Go Strategic with TCO/ROI Analysis

Maureen_lonergan_72x100 Maureen Lonergan: Ahead of the Learning Curve
[est reading time: 3 minutes, 45 seconds]

So many times the key to finalizing a virtualization solution sale hinges upon how well you can answer questions about Total Cost of Ownership (TCO) and Return on Investment (ROI). These are key questions that upper-level decision makers and C-level executives focus on. Being able to talk in their language and answer these questions effectively puts you in the position of an adviser allowing you to develop a strategic partnership with your customers.

So what if you don’t feel comfortable with the TCO/ROI-based approach to selling? Great news, we have developed Go Strategic With TCO/ROI Analysis, a 4-part training program that will help both the novice and the seasoned sales person become proficient in TCO/ROI-based selling. The training series focuses equally on the TCO/ROI Sale Process in addition to a robust set of TCO/ROI Tools. A TCO/ROI-based approach to selling provides a framework of language, data, and metrics that lets you present the technological benefits of VMware as financial and strategic incentives that are attractive to management.

There are 4 short models that make up the Go Strategic With TCO/ROI Analysis program:

Module 1: Introduction to TCO/ROI Analysis:
This module introduces you the benefits of using a TCO/ROI-based method to sell VMware and discusses how you can use this approach to achieve your sales goals through strategic partnerships with your customers.   You will learn TCO/ROI terminology and how to talk the language of the decision makers.

Module 2: The VMware Realized ROI Calculator

This calculator acts as a rear view mirror of virtualization that helps to justify the spend to date and show how additional investments would have benefited the business.  This kind of analysis allows you to quantify the savings a customer has achieved since their initial VMware deployment and helps you build a solid value-based business case for additional investment. The reports are key in producing and delivering regular, periodic ROI report cards for your customers.

Since a lot of these discussions involve adding additional capabilities, a realized ROI analysis can also help with up-selling vSphere editions and cross-selling virtualization management solutions such as View, SRM, Lab Manager, Stage Manager, Chargeback and others.

Module 3: The VMware Virtualization TCO/ROI Calculator

This calculator acts as a windshield view of virtualization that takes a snapshot of your customer’s IT infrastructure and shows them the difference in the road ahead if they virtualize.   This kind of analysis helps you build solid business cases for VMware by quantifying the expected savings and demonstrating the business value of your proposed solutions.


Module 4: Effective TCO/ROI-based Sales and Business
This module will show you how to use TCO/ROI analysis in your prospecting and new customer sales process and how to use TCO/ROI-based business development techniques in existing VMware accounts.

Your customer needs to trust the analysis and numbers that we are building.  You can use these processes and tools with confidence because we have addressed the following:

  • The output needs to be built on a trusted financial model – VMware partnered with Alinean in building the TCO/ROI tools and assumptions.  Alinean has 15-years of experience in developing TCO/ROI and IT valuation tools. The principals created the TCO Manager and Analyst software for Gartner Group. They have exclusive partnership with IDC for research as well as research sharing and go-to-market relationships with Ziff Davis, publisher of Baseline and CIO Insight Magazines.
  • It needs to use standard industry terminology that everybody recognizes and understands.  
  • It has to be filled with data and metrics from the customer’s actual business – During the TCO/ROI analysis process customers can see exactly how the models are built and typically modify many of the values you’re using to suit their specific business situation, so everything is transparent.
  • And it has to be presented in a flexible format – one that makes the case effectively to a wide variety of possible audiences, technical and non-technical.

With budgets being examined more closely than ever and customers expecting solutions to come with a compelling financial justification, the new "Go Strategic with TCO/ROI Analysis" self-paced training teaches you the benefits of quantifying reductions in total cost of ownership (TCO) and a quick return on investment (ROI) to achieve their sales goals through strategic partnerships with your customers.

Finally, the TCO/ROI training is a requirement for obtaining the Infrastructure Virtualization Sales Accreditation 4 and can be found by logging into Partner Central, accessing Partner University, and clicking on the Infrastructure Virtualization Sales Accreditation 4 Training Plan. You can also find training in the Sales Continuing Education Section under Sales Tools and Skills.

Maureen Lonergan

Maureen Lonergan is the Director of Global Channel Enablement. She has responsibility for building training programs to enable all Channel Partners; Solution Providers, Corporate Resellers, Technology Providers, Alliance Partners, System Integrators and System Outsourcers, and Hosting. She has been leading the Channel Enablement Team since August 2008.


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