Thread regarding VMware layoffs

How will VCPP partners make money now?

The margins are tiny, the richness of services is non existent. Seriously, who would sign off on a VMWare based cloud now when you have a multi-year commitment of hardware, support contracts and licensing? Hyperscaler cloud won, that is the model now.

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| 1801 views | | 10 replies (last December 12, 2023) | Reply
Post ID: @OP+1q1L0rVR

10 replies (most recent on top)

"MSP model failed because company didn’t invest to make it successful."

That's the truth and the MSP part is what I was commenting on not VCCP as a whole. A little mix up there. They only had about $5 million in revenue for a year. They were selling SD-WAN in addition to the other components. A failed program.

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Post ID: @1epu+1q1L0rVR

At least in AMER, VCPP is “growing” but its smoke and mirrors. Federal and some other perpetual contracts being shifted to VCPP causing artificial growth. Real growth rate is flat to 1-2% with true VCPP partners. MSP model failed because company didn’t invest to make it successful. I wouldn’t bet on VCPP as a long term play.

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Post ID: @1gnt+1q1L0rVR

"VCPP does not use SFDC mo--n.. go blow smoke somewhere else and stop displaying your stupidity. Its annoying."

Yeah I know goober. They use VMStar.

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Post ID: @1tqd+1q1L0rVR

OP here. Can’t deny that VCPP is a very productive business in terms of revenue and the growth of the past 5 years has been impressive by any standard. Great for BC but not automatically so for partners. Margins are generally poor for IaaS so partner profits have to come from PaaS and managed services. Apparently it is not all smiles and sunshine for many partners in EMEA. Hock needs to deliver on his micro-services promise fast or VCPP revenues could be at serious risk. If I was starting out as cloud provider then VMW would not be my first choice, I’d rather just resell MS, AWS, GC, etc because I’d want to make money.

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Post ID: @1zrm+1q1L0rVR

"Clearly written by someone who knows zero about the program or where its revenue comes from. Like VCPP or don't but absolutely nothing about the above is accurate. SD-WAN? "

Hey binky I have a Excel sheet downloaded from SFDC with the revenue for VCCP and the list of customers.

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Post ID: @ssz+1q1L0rVR

"VCCP has never been popular. The VCCP team had a big budget and staff but next to no customers or revenue. What was popular with these partners was SD-WAN which they sold as a managed service, but Broadcom has defunded much of the support for partner marketing and resale partners are going for the competitors. "

Clearly written by someone who knows zero about the program or where its revenue comes from. Like VCPP or don't but absolutely nothing about the above is accurate. SD-WAN?

@OP - what has changed overnight to make your post true? The scale of the program has already been mentioned by others on this thread so just curious why your post shouldn't just be considered another troll... Please elaborate.

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Post ID: @fap+1q1L0rVR

Is this someone from Nutanix posting about the doom and gloom of VMware, again? Seriously go away.

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Post ID: @xny+1q1L0rVR

Last I heard, VMware had over 4000 VCPP partners. Someone out there must be turning a profit.

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Post ID: @azr+1q1L0rVR

VCPP is not popular but draws in over 1 billion? Cool story bro.

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Post ID: @php+1q1L0rVR

VCCP has never been popular. The VCCP team had a big budget and staff but next to no customers or revenue. What was popular with these partners was SD-WAN which they sold as a managed service, but Broadcom has defunded much of the support for partner marketing and resale partners are going for the competitors.

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Post ID: @dnu+1q1L0rVR

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