After writing many agreements during my stay at VMware, I found that as soon as they were broken down into their key elements, the agreements were better understood and had greater value for the company. As you think safely, you need to know how to get discounts on licenses before calling your supplier. We`ll find out in a later article, but first you need to know how ELA works so you know what you need to ask for. The menu of VMware licensing agreements is relatively simple, as there are only three major licensing agreements: VPP, EPP and ELA. Below is a brief overview of the three, starting at the bottom with low expenses/customer seats and ending with the complex enterprise caliber agreement. The EPP is aimed at mid-level customers and offers both better discounts and greater flexibility, without the complexity of more robust agreements. To do this, it is a token-based licensing program, i.e. customers buy “tokens” to be reserved for the use of VMWare products instead of getting points after purchase As in VPP. In addition, it provides access to future upgrades to ensure customers can receive “the latest and largest” VMware products. However, EPP is limited to customer-based customers in the region, not global customers. I`ll explain how to avoid “Shelfware” in future articles, and for my next article, I`ll discuss the finer details, pitfalls and general don`ts of VMware ELAs. In addition, in future articles, I will give a series of professional advice on how to maximize the value of an ELA and how to get more value, discounts and benefits from your agreements, as well as how to reduce additional thresholds and negotiate better deals.
The enterprise licensing agreement is the ideal contractual agreement that has been developed specifically for global customers. It offers attractive financial and operational benefits that are not available in the transactional product agreements between VPP and EPP. With ELA, customers can obtain VMware product licenses for a period of time, with a fixed price throughout their lifecycle and a fixed annual fee. Licensing agreements with software companies are one of the areas in which most tech people like to have public procurement or legal negotiations. This is based on the concept that they are complex, long and generally insensible, which is usually the case. Like software companies, VMware offers discounts to wholesalers who are willing to make multi-year commitments by offering enterprise licensing or ELA agreements. As a general rule, ELAs are three-year contracts that provide reduced licenses and support, and include your existing maintenance and support, which VMware calls support and subscription or SnS in short. There are minimums that VMware normally needs for deals, so we look at what you need before you reunite it with your sales agent.
First, the new revenue from the license should be $175,000 or more after obtaining unsealed rebates to justify large discounts. Second, the use of 25% of the licence`s turnover for annual assistance would require 131,250 DOLLARS for three years. Finally, an obligation to pay in advance for your existing IB maintenance for the duration of the contract, again in good standing for three years. So before you add your three years of basic installation maintenance, they`re over $300,000. Because most VMware customers with this type of needs are large companies; You expect to spend at least $500,000 or more to get started.