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Virtualization | Data Management | Business Continuity | Managed Services | Evolve to Simplicity Ask your question twitter.com/championsg Welcome to Navigating the new vSphere Licensing Landscape Webinar If you do not have audio on your computer… DIAL (877) 228-2832 Conference ID # 99967002

Navigating the new vSphere Licensing Landscape

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This session will define the new licensing model for vSphere. What the VMware vSphere announcement means to your organization. Navigating the new vSphere licensing landscape. What are the next steps?

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Page 1: Navigating the new vSphere Licensing Landscape

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Welcome to Navigating the new vSphere Licensing

Landscape Webinar

If you do not have audio on your computer…

DIAL (877) 228-2832Conference ID # 99967002

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vSphere 4 Licensing Model

Navigating the new vSphere Licensing Landscape

ON AIR

Sponsored by:

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Agenda

1. Transition from VI3 to vSphere 4

2. Process changes for license upgrade orders

3. New license keys for vSphere 4

4. New license administration UI in product

5. Simplified license activation process

6. New license portal

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License Upgrade Mapping: VI3 to vSphere 4

Eligible VI3 licenses Resulting vSphere 4 license key

VI3 Enterprise vSphere 4 Enterprise

VI3 Standard & Enterprise Upgrade vSphere 4 Enterprise

VI3 Standard & Vmotion & DRS vSphere 4 Enterprise

VI3 Standard & Vmotion vSphere 4 Standard + Vmotion + Storage Vmotion

VI3 Foundation & Vmotion vSphere 4 Standard + Vmotion + Storage Vmotion

VI3 Standard vSphere 4 Standard

VI3 Foundation vSphere 4 Standard

vCenter Server (VCMS) 2.x vCenter Server 4 Standard

vCenter Foundation 2.x vCenter Server 4 Foundation

Acceleration kits Fulfilled at individual vSphere/vCenter license level

HA & VCB Not fulfilled – included in all full vSphere editions

VI3 licenses purchased for VDI Not fulfilled – VMware View not yet compatible with vSphere

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New vSphere 4 Editions: Overview

STANDARD($795 / CPU)

Simple Consolidation

ENTERPISE PLUS

($3495 / CPU)

Simplified Operations

ADVANCED($2245 / CPU)

Availability

ESSENTIALS PLUSIntegrated availability

solution for Small Businesses

($2995 All-in-One for 3 Servers)

ESSENTIALSBasic management of

free ESXi($995 All-in-One for 3

Servers)

Scale limited,Low initial price,

Small office- oriented features

Scale unlimited,Value price, Low TCO

Full featured

Basic management for:• Simple

consolidation• Remote offices• Test labs

High availability for:• Production

infrastructure• Mission critical

applications

Large scale management and integration for:• Internal cloud• Tier 1

applications

VMware vSphere

Note: US list pricing in USD – International pricing may vary

ENTERPRISE($2875 / CPU)

Automated Resource

Management

Automated resource management for:• Production

infrastructure• Mission critical

applications

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vSphere 4 Editions: Essentials Packaging

• All inclusive packages:– Licenses for 3 physical servers (up to 2 processors each)– License for central management server

• Packages cannot be decoupled or combined; components cannot be used with other vSphere editions

ESSENTIALS($995)

VMware ESXi OR VMware ESX

4-way vSMP

vCenter Server for Essentials(up to 3 servers)

ESSENTIALS PLUS($2,995)

VMware ESXi OR VMware ESX

4-way vSMP

vCenter Server for Essentials(up to 3 servers)

VC Agent VC Agent

Update Manager

High Availability

Data Recovery

6 CPUS x

6 CPUS x

6 CPUS x

1 x

x 6 CPUS

x 6 CPUS

x 6 CPUS

x 1

x 6 CPUS

x 6 CPUS

x 6 CPUS

Update Manager 6 CPUS x

vCenter Serverfor Essentials

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vSphere 4 Editions: Core Platform

High Availability

STANDARD ENTERPRISE PLUS

License (1 CPU)SnS (Gold/Plat)

$795$273 / 323

$2,245$471 / 561

VMware ESXi OR VMware ESX

4-way vSMP

VC Agent

6 Physical Cores / CPU256 GB Physical Memory

VMotion™

High Availability

VMware ESXi OR VMware ESX

4-way vSMP

VC Agent

12 Physical Cores / CPU256 GB Physical Memory

ADVANCED

Fault Tolerance

Data Recovery

vShield Zones

VMotion™

High Availability

VMware ESXi OR VMware ESX

8-way vSMP

VC Agent

12 Physical Cores / CPUNo License Memory Limit

Fault Tolerance

Data Recovery

vShield Zones

Distributed Switch

DRS / DPM

Storage VMotion

Host Profiles

$3,495$734 / $874

Note: Most features require one (1) instance of vCenter ServerNote: At least 1 year of SnS is mandatory

High availability products for

protecting critical production

applications

Basic consolidation

of a lab or small

environment

Large scale management of critical production

applicationsNew

$2,875$604 / 719

VMotion™

High Availability

VMware ESXi OR VMware ESX

4-way vSMP

VC Agent

6 Physical Cores / CPU256 GB Physical Memory

ENTERPRISE

Fault Tolerance

Data Recovery

vShield Zones

DRS / DPM

Storage VMotion

Update Manager Update Manager Update Manager Update Manager

Thin Provisioning Thin Provisioning Thin ProvisioningThin Provisioning

VCB / vStorage APIs VCB / vStorage APIs VCB / vStorage APIs VCB / vStorage APIs

Hot Add Hot AddHot Add

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vCenter Server

VI Management

$4,995

$1,495vCenter Server Foundation

vCenter ServerStandard

License SnS (Gold/Plat)

$1,049/1,249

$545/645

Per Instance (USD)

• vCenter Server Standard and vCenter Server Foundation are management servers

• vCenter Server Foundation is limited to 3 nodes of any size / suite

• One (1) instance is required for most vSphere Standard, Advanced, or Enterprise Plus features

- No host limit- Includes Linked Mode- Includes Orchestrator

- 3 ESX host limit

vCenter Server is required for most vSphere features

$9,995vCenter Heartbeat

$2,099/2,499

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A la Carte Pricing

• Most features are no longer available a la carte (e.g. VMotion)

• Data Recovery is available for standalone sale on top of vSphere Standard only

• ESXi is still available for free as “ESXi Single Server”

– Excellent solution for virtualizing one or two servers

– Does not include a vCenter management agent

$695

FREE

License

$146/174

$495/595(optional)

VI Add-ons

Per Processors (USD)

SnS (Gold/Plat)

Data Recovery

ESXi Single Server

- Per incident support available at $299/incident

- Only available for sale with vSphere Standard

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Entitlement Path Overview

• Customers with valid subscription contracts receive vSphere 4 licenses for every VI3 license

– Each VI3 license edition maps directly to a vSphere 4 license edition (as depicted in the following slides)

– Licenses are fulfilled directly into the customer’s license portal on vmware.com and a notification email is sent

– Each VI3 2 CPU license maps to 2 x 1 CPU vSphere licenses– Enterprise License Agreements (ELAs) are fulfilled in the same manner

• Customers with expired subscription contracts will not receive new vSphere 4 licenses:

– If a customer does not renew support prior to the licenses expiring, they will be subject to a 20% reinstatement fee. To reinstate maintenance support and subscription for a license, maintenance must be back dated to the original date of expiration, renewed for a 12 month period from the current date and a 20% reinstatement fee added.

– Policy: https://www.vmware.com/files/pdf/support/support_terms_conditions.pdf– Quote form: http://www.vmware.com/support/form/contract_renewal.html

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VI3 Enterprise License Mapping

ENTERPRISE$2875/CPU

6 cores(Including: VMotion, SVMotion,

DRS+DPM)

ENTERPRISE PLUS$3495/CPU+12 Cores

(+Host Profiles + Distributed Virtual Switch)

ENTERPRISE$2875/CPU

6 cores(+ VMotion, SVMotion, DRS+DPM)

(FT + vShield + Data Recovery)

Add FT, vShield, Data Recovery

UpgradePromo:

$295 / CPUEnding 12/15• Enterprise customers fulfilled

additional products

• Promotional period upgrade to Enterprise Plus

• Enterprise is phased out during transitional period ending 12/15

Your VI3 License: Your vSphere 4 License:

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VI3 Standard License Mapping

STANDARD$1495/CPU

6 Cores+

(VC Agent + VUM + HA)

STANDARD$795/CPU

6 Cores+

(VC Agent + VUM + HA)(+Thin Provisioning)

ADVANCED$2245/CPU+12 Cores

(HA + VMotion)(FT + vShield + Data Recovery)

UpgradePromo:

$745 / CPUEnding 12/15

• Standard customers fulfilled an additional product: Thin Provisioning

• Lower price point and decrease in ongoing Support and Subscription

• Limited time promotion to Advanced

• Standard plus feature add-on paths available in the Appendix

Your VI3 License: Your vSphere 4 License:

Add Thin Provisioning

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VI3 Foundation License Mapping

Foundation$495/CPU

6 Cores+

(VC Agent + VUM)

STANDARD$795/CPU

6 Cores+

(VC Agent + VUM + HA)(+Thin Provisioning)

• Foundation customers fulfilled an additional products: High Availability (HA), Thin Provisioning

• Support and Subscription price remains exactly the same as today

• Foundation plus feature add-on paths available in the Appendix

Your VI3 License: Your vSphere 4 License:

Add HAThin Provisioning

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VirtualCenter Server License Mapping

VirtualCenter Foundation$1495/Instance

(3 servers)

vCenter Server Foundation$1495/Instance

(3 servers)

• VirtualCenter Server is renamed vCenter Server

• VirtualCenter 2.x licenses translate into equivalent vCenter 4.0 licenses

Your VI3 License: Your vSphere 4 License:

VirtualCenter Server$4995/Instance

vCenter Server Standard $4995/Instance

(+Orchestrator + Linked Mode)Add Orchestrator, Linked Mode

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15

Acceleration Kits

Acceleration Kits are fulfilled at the component level

VI3 Acceleration Kit vSphere 4 LicensesFoundation Acceleration Kit:

VI3 Foundation

vCenter Foundation

vSphere 4 Standard

vCenter Server Foundation

Standard HA Acceleration Kit:

VI3 Standard

vCenter Foundation

vSphere 4 Standard

vCenter Server Foundation

Mid-size Acceleration Kit:

VI3 Enterprise

vCenter Foundation

vSphere 4 Enterprise

vCenter Server Foundation

Enterprise Acceleration Kit:

VI3 Enterprise

vCenter Server

vSphere 4 Enterprise

vCenter Server Standard

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Version Downgrade Rights

vSphere 4 licenses can always be downgraded to VI3 licenses to run ESX 3.x and VC 2.x

vSphere 4 License(ESX/ESXi 4.0 & vCenter 4.0)

VI3 License(ESX/ESXi 3.x & vCenter 2.x)

vSphere 4 Enterprise Plus VI3 Enterprise

vSphere 4 Enterprise VI3 Enterprise

vSphere 4 Advanced VI3 Standard

vSphere 4 Standard VI3 Standard

Downgrade is enabled by a simple ‘point and click’ in the vmware.com license portal

NOTE: Downgrades are not available for either Essentials package

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vSphere Acceleration Kits for New Customers

Solution bundles targeted at new customers in Medium to Commercial segments

Bundles vSphere Editions together with vCenter Server management

VMware vSphere

Advanced Acceleration Kit

VMware vSphere

Advanced Acceleration KitWith Training (NA ONLY)

VMware vSphere

Enterprise Plus Acceleration KitFor 6 Processors

VMware vSphere

Enterprise Plus Acceleration KitFor 8 Processors

20-30% Savings(Promotion through 12/15/2009)

20-30% Savings(Promotion through 12/15/2009)

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vSphere Acceleration Kits - DetailAccel Kit Components Component

List PriceDiscount Regular

Bundle List

Promo through 12/15/09

vSphere Advanced Acceleration Kit

6 CPU vSphere Advanced

vCenter Server Foundation

$14,965 10%

$1,470

off

$13,495 $10,49530%

$4,470 off

vSphere Advanced Acceleration Kit With Training

(NORTH AMERICA ONLY)

6 CPU vSphere Advanced

vCenter Server Foundation

30 PSO Credits

$17,965 10%

$1,770

off

$16,195 $13,19527%

$4,770 off

vSphere Enterprise Plus

Acceleration Kit for 6 Processors

6 CPU vSphere Enterprise vCenter Server Std

$25,965 15%

$3,870

off

$22,095 $20,89520%

$5,070 off

vSphere Enterprise Plus

Acceleration Kit for 8 Processors

8 CPU vSphere Enterprise vCenter Server Std

$32,955 15%

$4,960

off

$27,995 $26,39520%

$6,560 off

VI3 Site Recovery Manager (SRM) Acceleration Kit

6 CPU VI Enterprise (VI3)*

6 CPU SRM

vCenter Server Std

$32,745 15%

$4,950

$27,795

* SRM will only be compatible with VI3 at time of vSphere launch; customers will be separately fulfilled vSphere 4 licenses as part of their subscription entitlement for the VI3 licenses included in the Acceleration Kit

Additional Details:• Available through all channels (inc OEM)• Limitation of 1 per customer• Mandatory SnS calc’d at 21/25% of bundle license (not including PSO for #2 – same SnS price and SKUs as for

#1)

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Acceleration Kit Upgrades and Upgrade Promotions

From To (VI4) Components Delta Components Delta Price (List)

Regular

UG Price (+10% dest lic)

Promo price

VI3 Foundation Acceleration Kit

Advanced Acceleration Kit

Upgrade to 6 CPU vSphere Advanced

$8,700

(assumes Std fulfillment)

$9,550 $4,500

53% savings

VI3 Standard Acceleration Kit

Advanced Acceleration Kit

Upgrade to 6 CPU vSphere Advanced

$8,700 $10,850 $4,500

59%

VI3 Mid-Size Acceleration Kit

vSphere Enterprise Plus AK

Upgrade to 8 CPU vSphere Enterprise Plus

+ VC Std upgrade

$14,210 $15,650 $12,400

21%

VI3 Enterprise Acceleration Kit

vSphere Enterprise Plus AK

Upgrade to 8 CPU vSphere Enterprise Plus

+ VC Std upgrade

$4,960 $5,450 $2,400

56%

Objective: Drive existing Accel Kit customers up to a higher-end vSphere bundles. Promo pricing logic built on 50% off a la carte promos good through 12/15/09

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Why Is VMware Changing Licensing Again?

Negative customer and partner response to VI3 licensing– Activation process too cumbersome and confusing– Reliability and management issues with FlexLM license server (single point

of failure)– #1 driver of support calls to VMware

Operational problems and complexity– Performance problems on license portal (concurrent users and license file

generations)– VMware operations & testing burdened by number and complexity of license

scenarios– Customer entitlement records complicated by license upgrades and “a la

carte” feature licenses

Existing model did not meet future requirements– Pricing & selling models constrained by past choices– VMware moving to a “trust but verify” compliance model

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Simplified License Management in vSphere 4

Simple license keys instead of FlexLM license files– 1 license key per vSphere edition– 1 license key for many hosts

New centralized license key administration in vCenter– No separate license server to manage or monitor– Centralized license inventory and usage monitoring through vCenter– Visible only to privileged users

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Comparison: VI3 License File vs. vSphere License Keys

• License key for vCenter Server 4• Can be Standard, Foundation, or

Essentials• Encodes any number of instances

SERVER this_host ANY 27000VENDOR VMWARELM port=27010USE_SERVER

INCREMENT PROD_VC VMWARELM 2005.05 permanent 1 \VENDOR_STRING="licenseType=Server;vmodl=vc;desc=VirtualCenter \Server" ISSUED=17-Dec-2007 NOTICE=FulfillmentId=881288;name= \TS_OK SIGN="0449 8CA7 AEAF 36E3 156B 8BF0 E31D 2646 369E 3D7A \4C12 33EA A9F1 6DBB 1F17 0A08 D917 DB83 9FCA 69D6 A647 0F04 \E9CE D247 4BAD 7C25 AF47 FE18 844F 05B7"

INCREMENT PROD_ESX_FULL VMWARELM 2005.05 permanent 16 \VENDOR_STRING="licenseType=Server;vmodl=esxFull;desc=ESX \Enterprise;capacityType=cpuPackage;gp=14;exclude=BACKUP" \ISSUED=17-Dec-2007 NOTICE=FulfillmentId=881289;name= TS_OK \SIGN="1B8B FE67 D216 2636 7C7B C8A1 B7F4 ECA1 BC5B 6BA9 DA35 \BBA0 11F9 E15F E87A 074D 1040 9D6F 738F B481 3E0C 4ED2 A8F4 \3E2F 660B 8C90 5B61 4DAC 2F36 88C2"

INCREMENT ESX_FULL_BACKUP VMWARELM 2005.05 permanent 16 \VENDOR_STRING="licenseType=Server;vmodl=backup;desc=VMware \Consolidated Backup;capacityType=cpuPackage" \ISSUED=17-Dec-2007 NOTICE=FulfillmentId=881289;name= TS_OK \SIGN="0568 9240 0C37 B320 47E9 42EF C71D 154D A3AE 47CC D320 \A6B7 B72E E2DA 2C90 1B06 8BF3 872B E9D5 74D1 C180 D3F4 EF80 \C2CB A6DB 459B F9E0 63C0 C306 071A"

INCREMENT VC_ESXHOST VMWARELM 2005.05 permanent 16 \VENDOR_STRING="licenseType=Serv;vmodl=esxHost;desc=VirtualCenterAgent for ESX Server;capacityType=cpuPackage" \ISSUED=17-Dec-2007 NOTICE=FulfillmentId=881289;name= TS_OK \SIGN="1C10 0BB0 C0A9 65E8 A523 B148 4C1D F528 56D4 24E5 613A \FCE7 541B CDB8 C71C 0119 A1D4 8DF9 E3AA EC6C 9023 0556 93D8 \F4F9 CEF8 0EB0 33E3 48F0 FECC 57D3"

INCREMENT VC_VMOTION VMWARELM 2005.05 permanent 16 \VENDOR_STRING=licenseType=Server;vmodl=vmotion;desc=VMotion\ISSUED=17-Dec-2007 NOTICE=FulfillmentId=881289;name= TS_OK \SIGN="19A3 1012 5B56 D463 D794 89CB DCE6 921E FE7F 95B9 B041 \D087 6D52 603A E4BB 0F66 25CF 2A7D 9BA7 A977 EAE3 3FA4 8CF1 \D515 E783 4D4F 3063 98D7 0592 EFBD”

INCREMENT VC_DAS VMWARELM 2005.05 permanent 16 \VENDOR_STRING="licenseType=Server;vmodl=das;desc=VMware \HA;capacityType=cpuPackage" ISSUED=17-Dec-2007 \NOTICE=FulfillmentId=881289;name= TS_OK SIGN="1CBB 0287 28A8 \A56D 1696 9D1D A290 9023 D6AF 290B E2EE F945 0BA7 775A 45ED \0F92 E7EF 5A87 33DC 3E32 8D5C CA06 FE61 E205 5235 D7B8 9BFE \59BF 1178 A62D"

INCREMENT VC_DRS VMWARELM 2005.05 permanent 16 \VENDOR_STRING="licenseType=Server;vmodl=drs;desc=VMware \DRS;capacityType=cpuPackage" ISSUED=17-Dec-2007 \NOTICE=FulfillmentId=881289;name= TS_OK SIGN="1443 4404 22CD \9E2C 21E8 8FE8 0D92 D8BF 0BDA 1018 8AAD B2F0 C8FE B88D C4F8 \124D EE5A 329B F915 D8EB 324C 7F8A 4156 8B0D F01E BB8A F0DD \8C03 3E64 4751"

12345-ABCDE-XYZLL-89773-K83DW

XYZLL-89773-K83DW-438KH-83UDE

• License key for vSphere 4 Enterprise

• Encodes any number of CPUs

• Product maps Enterprise to feature list

• Feature list can be modified by patches or new releases w/o change to license key

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“By product” is the default report view, and the most useful for compliance monitoring

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vSphere Editions ESXi Single Server Essentials Essentials

Plus Standard Advanced Enterprise Enterprise Plus

ESX / ESXi ESXi Only YES YES YES YES YES YES

VC Compatibility None Essentials EssentialsFoundationStandard

FoundationStandard

FoundationStandard

FoundationStandard

Core Entitlement 6 6 6 6 12 6 12

vSMP Support 4-way 4-way 4-way 4-way 4-way 4-way 8-way

Physical Server Memory 256GB 256GB 256GB 256GB 256GB 256GBNo license

limit

Hot Add NO NO NO NO YES YES YES

Update Manager NO YES YES YES YES YES YES

vStorage APIs NO YES YES YES YES YES YES

High Availability (HA) NO NO YES YES YES YES YES

3rd-Party Multipathing NO NO NO NO NO NO YES

VMSafe NO YES YES YES YES YES YES

DV Filter NO YES YES YES YES YES YES

VMotion NO NO NO NO YES YES YES

DRS NO NO NO NO NO YES YES

Storage VMotion NO NO NO NO NO YES YES

Fault Tolerance NO NO NO NO YES YES YES

vNetwork Distributed Switch NO NO NO NO NO NO YES

Thin Provisioning YES YES YES YES YES YES YES

Host Profiles NO NO NO NO NO NO YES

Data Recovery NO NO YES NO YES YES YES

vShield Zones NO NO NO NO YES YES YES

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vCenter Server Editions

vCenter Server Essentials Foundation Standard

SKU (pkg only) VCS-FND VCS-STD

Licensing metric Instance Instance Instance

Manages vSphere editions EssentialsEssentials Plus

StandardAdvancedEnterprise

Enterprise PlusDesktop Host

StandardAdvancedEnterprise

Enterprise PlusDesktop Host

Max physical hosts 3 3 No license limit

Linked Mode No No Yes

vCenter Orchestrator No No Yes

vCenter Heartbeat Not incl. Not incl. Not incl.

Update Manager Yes Yes Yes

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Simplified Activation Process

• VI3 License Activation Is Failure-prone– License files are the result of a long, multi-step portal transaction– Too many steps and context changes = too many error opportunities– Complexity illustrated: 40 pages in VI3 admin/install guide devoted to licensing

• A Dramatically Simpler Process In vSphere 4– A short and easy activation process was the single most important design requirement– License keys are sent in email and can be copied directly into the product – no portal activation step required– No separate license server means no additional installation, configuration or monitoring is required

109876543210

Receive activation

code in email

Go to license portal

Generate new license file

Select license qualities to

activate

Install license server if needed

Re-read license file

to server

Product activated

Choose server or

host-based file

Download or email license

fileUpload license

file

Configure licensing in VC/ESX UI

3210

Receive license keys in email Enter license key into VC UI Assign license key to ESX hosts Product activated

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Variations of License Activation Process

3210

Receive license keys in email or on license portal

Enter license key into VC UI

Assign license key to ESX hosts

Product activated

-1-2

Receive PAC(s) from OEM

Register PAC(s) on VMware OEM portal

3210

Receive license keys in email Enter license key into VC UI Assign license key to ESX hosts Product activated

• Customer receives partner activation codes (PACs) from OEM – printed on card or in email

• The process and customer experience of redeeming PACs remain the same as in VI3

Step -2:

Step -1:

Alternative process: Licenses purchased from OEM

½

Optional step: Divide or combine license keys via license portal

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New License Portal: Use Cases

No license registration or generation required…– …except for the OEM case

…so why have a license portal at all?1) Central location to keep track of license keys, entitlements, and their change history (for

compliance management) and retrieve lost license keys

2) Obtain vSphere 4 license keys which will be automatically fulfilled to customers with active subscriptions on their VI3 licenses

3) Downgrade purchased vSphere 4 licenses to VI3 license files

4) Divide purchased license quantities into several smaller license keys (e.g., in case the purchased quantity is for multiple departments or data centers)

5) Combine multiple license keys (for the same product) into a single “master key” which is easier to manage

6) Add or remove individuals listed on contracts as license admins or support admins (contract roles determine access to license keys on the portal)

7) Be alerted when other people in your organization makes changes affecting your license keys or entitlements

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Alerts of all events which affect license keys (i.e. generates new keys or deactivates old keys)

License key history page logs all events that affect license keys

New License Portal

Total entitlement count is the default view – expand to see license keys and details

Page 30: Navigating the new vSphere Licensing Landscape

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Use comment field to keep track of license use.

Order info useful for compliance management

Customers can redistribute quantities across license keys according to their needs

License Detail Display

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License Upgrade For Existing Customers(a.k.a. Subscription Fulfillment)

VI3 customers with active SnS automatically get vSphere 4 licenses at GA

• New VI4 licenses automatically added to customers’ online accounts, i.e. to their license portal

• VI3 licenses are not “traded in” – customers will have a VI3 copy and a vSphere 4 copy of all their upgraded

licenses

Eligibility

• Only licenses for which SnS is active as of the announced GA date will be upgraded

• Licenses for which SnS is expired as of GA will be upgraded if SnS is later reinstated

Notification of customers

• All VI3 customers receive pre-notification shortly after vSphere launch explaining upgrade process

• Customers are notified again after completion of upgrade fulfillment (target is GA)

• Unlike new license orders, subscription-fulfilled licenses are not sent in email

Risks / challenges:

• Current data on customer orders and contracts is not 100% correct

• Feature licenses purchased “a la carte” or via edition upgrades must be reconciled with their “base”

• Confusion due to vSphere licenses are per 1 CPU whereas VI3 licenses are per 2 CPUs

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Additional Version Transition Questions

Will VI3 licenses work on vSphere 4 or vSphere 4 licenses work on VI3?• No, licenses are not forward or backward compatible

– After upgrade is complete, the vSphere 4 product will boot in Evaluation Mode (60 days)– Customers must either obtain their subscription-fulfilled licenses or purchase new

Can vCenter Server 4 manage VI3 hosts which are Flex-licensed?• Yes, vCenter Server 4 is compatible with the FlexLM license server

– vCenter does not “check out” a VC license from the license server – it requires a vCenter 4 license key

– vCenter does check out the VI3 feature licenses needed for VI3 hosts and features

• vCenter Server 4 does not ship with the FlexLM license server– If license server is not preserved during VC upgrade, it can be downloaded from vmware.com– If license files are not backed up, they can be downloaded or regenerated on the VI3 license

portal

How can a customer continue to obtain new VI3 licenses after GA?• After vSphere GA, only vSphere SKUs will be on price list

– Purchase vSphere licenses and “downgrade” them via the license portal– After downgrade, customers will have a VI3 copy and a vSphere 4 copy of their licenses

Page 33: Navigating the new vSphere Licensing Landscape

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License Downgrade Mapping: vSphere 4 to VI3

vSphere 4 SKU Resulting VI3 licenses

ESXi 4 Single Server Not downgradable

vSphere 4 Essentials (Plus) Not downgradable

vSphere 4 Standard VI3 Standard

vSphere 4 Advanced VI3 Standard

vSphere 4 Enterprise VI3 Enterprise

vSphere 4 Enterprise Plus VI3 Enterprise

Downgrade process via vSphere/vCenter license portal

1. Select link to “downgrade orders”

2. Select vSphere order number(s) to be downgraded – only whole orders can be downgraded

3. After approx. 30 minutes, additional license quantity is added to VI3 license portal

4. Licenses displayed on vSphere/vCenter portal will not be decreased or affected

Page 34: Navigating the new vSphere Licensing Landscape

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New: Improved Process For Edition Upgrade

Note: These are upgrades in functionality (e.g. Standard to Enterprise) as opposed to

version upgrades (from VI3 to vSphere 4)

In VI3, upgrade orders are fulfilled as follows:• Licenses for incremental features (separate line items in license portal)• Support and subscription on the incremental portion (separate contract co-termed later)

Upgrade orders for vSphere/vCenter 4 follow a simpler, more robust process• License replacement

– New license key for higher edition will be issued – no special “upgrade” license– Existing licenses will be deactivated (no longer viewable in license portal)

• SnS “credit and extension”– New SnS contact for higher edition is established and billed – no upgrade SKU for SnS– Existing SnS contract will be terminated, and unused time is converted to n days of higher edition and

added on

• Example in appendix Key benefits:

• Elimination of SnS upgrade SKUs for VMware and partners• Fewer renewals – fewer quotes and transactions for the same cash flow• Lower complexity for future upgrades, compliance checks, other entitlement events

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Pricing and Packaging: Summary of Changes

• Name and version updates– “VMware Infrastructure” becomes “VMware vSphere”– VMware VirtualCenter 2.5 replaced by vCenter

Server 4.0– VMware ESX/ESXi 3.5 replaced by VMware ESX 4.0

/ ESXi 4.0• Switch to one-processor pricing• Introduce new editions and new price points

– vSphere Essentials, Standard, Advanced, Enterprise Plus

• End-of-availability for old editions:– Foundation immediate end-of-availability– Enterprise availability continues during a transition

period• Eliminate most a-la-carte offerings

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Resources

10 Tips to Get Ready for vSherehttp://www.championsg.com/champion.nsf/resources/10+tips+to+get+ready+for+vsphere

vSphere Upgrade Centerhttp://www.championsg.com/champion.nsf/products/vmware+syndicated

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Next Steps:- Contact your Client Manager- If you are not currently working with a Client Manager, call 800-771-7000 to speak with a Sales Specialist- Join Webcast #2 on June 16th “What’s new with vSphere”

Q&A Session