VMware by Broadcom Updates

March 1, 2024
| Collateral

VMware by Broadcom Changes and Rate Increase

Dear Valued Customer,

We hope this message finds you well and thriving in your business endeavors. We value your partnership and want to inform you of upcoming changes that will impact the VMware based Cloud Services that US Signal provides to our customers. The VMware hypervisor and software that you utilize as part of US Signal’s Cloud Services are now under the ownership of Broadcom and will be offered under VMware by Broadcom. In addition, US Signal has received notice from Broadcom that the program we have enjoyed under VMware is ending. A new program and product offering will reflect significant modifications compared to what is currently provided by Broadcom to you and US Signal, including product enhancements, new or improved features and services, portfolio simplification, and a new pricing structure.

What You Need to Know:
Effective April 2024, the current VMware Cloud Service Provider Program (“VCSP”) partner program utilized to provide you VMware based cloud services is ending. 
+ Under VMware by Broadcom, a new VMware Cloud Foundations “VCF” product will be the sole product that Cloud Service Providers can deliver.
These changes are aimed to improve services and align market and industry trends for customer consumption of the VMware products.
While we have yet to receive full details about the final VCF program offering, including the specific new and improved features and services, Broadcom has confirmed this new program will result in a rate increase.
US Signal will reflect this rate increase in your April 1, 2024, invoice; the specifics will be communicated to you as soon as Broadcom releases the details to US Signal.

We are awaiting the final program details from Broadcom so that we can share the full details of the changes with you, and you will receive updated communication from US Signal in the coming weeks.

We are committed to providing you with excellent service and support through the implementation of the new and enhanced services. Please reach out to your dedicated sales contact or call (866) 274-4625 with any questions. We are ready to assist you and provide clarification as more information becomes available.

Thank you for your continued trust and partnership.


Dan Watts

CEO, US Signal


  1. Which US Signal products are included in this change? These changes impact Resource Pools of all flavors, hosted private cloud, and Disaster Recovery as a Service.
  2. How much will my bill increase?
    We have no official communication from VMWare/Broadcom on what the pricing will be starting in April, other than there will be a change. There is no shortage of pontification on the Internet related to this change, but no official communication has been received as of this writing.
  3. Do these changes affect customers with existing term agreements?
    Yes. The reason is that Broadcom is terminating its VMware Cloud Service Provider Program (“VCSP”) entirely. The old VCSP program was usage based by nature, whereas the new model involves US Signal committing to perpetual licensing. As such, going forward with no changes is not an option as the new program follows an entirely different model.
  4. Will my service be impacted?
    No, your cloud services with US Signal will continue operating normally as US Signal can confirm we are part of the new cloud provider program, as mentioned in the customer notice.
  5. Why is VMWare making these changes now?
    On November 22nd, 2023, Broadcom closed on its $69 billion dollar acquisition of VMWare. As a result, Broadcom is significantly changing its selling channels and product mix – or as they call it, “portfolio simplification”.
    Potential price increases impact everyone using VMWare, including all other service providers, as well as customers with their own VMWare deployments. In other words, the entire industry is dealing with the same challenges as US Signal.
    These changes will also include standardization to VMWare Cloud Foundation, which does offer additional features such as the Aria suite to partially justify the increased pricing. More details on VCF can be found here: https://docs.vmware.com/en/VMw...;