Through Project Arctic as well as the announcements at VMware Explore 2022 of vSphere+ and vSAN+ VMware has refreshed the way its vast portfolio of infrastructure products is to be obtained and deployed. The approach of SaaS and Subscription licensing is designed to bring the flexibility, simplicity, and overall value of the VMware Cloud to all components of the VMware customer estate. A customer can unlock cloud benefits and enhance existing deployments without disrupting existing workloads. Project Arctic is the transformation of the IT stack to make it cloud connected.
The benefits to customers when adopting a subscription model range from the obvious to the nuanced. The demand for subscription software has become ubiquitous throughout the industry. Simplified cloud access and management allow both development and operations teams to build, run, manage, secure, and protect applications and on-demand infrastructure while enabling workload capacity and scalability. The customer will enjoy the same flexibility and simplicity they have come to expect with their on-premises deployments by allowing resources to be allocated more effectively and efficiently by using a cloud-based approach as expenses shift from CapEx to OpEx. As many organizations have shifted to an operating expense (OpEx) model as opposed to the more traditional capital (Capex) model when budgeting for their infrastructure SaaS and Subscription help facilitate this transition. This approach exemplifies how VMware is proactively evolving its offerings to help customers take advantage of the latest technologies and consumption models, to prepare them to face the future of their business environments which will be dominated by the latest technologies. VMware’s focus on “Multi-Cloud” deployments while limiting a customer’s “Cloud Chaos” with a concentration on being “Cloud Smart” underly this improved direction.
Below is a list additional tangible benefits related to the SaaS and Subscription approach:
- Enhanced operational efficiency with centralized management and governance including lifecycle management.
- OpEx-based consumption while improving ROI from existing investment.
- Realization of the benefits of attractive first term incentives for customers transitioning from perpetual to subscription through the “Subscription Upgrade Program” (SUP) offer.
As the customer transitions from perpetual to subscription licensing the following should be considered:
- Customers who have purchased products as perpetual licenses will be able to seamlessly adjust to the subscription model by entering into a new license agreement. The customers’ individual strategic schedule as well as their specific technical and business requirements will be the determining factors.
- Subscriptions will be offered on a 1,3- or 5-year basis for maximum flexibility.
- Per-Core licensing will be the standard approach. The one-time SUP for currently used cores will be available as an incentive to transition from the perpetual to the subscription model.
- Core licensing will be available for Public and Local Cloud architectures.
- Consistency across all products is a core feature of the SKU-based Pricing and Packaging program.
- On-Premises licensing will remain available to existing customers who chose that option for all or part of their existing infrastructure.
- Two SKU-Based subscription options to flexibly match customer needs are available: (Exceptions exist for certain VMware products)
- Cloud connected offers
- Requires cloud connectivity
- No License Keys required
- Optimized for OpEx economics with cloud connectivity
- Services and Support
- On-Premises Licensing
- No cloud connectivity is required (Cloud disconnected)
- License keys are required
- Optimized for OpEx economics absent cloud connectivity
- Cloud connected offers
As more organizations diversify their application deployments from exclusively on-premises architectures to Cloud-based environments VMware is adapting to meet these modern requirements. With a focus on quickly transitioning while maintaining its vast on-premises customer base, VMware is meeting this challenge with the SaaS and Subscription offerings. VMware has taken the lead in the industry as much of the product portfolio will be available through subscription by years end.
VMware is accelerating the customers’ multi-cloud transformation journey by converting most of its Cloud Infrastructure portfolio to a subscription model. The vSphere+ and vSAN+ products were announced as General Availability at VMware Explore US in August 2022 and more products being offered through the subscription model will follow. The SaaS and Subscription offerings involve more than the subscription and per core licensing. They are about bringing benefits of the VMware Cloud to on-premises workloads, providing centralized management for multi-vCenter environments, and more. The subscription model is just one piece of the proposition. Much of the VMware Cloud Infrastructure solutions will soon become available through SaaS and Subscription. The list will expand beyond vSphere+ and vSAN+ to include vCloud Suite as vCloud Suite+, VMware Cloud Foundation (VCF) as VCF+ as well as vRealize and NSX. This is not an exhaustive list, and it is important to note that at present End-User-Computing (EUC) and Telco products are not affected by this plan.
Throughout the last decade the value of a well-architected cloud-based IT system can be remarkable. Access to immediate resources upon demand, the ability to incorporate rapidly changing technology and innovations, the near unlimited flexibility of the multi-cloud architecture all combine with the newest security and data protection capabilities to complete a modern digitally transformed IT architecture. The subscription model along with the more precise per-core pricing approach facilitate this transition and VMware will be providing this model for products throughout its vast portfolio.
To take advantage of the subscription program and offerings speak with your VMware Account Executive.
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