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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.
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Karsten Leclerque

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