Broadcom announced major updates to its VMware software portfolio and partner program, aiming to enable faster innovation, increased customer value, and improved profitability for partners. The changes include transitioning to subscription licensing, portfolio simplification, and ecosystem standardisation.

The VMware portfolio has been streamlined from over 160 products to focus on two key offerings: VMware Cloud Foundation, a hybrid cloud solution for enterprises, and VMware vSphere Foundation, a workload platform for mid-sized to smaller customers. The new licensing model is subscription-based, with the end of perpetual licenses and credits.

“We are all anchored by one clear and consistent focus amidst these changes: How do we deliver on our commitment to create more value, better results, and faster innovation for our customers?” said Sylvain Cazard, President of Asia Pacific at Broadcom.

Broadcom also announced innovation updates for VMware Cloud Foundation, including a new release supporting VMware Private AI Foundation with NVIDIA, automation capabilities for data services, load balancing, and private AI, integrated network operations, and unified ransomware and disaster recovery.

The Broadcom Advantage Partner Program has been relaunched to build stronger relationships with strategic partners. VMware Cloud Service Provider (VCSP) partners will help deliver VMware Cloud Foundation as a managed private and hybrid cloud service to a broad set of customers.

Tan Hock Eng, President and CEO of Broadcom, said the company’s focus on upselling VMware’s top 2,000 customers has proven “very successful” in driving double-digit revenue gains for VMware Cloud Foundation.

The business model and portfolio simplification is part of Broadcom’s strategy to promote adoption of VMware Cloud Foundation as the leading subscription-based private cloud solution. While disruptive, the changes were deemed necessary to transform VMware’s business for faster innovation and value delivery.