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Contact UsVMware’s menu of license agreements is relatively straightforward, as it only has 3 major licensing agreements: VPP, EPP and ELA. Below is a brief overview of all three, starting from the bottom with little customer spend/seats, and ending with the complex, enterprise-caliber agreement.
The Volume Purchasing Program offers entry-level customers significant, incremental discounts for purchasing a minimum of $25K in eligible VMware products. Customers enroll in VPP, accumulate points with each purchase, and receive rewards.
VPP Policies and Discounts – VMware has established four discount levels that range from 4-12% for qualifying orders, based on the end customer’s accumulated VPP point total. The discounts may be applied to License purchases, and do not apply for Service and Support.
The Enterprise Purchasing Program is a token-based program that provides customers with an alternative beyond the VPP.
EPP is designed for mid-level customers, offering both better discounts and greater flexibility, without the complexity of more robust agreements. It accomplishes this by being a token-based licensing program, meaning customers purchase “tokens” to allocate towards usage of VMWare products, rather than obtaining points after the purchase as in VPP. Additionally, it grants access to future upgrades, ensuring customers can obtain the “latest and greatest” VMware products. Yet, EPP is restricted to region-based customers, not global customers.
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.
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!
Contact us to speak with a SoftwareONE licensing expert regarding your best VMware license agreement strategy
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