You Down with VMware’s EPP? Yeah You Know Me

By: Rob O’Shaughnessy

Remember the last time you were at Chuck E. Cheese, whether you were there with your kids or by yourself (maybe you like Jasper T. Jowls rhythm guitar or you just like the pizza) and you wanted to play skee-ball or whack-a-mole.  To pay for those and the other arcade games, you didn’t just shove a dollar bill into the machine, but rather, you had to use the Chuck E. Cheese tokens.  Remember those? They were brass coins with Sir Chuck’s face on it.  You probably still have some in your change drawer next to that Canadian dollar you’ll never use.  For Chuck E. Cheese it was their own currency that you could use to purchase Chuck E. Cheese products and the more tokens you purchased the better discount you received on Chuck E. Cheese goods.  It’s a simple concept and I guess VMware must have talked to Nolan Bushnell because VMware has started their own token-based purchase program that can be used to buy VMware licensing just like a kid would use a 1000 tokens to purchase a fuzzy head troll.

VMware has always offered two licensing purchase programs that were on opposite sides of the spectrum.  There is the VPP (Volume Pricing Program) which is geared towards small to medium sized end users that requires a minimum purchase of $25K MSRP.  On the other side, VMware offers their ELA (Enterprise License Agreement) for large organizations looking to spend upwards to a million dollars or more on VMware licenses.  But what about the middle class customers who didn’t have a licensing program that provided discounts to fit their needs.  Now for those types of end users looking to spend between $250K to $1M and didn’t want to jump into an ELA and are too big for VPP, well VMware now has you covered.  Introducing the new EPP (Enterprise Purchase Program!!!).  I just rambled on about Chuck E. Cheese tokens.  Can you guess what VMware is doing?

VMware just announced their new EPP which is a purchasing program designed for mid-level end-users that offer discounts and greater flexibility without the complexity that sometimes comes with an ELA.  It’s a vehicle that allows end users to buy tokens that are redeemable online for a broad range of VMware product licenses and associated production support and subscription (SnS) during a three-year period and is suited for those looking to make a strategic and long term investment with VMware.  Basically, it’s a program designed to fit a customer who may be too big for a VPP program and too small to sign up for an ELA—the middle guy/gal.

EPP is a token-based program where end users purchase a set of tokens which can be redeemed for most VMware software licensing products.  SnS is automatically added where applicable.  The token to dollar ratio is frozen on a per deal basis and the MSRP is $100 per token.  So we’re talking about a minimum order of 2,500 tokens to get into EPP which is $250,000. The tokens last for 3 years and there is no refund for unused tokens.  End users can distribute their tokens among their projects or departments giving them flexibility to choose their own products whenever they want.

Basically an end user would purchases a bunch of tokens and these tokens go on the MyVMware portal allowing one to redeem these tokens to pick and choose whatever licensing products they need.  The end user doesn’t have to go to their reseller to get a quote and place a licensing order.  With EPP, it’s prepaid and one just redeems the licensing they need off their portal.  Just like a kid at Chuck E. Cheese can run around using his or her tokens to pay for arcade games until he or she runs out or throws up and is forced to go home.  I suppose that since Chuck E. Cheese sells beer, this could also happen to an adult.  Here’s a little caveat though, tokens can’t be used for PSO, renewals or anything else besides software and SnS.  Customers can add tokens to an active contract at any time (minimum of $50K worth for additional tokens).

Features:

An end user would purchase tokens from a VMware partner (like us) as a sku and a quote would be created depending on how many tokens are needed.  There are different skus for different discount levels.  The more tokens one buys, the better discount they get on the token ranging between $250K – $600K.  The end user can then redeem their tokens on their MyVMware portal for VMware licensing products.  The SnS starts when the end user redeems a license and is co-termed to the end of the program term.  EPP grants access to future products ensuring one gets the “latest and greatest.” The license is immediately delivered.  When end users redeem their tokens the license keys are delivered to the MyVMware account.  Once an EPP is started, the end user has 3 years to use their tokens.

So what are the benefits to you, the end user?

For one it’s the Discounts.

EPP offers significant discounts specifically designed for mid-tier enterprise customers. The more tokens purchased the better discounts received on the tokens.

Mix & Matching Anytime. EPP provides the flexibility to mix and match VMware products.  It allows one to purchase any combination of SW licenses within the 3 year term of the EPP.   The flexibility to purchase any time gives you the ability to adapt to fluctuating business and project needs.  If more licenses are required and the tokens have run out, additional tokens can be purchase at the original discounted price.

Easy Management allows the tokens to be redeemed by anyone in the company designated by the customer’s “Fund Owner” (who is an individual in the company who enrolls in EPP and has the authority to purchase, receive and redeem EPP tokens in the MyVMware portal…basically the Nucky Thompson of the company.)  Say the desktop group needs more View licenses. The Fund Owner can set them up to have their own set of tokens to make a purchase. EPP provides access to Future VMware products.

Last, Quick Processing because since EPP is a sku, it can be processed as quickly as VPP and doesn’t require processes required to purchase an ELA.

How EPP Works:  3 Steps

1.)    An end user enrolls in the VPP online enrollment portal at www.vmware.com/go/purchasenow  New customers are required to enroll in either VPP, VPP & EPP, or EPP Only.  EPP Only option is for customers previously enrolled in VPP.  When enrolled, the end user will receive a VPP membership number and approved company name.

2.)    The end user receives a proposed purchase order from their reseller.  The proposal includes the: A.) Estimated amount of tokens that the end user would use over a 3 year term, B) the EPP discount, and C.) EPP Sku.  The end user then communicates the approval of the purchase order to their reseller.

3.)    After the EPP order is processed, tokens will be available on the end user’s MyVMware portal.  End Users can redeem the tokens for SW products receiving the licensing immediately.  When redeeming the tokens the Fund Owner must name a reseller who helped them with the redemption.

The EPP on MyVMware Site:

All the information to redeem tokens after the purchase has been made is on the end user’s MyVMware site.  The site includes an interactive GUI tool that allows the Fund Owner to manage and redeem the tokens.  The Fund Owner(s) will purchase VMware licensing products with their tokens.  The price of the product is on the site and will automatically include the SnS.  The Fund Owner can also create sub funds for different departments to use.  For instance they can create a bucket of funds for the desktop group or the server group and provide access to the site so those users can redeem their bucket of tokens for their own products.  The Fund Owner can transfer tokens between sub funds if a group happens to run out or a group has a surplus they’re not using.   The portal includes charts that detail how many tokens are left and a countdown on how much time is remaining on their EPP.

This is definitely a new and unique way of purchasing VMware.  If you’re interested in learning more about EPP please contact us.

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