VCPP – VMware Cloud Provider Program

The VMware Cloud Provider Program (VCPP) is a unique, utility based, OpEx model that allows service providers to gain access to all of VMware’s core solutions within the U.S., with production support included. This program differs from the typical perpetual model, as it eliminates the need for predetermining license requirements with large up-front costs to aid in removing the risk of sunk costs if those licenses are not utilized.

VCPP provides two routes to market. The first is license rental, in which a service provider will utilize VMware licenses to build their own hosting environment. The second method is to provide specialized services on top of VMware’s cloud hosted solutions to fulfill the requirement of providing Tier 1 and Tier 2 support.

Within VCPP, license rental consumption is monitored on an hourly basis and billed monthly for what is powered on. VCPP utilizes a points-based model, which is a unified metric of consumption that is multiplied by usage metrics for a total calculation to simplify monthly reporting. VMware’s fundamental products (vSphere, vCenter) are bundled together and billed based off an average GB of vRAM for virtual machines that are active in production. Those virtual machines receive a 50% reservation, and the max GB of billed vRAM is 24GB.

The VCPP program aids in consolidating procurements, as points can be used for license rental, professional services provided by VMware, or for VMware’s cloud hosted solutions. The program also streamlines the contract management process, as all VMware’s core solutions are provided through a singular contract, with a unified end date.