‘Unfortunately, the way they were approaching it was just different than what we were requiring,’ says Broadcom VMware Global Partner Marketing and Partner Program Office Chief Laura Falko.
Insight Enterprises was deauthorized in North America because the VMware solution provider behemoth did not meet Broadcom’s program requirements, said Broadcom Global Partner Marketing and Partner Program Office Chief Laura Falko.
“We do have a set of requirements that the partners have to achieve … from a tiering perspective, but also to maintain good standing,” said Falko (pictured) when asked by CRN Asia about the Insight deauthorization at VMware Explore in Singapore. “And if a partner doesn’t meet the requirements and doesn’t maintain what we define as good standing, we work with them on an improvement plan and we give them an opportunity to make some changes. But this again isn’t the right business for everybody. And so unfortunately, the way they were approaching it was just different than what we were requiring.”
Falko’s comments came after CRN reported on Sept. 28 that Insight, an award-winning Broadcom VMware Pinnacle partner, No. 21 on the 2026 CRN Solution Provider 500, had been deauthorized in North America as a VMware partner.
Insight had told CRN in a prepared statement its deauthorization as a reseller of VMware licenses or Broadcom-funded VCF (VMware Cloud Foundation) Entitlement Services in North America reflected Broadcom’s strategy to “narrow its partner ecosystem” and was not a “reflection of Insight’s capabilities or our client relationships.”
In response to Falko’s comment that Insight did not meet Broadcom’s VMware partner requirements, an Insight spokesperson provided the following statement:
“The change to our VMware resell partner status is not a recent development. Our VMWare, hybrid cloud, and cloud expertise remain an important part of our broader client-first approach, and our priority is, and always will be, helping clients choose and implement the technology strategy that best supports their business objectives.”
Chandler, Ariz.-based Insight has told CRN previously it will continue to deliver VMware services to its customers until the end of October.
“We will complete all work already booked and will continue to deliver client-funded VMware and VCF services through October 31, 2026, with the same level of expertise, support and continuity our clients expect from us,” said an Insight spokesperson in an emailed statement.
Separately, Insight told CRN Germany that it remains an authorized Pinnacle partner in EMEA.
“VMware by Broadcom manages its partner program on a regional basis. Insight Germany is part of the EMEA region and retains Pinnacle Partner status—the program’s highest tier. We remain authorized to sell VMware licenses and provide associated implementation and adoption services. Consequently, there are no changes to the services, expertise, or support available to VMware customers in Germany and across the EMEA region. Our EMEA partnership with Broadcom continues to evolve, and we look forward to expanding this relationship,” according to a translated version of the statement.
The deauthorization of a top-tier North America Pinnacle partner like Insight is both rare and surprising given the large customer base and revenue necessary to achieve that status, according to several top Broadcom partners, many of whom spoke to CRN on condition of anonymity for fear of reprisal from Broadcom.
The CEO of a CRN Solution Provider 500 company said the deauthorization sends yet another signal to partners that Broadcom is demanding that VMware partners play by its rules.
“The message that Broadcom-VMware is sending is you accept our terms or you are out,” said the CEO.
The CEO said the Broadcom-VMware partner scorecard used to measure partner performance, which includes customer surveys, is somewhat “subjective” given that customers could view astronomical VMware price increases or reduced product options from Broadcom as a reflection of the partner.
Nevertheless, a failure to rate high enough on the scorecard could be a reason for the vendor to cut a partner, the CEO said.
“If Broadcom-VMware really wants you out of the program, they can just use that scorecard,” the CEO said. “Partners have to do extreme due diligence with Broadcom-VMware. If that scorecard comes back unfavorable, that could be the avenue to your deauthorization.”
Ultimately, the CEO said, partners need to make sure they are doing what is best for the customer. “It could cost you an OEM relationship,” the CEO said. “You have to play the long game. That’s why I have empathy for Insight.”
The CEO for another top VMware partner said Broadcom has rigorous compliance standards that are hard for partners to meet.
The CEO said Broadcom does, however, usually give a “clear message and warning” about what needs to be changed. “The ‘risk’ is especially high for large partners that think they are ‘untouchable,’” said the CEO via email. “Broadcom will prove you wrong.
“When you look at their old playbook applied for CA and Symantec, their top partners are not the big ones, it’s often boutique ones who can adjust to Broadcom’s needs,” said the CEO, referring to some of Broadcom’s past acquisitions.
This isn’t the first time that Broadcom has cautioned that Broadcom-VMware is not for everybody. A VMware solution provider in 2024 told CRN that when he tried to negotiate a lower license for a hospital charity that was eight times higher than the prior year, Broadcom used similar language.
“The statement that came back to me from Broadcom was, ‘We appreciate that with these changes VMware is not for everybody,’” Tom Smyth, head of technical solutions as Misco, a U.K.-based solution provider, told CRN at the time.
Awards, Customer Referrals Preceded Deauthorization
Insight’s fall from grace with VMware comes despite the numerous partner awards Broadcom has bestowed upon it in recent years.
Broadcom named Insight as its VMware 2023 Fastest Growth Partner of the Year for North America in March 2024.
At that time, Insight also garnered several other awards from Broadcom, including North America Cybersecurity Partner of the Year; North America Endpoint Cybersecurity Partner of the Year; North America Cybersecurity Accelerator Partner of the Year; North America Cybersecurity Marketing Excellence Partner of the Year; Europe Cybersecurity Marketing Excellence Partner of the Year; and Symantec France Marketing Excellence Partner of the Year.
In September 2025, Broadcom in an email referred customers of deauthorized partners to Insight as well as SHI International and Connection as national solution providers to ensure a “smooth transition” for upcoming contract renewals.
In March, Insight was named VMware’s 2025 Application Network and Security Partner of the Year for Asia-Pacific.
The Impact Of An Acquisition
Insight is far from the only partner that has been left on the sidelines since Broadcom acquired VMware for $69 billion in November 2023.
After the acquisition, Broadcom took VMware’s top 2,000 accounts direct, terminated partner agreements and then invited select partners to rejoin the channel program.
Broadcom has repeatedly declined to specify the number of partners it currently has, though sources say it reduced VMware’s partner footprint to approximately 18,000 partners, down from around 30,000.
At the same time, it drastically reduced the VMware product portfolio, eliminated lifetime perpetual licenses and moved to a new per-core processor subscription model that resulted in price increases of as much as 200 percent to 400 percent, and sometimes more, for customers.
In November 2025, Broadcom revamped its Advantage Partner Program for VMware, while also launching a new invite-only VMware Cloud Service Provider (VCSP) program, which reduced the number of VCSPs to 500, down from around 4,500.
In an interview with CRN Asia, Falko defended the overhaul of the VMware partner program in the wake of the Broadcom acquisition.
“This was not done dramatically,” said Falko. “This was done over phases. And we were very clear with the partners on what we were looking for and what they needed to stay in the program. And this isn’t the right mission for everybody. So even though they, unfortunately, were VMware partners in the past, maybe they weren’t purpose-built for the future,” Falko said.
For Falko, ultimately, it’s all about ensuring partners understand what the vendor is trying to do.
“We are really trying to help customers, and we are really trying to make a very profitable business for our partners. I would say, understand our mission, understand where their expertise aligns. If they’re not in the program any longer, it is not a closed-door program. … It’s by invitation only. And we make invitations to partners who are aligned with our go-forward mission and plan. So as long as they’re aligned with the go-forward plan, then there’s a future for them back in the ecosystem.
“If they’re already in the program, and they’re still feeling unsure and unsettled, I would just say they need to take a hard look and see if they have the right partner DNA for the mission that we are trying to solve for,” she said.
Mark Haranas and Martin Fryba contributed to this story.
