Gartner Research

Five Key Essentials for VMware ELA Negotiation Success

Published: 17 April 2017

ID: G00326512

Analyst(s): Edward Weinstein, Eugene Quillen

Summary

Sourcing and vendor management leaders should leverage these five essentials to plan and negotiate a VMware enterprise license agreement. As a result, they can achieve deeper discounts, with terms and conditions aligned to desired outcomes.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Engage Essential Parties
    • Engage directly with VMware and a reseller partner that is at least at the Enterprise level with VMware to increase discounts
    • Consider a VMware ELA optimization review
    • Buyer beware: Choose your reseller carefully — your choice is a critical negotiating success factor
  • Align Needs With Options
    • Meet demand and financial objectives by selecting the appropriate ELA type
    • Calculate token and credit conversions to provide full cost transparency
  • Collect and Analyze Cost Details
    • Discover true discounts by using customized RFQ templates and option-modeling tools to gather and analyze VMware ELA proposals
  • Negotiate Terms
    • Get perpetual license rights granted for all the licenses paid for under an ELA, and avoid audit surprises by negotiating critically important terms
    • Negotiate terms in a VMware ELA, using our recommendations
  • Strategically Time Execution
    • Get the best attention and leverage by negotiating your deal when it is most significant to VMware

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