As Broadcom continues restructuring VMware’s Cloud Service Provider program, channel firms with scale and VMware specialization appear poised to benefit by snapping up assets, thus becoming the default landing zone for customers and partners seeking continuity. Indeed, 11:11 Systems seems to be leading the way on this front. The New Jersey-based managed infrastructure provider has just closed its seventh acquisition of a former VMware cloud service provider — its tenth purchase overall — in the wake of a Broadcom-triggered disruption.
On Feb. 22, 11:11 Systems announced that Digital Sense, headquartered in Brisbane, Australia, has joined its portfolio. The move follows another in January, when 11:11 bought Ntirety.
Previously owned by Aussie Broadband, Digital Sense offers cloud and managed services. The deal fits broader market dynamics: Broadcom is narrowing its VMware partner field while Aussie Broadband refocuses on its core telecom business. Brett Diamond, CEO of 11:11 Systems, said Digital Sense customers will get “the stability they need today and the innovation to keep moving forward.”
The deal also gives 11:11 greater reach across Asia-Pacific.
“By bringing Digital Sense into 11:11, we’re expanding our presence in Australia while strengthening our ability to deliver world-class cloud and managed services throughout the region,” said Marc Beder, general manager, APAC, 11:11 Systems.
The bigger takeaway: with Digital Sense now joining iland Cloud, Green Cloud Defense, Unitas Global, Sungard Availability Services, Faction and Ntirety in its portfolio, 11:11 is cementing its position as the go-to cloud provider for disenfranchised VCSP partners — and Digital Sense saw that reality clearly.
“With the investment required to remain competitive in the cloud space and the upcoming changes to the partner ecosystem in 2027, we determined that 11:11 Systems was the right home for our cloud business," said Ben O'Shea, general manager of transformation and cloud at Aussie Broadband. “Their deep specialization in VMware environments ensures our customers will receive the strategic focus they deserve.”
Broadcom’s partner rationalization has forced many service providers to make difficult strategic decisions: invest heavily to meet new program requirements, partner with one of the remaining authorized players, exit VMware entirely, or leave the market altogether. 11:11 Systems seems to have anticipated those challenges, even as it has steadily assembled VMware-centric assets for several years, well before Broadcom’s changes accelerated consolidation pressure.
“Pursuing strategic acquisitions that complement 11:11’s core areas — cloud, connectivity and security — has long been part of the company’s playbook,” Dante Orsini, chief revenue officer at 11:11 Systems, told Channel Dive. “11:11 made acquisitions in the VMware ecosystem before Broadcom’s changes to the VCSP program. That said, those changes have accelerated opportunities in the market and created conditions for acquisition opportunities that align with 11:11’s strategy.”
11:11 can’t save them all
Without a doubt, Broadcom has increased the volume of available VMware targets. But that doesn’t mean 11:11 is out to rescue them all.
“11:11 evaluates acquisitions based on several factors, including strategic fit across solutions and customers, compatibility in routes to market and cultural and resource alignment,” Orsini said.
In other words, 11:11 is not simply looking to absorb any and all displaced VMware partners. Rather, company leaders are seeking to integrate businesses that can plug into 11:11’s platform, sales motions and operating model without destabilizing operations or the customer experience. Even so, that doesn’t mean 11:11 isn’t offering other options to displaced VCSP partners.
“11:11 is also actively working with former VMware VCSP partners to determine the best path forward and that might include wholesale partnerships, migrations or other options,” Orsini said.
This suggests that, for 11:11, M&A serves as only one mechanism in a broader ecosystem strategy. Partnerships, customer transitions and platform migrations could emerge as equally important tools for managing channel dislocation. Orsini said as much, noting that the rationale for buying Digital Sense underscores the company’s thinking.
“As the market continues to adjust to Broadcom’s changes to the VMware partner ecosystem, including program restructuring and new licensing and operating requirements, 11:11’s focus remains on supporting partners and customers, particularly in maintaining customer trust and long-term business continuity,” he said. “This recent acquisition is part of that effort.”
11:11 Systems, a privately held company, did not disclose the terms of the Digital Sense transaction.
