Navigating VMware licensing changes

The recent acquisition of VMware by Broadcom, which ushered in substantial licensing changes, marks a pivotal shift in the cloud computing landscape to subscription-based licensing. Understanding how to navigate these changes and guiding your clients through them will be vital to maintaining and growing your business in this evolving market.

Understanding the changes

Broadcom’s $61 billion acquisition of VMware is one of the largest in tech history. With this change, VMware has shifted from a perpetual licensing model to a subscription-based model. This affects how Sales Partners will sell and support these products moving forward. As noted during our webinar linked below, “What they’ve done is essentially redone, removed their existing partner program, and developed a new partner program,” highlighting a dramatic shift in how products are sold and supported.

Implications for your business

These licensing changes mean that you need to rethink your sales strategies. The move to subscription licensing affects revenue streams and how relationships with clients are managed. These changes could be disruptive for many clients, particularly those who will have to transition to a subscription model.

Guiding clients through changes

  • Educate Your Clients: First and foremost, it’s crucial to educate your clients about what these changes mean and how they will impact their business. As VMware shifts from a RAM-based to a CPU-core-based model, explaining these differences can help clients understand their new cost structures.
  • Reassess Client Needs: Use this opportunity to help your clients reassess their cloud infrastructure needs. With changes in licensing models, some may find that their current setups are no longer cost-effective. This is an excellent time to explore hybrid solutions or cloud service providers offering more favorable terms.
  • Offer New Solutions: With the reduction of VMware product SKUs from about a thousand to just four, partners have a streamlined set of offerings to sell. This simplification can be an advantage in sales conversations. Focus on how these bundled products can meet the comprehensive needs of your clients while offering cost savings.
  • Support Transition: Support your clients through these transitions. This involves technical support and strategic planning to help them understand the long-term benefits of moving to a new model or provider. For instance, transitioning to a subscription model can offer clients more regular updates and better security, which are critical in today’s business environment.
  • Leverage Partnerships: Utilize relationships with Pinnacle and Premier VMware partners within the Intelisys portfolio to provide comprehensive solutions to your clients. These partners have deep insights and experience in navigating VMware’s ecosystem, which can be invaluable in helping your clients make informed decisions.

The VMware licensing changes are both a challenge and an opportunity for you. By stepping up as knowledgeable advisors, you can help your clients navigate these changes effectively, ensuring their infrastructure continues to meet their business needs without interruption. Now is the time to engage with your clients, educate them on their options, and guide them through this significant market shift. Together, you can turn these challenges into opportunities for growth and enhanced operational efficiency.

Looking for more information?

Check out this page in Intelisys University with additional resources from our suppliers on this topic.

Intelisys University: Marketing Resources

Make sure your clients understand the value of VMware and how seamlessly they can be incorporated into their business operations. Start that discussion and uncover needs with the following materials.

VMware Campaign Kit

Includes:

  • Customer-facing Email Campaign (to send to current customers)
  • Prospect Email Campaign (to send to prospective customers)
  • Social Media Posts (to engage followers with VMware-specific social media posts)
  • Brochure (Navigating the New VMware Landscape)
  • Whitepaper (Understanding the Impact of VMware Licensing)

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