There are minimum requirements that VMware normally needs to close deals, so let`s look at what you need before connecting it with your sales representative. First, revenue from the new licenses is expected to be USD 175,000 or more, after reductions, without assistance, have been granted to ensure a significant discount. Second, if 25% of license revenue is used for annual support as a threshold, it would take 131,250 $US for three years of SnS. Finally, an obligation to pay in advance for your existing IB maintenance for the duration of the contract, again usually three years. So before you add your three years of installation base maintenance, look at over $300,000. Since most VMware customers with these types of needs are large enterprises; Expect to spend at least US$500,000 or more to get started. Although VMWare has tried to facilitate the decision by choosing limited choices, implementation is a long-term high-risk investment, so caution should be exercised. To talk about your best VMware licensing strategy with a SoftwareONE licensing expert, click on the banner below! I will deal in future articles with how to avoid “Shelfware”, and for my next article, I will discuss the finer details, pitfalls and more general do`s and don`ts of VMware ELAs. In addition, in future articles, I give you a number of professional tips on how to maximize the value of an ELA and get more value, discounts and benefits from your deals, as well as reduce additional thresholds and negotiate better deals. The menu of VMware licensing agreements is relatively simple since there are only 3 main license agreements: VPP, PPE and ELA. Below is a brief overview of all three, starting from the bottom with few customer expenses/places and ending with the complex and business-friendly agreement.
After writing many agreements during my time at VMware, I found that once the agreements were broken down into key elements, the agreements were better understood and of greater value to the company. As you safely think now, you want to know how to get discounts on licenses before you call your provider. We`ll answer them in a later article, but first you need to know how ASAs work so you know what you need to ask.. . . .