'Death sentence': EU cloud lobby takes Broadcom to Brussels over VMware partner purge

The European cloud sector is expressing significant concern over Broadcom's recent restructuring of VMware's partner program, a move that has been labeled a "death sentence" by industry representatives. This abrupt termination of numerous reseller agreements has sent shockwaves through the market, raising questions about competition and the accessibility of critical cloud infrastructure services for European businesses. The European Cloud Community (ECC), an industry lobby group, has officially lodged a complaint with the European Commission, urging regulatory intervention to address the potential negative consequences of this consolidation. The core of the issue lies in Broadcom's decision to drastically reduce the number of VMware partners, effectively severing ties with many companies that were integral to the distribution and support of VMware's widely adopted software. This strategic shift, which significantly streamlines Broadcom's go-to-market strategy by consolidating its partner network, has led to immediate and widespread disruption for businesses relying on these partners for VMware solutions. The ECC fears this consolidation will lead to reduced choice and potentially higher costs for European customers seeking cloud services. The implications of Broadcom's actions extend beyond a simple partner dispute, touching upon broader European goals for digital sovereignty and a competitive tech ecosystem. By concentrating control over a significant portion of the cloud infrastructure market, this consolidation could hinder the growth of local European cloud providers and limit the options available to businesses striving for independence from dominant global players. The ECC's complaint to Brussels highlights a growing unease about market concentration within the essential digital infrastructure sector and its potential impact on innovation and resilience.