Navigating the new vSphere Licensing Landscape

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Navigating the new vSphere Licensing Landscape Webinar
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vSphere 4 Licensing Model
ON AIR
Navigating the new vSphere Licensing Landscape
Sponsored by:

Agenda
Transition from VI3 to vSphere 4
Process changes for license upgrade orders
New license keys for vSphere 4
New license administration UI in product
Simplified license activation process
New license portal

License Upgrade Mapping: VI3 to vSphere 4

New vSphere 4 Editions: Overview
VMware vSphere
STANDARD
($795 / CPU)
Simple Consolidation
ENTERPISE PLUS
($3495 / CPU)
Simplified Operations
ADVANCED
($2245 / CPU)
Availability
ENTERPRISE
($2875 / CPU)
Automated Resource Management
ESSENTIALS PLUS
Integrated availability solution for Small Businesses
($2995 All-in-One for 3 Servers)
Automated resource management for:
Production infrastructure
Mission critical applications
Basic management for:
Simple consolidation
Remote offices
Test labs
High availability for:
Production infrastructure
Mission critical applications
Large scale management and integration for:
Internal cloud
Tier 1 applications
ESSENTIALS
Basic management of free ESXi
($995 All-in-One for 3 Servers)
Scale limited,
Low initial price,
Small office-
oriented features
Scale unlimited,
Value price, Low TCO
Full featured
Note: US list pricing in USD – International pricing may vary

vSphere 4 Editions: Essentials Packaging
All inclusive packages:
Licenses for 3 physical servers (up to 2 processors each)
License for central management server
Packages cannot be decoupled or combined; components cannot be used with other vSphere editions
x 6 CPUS
Data Recovery
x 6 CPUS
High Availability
6 CPUS x
x 6 CPUS
Update Manager
Update Manager
6 CPUS x
x 6 CPUS
VC Agent
VC Agent
4-way vSMP
4-way vSMP
6 CPUS x
x 6 CPUS
VMware ESXi OR
VMware ESX
VMware ESXi OR
VMware ESX
6 CPUS x
x 6 CPUS
vCenter Server for Essentials
(up to 3 servers)
vCenter Server for Essentials
(up to 3 servers)
1 x
x 1
ESSENTIALS
($995)
ESSENTIALS PLUS
($2,995)
vCenter Server
for Essentials

vSphere 4 Editions: Core Platform
Large scale management of critical production applications
Host Profiles
New
Distributed Switch
DRS / DPM
DRS / DPM
Storage VMotion
Storage VMotion
High availability products for protecting critical production applications
vShield Zones
vShield Zones
vShield Zones
Data Recovery
Data Recovery
Data Recovery
Fault Tolerance
Fault Tolerance
Fault Tolerance
Hot Add
Hot Add
Hot Add
VMotion™
VMotion™
VMotion™
Thin Provisioning
Thin Provisioning
Thin Provisioning
Thin Provisioning
High Availability
High Availability
High Availability
High Availability
Update Manager
Update Manager
Update Manager
Update Manager
Basic consolidation of a lab or small environment
VCB / vStorage APIs
VCB / vStorage APIs
VCB / vStorage APIs
VCB / vStorage APIs
VC Agent
VC Agent
VC Agent
VC Agent
4-way vSMP
8-way vSMP
4-way vSMP
4-way vSMP
VMware ESXi OR
VMware ESX
VMware ESXi OR
VMware ESX
VMware ESXi OR
VMware ESX
VMware ESXi OR
VMware ESX
6 Physical Cores / CPU
256 GB Physical Memory
No License Memory Limit
ENTERPRISE PLUS
STANDARD
ADVANCED
ENTERPRISE
License (1 CPU)
SnS (Gold/Plat)
$795
$273 / 323
$2,245
$471 / 561
$3,495
$734 / $874
$2,875
$604 / 719
Note: Most features require one (1) instance of vCenter Server
Note: At least 1 year of SnS is mandatory

vCenter Server
vCenter Server is required for most vSphere features
vCenter Server Standard and vCenter Server Foundation are management servers
vCenter Server Foundation is limited to 3 nodes of any size / suite
One (1) instance is required for most vSphere Standard, Advanced, or Enterprise Plus features
License
SnS (Gold/Plat)
VI Management
vCenter Server
Standard
$1,049/1,249
$4,995
No host limit
Includes Linked Mode
Includes Orchestrator
vCenter Server Foundation
$545/645
$1,495
3 ESX host limit
vCenter Heartbeat
$2,099/2,499
$9,995
Per Instance (USD)

A la Carte Pricing
Most features are no longer available a la carte (e.g. VMotion)
Data Recovery is available for standalone sale on top of vSphere Standard only
ESXi is still available for free as “ESXi Single Server”
Excellent solution for virtualizing one or two servers
Does not include a vCenter management agent
License
VI Add-ons
SnS (Gold/Plat)
ESXi Single Server
FREE
$495/595
(optional)
Per incident support available at $299/incident
Data Recovery
$695
$146/174
Only available for sale with vSphere Standard
Per Processors (USD)

Entitlement Path Overview
Customers with valid subscription contracts receive vSphere 4 licenses for every VI3 license
Each VI3 license edition maps directly to a vSphere 4 license edition (as depicted in the following slides)
Licenses are fulfilled directly into the customer’s license portal on vmware.com and a notification email is sent
Each VI3 2 CPU license maps to 2 x 1 CPU vSphere licenses
Enterprise License Agreements (ELAs) are fulfilled in the same manner
Customers with expired subscription contracts will not receive new vSphere 4 licenses:
If a customer does not renew support prior to the licenses expiring, they will be subject to a 20% reinstatement fee. To reinstate maintenance support and subscription for a license, maintenance must be back dated to the original date of expiration, renewed for a 12 month period from the current date and a 20% reinstatement fee added.
Policy: https://www.vmware.com/files/pdf/support/support_terms_conditions.pdf
Quote form: http://www.vmware.com/support/form/contract_renewal.html

VI3 Enterprise License Mapping
Your VI3 License:
Your vSphere 4 License:
ENTERPRISE
$2875/CPU
6 cores
(Including: VMotion, SVMotion, DRS+DPM)
ENTERPRISE
$2875/CPU
6 cores
(+ VMotion, SVMotion, DRS+DPM)
(FT + vShield + Data Recovery)
Add FT, vShield, Data Recovery
Upgrade
Promo:
$295 / CPU
Ending 12/15
Enterprise customers fulfilled additional products
Promotional period upgrade to Enterprise Plus
Enterprise is phased out during transitional period ending 12/15
ENTERPRISE PLUS
$3495/CPU
+12 Cores
(+Host Profiles + Distributed Virtual Switch)

VI3 Standard License Mapping
Your VI3 License:
STANDARD
$795/CPU
6 Cores
+
(VC Agent + VUM + HA)
(+Thin Provisioning)
STANDARD
$1495/CPU
6 Cores
+
Add Thin Provisioning
Upgrade
Promo:
$745 / CPU
Ending 12/15
Standard customers fulfilled an additional product: Thin Provisioning
Lower price point and decrease in ongoing Support and Subscription
Limited time promotion to Advanced
Standard plus feature add-on paths available in the Appendix
ADVANCED
$2245/CPU
+12 Cores
(HA + VMotion)
(FT + vShield + Data Recovery)

VI3 Foundation License Mapping
Your VI3 License:
STANDARD
$795/CPU
6 Cores
+
(+Thin Provisioning)
Foundation
$495/CPU
6 Cores
+
(VC Agent + VUM)
Add HA
Thin Provisioning
Foundation customers fulfilled an additional products: High Availability (HA), Thin Provisioning
Support and Subscription price remains exactly the same as today
Foundation plus feature add-on paths available in the Appendix

VirtualCenter Server License Mapping
Your VI3 License:
vCenter Server Foundation
$1495/Instance
(3 servers)
VirtualCenter Foundation
$1495/Instance
(3 servers)
VirtualCenter Server
$4995/Instance
vCenter Server Standard $4995/Instance
(+Orchestrator + Linked Mode)
Add Orchestrator, Linked Mode
VirtualCenter Server is renamed vCenter Server
VirtualCenter 2.x licenses translate into equivalent vCenter 4.0 licenses

Acceleration Kits
Acceleration Kits are fulfilled at the component level

Version Downgrade Rights
vSphere 4 licenses can always be downgraded to VI3 licenses to run ESX 3.x and VC 2.x
Downgrade is enabled by a simple ‘point and click’ in the vmware.com license portal
NOTE: Downgrades are not available for either Essentials package

vSphere Acceleration Kits for New Customers
Solution bundles targeted at new customers in Medium to Commercial segments
Bundles vSphere Editions together with vCenter Server management
VMware vSphere
Advanced
Acceleration Kit
VMware vSphere
Advanced
Acceleration Kit
With Training
(NA ONLY)
VMware vSphere
Enterprise Plus
Acceleration Kit
For 6 Processors
VMware vSphere
Enterprise Plus
Acceleration Kit
For 8 Processors
20-30% Savings
(Promotion through 12/15/2009)

vSphere Acceleration Kits - Detail
Additional Details:
Available through all channels (inc OEM)
Limitation of 1 per customer
Mandatory SnS calc’d at 21/25% of bundle license (not including PSO for #2 – same SnS price and SKUs as for #1)
* SRM will only be compatible with VI3 at time of vSphere launch; customers will be separately fulfilled vSphere 4 licenses as part of their subscription entitlement for the VI3 licenses included in the Acceleration Kit

Acceleration Kit Upgrades and Upgrade Promotions
Objective: Drive existing Accel Kit customers up to a higher-end vSphere bundles.
Promo pricing logic built on 50% off a la carte promos good through 12/15/09

Why Is VMware Changing Licensing Again?
Negative customer and partner response to VI3 licensing
Activation process too cumbersome and confusing
Reliability and management issues with FlexLM license server (single point of failure)
#1 driver of support calls to VMware
Operational problems and complexity
Performance problems on license portal (concurrent users and license file generations)
VMware operations & testing burdened by number and complexity of license scenarios
Customer entitlement records complicated by license upgrades and “a la carte” feature licenses
Existing model did not meet future requirements
Pricing & selling models constrained by past choices
VMware moving to a “trust but verify” compliance model

Simplified License Management in vSphere 4
Simple license keys instead of FlexLM license files
1 license key per vSphere edition
1 license key for many hosts
New centralized license key administration in vCenter
No separate license server to manage or monitor
Centralized license inventory and usage monitoring through vCenter
Visible only to privileged users

Comparison: VI3 License File vs. vSphere License Keys
SERVER this_host ANY 27000
VENDOR VMWARELM port=27010
USE_SERVER
INCREMENT PROD_VC VMWARELM 2005.05 permanent 1
VENDOR_STRING="licenseType=Server;vmodl=vc;desc=VirtualCenter
Server" ISSUED=17-Dec-2007 NOTICE=FulfillmentId=881288;name=
TS_OK SIGN="0449 8CA7 AEAF 36E3 156B 8BF0 E31D 2646 369E 3D7A
4C12 33EA A9F1 6DBB 1F17 0A08 D917 DB83 9FCA 69D6 A647 0F04
E9CE D247 4BAD 7C25 AF47 FE18 844F 05B7"
INCREMENT PROD_ESX_FULL VMWARELM 2005.05 permanent 16
VENDOR_STRING="licenseType=Server;vmodl=esxFull;desc=ESX
Enterprise;capacityType=cpuPackage;gp=14;exclude=BACKUP"
ISSUED=17-Dec-2007 NOTICE=FulfillmentId=881289;name= TS_OK
SIGN="1B8B FE67 D216 2636 7C7B C8A1 B7F4 ECA1 BC5B 6BA9 DA35
BBA0 11F9 E15F E87A 074D 1040 9D6F 738F B481 3E0C 4ED2 A8F4
3E2F 660B 8C90 5B61 4DAC 2F36 88C2"
INCREMENT ESX_FULL_BACKUP VMWARELM 2005.05 permanent 16
VENDOR_STRING="licenseType=Server;vmodl=backup;desc=VMware
Consolidated Backup;capacityType=cpuPackage"
SIGN="0568 9240 0C37 B320 47E9 42EF C71D 154D A3AE 47CC D320
A6B7 B72E E2DA 2C90 1B06 8BF3 872B E9D5 74D1 C180 D3F4 EF80
C2CB A6DB 459B F9E0 63C0 C306 071A"
INCREMENT VC_ESXHOST VMWARELM 2005.05 permanent 16
VENDOR_STRING="licenseType=Serv;vmodl=esxHost;desc=VirtualCenter
Agent for ESX Server;capacityType=cpuPackage"
SIGN="1C10 0BB0 C0A9 65E8 A523 B148 4C1D F528 56D4 24E5 613A
FCE7 541B CDB8 C71C 0119 A1D4 8DF9 E3AA EC6C 9023 0556 93D8
F4F9 CEF8 0EB0 33E3 48F0 FECC 57D3"
INCREMENT VC_VMOTION VMWARELM 2005.05 permanent 16
VENDOR_STRING=licenseType=Server;vmodl=vmotion;desc=VMotion
SIGN="19A3 1012 5B56 D463 D794 89CB DCE6 921E FE7F 95B9 B041
D087 6D52 603A E4BB 0F66 25CF 2A7D 9BA7 A977 EAE3 3FA4 8CF1
D515 E783 4D4F 3063 98D7 0592 EFBD”
INCREMENT VC_DAS VMWARELM 2005.05 permanent 16
VENDOR_STRING="licenseType=Server;vmodl=das;desc=VMware
HA;capacityType=cpuPackage" ISSUED=17-Dec-2007
NOTICE=FulfillmentId=881289;name= TS_OK SIGN="1CBB 0287 28A8
A56D 1696 9D1D A290 9023 D6AF 290B E2EE F945 0BA7 775A 45ED
0F92 E7EF 5A87 33DC 3E32 8D5C CA06 FE61 E205 5235 D7B8 9BFE
59BF 1178 A62D"
INCREMENT VC_DRS VMWARELM 2005.05 permanent 16
VENDOR_STRING="licenseType=Server;vmodl=drs;desc=VMware
DRS;capacityType=cpuPackage" ISSUED=17-Dec-2007
NOTICE=FulfillmentId=881289;name= TS_OK SIGN="1443 4404 22CD
9E2C 21E8 8FE8 0D92 D8BF 0BDA 1018 8AAD B2F0 C8FE B88D C4F8
124D EE5A 329B F915 D8EB 324C 7F8A 4156 8B0D F01E BB8A F0DD
8C03 3E64 4751"
12345-ABCDE-XYZLL-89773-K83DW
License key for vCenter Server 4
Can be Standard, Foundation, or Essentials
Encodes any number of instances
XYZLL-89773-K83DW-438KH-83UDE
License key for vSphere 4 Enterprise
Encodes any number of CPUs
Product maps Enterprise to feature list
Feature list can be modified by patches or new releases w/o change to license key

License Enforcement In vSphere/vCenter
Why have license keys at all?
Differentiates feature levels / editions of the product (single binary)
Enables tracing of deployed software back to P.O.
Enables customer’s license administrator to control deployments
Provides rudimentary protection against (non-deliberate) over-deployment
What does vSphere/vCenter licensing enforce?
Not possible to assign quantity above the encoded license capacity
Feature enablement is preemptively enforced (few exceptions)
Product does not work beyond evaluation period without valid license key
Limits on cores per CPU
What is not preemptively enforced?
Same license key used in different environments (vCenter Servers not linked)
Capacity of vSphere license keys used on many ESX hosts not managed by vCenter
Removal from product of deactivated license keys
Duplicated consumption of entitlement (using both VI3 and vSphere 4 licenses)
Customers must use diligence to ensure license compliance
Easy to compare vCenter licensing report to license portal, but not automatic at this time
VMware is planning to deploy a license compliance program

“By product” is the default report view, and the most useful for compliance monitoring

vCenter Server Editions

Simplified Activation Process
VI3 License Activation Is Failure-prone
License files are the result of a long, multi-step portal transaction
Too many steps and context changes = too many error opportunities
Complexity illustrated: 40 pages in VI3 admin/install guide devoted to licensing
Go to license portal
Choose server or host-based file
Download or email license file
Configure licensing in VC/ESX UI
Upload license file
10
9
8
7
6
5
4
3
2
1
0
Receive activation code in email
Generate new license file
Select license qualities to activate
Install license server if needed
Re-read license file to server
Product activated
A Dramatically Simpler Process In vSphere 4
A short and easy activation process was the single most important design requirement
License keys are sent in email and can be copied directly into the product – no portal activation step required
No separate license server means no additional installation, configuration or monitoring is required
Receive license keys in email
Enter license key into VC UI
Assign license key to ESX hosts
Product activated
3
2
1
0

Variations of License Activation Process
Receive license keys in email or on license portal
Product activated
Receive license keys in email
Product activated
3
2
1
0
3
2
1
0
½
Optional step: Divide or combine license keys via license portal
Alternative process: Licenses purchased from OEM
Receive PAC(s) from OEM
Register PAC(s) on VMware OEM portal
-1
-2
Step -2:
Customer receives partner activation codes (PACs) from OEM – printed on card or in email
The process and customer experience of redeeming PACs remain the same as in VI3
Step -1:

New License Portal: Use Cases
No license registration or generation required…
…except for the OEM case
…so why have a license portal at all?
Central locationto keep track of license keys, entitlements, and their change history (for compliance management) and retrieve lost license keys
Obtain vSphere 4 license keys which will be automatically fulfilled to customers with active subscriptions on their VI3 licenses
Downgrade purchased vSphere 4 licenses to VI3 license files
Divide purchased license quantities into several smaller license keys (e.g., in case the purchased quantity is for multiple departments or data centers)
Combine multiple license keys (for the same product) into a single “master key” which is easier to manage
Add or remove individuals listed on contracts as license admins or support admins (contract roles determine access to license keys on the portal)
Be alerted when other people in your organization makes changes affecting your license keys or entitlements

New License Portal
Alerts of all events which affect license keys (i.e. generates new keys or deactivates old keys)
License key history page logs all events that affect license keys
Total entitlement count is the default view – expand to see license keys and details

License Detail Display
Use comment field to keep track of license use.
Order info useful for compliance management
Customers can redistribute quantities across license keys according to their needs

License Upgrade For Existing Customers(a.k.a. Subscription Fulfillment)
VI3 customers with active SnS automatically get vSphere 4 licenses at GA
New VI4 licenses automatically added to customers’ online accounts, i.e. to their license portal
VI3 licenses are not “traded in” – customers will have a VI3 copy and a vSphere 4 copy of all their upgraded licenses
Eligibility
Only licenses for which SnS is active as of the announced GA date will be upgraded
Licenses for which SnS is expired as of GA will be upgraded if SnS is later reinstated
Notification of customers
All VI3 customers receive pre-notification shortly after vSphere launch explaining upgrade process
Customers are notified again after completion of upgrade fulfillment (target is GA)
Unlike new license orders, subscription-fulfilled licenses are not sent in email
Risks / challenges:
Current data on customer orders and contracts is not 100% correct
Feature licenses purchased “a la carte” or via edition upgrades must be reconciled with their “base”
Confusion due to vSphere licenses are per 1 CPU whereas VI3 licenses are per 2 CPUs

Additional Version Transition Questions
Will VI3 licenses work on vSphere 4 or vSphere 4 licenses work on VI3?
No, licenses are not forward or backward compatible
After upgrade is complete, the vSphere 4 product will boot in Evaluation Mode (60 days)
Customers must either obtain their subscription-fulfilled licenses or purchase new
Can vCenter Server 4 manage VI3 hosts which are Flex-licensed?
Yes, vCenter Server 4 is compatible with the FlexLM license server
vCenter does not “check out” a VC license from the license server – it requires a vCenter 4 license key
vCenter does check out the VI3 feature licenses needed for VI3 hosts and features
vCenter Server 4 does not ship with the FlexLM license server
If license server is not preserved during VC upgrade, it can be downloaded from vmware.com
If license files are not backed up, they can be downloaded or regenerated on the VI3 license portal
How can a customer continue to obtain new VI3 licenses after GA?
After vSphere GA, only vSphere SKUs will be on price list
Purchase vSphere licenses and “downgrade” them via the license portal
After downgrade, customers will have a VI3 copy and a vSphere 4 copy of their licenses

License Downgrade Mapping: vSphere 4 to VI3
Downgrade process via vSphere/vCenter license portal
Select link to “downgrade orders”
Select vSphere order number(s) to be downgraded – only whole orders can be downgraded
After approx. 30 minutes, additional license quantity is added to VI3 license portal
Licenses displayed on vSphere/vCenter portal will not be decreased or affected

New: Improved Process For Edition Upgrade
Note: These are upgrades in functionality (e.g. Standard to Enterprise) as opposed to version upgrades (from VI3 to vSphere 4)
In VI3, upgrade orders are fulfilled as follows:
Licenses for incremental features (separate line items in license portal)
Support and subscription on the incremental portion (separate contract co-termed later)
Upgrade orders for vSphere/vCenter 4 follow a simpler, more robust process
License replacement
New license key for higher edition will be issued – no special “upgrade” license
Existing licenses will be deactivated (no longer viewable in license portal)
SnS “credit and extension”
New SnS contact for higher edition is established and billed – no upgrade SKU for SnS
Existing SnS contract will be terminated, and unused time is converted to n days of higher edition and added on
Example in appendix
Key benefits:
Elimination of SnS upgrade SKUs for VMware and partners
Fewer renewals – fewer quotes and transactions for the same cash flow
Lower complexity for future upgrades, compliance checks, other entitlement events

Pricing and Packaging: Summary of Changes
Name and version updates
“VMware Infrastructure” becomes “VMware vSphere”
VMware VirtualCenter 2.5 replaced by vCenter Server 4.0
VMware ESX/ESXi 3.5 replaced by VMware ESX 4.0 / ESXi 4.0
Switch to one-processor pricing
Introduce new editions and new price points
vSphere Essentials, Standard, Advanced, Enterprise Plus
End-of-availability for old editions:
Foundation immediate end-of-availability
Enterprise availability continues during a transition period
Eliminate most a-la-carte offerings

Resources
10 Tips to Get Ready for vShere
http://www.championsg.com/champion.nsf/resources/10+tips+to+get+ready+for+vsphere
vSphere Upgrade Center
http://www.championsg.com/champion.nsf/products/vmware+syndicated

Q&A Session
Next Steps:- Contact your Client Manager- If you are not currently working with a Client Manager, call 800-771-7000 to speak with a Sales Specialist- Join Webcast #2 on June 16th “What’s new with vSphere”

Navigating the new vSphere Licensing Landscape

by Champion Solutions Group on Jun 22, 2009

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