Signing up for the VMware Enterprise Licensing Agreement (VMware ELA) is a major undertaking, one that comes with many questions and considerations.
With three-years in length and requiring a minimum of $150,000 USD in net new purchases (with a minimum value of $250,000 USD, including existing install base), it’s no wonder many organizations struggle to plan and optimize their ELA. However, with the right information and approach, the pay off in cost savings, flexibility and IT agility can make the ELA a game-changer for your enterprise.
To answer your biggest questions and put you on the path to success, here’s our top 4 Q&A about VMware ELA. This collection is based on the most popular questions we get from our ELA customers.
1. How do I know if the VMware ELA is the right fit for me?
Many IT leaders want clarity on whether the ELA is the right fit for their business. Unfortunately, there is no simple formula, such as having a minimum number of seats.
Deciding whether you should sign on requires a detailed understanding of your existing workloads, your future needs and a clear view of your strategic business goals.
This includes considerations around embracing hybrid IT and moving deeper into the cloud. Armed with those insights, you can build the business case for the ELA around:
- Determining the potential cost savings on licenses, support and subscription (SnS);
- Gains in productivity unlocked by simplifying IT management
- The value of a flexible licensing model that evolves with your needs
2. How much will I save with the VMware ELA?
The ELA enables you to control and cut costs through volume pricing and predictable budgeting. Typically, the agreements deliver discounts between 20 to 40 percent on the costs of all licenses, subscriptions and support (SnS). These savings alone are often enough to make investing in the multi-year commitment worthwhile. (See fig 1 below) Organizations can unlock even larger discounts with specific, incentive SKU’s, usually for cutting-edge products such as NSX or vCloud Suite.
Figure 1 illustrates the potential cost savings for an enterprise embarking on a major data center transformation project. Similar business cases can be made for major virtualization projects, cloud migrations plans or renewing your ELA for SnS discounts.
3. What are the minimum purchase requirements?
A VMware ELA usually requires a minimum purchase of $150,000 USD in net new license assets after discounts, excluding your existing support and subscription (SnS) renewal. The total purchase must be at least $250,000 USD including your existing install base renewal. For example, a new ELA quote might be broken out into $250,000 USD in net new VMware costs, and $350,000 USD in existing and new SnS, for a total of $600,000 USD. Importantly, the sum of your ELA must include at least 30 percent in net new investments. In certain cases, you can reduce the minimum purchase needed if you pursue SKU’s that VMware wants to promote, such as NSX, vSAN, and the vCloud Suite. If you have concerns about hitting the minimum target, you can work with an experienced partner like Softchoice to support you in the negotiations.
4. Why partner with Softchoice for a VMware ELA?
From planning to renewals, and ongoing optimization, getting the most value from the VMware ELA is challenging for even the most experienced IT teams. As a leading Licensing Solution Provider (LSP), Softchoice alleviates the management burden while maximizing the value of your ELA through the Softchoice’s Enterprise Lifecycle Management (ELM). This framework starts with data-driven assessments to give you an accurate picture of your current environment, entitlements and install base. Once your needs have been clearly identified, we provide direct support during negotiations with VMware to ensure you receive the best value possible. With the agreement in place, we provide quarterly, proactive reviews. This includes ongoing assessments to help you manage costs and compliance as well as updates on VMware product changes and guidance around planning technology deployments. Softchoice also provides ongoing reviews of your licensing entitlements and consumption to ensure you maximize discounts and take advantage of the full value of your agreement. At every step, our goal is to maximize returns, enable resources, and help you realize your larger business and IT goals.
Check out our full FAQ guide for more
This top 4 Q&A blog was a sneak peek of our VMWare ELA FAQ guide. Find out what are the other six most frequently asked questions on VMware ELA in this complete e-guide. Download now!