Pack analyst btn         PAC        
 
Report 16 Sep 2026

Changes in the VMware Hosting Partner Landscape in Europe and Germany – Market View

Since Broadcom acquired VMware in 2023, it has overhauled their licensing and partner programs, shifting VMware toward a model centered on subscriptions and VCF (VMware Cloud Foundation). It moved the VCSP program from broad access to an invitation‑only Pinnacle tier, ending white‑label VCSPs and terminating many legacy partner agreements (final expiration by March 31, 2027). As a result, thousands of smaller and regional hosting providers lost direct partner status and the ability to resell/embed VMware licenses.

This report illustrates the diverse strategic approaches taken by vendors, using the example of providers operating in Germany, by far the largest hosted private cloud market in Europe:

  • Partner consolidation – Larger providers (Deutsche Telekom/T‑Systems, Atos, Kyndryl, IONOS, DXC, etc.) have retained or upgraded their status and can absorb displaced customers.
  • Customer migration pressure – Affected enterprises must choose between relicensing via authorized partners, migrating to public clouds, or shifting to alternative virtualization.
  • Hyperscalers – The likes of AWS and Azure are ramping up VMware migration tooling and alternative platform support, including BYOL VCF options and native alternatives.
  • New collaboration models – Aggregation, shared responsibility, and managed VCF offerings help smaller providers continue servicing clients.
  • Sovereignty debate – Trade bodies have filed complaints, alleging reduced European autonomy. PAC argues the disruption may also prompt moves to open alternatives and therefore increase sovereignty.
profile-image
Karsten Leclerque

SHARE :

Related Content

View all reports >

Azure IT Ecosystem in France - PAC RADAR (internal use) - 2026

PAC has evaluated 24 services providers in the Azure IT ecosystem in Europe as well as in France, Germany, and the UK.

Event Date : October 29, 2026

Read more >

Business Applications-Related Consulting & Systems Integration (C&SI) by Segments - Market Figures - Rest of APAC

This document provides market volumes, growth rates and forecasts for the Business Application Software (BAS)-related Consulting & Systems ...

Event Date : March 25, 2025

Read more >

IT Security by Segments - Market Figures - Eastern Europe Consolidation

This document provides market volumes, growth rates and forecasts for the IT security market in Eastern Europe for the 2023-2029 period.

Event Date : May 23, 2025

Read more >

Indra - Figures - Worldwide – FY 31-Dec-2025

This Excel document is part of the company profiles PAC publishes every year at local, regional and worldwide level.

Event Date : June 01, 2026

Read more >

CxO Survey - Investment Priorities - Trade and Transport - Detailed Datamart - Worldwide

This document contains the detailed findings for the trade and transport sectors from PAC’s “SITSI® CxO Investment Survey 2023”, in which IT ...

Event Date : April 19, 2024

Read more >

Latest Publications report

View latest publications Reports >

Free reports & webinars

View All Free Reports & Webinars >