Faster Delivery = Happy Users
Automated Process = Fewer Errors
Standards = Cost Reduction
Order Visibility = Confidence
Linking Systems = Efficiency
From cutting costs to simplifying IT, there are a lot of reasons to consider the VMware ELA.
Unfortunately, with a $250,000 minimum spend on net new assets and highly-customized terms, understanding, if the VMware ELA is right for you, is challenging.
With hundreds of VMware ELA negotiations under our belt, we decided to shed some light on the situation. Below you will find a high-level summary of a recent webinar hosted by our VMware experts.
The VMware ELA is a multi-year contract that unifies all your existing and future VMware investments. Usually three-years in length, the VMware ELA includes:
ELA customers get access to a wide range of benefits and cost-savings, which they won’t get anywhere else:
Fig. 1: Breakdown of the Enterprise Purchasing Program, Hybrid Purchasing Program, and Subscription Purchasing Program
Unlike other major enterprise agreements, the full term of your VMware ELA is paid upfront.
While financing options are available from partners such as Softchoice, this is a major budgetary commitment. It’s important you work out in advance whether an ELA is right for you and how it aligns with your business goals. Once you buy it, you must also stay on top of your investment, with regular assessments and services. Softchoice also supports these needs, and more, with our complementary Lifecycle Advantage Program for ELA customers. (See Fig. 2 and 3)
Figure 2: How Softchoice can help
Figure 3: Typical lifecycle of an ELA through the Lifecycle Advantage Program
Renewals, amendments and re-negotiating a new ELA
Customers in the middle of their ELA who want to restructure the agreement can do so with an amendment. Typically, an amendment requires at least $100,000 in new spending and does not extend the duration of the ELA.
If you are seeking to extend your ELA, then you will need to do that with an ELA Refresh. This process typically requires $150,000 in new spending. But, it allows you to extend the ELA for another few years as well as restructure the discounts and terms. A common approach for customers nearing the end of their ELA is to extend the agreement by purchasing large quantities of credits. This ensures support discounts continue, while adding extra flexibility for upcoming licensing needs.
Even the most sophisticated IT department will make mistakes when it comes to major licensing agreements. In fact, 39 percent of enterprise software lacks proper licensing, according to the 2016 BSBA Global Software Survey. And the average enterprise overspends on software by up to 25 percent, reports IDC.
To make sure you are making the right VMware ELA moves, download our new free resource: The VMware Buyer’s Guide. In it, you will find detailed advice on how to negotiate, optimize and manage your VMware investments,.