- A lack of understanding around VMware’s licensing models, bundles, and negotiation tactics makes it difficult to negotiate from a position of strength.
- Unfriendly commercial practices combined with hyperlink-ridden agreements have left organizations vulnerable to audits and large shortfall payments.
- Enterprise license agreements (ELAs) come in several purchasing models and do not contain the EULA or various VMware product guide documentation that governs license usage rules and can change monthly.
- Without a detailed understanding of VMware’s various purchasing models, shelfware often occurs.
- Contracts are typically overweighted with a discount at the expense of contractual T&Cs that can restrict license usage and expose you to unpleasant financial surprises and compliance risk.
- VMware customers almost always have incomplete price information from which to effectively negotiate a “best in class” ELA.
- VMware has a large lead in being first to market and it realizes that running dual virtualization stacks is complex, unwieldy, and expensive. To further complicate the issues, most skill sets in the industry are skewed towards VMware.
Impact and Result
- Negotiate desired terms and conditions at the start of the agreement, and prioritize which use rights may be more important than an additional discount percentage.
- Gather data points and speak with licensing partners to determine if the deal being offered is in fact as great as VMware says it is.
- Beware of out-year pricing and ELA optimization reviews that may provide undesirable surprises and more spend than was planned.
After each Info-Tech experience, we ask our members to quantify the real-time savings, monetary impact, and project improvements our research helped them achieve. See our top member experiences for this blueprint and what our clients have to say.