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On Demand: VMware Purchasing Program

Webinar

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Webinar/Podcast Transcript

Moderator: Hey everyone, thanks for joining us for our VMware Purchasing Programs webinar. Before we get started, we have a few housekeeping items to take care of. First, we will be recording this session, and it will be distributed at the conclusion of this webinar in the follow up email. We want to encourage participation.

All questions are anonymous, so if you have any during the presentation, please type them into the Q&A box at the bottom of the screen in your Zoom control panel. If we don’t get to your questions immediately, we will address it at the end during the Q&A portion of the presentation. That wraps up the announcements.

Mike Sarna: Good afternoon, everyone, and thank you for joining our webinar series. A little bit about who we are. Anglepoint is a global services organization serving the Fortune 500 and others. Primarily in the areas of software asset management, licensing, IT compliance, and tooling. We also do some security now as well.

Since the disciplines of software asset management and security are becoming more closely linked. Anybody who’s involved in security understands that. You need to know exactly what software is running out there in your environment and what patch levels, et cetera, they’re on to see if you have any vulnerabilities.

We like to say we, we stay in our lane though, we’re a software asset management services company. We service you from end to end. We do not resell licenses, so there’s no conflicts there. We are not a reseller. And we don’t audit like some companies that are in software asset management.

They also audit for some of the big publishers. We try to keep that separate. So, let’s move to the next slide. The end to end that I was talking about is depicted here we’re organizing service practice areas focused on the key elements below SAM program governance. A lot of Companies like to start with this.

They like to see where they’re at, what their processes are, what kind of resources they have, tell me what my current state is. I’ll tell you where I want to go and help me get their type of thing. A lot of customers start off. Working with something else some maybe an IBM or an Oracle or a VMware audit that’s come up and they need some help there and then later on say, hey, let me look at the bigger picture now and do a full SAM program.

So, I know how to plan strategically going forward Sam managed services that. Is where we’ll go by publisher usually, but obviously we can do multiple publishers and for example, with IBM If you want an IBM Managed Service, we will help you figure out your compliance or effective license position across all of your IBM software.

There are some benefits of that now with IBM, but that’s not what this presentation’s about, so I’ll skip over that. Obviously, I mentioned software publisher licensing. We have experts in all the areas. And we are separated by discipline. So, we have IBM licensing experts, Microsoft, Oracle VMware licensing experts.

Jonah, who you’re going to hear today happens to have multiple expertise. Today he’ll be talking about VMware. We also work with all of the major tools that are out there. We like to say we’re tool agnostic, meaning we’re not pushing tools either, right? We’re staying in our lane. Most companies, if not all companies, have at least one SAM tool.

Many have multiple ones. And they look to us to help them figure out how do we get the most out of the tools that we have. And sometimes they ask us to help them figure out what they need in a tool. And we’ll help them do that, but we won’t direct them to any specific tool. That, that’s up to the customer.

I mentioned security, and there it is. And now we also have added training. We have all the accredited ITAM certification trainings that we offer. And most recently we have offering mainframe and publish a specific fundamentals course which have come over to us of the acquisition of a company that had been offering mainframe training for close to 30 years.

There I am and there’s Jonah. I’m going to let Jonah Introduce himself, but as I mentioned, he is one of our experts and he’s happening to be expert in a few different publish, publisher areas, and you’ll get to witness some of that expertise today as he talks. I’m a VP of business development, which means I sell.

Which means I talk a lot. So, I’m looking at my clock, and I’m supposed to keep this to five minutes. So, I’m going to keep my introduction really short. I’ve been involved in software asset management since 2000. Formally, before coming to Anglepoint, I was at IBM for 11 years. And was a business unit executive in charge of their worldwide software asset management program.

With that, I will hand it off to Jonah. He’ll tell you a little bit about himself and then take you right into the heart of the subject.

Jonah Brenner: All right. Thanks Mike So a brief introduction for myself as mike said I have a lot of a software licensing experience previously to angle point I was with KPMG for about five or six years as a software auditor working in the obviously the VMware world along with IBM and computer associates since KPMG, I like to say I’m a reformed auditor, and now I’m working on the customer side helping customers manage their software states whether at the time of audit, prior or afterwards helping them to be in compliance and to maximize or optimize their IT environments from a software perspective.

So, 10 years now, I enjoy the work, and it’s exciting to me. So, with that’s a little bit about me, so we’ll jump into the presentation. So today, as we know, we’re going to be talking about the seven VMware purchasing programs that they offer. And they break it down to three pillars that I’ve noticed.

First being the benefits, and so we want to understand the benefits of each program. Why we want to use each program or which program to use. And then the features that each program offers. Some are quite unique to each program. And then of course we want to talk about the discount levels. So, once we understand all three of these pillars or these three lanes, you should be able to choose a program that is best for your company, your budget, your strategic licensing situations in order to reap the benefits that are optimal for you guys and for your program.

So, with that, let’s talk about the first program. This is the Enterprise Purchasing Program. Now this is designed for the larger type of customer So your initial deal or your initial purchase under the EPP is a minimum of two hundred fifty thousand dollars So that’s a pretty big chunk of change to start out with but this provides the customer with a flexible purchasing option To buy tokens that you take these tokens and they’re redeemable For a broad range of products typically over a three year period.

That’s the typical time period for the EPP deal Okay, so some of the benefits of the EPVDL. This gives you the ability to mix and match products as you need. You purchase the products as you need them by redeeming the tokens. Another great thing is the price protection. When you sign the EPVDL, you sign at a certain price level, and that’s protected during the term of your agreement.

So, through that, you can realize a lot of cost savings. For whatever reason, the prices may go up, which they typically do. So, you can stay locked in at that term’s price, and save money, and you’ll be able to buy the products as you need them. Let’s say two years down the road, or two and a half years down the road your needs change, and you need to switch to a different product.

You have that flexibility to do that underneath this EPP program using the tokens. Some of the features, one feature that you’ll see throughout most of the purchasing program is the My VMware portal. This portal is pretty cool. It gives you the options to automate and track your licenses so that you know how many that you’ve purchased or how many you’ve downloaded.

You can use that as part of your entitlement picture. The portal also gives you the option to manage tokens. So, you could be centralized or decentralized, depending on how your company’s set up. And this allows you to allocate tokens to different departments, projects, users, etc. And as I stated before the tokens give you the ability to purchase at any time.

And of course, you can add tokens at any time to your EPP fund. Discount levels. So, the discount levels there’s four of them for the EPP. Obviously the L7 is the lowest or probably the least discount going all the way to L10. So that’s a 6, 000 plus purchase of tokens, which will give you obviously the greatest discount.

So, in everything we see here, the more you buy, the more you’re going to save. So that is the EPP in a nutshell.

All right, the next program we want to talk about is the Customer Purchasing Program. Now this one’s pretty cool. So, the CPP simplifies the purchasing process with your VMware Channel Partner for purchases more than 25, 000. Now the one cool thing about this program is there’s no enrollment.

There’s no purchase tracking, so your discount is determined by your current purchase. So, the larger your transaction, the higher discount you get. So, like I said before, benefits, no enrollment, and no tracking. And again, the discount is determined by each transaction. Now, some of the cool features. As I said before, the greater you purchase, the greater your discount.

So, it’s pretty simple. They do have a online calculator to help you determine the discount. And they call that the configurator tool. So, you go in there and you put in what a license you want to buy and how much you want to buy it and we’ll show you the discount.

Of course, that discount is based on the three tiers there in the right side of the right pillar and the discount levels again, the more you, the more points you purchase towards your licenses, the greater discount that you’ll receive. And that is the CPP. So, the one thing I like about the CPP again is there’s no enrollment.

All right so now let’s look at the volume purchasing program or the VPP. Okay. All right. So, the volume purchasing program provides rewards to customers who are making initial purchase of $25,000 or more. Now, the one cool thing about that I like about this is your organization can also extend. These benefits or these discounts to your authorized affiliates.

So, the member and affiliate purchases contribute Towards the overall discount level. So, this is going to maximize your savings being able to combine the purchases that the parent and that the authorized affiliates are making. All right. All right, so some of the benefits Obviously again get the volume benefit the more you purchase the more you save And again, like I said before now you’re able to combine the purchases from your affiliates and from the parent company As always there’s a standardized purchasing program Some of the features discount levels are earned automatically based on purchase volumes There is an easy to use online portal the my VMware portal again that help track your discounts There’s also globally consistent program rules that allows discount sharing between customers and their affiliates which we mentioned before.

So that’s a pretty neat feature. Now, there have been some changes to the VPP. As some of you may know that the CPP replaced the VPP, right? VPP is only available for existing customers. So, no new enrollments were accepted after May 6, 2019. Now the discount levels were also frozen on that day.

So, the new customer purchasing program will only, will be the only option to all BPP L1. So, if you look over there in the level 1 customers, our discount levels to L3 customers starting February 2020. Alright, so after that, they’re going to be moved off this program. And then the L4s starting February 1st, 2021, so they get another year.

Also, one thing to keep in mind with the VPP, because it is being phased out, there’s no more accumulation of points for future orders. So, what you got is what you can use. So, the roll off, as I mentioned before, they’re starting to roll off their customers. So effective as of February 1st, 2020.

  1. That’s when the last level for customers will be rolled off this program. And again, the discount levels for your reference there on the far-right side, the third pillar. All right, so that is the VPP, which will be soon going away. Next, let’s look at this transactional purchasing program. So, this one’s this one is designed for the U.S. federal government customers.

And this applies only to the U. S. federal customers. So, they make their purchases off the U. S. federal price list through authorized government dealers. All right? So, they receive financial incentives in the form of discounts on eligible licensed products when purchased in volume.

Again, the more you buy the more you’re going to save. It’s again. It’s a standardized purchasing program as the rest of them I guess the oops. Sorry, I don’t want too many my mouse got away from me so again, the discount structure is based on the TTT. I’m, sorry TPP points So as you can see in the discount levels on number three, they’re tier three the more points you buy the bigger discounts you get There’s also no enrollment on all us federal customers eligible.

So, this one’s pretty straightforward. Our next one will be the cloud credits purchasing program, Okay So this allows customers to buy the public and hybrid cloud services in one transaction and redeem with approved V Cloud service providers over time, right? Okay, so the benefit of this program is to reduce the rogue it spins and it’s going to help curtail Cloud Sprawl.

It’s going to improve reporting, security, and compliance. Some of the features, it’s going to be able to redeem these credits over time with the approved service provider. So, you don’t have to, you don’t have to use everything that you buy today. Tomorrow you can use these credits over the time of year in agreement.

I believe it’s one year the public and hybrid purchase is a single transaction as part of your ELA So within your ELA however, you’re making your purchases whether it’s via different purchasing program it’s going to be one single transaction and again, this is going to be managed through your VMware portal using tokens.

As I stated before, you can use these tokens at any time. Now, there’s no associated discount level with the cloud’s credit purchasing program, but as we all know, everything’s negotiable. So, this type of discount will be determined about what you negotiate into your ELA or to whatever type of deal you have with VMware.

All right let’s move on to the next one. This is the subscription purchasing program Okay, so this is where offers the customers a flexible way to acquire SNS in the form of SPP credit, so this is more geared to your subscription and services rather than to buying your licenses, right? So, this is going to give you the flexibility to mention mix and match your configurations again, it’s going to have the self-service portal reporting through the volume where my VMware portal it’s also going to allow you to roll over any unused balances.

And again, the volume discounts, the more you purchase, the more you’re going to save, right? And again, as we know through my VMware portal, it’s going to allow you to manage that fund. It’s going to give you the flexibility to for spending to allow different user groups or different product owners.

To use the fund as you see fit and again, it’s going to give you that price transparency Through the to the life of your agreement now with the spp. There are four discount levels Obviously you can see that the discounts don’t start until you make a purchase of 250 to 599 credits at a two percent discount and then anything over a thousand.

It’s a four 4 percent discount. So that’s one thing to keep in mind when you’re purchasing through this program is to see any type of discount You need to make that minimum purchase of 250.

Okay, and then the last one we want to talk about is the hybrid purchasing program. Okay, now this one’s pretty cool. This is this is a combination here.

This is a combination of buying perpetual license and buying VMware subscription, right? So, this is a this could be a combination of what we just talked about through the SPP and through the EPP, right? So, you’re able to buy in one transaction your licenses and your SNS. So, it’s going to simplify your purchases.

It’s going to help streamline your funding. Another thing cool about is the SNS proration. So SNS is automatically added to any underlying licenses and is prorated and co termed to the term of your agreement, which is, I think it’s pretty neat to be able to co term that with your current agreement.

As we said before, this is a single credit with a dual use, meaning the single credit that provides the flexibility to consume both products and services. Okay it’s cloud ready. You got the My VMware portal. Again, you can scale with ease. And it gives you the flexibility of spending, and again, the price transparency, so it’s easily, you can easily track the MSRP costs of all licenses, SNS, and subscription services against your fund balance.

Again, there’s no assigned discount levels, but as we’ve talked about before whatever you can negotiate into your ELA is the type of discount you can see through this hybrid purchasing program. Alright. So those are the seven programs. Purchasing programs that VMware offers and so I really feel that through understanding these your purchase requirements and strategy.

That’s where it really all starts Understanding your budget how you spend money whether it’s monthly yearly quarterly Whatever it may be and then the strategy your VMware strategy going forward your growth potential what products you need knowing all this will help you determine which program to use And once you understand this and you understand the programs that will help you maximize the benefits of rewards that you can reap through these programs So I think of these as like a different credit card reward program understanding those reward programs And how you’re purchasing Help you receive that those does that money back or those discounts.

So, once we understand the programs and we understand your strategy going forward, you can really use these programs to your benefit to get the most reward or the deepest discounts available through VMware for your purchases.

All right, so those are the seven programs I’ve mentioned before and the benefits. VMware, so this recording, as Alex said, this is being recorded and this will be released tomorrow along with the VMware blog coming soon along with the PowerPoint. And as Mike mentioned before, there’s also some angle point trainings coming up for the mainframe.

There’s also some SAM and ITAM trainings along with the ISO Alliance SAM certifications. So, with that, are there any questions from the group?

Mike Sarna: Jonah, that was great. I certainly learned a lot about all the different ways that VMware can license its software, and I think it was great the way you laid it out into those three, three categories. It makes it easy to do a comparative decision-making process. All right, any questions that have come through?

Jonah Brenner: So, it looks like there’s two questions that come through in regard to the cloud credits. The first one is do they expire. They do from the one year of data purchase you have So you have one year to use those credits and then they expire and then the other one Is there a minimum number of cloud credits you need to buy so they have different SKUs, right?

So, the minimum skew purchase is only one, but that fund value is a thousand credits So in us dollars, that would be a thousand dollars for a thousand credits.

Okay, and then there was I see one last question are SNS products eligible for the customer purchasing program discounts so the answer that would be no only licenses are eligible through the CPP program Good question.

All right. Those have been some good questions. Thank you for your questions and your participation.

Moderator: For sure. Thank you, Jonah, and Mike for that great presentation. We want to thank you all for attending and joining us today. If you do have any further questions or would like to connect with Mike or Jonah directly, feel free to contact them through their emails. Or you can reach us at info at angle point.

com. or on our website at anglepoint. com. That is it from us. Thank you again for attending and we will see you again next time. Bye now.

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