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Confidential │ ©2022 VMware, Inc.
vSphere+ and vSAN+
Pricing and Packaging Overview
Cloud Infrastructure Business Group
July 2022
Confidential │ ©2022 VMware, Inc. 2
Agenda Overview
vSphere+
Subscription Upgrade Program
vSAN+
Pricing and Packaging Resources
Confidential │ ©2022 VMware, Inc. 3
vSphere+ Pricing & Packaging
Features
delivered on
prem
vSphere+
Cloud delivered
features
vSphere ENT+
vCenter Server STD
Multi-vC Services –
Inventory, Mgmt., Config,
Security
Dev. Consumption
Surface
Lifecycle Service
Project Monterey
Tanzu Standard Runtime
Net New Pricing Overages 1-Year 3-Year 5-Year
List Price - Per Core $0.03 $140 $300 $500
List Price - Per Core - Per Year $263 $140 $100 $100
Subscription Upgrade Pricing Overages 1-Year 3-Year 5-Year
List Price - Per Core $0.03 $75.60 $198 $330
List Price - Per Core - Per Year $263 $75.60 $66 $66
• Highlights
• VMware vSphere+ is a subscription offering that is connected to VMware Cloud Services and includes
Production Support
• vSphere+ is Licensed Per Core and requires a minimum of 16 Cores per CPU
• A customer with a 12-Core CPU will be required to purchase a 16-Core Commitment for that CPU
• vSphere+ follows the Commit + Overages model
• vSphere Enterprise and vSphere Enterprise Plus are available for Subscription Upgrade Program to vSphere+
• vSphere+ is only available for the Direct and 2-Tier Channel routes to market. No SPFs for SUP Transactional
SKUs
• Incentive Programs i.e Solution Rewards & Advantage+ applies. 15% AD+ on Net New SKUs, 10% AD+ on
SUP SKUs. Targeted availability August 4.
Confidential │ ©2022 VMware, Inc. 4
Why Per Core Licensing?
• Aligning with industry standards – common and consistent
licensing metric
• Simplifying licensing to support customer workloads across
clouds
Confidential │ ©2022 VMware, Inc. 5
Commit + Overages Model
Commit
Customer must choose a
1/3/5-year commitment
Each CPU has set
Baseline Quantity from
which Overages is
calculated
Metering
Usage is metered hourly
The number of overage
core-hours is summed up
at the end of the month
Billing
Billed in Arrears
Confidential │ ©2022 VMware, Inc. 6
Subscription Upgrade Program
High Velocity
Quote 16 cores per 1 CPU; removes
any dependency on customer to
provide core counts prior to first
quote
Predictable Pricing
For the first subscription term, the
price is equivalent to 16 cores,
regardless of customer’s core
density, which can range from 16 to
32 cores for 1 traded-in per-CPU
License
Customer can come back and
request additional cores and have
them 100% discounted if customer
provides hardware documentation
proof
Monetize all Cores at Renewal
The price for the renewal term and all
subsequent terms will be based on all
activated cores in that 1 traded-in
per-CPU license
Customers with a core-dense CPU
license are incentivized to have a
longer first subscription term
Confidential │ ©2022 VMware, Inc. 7
Subscription Upgrade Program
Program Guidelines
• vSphere+ is licensed Per Core with a minimum of 16 Cores per CPU required; VMware per-CPU licensing policy allows 32 cores maximum per CPU.
• Subscription Upgrade from 1 CPU of vSphere Enterprise/Enterprise Plus to customer-equivalent number of vSphere+ Cores.
• SUP Process designed for sales velocity and smoother customer transition to per core licensing:
• Quote 16 Cores for each 1 CPU
• Customer either accepts 16 Cores = 1 CPU or informs VMware that they have more cores in that 1 CPU
• If customer provides documentation, VMware will issue a re-quote where the cores above 16 will be fully discounted for the first subscription term only
• VMware will host a website where the customer can submit documentation proof
• At First Renewal, all SUP Cores will be paid for at SUP price (For any cores above 16 that were 100% discounted, the discount will be valid for the first
subscription term only.)
• Customers with 17-32 cores can have the additional cores above 16 100% discounted for the first subscription term, so these customers are incentivized to
commit to a longer first Subscription Upgrade term
• This SUP process will be further updated later in FY23 with more automation for channel.
Confidential │ ©2022 VMware, Inc. 8
Subscription Upgrade Program
SUP Process
Initial Quote Customer Decision Renewal
Quote 1 CPU = 16 Cores Customer decides whether that is the
correct amount for their deployment
Price is based on all cores
activated at SUP per-core price
point.
3-Year
Price:
$3,168
3-Year
Price:
$3,168
16 Cores –
accept
quote + PO
24 Cores –
customer
requests for
re-quote
3-Year
Price:
$3,168
Customer
submits HW
documentation
Yes
No
Requote and PO
3-Year Price:
$3,168
3-Year Price:
$4,752
3-Year Price: $66*24*3 =
$4,752
Customer pays for all cores.
Key Points – SUP Process
• Actual number of cores will be booked in the PO.
• Customer’s responsibility to submit documentation to apply for additional cores to be 100%
discounted in re-quote.
• Any 100% discounted cores will be paid for at Renewal; expectation must be set with customer.
Confidential │ ©2022 VMware, Inc. 9
Documentation Proof
Customer to Provide if requesting 17-32 cores for traded-in per-CPU license
Inventoried environments should include date-
stamped documentation of servers, processors,
and assigned cores for all production hardware
on which VMware vSphere Enterprise/Enterprise
Plus (1) is currently installed. Customers must
share this with VMware as proof of hardware
environment and the number of cores that were
assigned to their per-CPU license.
(1) vSAN Enterprise in the case of SUP to vSAN+.
Confidential │ ©2022 VMware, Inc. 10
SUP Examples
Customer trades in 1 per-CPU license
12 Cores
Customer pays 16-
core-equivalent
SUP price
16 Cores
Customer pays 16-
core-equivalent
SUP price
20 Cores
First term:
Customer pays 16-
core-equivalent
SUP price;
At Renewal,
customer pays for
20 cores at SUP
price.
Hardware
Refresh
Any mid-term
hardware refresh
additional cores
must be paid at Net
New Price
Hardware
Expansion
Any hardware
expansion cores
must be paid at Net
New Price (adheres
to 16 min
cores/CPU licensing
req)
Confidential │ ©2022 VMware, Inc. 11
vSAN+ Pricing & Packaging
vSAN+
vSAN ENT
Net New Pricing Overages 1-Year 3-Year 5-Year
List Price - Per Core $0.03 $189 $405 $675
List Price - Per Core - Per Year $263 $189 $135 135
Subscription Upgrade Pricing Overages 1-Year 3-Year 5-Year
List Price - Per Core $0.03 $135 $356 $594
List Price - Per Core - Per Year $263 $135 $119 $119
Highlights
VMware vSAN+ is a subscription offering that is connected to VMware Cloud Services and includes Production Support.
vSAN+ is configured as an add-on to vSphere+
vSAN+ is Licensed Per Core and requires a minimum of 16 Cores per CPU
• A customer with a 12-Core CPU will be required to purchase a 16-Core Commitment for that CPU
vSAN+ follows the Commit + Overages model
vSAN Enterprise is the only edition available for Subscription Upgrade to vSAN+
• Note, customers that have purchased vSAN Enterprise Plus, which is a soft bundle consisting of two components, vSAN Enterprise and
vRealize Operations Advanced, can SUP the vSAN Enterprise component to vSAN+
vSAN+ is only available for the Direct and 2-Tier Channel routes to market. No SPFs for SUP Transactional SKUs
Incentive Programs i.e Solution Rewards & Advantage+ applies. 15% on Net New SKUs, 15% on SUP SKUs. Targeted
availability August 4.
Confidential │ ©2022 VMware, Inc. 12
• Currently, only vSphere+ and vSAN+ subscriptions or its perpetual equivalents are compatible together
• “Mixed mode” deployments within a single vCenter is not supported
vSphere/vSAN Compatibility Matrix
Perpetual
vSphere+
Subscription
Perpetual
vSAN+
Subscription
vSphere
vSAN

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vSphere+ and vSAN+ Pricing Overview

  • 1. Confidential │ ©2022 VMware, Inc. vSphere+ and vSAN+ Pricing and Packaging Overview Cloud Infrastructure Business Group July 2022
  • 2. Confidential │ ©2022 VMware, Inc. 2 Agenda Overview vSphere+ Subscription Upgrade Program vSAN+ Pricing and Packaging Resources
  • 3. Confidential │ ©2022 VMware, Inc. 3 vSphere+ Pricing & Packaging Features delivered on prem vSphere+ Cloud delivered features vSphere ENT+ vCenter Server STD Multi-vC Services – Inventory, Mgmt., Config, Security Dev. Consumption Surface Lifecycle Service Project Monterey Tanzu Standard Runtime Net New Pricing Overages 1-Year 3-Year 5-Year List Price - Per Core $0.03 $140 $300 $500 List Price - Per Core - Per Year $263 $140 $100 $100 Subscription Upgrade Pricing Overages 1-Year 3-Year 5-Year List Price - Per Core $0.03 $75.60 $198 $330 List Price - Per Core - Per Year $263 $75.60 $66 $66 • Highlights • VMware vSphere+ is a subscription offering that is connected to VMware Cloud Services and includes Production Support • vSphere+ is Licensed Per Core and requires a minimum of 16 Cores per CPU • A customer with a 12-Core CPU will be required to purchase a 16-Core Commitment for that CPU • vSphere+ follows the Commit + Overages model • vSphere Enterprise and vSphere Enterprise Plus are available for Subscription Upgrade Program to vSphere+ • vSphere+ is only available for the Direct and 2-Tier Channel routes to market. No SPFs for SUP Transactional SKUs • Incentive Programs i.e Solution Rewards & Advantage+ applies. 15% AD+ on Net New SKUs, 10% AD+ on SUP SKUs. Targeted availability August 4.
  • 4. Confidential │ ©2022 VMware, Inc. 4 Why Per Core Licensing? • Aligning with industry standards – common and consistent licensing metric • Simplifying licensing to support customer workloads across clouds
  • 5. Confidential │ ©2022 VMware, Inc. 5 Commit + Overages Model Commit Customer must choose a 1/3/5-year commitment Each CPU has set Baseline Quantity from which Overages is calculated Metering Usage is metered hourly The number of overage core-hours is summed up at the end of the month Billing Billed in Arrears
  • 6. Confidential │ ©2022 VMware, Inc. 6 Subscription Upgrade Program High Velocity Quote 16 cores per 1 CPU; removes any dependency on customer to provide core counts prior to first quote Predictable Pricing For the first subscription term, the price is equivalent to 16 cores, regardless of customer’s core density, which can range from 16 to 32 cores for 1 traded-in per-CPU License Customer can come back and request additional cores and have them 100% discounted if customer provides hardware documentation proof Monetize all Cores at Renewal The price for the renewal term and all subsequent terms will be based on all activated cores in that 1 traded-in per-CPU license Customers with a core-dense CPU license are incentivized to have a longer first subscription term
  • 7. Confidential │ ©2022 VMware, Inc. 7 Subscription Upgrade Program Program Guidelines • vSphere+ is licensed Per Core with a minimum of 16 Cores per CPU required; VMware per-CPU licensing policy allows 32 cores maximum per CPU. • Subscription Upgrade from 1 CPU of vSphere Enterprise/Enterprise Plus to customer-equivalent number of vSphere+ Cores. • SUP Process designed for sales velocity and smoother customer transition to per core licensing: • Quote 16 Cores for each 1 CPU • Customer either accepts 16 Cores = 1 CPU or informs VMware that they have more cores in that 1 CPU • If customer provides documentation, VMware will issue a re-quote where the cores above 16 will be fully discounted for the first subscription term only • VMware will host a website where the customer can submit documentation proof • At First Renewal, all SUP Cores will be paid for at SUP price (For any cores above 16 that were 100% discounted, the discount will be valid for the first subscription term only.) • Customers with 17-32 cores can have the additional cores above 16 100% discounted for the first subscription term, so these customers are incentivized to commit to a longer first Subscription Upgrade term • This SUP process will be further updated later in FY23 with more automation for channel.
  • 8. Confidential │ ©2022 VMware, Inc. 8 Subscription Upgrade Program SUP Process Initial Quote Customer Decision Renewal Quote 1 CPU = 16 Cores Customer decides whether that is the correct amount for their deployment Price is based on all cores activated at SUP per-core price point. 3-Year Price: $3,168 3-Year Price: $3,168 16 Cores – accept quote + PO 24 Cores – customer requests for re-quote 3-Year Price: $3,168 Customer submits HW documentation Yes No Requote and PO 3-Year Price: $3,168 3-Year Price: $4,752 3-Year Price: $66*24*3 = $4,752 Customer pays for all cores. Key Points – SUP Process • Actual number of cores will be booked in the PO. • Customer’s responsibility to submit documentation to apply for additional cores to be 100% discounted in re-quote. • Any 100% discounted cores will be paid for at Renewal; expectation must be set with customer.
  • 9. Confidential │ ©2022 VMware, Inc. 9 Documentation Proof Customer to Provide if requesting 17-32 cores for traded-in per-CPU license Inventoried environments should include date- stamped documentation of servers, processors, and assigned cores for all production hardware on which VMware vSphere Enterprise/Enterprise Plus (1) is currently installed. Customers must share this with VMware as proof of hardware environment and the number of cores that were assigned to their per-CPU license. (1) vSAN Enterprise in the case of SUP to vSAN+.
  • 10. Confidential │ ©2022 VMware, Inc. 10 SUP Examples Customer trades in 1 per-CPU license 12 Cores Customer pays 16- core-equivalent SUP price 16 Cores Customer pays 16- core-equivalent SUP price 20 Cores First term: Customer pays 16- core-equivalent SUP price; At Renewal, customer pays for 20 cores at SUP price. Hardware Refresh Any mid-term hardware refresh additional cores must be paid at Net New Price Hardware Expansion Any hardware expansion cores must be paid at Net New Price (adheres to 16 min cores/CPU licensing req)
  • 11. Confidential │ ©2022 VMware, Inc. 11 vSAN+ Pricing & Packaging vSAN+ vSAN ENT Net New Pricing Overages 1-Year 3-Year 5-Year List Price - Per Core $0.03 $189 $405 $675 List Price - Per Core - Per Year $263 $189 $135 135 Subscription Upgrade Pricing Overages 1-Year 3-Year 5-Year List Price - Per Core $0.03 $135 $356 $594 List Price - Per Core - Per Year $263 $135 $119 $119 Highlights VMware vSAN+ is a subscription offering that is connected to VMware Cloud Services and includes Production Support. vSAN+ is configured as an add-on to vSphere+ vSAN+ is Licensed Per Core and requires a minimum of 16 Cores per CPU • A customer with a 12-Core CPU will be required to purchase a 16-Core Commitment for that CPU vSAN+ follows the Commit + Overages model vSAN Enterprise is the only edition available for Subscription Upgrade to vSAN+ • Note, customers that have purchased vSAN Enterprise Plus, which is a soft bundle consisting of two components, vSAN Enterprise and vRealize Operations Advanced, can SUP the vSAN Enterprise component to vSAN+ vSAN+ is only available for the Direct and 2-Tier Channel routes to market. No SPFs for SUP Transactional SKUs Incentive Programs i.e Solution Rewards & Advantage+ applies. 15% on Net New SKUs, 15% on SUP SKUs. Targeted availability August 4.
  • 12. Confidential │ ©2022 VMware, Inc. 12 • Currently, only vSphere+ and vSAN+ subscriptions or its perpetual equivalents are compatible together • “Mixed mode” deployments within a single vCenter is not supported vSphere/vSAN Compatibility Matrix Perpetual vSphere+ Subscription Perpetual vSAN+ Subscription vSphere vSAN

Editor's Notes

  1. What’s new in pricing: discount higher in + model AD+ in SUP Ability to make up to $x depending on EU price.
  2. Proposed Price points: $135/core/year for the 3-year commit, with a 40% premium for 1-year and 10% discount for 5-year, following IaaS practices SUP price is priced at a 30% discount to $135/core/yr for 3yr commit 2 points highlighted in red will need SSC updates for launch 2 SSC development call outs: - System currently not set up to have different SUP discounts for different terms. - system not setup for 5Y term discount 2 decimal points to be $.04 If 1yr SUP can’t match 14% premium for a price of $132, then it would need to be 40% premium for a price of $162
  3. Current compatibility matrix for vSphere and vSAN at GA Note – vSphere subscription will work with SRM perpetual licenses though mixing and matching vSphere/vSAN perpetual with the respective subscription offering is not compatible