IBM offloads 'hundreds' of its cloudy VMware customers

IBM has sold “hundreds” of its cloudy VMware customers to Broadcom partner 11:11 Systems. Under Broadcom’s ownership, VMware slashed the number of cloudy partners it keeps on the books and retained only partners that go all-in on the Cloud Foundation (VCF) private cloud stack. Partners that Broadcom decided not to work with lost the right to resell its software as of October 2025 and may not run VMware-powered clouds after March 2027. IBM was once a top VMware partner, but last year stopped selling new cloudy VMware services, suggesting it wasn’t invited to continue as a Broadcom partner. Sources tell The Register that soon-to-be-former VMware partners often have a contractual obligation to provide a Virtzilla-powered cloud beyond the March 2027 cutoff, and that their customers want whatever happens next to be non-disruptive. One option for partners leaving the VMware fold is to turn to a wholesaler like 11:11, which runs its own VMware cloud. …