2-Tier Commitment Based Contracts (CBC) using PurchasePay for VMC & VMCU Release Notes
With tens of 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. Today, keeping VMware customers and partners in the forefront, we are excited to announce a new commerce motion for our channel partners for purchasing VMware Cloud on AWS and VMware Cloud Universal. This new commerce motion provides an alternative to purchasing SPP credits upfront. Distributors will receive the 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 and committing to spend a certain amount of money on behalf of the reseller/end customer combination over a specific period. There is no amount due on day 1 when the CBC is signed by the distributor. The distributor will be charged monthly by VMware based on the associated customer's consumption of VMware Cloud offerings (if the customer fulfills the 1-year/3-year commitment as agreed on in the contract between VMware and the distributor). The distributor is the one who is involved in the initial commitment-based contract, negotiating discounts and terms for their reseller/end customer combination, and creating value for their resellers and end customers. The customer has the complete freedom of self-service to configure their service, add hosts and purchase VMware Cloud on AWS subscriptions, and value-add VMware Cloud services. The end customers' selections are appended to the commitment-based contract signed by the distributor and billed through the distributor/reseller combination, eventually passing to the end customer.
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.
The channel customers who have started small with SKU-based transactional motion and are ready to invest in VMware Cloud on AWS and VMware Cloud Universal over time can shift to Commitment Based Contracts to get additional cloud offerings and better discounts.
VMware will share the usage data with distributors and resellers, which would enable them to perform downstream billing by setting up their custom price books. Distributors and resellers will have access to view the subscriptions, overages, and non-host usage data to engage with the customers, optimize their cloud spend, and ensure the end customers are optimally provisioned with hosts and subscriptions covering those hosts.
- SPP credits are not required to take advantage of this new commerce motion, as there is an option to pay either by SPP credits or by invoice at the end of the 30-day billing period.
- Flexibility to self-serve purchase VMware Cloud offerings/additional subscriptions as needed every month to optimize cloud spending and investment
- Get a volume discount that provides the lowest cost and leverages your distributor/reseller's consumption planning expertise with the certainty of having a reseller to guide you through your cloud journey.
- An extra pair of eyes on your consumption with the reseller to ensure no over-provisioning or under-provisioning
- The simplicity of self-service with the certainty of a trusted partner advisor involved directly in the commerce motion with VMware.
- The distributor/reseller is no longer required to purchase SPP credits on behalf of the end customer
- Distributors can leverage prior CBCs as an informal template to scale by reproducing CBCs quickly and efficiently for each reseller/end customer combination
- Distributors and resellers can enable significant volume discounts for their end customers, ensuring value for all partners and the end customer.
- Distributors nor Resellers are required to pay upfront as a part of the commitment before the end customer is ready to consume/pay.
- Increased visibility into subscriptions, host/non-host usage data (data transfer, elastic IP, elastic vSan, EBS, Direct Connect), overages, and others.
- Better engagement with the end customers to make sure they can provision Software-Defined Data Centers (SDDC) accurately, avoiding any dissatisfaction they might encounter with over-provisioning or under-provisioning
- Better engagement with VMware to monitor and track end-customer consumption, offering the potential for cross-selling and upselling your native applications
- Direct involvement in the commerce activity so that the partner can remain valuable to the end customer throughout their cloud journey with VMware Cloud on AWS and the VMware Cloud family of services
Note: This release does not support the 2-Tier GovCloud commerce motion