Broadcom Releases VCSP Transition and M&A FAQ: What It Means for Partners 

September 30, 2025
Broadcom Releases VCSP Transition and M&A FAQ: What It Means for Partners 

Broadcom has just published a new VMware Cloud Service Provider (VCSP) Transition and M&A FAQ (September 24, 2025). This document clarifies the rules, restrictions, and options for partners who are not continuing as Authorized VCSPs. For many providers, this FAQ removes some ambiguity but it also underscores the urgency to make transition plans before the October 31, 2025 deadline. 

Unlike earlier updates, this FAQ goes deeper into how non-renewing partners can operate, what they cannot do, and how mergers or acquisitions of VCSP businesses will be handled. Below we break down the most important takeaways for partners and customers. 

What’s Changing 

  • White Label sunset: The White Label model ends October 31, 2025 (outside the EEA). 
  • Invitation-only program: Only Authorized VCSPs may transact directly with Broadcom. 
  • M&A clarified: Authorized VCSPs can acquire a non-renewing partner’s “book of business” without buying the entire entity. Subscriptions must transfer “as-is.” 
  • License portability restrictions: Non-renewing partners cannot be portability destinations; only Authorized VCSPs and certified providers qualify. 

Broadcom’s intention is clear: streamline the VCSP ecosystem and concentrate customer delivery with authorized partners. 

Key Deadlines 

  • October 31, 2025 – Last day non-renewing VCSPs can transact new customers or contracts. 
  • After November 1, 2025 – Non-renewing partners can only support existing customers under their current Orders until expiration. No renewals or new Orders allowed. 
  • Hyperscaler shift – Starting in Broadcom’s FY26 (November 2025), the Hyperscaler program will move to a license portability-only model

What Non-Renewing VCSPs Can and Cannot Do 

Still Allowed: 

  • Support existing customers until their license Order ends. 
  • Add co-termed capacity for those customers. 
  • Resell an Authorized VCSP’s service under their brand and deliver your own managed services. 
  • Manage customer-owned licenses and hardware onsite under the EULA. 

No Longer Allowed: 

  • Transacting with new customers after Oct 31, 2025. 
  • Renewing or extending contracts. 
  • Rebranding an Authorized VCSP’s service. 
  • Acting as a license portability destination. 

This distinction is critical for customers who need clarity on whether their provider can continue supporting them beyond 2025. 

Options for Non-Renewing Partners 

The FAQ outlines a few realistic paths forward: 

  1. Strategic partnership with an Authorized VCSP – Resell their VCF service while layering on your managed services. 
  1. Support customer-owned licenses onsite – Deliver services where customers hold the licenses and hardware. 
  1. M&A transitions – An Authorized VCSP can acquire your customer base, ensuring continuity. 

Each option comes with trade-offs, but all share one common thread: customers cannot be left unsupported

Customer Implications 

For customers of non-renewing VCSPs, this FAQ provides clarity but also a stark reminder: your provider may not be able to renew or extend your VMware services after October 31, 2025.  

Transition planning is no longer optional, it’s essential. 

How OTAVA Can Help

OTAVA is an Authorized VCSP in Broadcom’s new program. We’re prepared to: 

  • Provide zero-cost migrations with full onboarding support. 
  • Offer three months free of a Dedicated VCF private cloud to help with the transition. 
  • Deliver compliance-ready VMware Cloud Foundation solutions. 
  • Guide both partners and their customers through every step of transition. 

Whether you’re a partner navigating your own next move, or a customer needing reassurance about continuity, OTAVA is here to help. 

Next Steps 

The release of Broadcom’s new VCSP Transition and M&A FAQ removes guesswork. The rules are now clear, and the timelines are fixed. If you are a non-renewing VCSP partner, or a customer of one, the time to act is now. 

Contact OTAVA today to discuss your options, explore partnership opportunities, and ensure a seamless transition for your business.  

A Partner for Partners

OTAVA continues as a Broadcom VCF partner and is ready to help your business move forward.

Move your VMware to OTAVA and pay nothing for 3 months, free migration included.
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