More Related Content Similar to vSphere+ and vSAN+ Pricing Overview Similar to vSphere+ and vSAN+ Pricing Overview (20) vSphere+ and vSAN+ Pricing Overview1. 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
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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.
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Why Per Core Licensing?
• Aligning with industry standards – common and consistent
licensing metric
• Simplifying licensing to support customer workloads across
clouds
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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
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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
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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.
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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.
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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+.
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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)
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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.
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• 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 What’s new in pricing: discount higher in + model
AD+ in SUP
Ability to make up to $x depending on EU price. 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 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