The Enterprise License Agreement is the ideal contractual agreement designed specifically for global customers. It offers attractive financial and operational benefits unavailable in the per-product, transactional agreements between VPP and EPP. ELA lets customers obtain VMware product licenses over a fixed period of time with a fixed price through its lifecycle, as well as a fixed renewal fee.
ELA is the best route to mitigating global license compliance issues AS VMware uses a dedicated auditing team to research their customer’s license compliance.
Unlike the VPP and EPP, the terms of the ELA are entirely dependent on the needs of the customer. Recently dropped from a minimum of $650K, minimum enrollment in the ELA now starts at $250K but can be negotiated with a dedicated partner at as low as $150K. But again – ELA is more dependent on a needs-basis rather than a minimum purchase order.
KEY FEATURES OF ELA:
- Although minimum enrollment starts at $150K, new license revenue should be $175,000 or higher in order to receive significant discounting
- Because VMWare is using such a dedicated auditing team, customers are more prone to incur additional payments through support services
- Upfront investment is required, as customers usually pay for the deal terms, which typically involves at least three years, in advance
BENEFITS OF ELA:
- Continuous support in form of discounted licenses and training throughout the ELA term
- Simplified deployment through single volume license keys
- Fixed pricing and renewal fee with pre-defined cost on future maintenance
- No true-up due at the end of the term that may impact renewal pricing
- Eligibility to VPP for all customers upon request for the entire term of the ELA deal
- Global Consolidation of Multiple Enterprise Agreements for ease of management as well as global deployment rights
VPP, EPP and ELA have distinctive benefits, yet finding a solution that fits your business can be challenging. Deciding which VMWare license agreement model to choose can be difficult to determine. Although VMWare tried facilitating the decision by providing limited choices, implementing one is a high-risk, long-term investment, hence caution is advised. To speak with a SoftwareONE licensing expert regarding your best VMware license agreement strategy click the banner below!