In November 2023, Broadcom’s takeover of VMware sent shockwaves through the IT world by overhauling the licensing model. The new structure, based on per-core CPU subscriptions with a 16-core minimum, substantially increased costs for VMware hypervisor licenses, impacting both customers and resellers.

This change left 4,000 VMware partners unable to service or sell new licenses, reducing the pool to a mere 500 authorized partners. Consequently, between 30,000 to 40,000 direct customers must now channel their license purchases through partners. VMware has responded by consolidating its offerings into the streamlined VMware Cloud Foundation (VCF) package, aiming to simplify the subscription process.

What’s the White Label Program?

The White Label Program is the new means by which managed service providers (MSPs) like RapidScale, who are still part of Broadcom VMware’s Partner Program as Pinnacle or Premier tier partners (or now known as Primary partners), can provide licensing and support, as well as optional hosting, to Registered-tier partners (known as Secondary partners).

This ensures that those Secondary partners can continue to run their own branded services and provide VMware services to their clients, after losing the ability to directly offer VMware licensing as they previously did, under the old partnership structure.

Why RapidScale White Label?

RapidScale has been a VMware Partner for over 15 years. As of now, we stand as one of the largest Premier Partners in the Advantage Program. In fact, our volume commitments exceed the program’s requirements for the Pinnacle status multiple times over. Our dedication to customer service is where we truly excel. The White Label program is particularly exciting for us because it allows us to meet you exactly where you are in your IT journey. Whether you’re exploring new potential partnerships or seeking to enhance your core business, we’re here to assist.

RapidScale’s licensing of VMware-based solutions, and those that sit on the hypervisor layer, was already structured in a fashion that allows us to absorb the increased costs of the new VCF licensing scheme – savings that we can now pass on to Secondary Partner MSPs and their customers.

RapidScale White Label Offers


Continue Offering and Extending Your Current Services


24/7/365 US-based Support (Included) ¹


RapidScale Portal for Billing, Ticketing, Self-Service ²


Free Consulting Around Licensing Options and How to Minimize Costs


Fixed Setup Fees

1 Support Included for Licensing at L1, L2

2 Self-Service coming in Q2-2024


What’s Included with the VMware Cloud Foundation License?

VMware Cloud Foundation includes Select Support and is licensed per core, requiring a minimum of 16 cores per CPU.

VMware Cloud Foundation Subscription Includes:

  • vSphere 
  • Enterprise Plus
  • vSAN Enterprise
  • NSX Ent Plus (Networking Only)
  • Aria Suite Term Enterprise
  • Aria Ops for Networks ENT
  • HCX Enterprise,
  • SDDC Manager
  • Tanzu Kubernetes Grid(s)
  • vCenter
  • Server Standard

We evaluated the market and noticed that other providers sell support separately (we provide support to everyone) or offer volume discounts. Our White Label program follows a single pricing model – Discount.

VMware Cloud Foundation License Options:

 

 

Monthly Payment No Commitment

Monthly Payment 3-Year Commitment

Annual Payment 3-Year Commitment

Term Commit Month to Month 36-Month 36-Month
Payment Monthly in Arrears Monthly in Arrears Annual In Advance
License Flexibility Yes No No
Price Per Core $$$$ $$$ $$
Setup Fees Fixed Fixed Fixed
Support Included Included Included

White Label

Plus FAQ

What is White Label Plus?

White Label Plus is a business model where Pinnacle- and Premier-tier partners, referred to as “Primary,” can provide licensing, support, and optional hosting services to Registered-tier partners, known as “Secondary.” These Secondary partners can then offer these services under their own brand. Primary Value-Added Cloud Service Providers (VCSPs) are responsible for support, metering usage, and reporting to VMware, now under Broadcom, for the Secondary VCSPs. This arrangement covers activities within their existing data centers and hardware.

What Products Can a Primary Provide to a Secondary?

The only products available in the Broadcom Advantage Partner Program for VCSPs are VMware Cloud Foundation (VCF) and related add-ons.

What Exactly is the VCF License?

VMware Cloud Foundation is a comprehensive subscription that includes a suite of enterprise-grade VMware products, licensed on a per-core basis, with a minimum requirement of 16 cores per CPU.

The subscription encompasses vSphere Enterprise Plus, vSAN Enterprise, NSX Enterprise Plus (Networking Only), Aria Suite Term Enterprise, Aria Ops for Networks ENT, HCX Enterprise, SDDC Manager, Tanzu Kubernetes Grid(s), and vCenter Server Standard. VMware Cloud Foundation also includes Select Support and is licensed per core, requiring a minimum of 16 cores per CPU.

This new bundle license from Broadcom consolidates several previous licenses into one, streamlining the process and introducing a pricing model based on cores per CPU.

What End User Reporting is Mandated?

All transacting VCSP (Virtual Cloud Service Providers) partners must report end-user information to ensure Broadcom has accurate consumption and sales data across regions. Primary VCSPs are responsible for capturing this data for all Secondary Partners under the White Label model. This responsibility may necessitate contract adjustments upon renewal to include provisions for third-party name sharing. Reporting is managed through a usage meter by the Primary.

What Licenses are Available Under the While Label Plus Program?

The program offers licenses for both committed and non-committed packages, detailed in the table below. This includes coverage for SKU, unit of measure, term commitment, and descriptions, offering monthly and three-year commitment options for VCF Licenses. It emphasizes the requirement for the latest VMware Usage Meter installation for effective dating.

 

SKU

UOM

Term Commit

Description

VCF License – Monthly

Per Core

1 Month

Overage / No Commit for VCF License

Charged Per core / Per CPU, 16 Core Minimum

L1, L2 US-Based Support

Environment must install latest version of VMware usage meter

Effective date is based on Usage Meter installation

VCF License – 3Yr – Annual Payment

Per Core

3 Years

3-Year VCF License Commit with Annual Payment

Charged Per core / Per CPU, 16 Core Minimum

L1, L2 US-Based Support

Environment must install latest version of VMware usage meter

Effective date is based on Usage Meter installation

VCF License – 3Yr – Monthly Payment

Per Core

3 Years

3-Year VCF License Commit with Monthly Payment

Charged Per core / Per CPU, 16 Core Minimum

L1, L2 US-Based Support

Environment must install latest version of VMware usage meter

Effective date is based on Usage Meter installation

Can I Reduce My Commitment on Committed Licensing?

No, commitments made under committed licensing terms are final to secure discounted pricing. Adjustments to commitments are not permitted.

Is Support Provided with White Label Plus?

Yes, partners are responsible for providing customer support as part of the White Label Plus program. This includes escalation to Broadcom when necessary. The table below details three levels of support, outlining the scope and responsibilities from Partner to Customer, and Broadcom to Partner interactions.

 

Support Level

Description

Owner

Level 1

Services provided by partner in response to End User’s request for support.

Includes: Gathering and identifying errors in logs; answering installation, configuration, and usage questions; problem isolation and identification; determination if the problem is documented in Broadcom publications; review of knowledge base for known problem resolutions.

Partner to Customer

Level 2

Services provided by partner to perform an in-depth analysis of the suspected problem.

Includes: Attempt to recreate the problem and to provide acceptable problem resolution or workaround.

Partner to Customer

Level 3

Services provided by Broadcom to resolve problems that are determined to be, or highly probable to be, the result of a design or manufacturing defect, or the result of a complex interaction between Broadcom’s product and another product that cannot be resolved by the Partner and requires product design knowledge or expertise to isolate and effect a problem resolution.

During Level 3 support interactions, the partner is responsible for managing the support relationship and ongoing communication with the End User.

Broadcom to Partner

 

What Other Capabilities Does or Will RapidScale Provide?

RapidScale is enhancing its Customer Portal to allow ticket submissions, billing views/payments, and, eventually, licensing additions, with a target availability by early Q3 2024.

What Does the 16-Core Minimum Mean?

Broadcom mandates a minimum of 16 cores per CPU for invoicing purposes. Accurate quoting requires an understanding of the specific configurations of cores, sockets, and servers. To illustrate how the core minimum impacts billing, an example calculation is provided.

CPU Cores

CPU Sockets

CPU Cores with 16 Min

12

2

32

20

2

32

20

2

32

28

2

32

48

2

48

48

2

48

48

2

48

224

 

272

What Happens if My Actuals Differ from My Original Quote?

Monthly adjustments to invoices will reflect actual usage, as reported by the usage meter, to ensure accuracy. Although overages are billed month-to-month, they can be added to commitments at any point. It’s important to note that commitments, once established, cannot be reduced due to the associated discounts and the expectation of the term commitment.

 

Talk to a Cloud Expert

ajax-loader.svg