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Tara Fine

Americas Channel Chief

Broadcom

Simplification and growth: VMware’s partner promise after Broadcom merger

At VMware LLC’s first Explore event since the acquisition by Broadcom was finalized last year, the company is reassuring partners that its new path, featuring the Broadcom Advantage Program, will ultimately reward long-term customers.The post-acquisition transition is about three-quarters complete, according to Tara Fine (pictured, right), vice president of the Americas Partner Organization at VMware.VMware’s Tara Fine talks with theCUBE about simplifying company offerings.“One of the benefits we’re seeing internally and externally is really that simplification,” she said. “We’ve gone from 8,000 SKUs to four

play_circle_outline Transition to subscription-based SKUs and services at Broadcom

play_circle_outline Benefits of Broadcom Advantage Program for partners

play_circle_outline Evolution of partner levels and incentivization in Broadcom program

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Tara Fine | VMware

Tara Fine

Americas Channel Chief Broadcom

VMware Explorer in Las Vegas discusses the impact of VMware's first explorer event post Broadcom acquisition. Tara Fine, VP at Broadcom, shares insights on partnership and ecosystem integration. Simplified SKUs and subscription model transition has been beneficial but challenging for partners. Broadcom Advantage program offers front-end rebates, training, and recognition. Partners can provide services during transition. Different levels of recognition and benefits are available, fostering collaboration and trust. Hock Tan's direct approach and partner feedbac... Read more

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What type of partners are being discussed in the mentioned scenario? add

What are some of the benefits and changes seen in the transition from the Partner Connect Program to the Broadcom Advantage program? add

What changes have been made to the partner program levels and how are existing partners being grandfathered in? add

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Tara Fine | VMware

Rob Strechay

>> Hello and welcome back to VMware Explorer live from Las Vegas. We're here breaking down the news and really coming into understanding how things are really evolving as VMware has really its first big explorer since the Broadcom acquisition, and I think a big important piece of that is partnership and ecosystem. I think we could not have a better person on here. We have Tara Fine, who is the Vice President of Americas Partner and Commercial Organization for Broadcom. Welcome on board. Your first time on theCUBE, so-

Tara Fine

>> It is. I'm honored. Thank you....

Rob Strechay

>> you're now an alumnus of here or alumni, so this will be there forever and you'll love this afterwards. But I think one of the great pieces of VMware has always been the partner organization and I think again, it's... Help us understand really what you're overseeing with Broadcom now.

Tara Fine

>> Sure. Sure. So prior to the acquisition, prior to November, I had the opportunity to lead our Americas Partner Organization. And since the acquisition, we now integrated our commercial organization, our renewals team, and our partner organization into one. And I get the fortunate opportunity to lead that with three amazing peers that I get to work with every day.

Rob Strechay

>> Yeah, I mean I think it makes a lot of sense bringing those together and that the fact that Hock Tan has really talked about simplification and it would seem like that really is kind of some of the reasoning behind that I would assume. Has that been your experience with Broadcom?

Tara Fine

>> Yeah, it really is one face to the partner, right? So prior, a partner depending on the route to market and depending on what they were purchasing and who the customer was that they were servicing, they may have different interactions with different people across the partner organization, so we've really streamlined that.

Rob Strechay

>> Yeah, and we got to talk to Hock Tan a little bit even before I just came up here. And one of the things I think he really emphasized as well is that he's really looking at how the partners will help in the journey with VCF and with the new consolidated SKUs. What have you been hearing from partners as you go through this transition? Because again, it has been a lot of transition and a lot of simplification in that way as well.

Tara Fine

>> Yeah, it has been a lot of transition, certainly the most I've ever experienced in my career, but it has been a really fascinating experience to watch exactly what's happened inside. One of the benefits we're seeing internally and externally is really that simplification. So we've gone from 8,000 SKUs to four. I mean, I couldn't think of anything a partner has asked for more in the last number of years is please simplify. You're complicated to deal with. You have different licensing models depending on the product. So just that simplification in itself has been a huge, huge benefit to our partners. Yes, there is some bumps in the road and we are absolutely transforming our entire business, and so it's been a tough year. But at the same time, I think that the alternative was it happening over the next three to five years, and so it's challenging, but I really believe the other side is going to be very fruitful internally and for our partners.

Rob Strechay

>> Yeah, because it's not only transitioning from how the partners had to re-sign up and things of that nature, but it also has to do with the fact that there was transition in the type of SKU it is because now it's gone from there being a perpetual to being all subscription. How has that really played out with the partners as well?

Tara Fine

>> I mean, it's really been a rip-the-bandaid-off scenario. We had tried for a number of years to make that move and Hock is bold. And so partners are really buying into it and they see the benefit, and so we're starting to see the traction there. It will take time and it is quite the adjustment for our partners, but as they're leaning in and as they're looking for help and enablement, we're right there with them and we're working with them to really help our customers get to the other side.

Rob Strechay

>> When you're talking about partners, you're talking about value-added resellers?

Tara Fine

>> Correct. Yes.

Rob Strechay

>> I think Hock talked about one of the ones that's really leaning in with WWT and some of the things that they're doing. They've always had a great relationship with VMware and they have their experience center that they bring people into and be able to show them. Are you finding that people like WWT and others in that type of thing that bringing the end-user customers along and they're a big piece of that experience as well? Because again, the customers are in transition as well with coming to grips with all of the changes with the licensing as well. Is that a big piece of it?

Tara Fine

>> Yeah, I mean I think personally I've always... At the core, I believe partners are the way to the future. I've spent half of my career in the channel organization. I believe our partners are the way we're going to get there. And so part of my job is both advocating internally and externally around the value that they bring, and that includes having those conversations with Hock and giving him the exposure to what our partners are doing and helping him get to know those partners. And he's so receptive. I mean it's really unbelievable. It's exciting he wants to hear more, he wants to learn more and he's leaning in. He's leaning in.

Rob Strechay

>> Yeah, how has... I guess again, coming over with VMware and Broadcom had had channel programs and VARs before. How has that evolved? Have you seen others where you're being able to leverage what's been done with Broadcom before and how is that really working?

Tara Fine

>> Yeah, so one of the areas that was a transition for us and a transformation is the program. So, we went from Partner Connect Program to the Broadcom Advantage program and that was a fundamental change for us. There's a few pieces there that I think have really benefited our partners. Number one, simplification. This radical simplification, whether it's our portfolio, whether it's our programs, it really comes to fruition in the Broadcom Advantage Program. So we have front end rebates versus back ends, a lot of predictability around that profitability for our partners, we've got free training, which our partners had been asking for for years. There's so many advantages that we're seeing and one of the areas that I've heard that I think is a misconception around this, invite only. Which it is an invite only partner program, but we invited every single partner that did business with us in the last three years.

Rob Strechay

>> Yeah, so that I think is a misconception that's out there is that, hey, only certain people got recruited in things of that nature. What other misconceptions might there be out there or anything that you want to clear up besides that?

Tara Fine

>> It's a great question. I think there's many, and I think we're still in transition. So, as we continue to evolve, we know that we're part of the Advantage Program today. Yesterday we had our first advisory council, our partner advisory council, so we're still learning and listening. We're in the stabilized phase now, but we're going to make tweaks come November and our fiscal year is upcoming. That's where we're going to start to really make some more changes around what we're hearing from partners and making sure that we're doing the right thing to get our partners to stay in the game with us.

Rob Strechay

>> Yeah, because this is basically fourth quarter for Broadcom and it'll be coming out. I think it's November 3rd is Q1, startup Q1 or something in that range. I would say that this is, like you said, getting to the point of, hey, get through a full year with this and make those tweaks. Have you found it that from a culture, like you said, Hock's out there talking to them and learning back? Because it was a very different channel motion with VMware previously. Have you seen that it really is about making it as simple as possible to transact with VMware being part of Broadcom? Is that the goals that are being set forth?

Tara Fine

>> Yes, I would say culturally there's a lot of changes externally, there's a lot of changes internally, but some of the real interesting ones for me that have been such a benefit is this transparency. I mean, Hock is the most transparent leader I think I've ever experienced, and the simplification runs throughout the organization. Anything that adds complexity, we get rid of real quick because complexity equals cost. And so really focused on keeping it as simple as we can across the board.

Rob Strechay

>> And a lot of the value-added resellers have always invested, like you said, in the training and things of that nature. It seems like from what Hock has been talking about from a partner perspective, he's really leaning into the partners to help, especially on the deployment side. Are you seeing that as, like you said, the free training and things of that nature? Do you see more of them leaning into that to be able to help build businesses around this as well?

Tara Fine

>> They are very excited about what Hock is saying around services, and he's really not interested in being in the services business. He wants to give that to our partners. He believes they're better equipped to do it and they do a better job of it. In fact, I just came from a meeting an hour ago where we were having that same conversation, so we think there is just an extraordinary amount of opportunity for our partners around services.

Rob Strechay

>> I mean some of them have done services around VMware, but like you said, there was some coopetition and sometimes it was on different paper and through an OEM or something like that. Is that part of the simplification that you're going to market with?

Tara Fine

>> Absolutely. It is part of the radical simplification. There's not going to be a hundred different services programs. We're really working through to get down to one or two that our partners can completely rally around and understand exactly how they are profitable, how they help their customers and do it really collaboratively with VMware.

Rob Strechay

>> How are the partners? What feedback are you getting from them about the services? Not only just the services that they're providing out, but they're out there, they're the pointy end of the spear talking to the customers about the transition in licenses and some... I was with a customer at lunch today and they're talking about how they're going through their renegotiation and things of that nature. How are they seeing it from that perspective? Are they seeing it, like you said, being much easier and simplified in the conversations that they're having?

Tara Fine

>> So customers, it is a transition, but customers do see the value in the simplified platform. They know that they could have taken longer to get to the other side, but there is something to be said about having to move there quickly and that'll only help speed up their business longer term.

Rob Strechay

>> Yeah. And I think again, it was like I said, the great thing about being here is we get to talk to a lot of the customers as we transition through in the hallway conversations. It's definitely a hallway track. I think one of the things that also has been is that they're looking for certifications and things of that nature from those partners. Is that a big piece as well? Because the partners have always had their VMware and VDXCs and all of the different acronyms soup of that. Is that still a big piece of that as it's rolled out?

Tara Fine

>> It is. It is. And as we've rolled out the new program, all of that has transitioned over to the Broadcom Advantage Program. So we grandfathered in all of partner statuses, all of those certifications so partners aren't starting from scratch. We really are recognizing all the investment that they've put in historically.

Rob Strechay

>> As part of this simplification and when they're invited in, obviously not everybody stays in all the time, but when you start to look at it, are there incentives for them to continue to invest in kind of this area as well?

Tara Fine

>> Yeah, so what we're going to see over time as we're evolving the program, we are going to take the best of what was Partner Connect and evolve it into the Advantage Program. So partners will get recognition for all of the different attributes of what they can bring to the table and how they service our customers. So whether that's deployment, anything around services, sales, et cetera, the whole gamut is what we're going to be recognizing them on in terms of their level within the program and the benefits that they get.

Rob Strechay

>> So, what are kind of just at a high level, the different levels of the program? Because I know for instance, on the cloud service provider MSP side, there's Pinnacle and those are the top partners and things.

Tara Fine

>> Same naming convention. So we've got Pinnacle, Premier, Select, and it kind of goes from there. We've moved from five levels in the old program to four in the current one, but we did grandfather those partners into whatever level they were at previously and then we're rolling... As we move into next year, we'll be looking for those new different streams in order to get to the evolved levels that we're going to be working towards.

Rob Strechay

>> I'm sure they appreciate the status match. Everybody always appreciates the status match when you go through that.

Tara Fine

>> Well, I mean they spent a lot of time and resources and money investing in VMware and we don't take that for granted and I want to make sure that they continue to do that and we've got to keep listening and we've got to keep collaborating and just making sure we're in the boat together. Like any relationship, there's rocky moments, but this is a real opportunity for us to continue to build that trust and sticking it together because I do think the other side is incredibly exciting.

Rob Strechay

>> Yeah, I think again, like you said, I think that we've been talking about it for the last two days that anybody who has thought that Hock was going to change. No, I think he's been very direct. He's the most direct leader I think I've ever had the chance to talk to about where his vision is and how he wants to get there. But also, he does listen. I think that was one of the things that was very interesting is that he is hearing what other people are saying and not afraid to question that stuff. With the relationships with these partners, it's definitely a different breed where Hock's on stage this morning saying, "Hey, we're in this to make money. We're not a charity." Basically summarizing that. Are you seeing them getting excited about that as well? Because if they sell, they make money, VMware, Broadcom makes money as well.

Tara Fine

>> I think what they've appreciated is the clarity. I mean, Hock is so clear where he wants partners to play and he's also very transparent, like your own experience. I get to experience Hock quite frequently and it's fascinating and I will tell you, I've never seen a CEO be that involved in the day-to-day operations and really wanting to understand what is it our partners are experiencing, what are we hearing from them? Just a genuine curiosity and making decisions on the fly based on that feedback.

Rob Strechay

>> Yeah. So with the last thought, what do you want the partners that are out there watching this to know about this transition and where you're at and what they can potentially expect? Because you said, "Hey, we're going to be making tweaks over the next..." Fine-tuning, I guess you could say, as you go through the last quarter here.

Tara Fine

>> I think the first thing, and Hock mentioned it yesterday in the partner keynote is we recognize this has been incredibly disruptive. And so I don't think his intention was to do that. That is what happened. So recognize that, know that it will get better. We are I think three quarters of the way through. We are close to the other side of this, and so I would just ask them to hang in there and those partners that are leaning in are going to see the benefit as we move through the next year in our fiscal year and we get to the other side. We're really looking forward to leaning in with the partners that are all in with us, and those are the ones I think are going to benefit long-term from this acquisition.

Rob Strechay

>> Makes total sense to me. I think it's great that they have an advocate in you, those partners, to go. So, thank you for coming on theCUBE. I really appreciate it's been great.

Tara Fine

>> Thank you for having me. Thank you. It's an honor.

Rob Strechay

>> Yep. And thank you for watching this special from VMware Explorer 2024. We're back shortly, so stay tuned and we're coming to you from two sets and got a lot of great content coming your way. Stay tuned.