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VMware’s Hybrid Purchasing Program – Buying Perpetual Licenses and Subscription Services Made Easy

Thought-Leadership by Gaurav Som
on December 1, 2015

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Currently, VMware has separate programs to buy products and services – the Enterprise Purchasing Program (EPP) and Volume Purchasing Program (VPP) for buying perpetual licenses, and the Subscription Purchasing Program (SPP) for subscription services.

Now, with the Hybrid Purchasing Program (HPP) you can buy perpetual licenses (EPP) as well as subscription services (SPP) from a single Hybrid credit fund.

VMware’s Existing Purchasing Programs

  • VPP - Volume Purchasing Program for commercial transactional business

  • EPP - Enterprise Purchasing Program for mid/large size transactions

  • ELA – Enterprise License Agreement for global Customers

  • SPP - Subscription Purchasing Program for VMware subscription services

  • TPP - Transactional Purchasing Program for US Federal customers

10 Fast Facts on the Hybrid Purchasing Program

  1. HPP Term – 3 years. HPP credits are valid for the duration of the ELA term and must be fully consumed before the ELA end date. Unused fund balances are forfeited.

  2. HPP Credit – 1 HPP credit carries a list price of 100 (USD, Euro, GBP, EMEA USD, Global USD, Yen – 10,000).

  3. Initial Allocation Percentage – Customers can use up to 10% of the total HPP fund balance for the redemption of HPP Services, unless otherwise negotiated.

  4. Eligible HPP Products & Services – HPP Products listed on the EPP Eligibility Matrix are available in My VMware on the date VMware makes the HPP Fund Balance available. No additional Products are made available after that date.

However, HPP Services listed on the SPP Eligibility Matrix include Services that are added to the Matrix during the HPP Term.

  1. Support & Subscription (SnS) - Upon redemption of a Product, cost of the Production Level SnS is automatically debited from the HPP fund balance, from the redemption date through the end of the HPP Term,

  2. Services Co-Term - Redeemed Services cannot have a term that is longer than the HPP Term. If a Redeemed Service has a longer term, it will automatically be reduced to the HPP co-terms.

  3. HPP Services Billing & Fund Balances - HPP Fund Balance is debited in advance irrespective of monthly or annual billing.

  4. SnS Renewal - Customers may renew SnS at the end of the HPP Term at the then-current list prices with any applicable multi-year discounts.

  5. Price Protection - The MSRP values of licenses and corresponding SnS are fixed for the duration of the HPP Term.

  6. Cloud ready - pre-provisioned VMware vCloud Air OnDemand service, allowing you to configure resources and services that you can use to build applications within minutes.

Understanding the Hybrid Purchasing Program (HPP) Fund Balance

For every $100 US MSRP the customer will receive:

  1. Fund Balance 1 - $90 MSRP for perpetual license and SnS

  2. Fund Balance 2 - $10 MSRP for subscription services.

    Note: a max of 10% of MSRP can be used for subscription services unless otherwise negotiated in your agreement with VMware.

HPP Fund Balances are delivered to the specified Fund Owner’s My VMware account, which can then be moved between Products and Services. However, the Services pool balance cannot exceed 10% of the original HPP MSRP purchase. Customers can also use fund balances to redeem licenses, purchase new Subscription Services, and to cover the recurring subscription and usage costs of services – all without the hassle of procuring monthly purchase orders (POs).

If you would like to speak with a specialist about HPP or to answer any of your other VMware-related questions, click the banner below and complete the following form, and a SoftwareONE VMware Specialist will reach out to you shortly.

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Related blog posts:

Topics: Core Infrastructure, Cloud and BYOD, End User Computing, Database and Datacenter, Compliance

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