If you operate in FinOps, are part of an MSP, or work for an enterprise utilizing the cloud, you’re likely familiar with the latest updates on CloudHealth after its acquisition by Broadcom. Since 2018, CloudHealth has been closely tied to the term “acquired,” initially by VMware and now by Broadcom, creating an ongoing change cycle.

Clients and prospects are understandably cautious when observing CloudHealth as the climate uncertainty and instability grow. This peak of potential disruption to cloud operations provides a unique opportunity for organizations to consider switching to a more reliable and forward-thinking Cloud Cost Optimization solution. 

Here’s why now is the perfect time to make the move.

Understanding the Change

The Broadcom Advantage Partner Program replaced VMware’s partner programs after Broadcom acquired VMware on February 5, 2024. The program will invite only select partners based on specific criteria. 

What are the specific criteria?

While a lot of uncertainty still remains among CloudHealth partners regarding the program’s invitees and specific requirements, we know a significant one is that partners must demonstrate a minimum of $50,000 per month or $500,000 per year in VMware revenue to qualify for an invitation. This criteria may exclude several MSPs who cater to the SMB market. 

Other standards to meet:

Performance Metrics: Partners are likely evaluated based on their historical performance, including sales volume, customer satisfaction scores, and overall business growth.

Technical Capabilities: Broadcom may assess the technical proficiency of partners, including certifications, technical expertise, and the ability to support and implement Broadcom’s solutions effectively.

Market Reach: The partners’ geographical coverage and market presence may be considered, ensuring Broadcom’s solutions reach a broad and diverse customer base.

Strategic Alignment: Partners that align closely with Broadcom’s strategic goals and priorities, such as focusing on key industries or technology areas, are more likely to be selected.

Innovation and Value Add: Partners demonstrating innovation in their service offerings and the ability to add significant value to Broadcom’s solutions may have a competitive edge.

Financial Stability: Partners’ financial health and stability are critical to sustaining long-term relationships and investments in Broadcom’s technologies.

Customer Base: Partners with a substantial and loyal customer base, particularly those with large enterprises or high-value clients, will likely be favored.

These new standards are well-suited to Broadcom’s goals but fail to address the needs of its cloud clients and customers. 

As Allen Skipper, SVP at Expedient, said, “Since the acquisition of VMware by Broadcom, there’s just been a great deal of confusion and concern in the market. Companies are asking all sorts of questions like, ‘How much are costs increasing from VMware? ‘What’s this 27 SKUs down to three options that people are talking about? Do we have options to move to other providers or to other hypervisors?”

Potential Operational Shifts

The acquisition by Broadcom will cause notable internal restructuring at CloudHealth, a change that typically results in service delivery and customer support disturbances. As Broadcom merges CloudHealth into its current operations, inefficiencies and delays are unavoidable. These operational adjustments may pose significant challenges for businesses dependent on smooth and continuous service delivery.

How will this affect MSPs?

MSPs, solution providers, resellers, and distributors must adapt to this new restructuring. This might mean reevaluating their business strategies, undergoing extra training, and adjusting to Broadcom’s new benefits and support structure. Current MSP VMware partners have limited time to adapt to the new program.

This can lead to potential disruptions in the service delivery and support provided to their customers. MSPs must also be prepared for delays or inefficiencies during this transitional period.

Pricing and Contract Adjustments

Unfortunately, Broadcom has been vague about the details of the pricing changes. Many existing VMware partners, particularly smaller providers, have been left in the dark about their future in the Broadcom program. 

Exploring Cost-Effective Alternatives

As the financial landscape shifts, now is the ideal time for CloudHealth customers to consider more economical solutions. 

What to look for? 

A transparent and flexible pricing model that can be tailored to fit your organization’s unique needs ensures you only pay for what you need, helping to optimize your budget and reduce unnecessary expenditures.

Anodot offers competitive pricing to give MSPs innovative features and powerful ROI.

Our latest product upgrade, CostGPT, harnesses advanced AI to offer smart cost management insights for informed financial decisions. We also provide ML technologies for predictive analytics, anomaly detection, and automated actions, empowering proactive cost management and resource optimization. 

Delays in the scalability of MSP operations

Due to this acquisition, several disruptions could significantly impact the scalability of Managed Service Providers (MSPs) operations. Specifically, delays in processing updates for Google Cloud Platform (GCP) and Azure assets have been reported.

Negative effects of delayed GCP and Azure assets

MSPs now struggle to keep client environments current. This lag results in inefficiencies and extended troubleshooting times. Additionally, delayed updates hinder strategic planning, complicating the rollout of new services and the effective scaling of existing ones.

Moreover, these disruptions can erode client trust and satisfaction, as they expect timely updates and seamless operation. MSPs’ reputations may suffer, leading to potential loss of business. 

Exploring Alternative Solutions

This CloudHealth Broadcom Acquisition brings hesitation for MSPs as World Wide Technology CEO Jim Kavanaugh expressed: 

“We would love to build a strategic partnership with VMware. Unfortunately, I’m not sure that’s what they have planned.”

Exploring multiple FinOps tools can enhance your clients’ diverse insights and capabilities and give you a tailored approach to their unique needs. 

How Anodot Supports MSPs and Enterprises 

We boast seven key strengths that set us apart from the start:

Accurate Forecasting and Budgeting: Our data feedback helps fine-tune your model for top accuracy. The autonomous forecast is up 24/7, crunching real-time data streams to give ongoing forecasts for smarter budgeting and cost savings.

Cost Visibility and Control: We offer visibility for efficiently understanding multi-cloud and Kubernetes spending, helping you manage costs across all cloud accounts.

Savings Recommendations: Over 80  real-time recommendations to monitor and optimize cloud costs and resource usage across AWS, GCP, and Azure. Dive deep into your data to see how your infrastructure is and get immediate savings.

Real-time Anomaly Detection and Alerts: Our advanced algorithms identify irregular patterns and potential cost anomalies in real-time, alerting you to deviations from the norm.

Automatic Savings Tracker: With automated report saving and tracking capabilities, you can effortlessly track and evaluate the performance of your recommendations.

Multi-Tenant, Multi-Billing for MSPs and Enterprises: Consolidate and simplify billing operations for your customers on a unified platform.

CostGBT for AI-Powered Cloud Cost Insights: Enhances user experience with contextual insights, cost projections, and answers to complex cloud cost queries with a simple search.

Navigating Your Future with CloudHealth

It hasn’t even been a year since VMware (CloudHealth) was acquired, and the moves made so far haven’t delivered the expected results for customers and partners. These actions involve streamlining product SKUs, discontinuing perpetual licenses, transitioning the top 2,000 VMware customers to direct sales, and implementing layoffs.

There shouldn’t be an exclusive program that only shows your value to the platform. They should work with you, not profit from you.

Anodot is proud to have a robust Partners Program. We currently serve hundreds of accounts under our partners, including MSPs with over 3000 active users monthly. We’re not just a solution; we want to be a part of your success! Let us help you migrate from CloudHealth and start benefiting from an AI-powered solution that empowers MSPs to manage and scale their existing clients efficiently.