Solutions Updates Enablement

Introducing new commerce motions for VMware Cloud on AWS partners

With thousands of partners worldwide, VMware has been uniquely positioned to help our customers in their digital transformation and IT modernization journey over the past several years. Customers managing on-premises environments are looking for financial flexibility by moving from a capital expense (CAPEX) to an operational expenditure (OPEX) model to align with their organization’s financial planning and analysis strategy.

Today, keeping VMware customers and partners at the forefront and helping them in accelerating their cloud transformation journey, we are excited to announce two new transactional motions for our channel partners to purchase VMware Cloud on AWS hosts.

1. SKU-based transactional motion:

Distributors registered with VMware Partner Connect will now be able to purchase the 1-year or 3-year prepaid subscription for VMware Cloud on AWS hosts by using SKUs from the VMware Partner price book on behalf of a designated reseller and customer who can immediately start consuming the service. The distributors will work with VMware sales teams to complete the purchase on behalf of the reseller/customer combination. With this transactional motion, there is no need to purchase SPP credits upfront, allowing distributors and resellers to be directly involved in providing value to their end customers.

This motion thereby provides a better experience to the resellers by providing them visibility and control of their customer’s commerce activities in subscription term purchases. Partners will have access to view the subscriptions, overages, and non-host usage data that links the end customer to the partner and the partner to VMware. Distributors don’t need to purchase SPP credits or a contract to purchase these SKUs. Distributors can purchase these SKUs directly for a designated reseller and end-customer combination.

For customers and partners, there is no need for upfront investment in terms of SPP credits thereby optimizing cloud spending. Customers who are willing to start their cloud journey but are not ready to sign a contract, purchase a large volume, or make a significant commitment of time and funds upfront – can start small (with a 2-host 1-year subscription) purchased by SKU and scale as needed later. Customers also get the autonomy to create SDDCs, add/remove hosts, and manage Identity and Access Management (IAM).

2. Commitment-Based Contracts (CBC) commerce motion:

The new commitment-based contracts (CBC) transaction motion can be used to purchase both VMware Cloud on AWS and VMware Cloud Universal. This commerce motion provides an alternative to purchasing SPP credits upfront. The distributor has the option to sign two types of CBCs – VMware Cloud standalone CBC and VMware Cloud Universal (VMCU) CBC. The VMCU CBC includes benefits like Cloud Acceleration Benefit (CAB), VMware Success 360 (S360), and access to additional exclusive offerings like VMware Cloud Foundation Subscription (VCF-S) & vRealize Cloud Universal.

Distributors also have an opportunity to enable a significant volume discount for a specific reseller/end customer combination and make payments monthly on their upfront commitment by signing a Commitment Based Contract (CBC) with VMware. The distributor will be charged monthly by VMware based on the associated customer’s consumption of VMware Cloud offerings.  A commitment Based Contract (CBC) has a 1:1:1 relationship between the distributor, reseller, and the end customer. VMware does not support a wholesale model i.e. the distributor cannot sign a single Commitment Based Contract (CBC) and use it across the pool of resellers and end customers. For each new end customer, the distributor shall need to sign a new CBC with VMware for the associated reseller. For “n” distinct end customers, the distributor shall need to sign “n” CBCs with VMware. This way, distributors can grow their business by utilizing CBC multiple times with each reseller/customer combination. 

Customers are not required to purchase SPP credits to take advantage of this transactional motion, but there is an option to pay by invoice at the end of the monthly billing period.  They also get the flexibility to self-serve VMware Cloud offerings purchased directly from the console. They are the owner of the environment/org and can create SDDC, add/remove hosts as well as oversees the Identity & Access Management (IAM). The customers’ selections are appended to the commitment-based contract signed by the distributor and billed through the distributor/reseller combination, eventually passing through to the end customer.

VMware supports seamless migration for customers from SKU-based transactional commerce motion to Commitment Based Contracts (CBC). There would neither be any system downtime nor any impact on the customer’s workloads during the migration.

What’s Next:

Please go through VMware Cloud on AWS commerce FAQs to learn more about these two transaction models. If you have any further questions, please reach out to us via email: commerce-pm@groups.vmware.com

Also, please check out latest news about VMware Cloud on AWS on Partner Connect portal page. And if you would like to get additional information, here are some other valuable resources for you:

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