When Broadcom finalized its overhaul of the VMware Cloud Service Provider (VCSP) program, the company didn’t just tighten licensing rules. It effectively rewrote the playbook for how MSPs can represent themselves in the market.
An invitation-only “Pinnacle Partner” model launches on Nov. 1, 2025. Under this model, white-label VCSP offerings will cease to exist. That means MSPs who once resold VMware-based cloud services under their own brand can no longer do so. Going forward, all services must be delivered through an authorized partner such as Otava — complete with “Powered by Otava” or equivalent co-branding attached.
Branding, Trust, and the New Rules of Engagement
Broadcom’s new licensing terms are forcing MSPs to rethink how they present and deliver cloud services. This shift is redefining partner roles and putting branding front and center.
Ben Stiles
“Partners can’t simply go buy VMware licensing and host services anymore,” explained OTAVA Field CTO Ben Stiles. “That would be an immediate breach of Broadcom’s EULA.” Instead, MSPs must align with a Pinnacle Partner for compliance. That relationship now extends all the way to the logo on the customer’s invoice.
This can feel jarring for MSPs who built their reputation around invisible infrastructure. A “Powered by” label may sound minor, but it changes how customers perceive the MSP’s role. As Stiles put it, managed services are valid, but resale or back-door licensing no longer flies.
“Any sub-modeling of our service offering must come branded per Broadcom guidelines,” he pointed out. “We’ll help partners make it clear and compliant.”
Preserving the Face of the Relationship
The good news: MSPs don’t have to surrender the customer connection they’ve worked so hard to build.
“You still stay in charge and the face of those relationships,” said OTAVA Vice President of Sales Ben Taghehchian. “If you don’t want OTAVA introduced to your customers, we’ll stay in the background and let you take the lead.”
Ben Taghehchian
That means MSPs can deliver managed services and front-end support. Meanwhile, OTAVA handles the VMware licensing and back-end infrastructure under its authorized VCSP status.
It’s a co-branding approach rather than a co-selling one. This is designed to preserve trust with end-user clients while complying with Broadcom’s stricter rules.
Rebranding Without Losing Identity
The biggest hurdle for many MSPs will be communication. Customers will notice new brand marks or contract updates, and they’ll have questions. OTAVA recommended being transparent. Explain that the change keeps them compliant while offering access to Broadcom’s newest features through an approved partner ecosystem.
Imagine a longtime client asking why your invoice now includes another company’s name. That’s your moment to reinforce trust and tell them how the change keeps their service stable and connects them to the latest VMware innovations without disrupting your relationship.
For MSPs worried about design and messaging, OTAVA’s marketing team offers co-branding assistance. “We can help make sure it looks clean, professional, and compliant,” Stiles said.
The reality, though, is that the era of invisible white-label VMware hosting is over. The new VCSP model brings stricter guardrails. That said, there’s also a chance for MSPs to show their clients that transparency and partnership provide a stronger value.
Bottom line: If your VMware cloud offering still wears your logo alone, update the label before Nov. 1 — or risk being out of bounds with Broadcom’s new rules.
Time is running out! Explore OTAVA’s resources for IT channel partners and get the support you need to stay compliant before the Nov. 1 deadline.
Featured image: iStock
