VMware–subscription licensing focus with VSPP

(Stephen Parker, Head of Cloud Strategy, NewLease)

NewLease have been successfully managing software subscription licensing programs from some of the industry leaders for some time now.  Despite this success it is no secret that in generally terms subscription licensing has been the “poor cousin” of the traditional on-premises programs.

However recently this trend is showing a clear shift.  Although in overall revenue terms on-premises software is still 90+% of the total, what is changing is the focus that the major software vendors are starting to place on their subscription programs.

This was highlighted at the recent VMware PEX partner event in Sydney (4th April 2012) where:

  • Every keynote speaker made clear references to service providers and subscription licensing
  • There was a whole track of sessions (1 of 4) dedicated to the VMware Service Provider Program (VSPP).

A few of the key comments (IMO) made during the keynotes were:

  • Andrew Dutton (General Manager, VMware, APJ) asserted that 100% of IT will be delivered by service providers
  • Recent disasters across the whole of Asia, Pacific and Japan has made business continuity a “must do” focus for company boards. Honda was used as an example, with their R&D facility being affected by the tsunami and their data centre not being backup up. They now a fully virtualised with failover capabilities to China and Korea [AD]
  • China current 5 year plan has the Cloud as the #1 IT priority [AD]
  • Parag Patel (VMware VP Alliances) described how automation will be essential to manage the VM explosion to 80 million by 2014 (IDC)
  • We are moving from a document centric to a collaboration centric model [PP]
  • CIO’s are moving from being the owners of an internal service monopoly to being service brokers [PP] (interesting that this was a move that Exxon was making in the 1990’s)
  • Duncan Bennet (VMware, VP &MD ANZ) shared a recent personal example of a tradesman who used an iPad to show customer references, create a quote, email a copy and ultimately close the business.  This really is enterprise capability at commodity prices – the Cloud is here.
  • There is a 32% grow in VM deployments globally [DB]
  • ANZ is leading this at 37% [DB]
  • 78% of businesses will have some form of private cloud by 2014 (Gartner) [DB]
  • VMware are being clear that vSphere is a key offering, but their “hyper” growth will be in the growing portfolio of adjacent products. [DB]
  • VMware are positioning their offerings across 3 layers [DB]
    • End User
    • Application
    • Infrastructure (the traditional VM space)
  • John Donavon (VMware, Director, Channel Sales ANZ) explained that when VMware compare revenue from partners and correlate this to whether the partner has a competency, they see a 3.5 x multiplier where there is a competency

About SJKParker

Discovering exceptional stakeholder value through innovative technology investments. 25+ years’ experience as a business and technology hybrid. Providing creative and challenging thinking that delivers alignment of essential business needs with innovative technology. Passionate leadership and business model transformation across large enterprises, start-ups, SMBs, and business turnarounds. Experience gained from working closely with leading software vendors on their global cloud strategy, provided associate services to industry analysts, sharing knowledge as a keynote speaker and writing a variety of books covering the Cloud space. Painting business pictures with an IT brush, providing Experience, Passion & Impact Specialties: Business model transformation, Evangelist and presenter, Cloud Computing, Software as a Service, SaaS, Office 365, Azure, Solution Architect, eProcurement, SPLA, Subscription licensing
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