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【Important Notice】Major Changes to VMware Licensing Policy!

As a technology-driven digitalization enabler, CITIC Telecom CPC is dedicated to fostering co-creation, sharing, and win-win collaboration with our ecosystem partners to create new possibilities and provide customers with a wide range of diversified ICT services. We are now a VMware Cloud Service Provider (VCSP) Pinnacle tier partner in the Broadcom Advantage Partner Program for multiple regions, including Hong Kong, Mainland China, Singapore, Japan and Taiwan. We are officially authorized to offer VMware-powered cloud solutions to help mutual enterprise customers to innovate by adopting VMware Cloud Foundation (VCF) as their private cloud infrastructure.

Since 2011, CITIC Telecom CPC has been collaborating with VMware to provide cloud computing services, offering enterprises a comprehensive cloud platform and diverse solutions to accelerate their digital transformation. In May 2022, Broadcom announced its intention to acquire VMware, and the acquisition was completed in November 2023. Throughout this process, we maintained close communication with the VMware team, closely monitoring their developments and initiating necessary actions. Currently, most VMware partners have received formal notifications from Broadcom, clarifying significant changes in VMware licensing policy and the transition to a subscription-based service model, with the termination of perpetual licensing.

As a trusted ICT partner for enterprises, CITIC Telecom CPC prioritizes customer satisfaction and is committed to providing professional customer service and support. Our expert team has compiled comprehensive change strategies regarding the Broadcom/VMware products and summarized relevant information to ensure your timely understanding. If you have any further inquiries, please feel free to reach out to us anytime.

1. Product Categories: New policy impacts a wide range of VMware products

  • Key Changes: The product categories affected include VMware Cloud Foundation, vSphere, vSAN, NSX, SRM, HCX, vCloud Suite, and VMware Aria Suite.
  • Considerations: After the implementation of the new policy, how will VMware product line be repositioned? How can enterprises grasp the opportunities?

2. Licensing Strategy: Perpetual licensing becomes history, shifting towards a new subscription model.

  • Key Changes: VMware ends perpetual software licenses and the associated maintenance services, transitioning to a subscription model while discontinuing renewal services.
    - After the implementation of the new policy, users who have already purchased perpetual licenses can continue to use them without any expiration. However, new products will no longer offer perpetual licensing, and users will be required to purchase Support and Subscription (SnS) contracts for renewal.
    - When the perpetual licenses reach End of Availability (EOA), users will need to purchase subscription software or periodic licenses to supplement or replace their currently deployed infrastructure. Perpetual licenses will no longer be available.
  • Considerations: How should your enterprise respond to this strategy adjustment? Should you review the list of perpetual licensing services? When do your existing services expire? Is the subscription model suitable for your business needs? How can you ensure stable software operation and business continuity?

3. Software Asset Ownership Change: Who owns the software assets under the subscription model?

  • Key Changes: Under the subscription model, customers have the right to use VMware software assets, but they no longer have ownership.
  • Considerations: Do you understand the changes in software asset ownership under the subscription model? How will this change impact your IT asset management and long-term investment plans?

4. IT Cost Surge: Subscription model costs may triple!

  • Key Changes: After evaluating Broadcom's latest sales models and pricing, we have found that adopting VMware's subscription model may result in costs tripling compared to the previous annual maintenance purchase.
  • Considerations: With a significant cost increase, enterprises are required to reassess their IT budgets and financial planning. How can they strike a balance between software requirements and cost control to ensure steady business development?

Reshaping the Landscape: Fusing Growth Amidst Transformation

As a global partner of VMware, CITIC Telecom CPC has been providing one-stop-shop VMware solutions to enterprises worldwide for more than 10 years. We understand that this significant change may pose challenges and inconveniences for your business. Therefore, our dedicated account managers are ready to serve you with professional consultation and support. They will assist you in gaining a comprehensive understanding of Broadcom's new subscription models and evaluating the costs associated with VMware products.

If you have any concerns, requirements, or inquiries, please feel free to leave us a message online or email us at info@citictel-cpc.com. Our VMware experts will promptly contact you, exploring the most suitable solutions for your business. As always, we are committed to delivering high-quality products and services to enterprise, fostering a prosperous digital future.

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