those whose operations were built around VMware must now hand customers to another authorized supplier or begin the costly migration to an alternative platform. Broadcom said in a statement responding to the complaint: "Broadcom strongly disagrees with the allegations by CISPE, an organization funded by hyperscalers, which misrepresent the realities of the market. We continue to be committed to investing significantly in our European VMware Cloud Service Provider partners... helping them offer alternatives to the hyperscalers and meet the evolving needs of European businesses and organizations."

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