How does the Broadcom partner channel work after the VMware acquisition?

Broadcom routes most VMware deals through a tiered partner channel, with pricing and invoicing flowing through the partner rather than direct. The partner tier and the deal registration decide the discount you see. Buyers often have less margin visibility than they assume.

Can a customer still buy VMware direct from Broadcom?

Large strategic accounts may transact direct, but most buyers are routed through the partner channel. Knowing whether you qualify for a direct relationship is itself a lever, because it changes who controls the margin.

How much partner margin is negotiable?

Across the Broadcom and VMware renewals we benchmarked in 2024 to 2025, partner margin gave buyers roughly 10 to 25 percent of additional room when the deal was competitively tested. The margin is invisible on the quote, so buyers must create tension to release it.

How do you pick the right Broadcom partner?

Pick a partner on deal registration position, technical depth, and willingness to compete on margin, not on the incumbent relationship. The buyer side move is to run two partners against each other on the same registered deal.

When should the Broadcom channel strategy be set?

Set the channel strategy at least 120 to 180 days before renewal. That gives time to test partner quotes, confirm direct eligibility, and avoid the auto renewal that locks the incumbent partner and the Broadcom uplift.

White Paper · Broadcom / VMware

Get better Broadcom pricing through the right channel tier

Broadcom collapsed the VMware reseller network in 2024 and rebuilt it around three tiers. The buyer side view of Pinnacle, Premier, and Registered partners, how the channel quotes are constructed in 2026, and where.

Format PDF + HTML

Read Time 20 Minutes

Last Updated July 24, 2025

What you will take away

Most legacy VMware partners were not invited back. The 18,000 partner network compressed to roughly 6,000 partners.
Discretionary discount is now a Broadcom decision. The partner cannot move the price without Broadcom approval.
Strategic accounts deal with named Broadcom reps. Mid market and SMB accounts deal through the channel only.
Buyers should still run a channel competitive process. Two Pinnacle quotes plus a direct quote opens the discount band.

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