THIS IS NOT A WHITEPAPER!
This is a BLUEPRINT designed for IT and business professionals that need practical best-practice research, tools, and templates to Master the Secrets of VMware Licensing.
The mechanics of negotiating a deal with VMware may seem simple at first as the vendor is willing to provide a heavy discount on an Enterprise License Agreement (ELA). However, come renewal time, when a reduction in spend or shelfware is needed, or to exit the ELA altogether, the process can be exceedingly frustrating as VMware holds the balance of power in the negotiation.
Negotiating a complete agreement with VMware from the start can save you from an immense headache and unforeseen expenditures. Many VMware customers do not realize that the terms and conditions in the Volume Purchasing Program (VPP) and Enterprise Purchasing Program (EPP) agreements limit how and where they are able to use their licenses.
Furthermore, after the renewal is complete, organizations must still worry about the management of various license types, accurate discovery of what has been deployed, visibility into license key assignments, and over and under use of licenses.
Preventive and proactive measures enclosed within this blueprint will help VMware clients mitigate this minefield of challenges.
This research will help you:
1. Understand and simplify licensing per product to help optimize spend.
2. Ensure agreement type is aligned to needs.
3. Navigate the purchase process to negotiate from a position of strength.
4. Manage licenses more effectively to avoid compliance issues, audits, and unnecessary purchases.
- A lack of understanding around VMware’s licensing models, bundles, and negotiation tactics makes it difficult to negotiate from a position of strength.
- Unfriendly commercial practices combined with hyperlink-ridden agreements have left organizations vulnerable to audits and large shortfall payments.
- Enterprise license agreements (ELAs) come in several purchasing models and do not contain the EULA or various VMware product guide documentation that governs license usage rules and can change monthly.
- Without a detailed understanding of VMware’s various purchasing models, shelfware often occurs.
Our Advice - Critical Insight
- Contracts are typically overweighted with a discount at the expense of contractual T&Cs that can restrict license usage and expose you to unpleasant financial surprises and compliance risk.
- VMware customers almost always have incomplete price information from which to effectively negotiate a “best in class” ELA.
- VMware has a large lead in being first to market and it realizes that running dual virtualization stacks is complex, unwieldy, and expensive. To further complicate the issues, most skill sets in the industry are skewed towards VMware.
Impact and Result
- Negotiate desired terms and conditions at the start of the agreement, and prioritize which use rights may be more important than an additional discount percentage.
- Gather data points and speak with licensing partners to determine if the deal being offered is in fact as great as VMware says it is.
- Beware of out-year pricing and ELA optimization reviews that may provide undesirable surprises and more spend than was planned.