Special Notice to VMware by Broadcom Clients:
VMware Contract Status Update
To All Users of the OARnet VMware Contract:
OARnet has received the following information regarding VMware by Broadcom’s new business model and VMware’s view of the status of OARnet’s current VMware contracts. While we are still waiting for additional information about the new model, we wanted to share with you the status of the current discussions.
- Broadcom simplified the VMware product portfolio to four bundled offerings: VMware Cloud Foundation, VMware vSphere Foundation, VMware vSphere Standard and VMware vSphere Essentials Plus.
- All product pricing will be based on cores as opposed to the previous CPU model, and there will be no new perpetual licenses (only term).
- VMware is quoting new perpetual services under the OARnet 2021 contract. However, the SnS associated with these services will be valid only through October 2024, and VMware by Broadcom reserves the right to terminate new perpetual offerings at any time prior to October 2024.
- SnS renewals will no longer be available from VMware unless purchased under the 2021 OARnet contract and can only be renewed until October 2024.
- Due to the size of the OARnet contract, OARnet is classified as a strategic account and is only able to purchase the VMware Cloud Foundation bundle.
The status of the OARnet contract is divided into two parts, as we currently have two agreements.
- The 2021 contract, which expires in October 2024, currently provides for the renewal of SnS until October. One benefit of this option is it provides a runway for products purchased under this agreement before they have to be transitioned to the new VMware by Broadcom Model.
- New perpetual licenses are available under this agreement, but only until October 2024, and SnS for these purchases will end in October 2024. Broadcom has eliminated individual product pricing with their simplified product portfolio (bundles only).
- The 2023 contract, which is valid until September 2026, allowed for SnS renewals. However, Broadcom determined this is no longer a valid option as the individual product offerings are no longer available.
- VMware by Broadcom is requiring OARnet to replace our contract with a new contract reflecting the current VMware by Broadcom business model based on cost per core.
- OARnet has requested that, during contract negotiations, all OARnet members will continue to receive full SnS support, whether or not their SnS has expired.
- In order to negotiate a new contract with VMware, it is critical to identify the core count for our members to generate the volume required to produce discounts designed to maintain the affordability of the VMware products and services.
- OARnet is unable to provide an estimated cost for new VMware products until we have completed negotiating with VMware on the new core cost and established a new master purchasing agreement.
We appreciate your support as we work together to address the issues created by Broadcom’s acquisition of VMware. We will continue to press our request for VMware to recognize our existing contracts. However, while doing so we still need to prepare for the next contract, and your core count is critical to our negotiations of the price per core. If you have not already provided your core count, please use the following link: VMware Knowledge Base: Counting Cores for VMware Cloud Foundation and vSphere Foundation and TiBs for vSAN (95927) to identify your number of cores and return the total count to kferguson@oar.net.
