Received this from VMWare this morning, as part of a VMWare Partner newsletter:

We recognize that in the past you had to pay for Internal Use Licenses to run VMware virtualization solutions in your own production environment. Effective September 1st, I am happy to announce we will be offering Internal Use Licenses, at no charge, for VIP Partners who meet the minimum certification requirements. We want you to have first-hand experience in your business with the benefits the customers are realizing from the most trusted and most reliable virtualization platform.
As part of IBM's Partnerworld program, a partner such as as Collaboration Matters must currently pay $2,000 a year to have access to IBM software to "run your business" (as part of the "Value Package").  Whilst not a huge amount of money for the larger partner, it does put quite a strain on smaller businesses such as ourselves.  In addition, the numbers of licences involved are quite restrictive.

I personally would love to see IBM encouraging all its partners (that have committed to the program by gaining the certifications) encouraging them to run their whole businesses on IBM technology - I can only see good coming of that in terms of case-studies, increased knowledge and experience, feedback to the developers and product managers etc.   I see too many IBM BPs using Microsoft Outlook on their laptops, not to mention accessing Sharepoint repositories, running business apps on Oracle etc - it's not a great advert for the quality of IBM software is it?  

I think VMWare understand this, and wants its partners to really embrace the technology, hence the announcement above.  I'd love to see IBM do something similar.



By: Stuart McIntyre | 7 Comments | On: 21 August 2008 09:26:16 | Tags:  ibm  vmware 



Comments

1) An example for IBM to follow
Geoff Higgins 8/21/2008 10:22:16

Hi Stuart,

As a smallish BP, I agree entirely, however the value package you quote above also contains training and certification options as well as access to the software catalog.

I have not checked recently but one reason we have purchased the value package in the past was that certification and/or training for Lotus Notes was not included in this.

A fairer comparison to the VMWare offering is the software access option which allows you to just purchase access to the software catalog for $795.

2) Not quite the sme
Stuart McIntyre 8/21/2008 10:26:14

Thanks for your comment, Geoff.

You are right in that the Value Package does include elements of training and certification rebates. However, in all the BPs I have worked with, the principal reason for purchasing the VP has been to get the Run Your Business entitlement. The "You Pass We Pay" type offerings have been underused as the terms are quite restrictive and difficult to claim against.

Regarding the "Software Access Option", this only includes the right to download the software and to use it for demo and evaluation. This is useful of course, and I couldn't work without this ability. However, it does not give a BP the right to use the software in production in their own organisations (thoiugh I am sure that some do...) VMWare have always offered NFR (Not for Resale) software free of charge anyway, so this is a moot point I guess.

I should say that IBM's software portfolio is much broader and deeper than VMWare's so I'm not comparing apples with apples, but I just think that if BPs were to be encouraged and helped to use more Lotus software in production in their businesses then this would do no harm at all...

3) An example for IBM to follow?
Kerr 8/21/2008 10:32:51

@Geoff, I don't think that access to the software catalogue gives you a licence to run the software in a production environment. You can run dev and test servers, but not run your actual website. Also as Stuart mentions the Run Your Business options are quite limited in the number of licences this gives you. The VMWare offering seems to be an all you can eat deal.

4) Untitled
Volker Weber 8/21/2008 10:34:56

VMware is competing head to head with Microsoft for server virtualization. That cannot be said about IBM. ;-)

5) Eh?
Stuart McIntyre 8/21/2008 10:38:59

@Vowe, That IBM/Lotus isn't competing with Microsoft head-to-head re: virtualisation or just isn't competing with Microsoft head-to-head at all?

I would argue that IBM absolutely is competing with Microsoft to get influential BPs (be it developers, integrators or consultants) onboard, using and pushing their products, particularly the Lotus portfolio.

6) Good idea
Theo Heselmans 8/21/2008 12:41:58

I'm just a one man band, doing Notes consulting for over 14 years now. I always thought the Value pack was over expensive for me. I initially bought an IBM server, because it contained a free Domino license ! Later I just bought some express licenses. I now pay around 350 EUR for 1 designer and 3 clients (renewals) each year.

Note that I pay only 320 EUR each year to Microsoft (for MAP), which includes ALL of their software for internal use !

I too would think it very stimulating/encouraging of IBM to allow BPs to run their business using IBM software for free.

7) Untitled
Tony Frazier 8/21/2008 13:57:02

I think Geoff is right: the Software Access Option does include Run Your Business software --> { Link }

But, the Run Your Business software does not include any support, so Theo has a good approach as well for software with Express options.

And I agree, anything to help BP's showcase the products by using the software internally would be good.

8) Just checked the IBM site
Geoff Higgins 8/21/2008 14:28:54

Just checked the site but I see Tony has beat me to it.

It does say you the purchase of the IBM Software Access allows access to Run Your Business software, which is available for production use in day-to-day Business Partner operations.

As a correction to my early post, we dont buy the Value package because we found too many restrictions on what you can use this against. I have not checked this for a couple of years.

9) Interested to gauge what you’d consider to be fair value?
Paul Smith 8/26/2008 9:37:51

Just curious - does anyone know what the requirements are to become a VMWare VIP partner? Is it just skills alone or elements of revenue generated for EMC?

If a partner is generating significant software revenue then vendors tend to be more supportive regarding free use of software for internal usage (demo, test and production).

Which raises a point - what do you consider to be fair value for the use of IBM software for 'run your business' ?

It should be free for all partners irrespective of return to the vendor (which raises the interesting point of customers becoming partners to get free software)

If should be free for partners that have demonstrated commitment to a vendor, in the manner of....

If you sold more than $x dollars then it should be free?

If you had more than x certifications then it should be free (or a % discount per cert)?

What level of product volume should you be entitled to at different member levels? Member, Advanced and Premier?

Best Regards

Paul

10) Interesting news on the Software Access option
Stuart McIntyre 8/27/2008 8:36:30

@Geoff/Tony. Very interesting news on the Software Access option - I certainly wasn't aware that it included the Run Your Business entitlement - that's great... $795/£400 is a much more affordable option, and seems decent value to me.

11) Great questions
Stuart McIntyre 8/27/2008 8:42:50

Hi Paul, great questions, mate...

does anyone know what the requirements are to become a VMWare VIP partner? Is it just skills alone or elements of revenue generated for EMC?
The program requirements are at http://www.vmware.com/partners/vip/benefits-requirements.html - basically for VIP Professional (the level that Collaboration Matters is at), there is just a requirement for 1 x sales accreditatation, no revenue or technical certs.

If a partner is generating significant software revenue then vendors tend to be more supportive regarding free use of software for internal usage (demo, test and production).

Which raises a point - what do you consider to be fair value for the use of IBM software for 'run your business' ?

It should be free for all partners irrespective of return to the vendor (which raises the interesting point of customers becoming partners to get free software)

If should be free for partners that have demonstrated commitment to a vendor, in the manner of....

If you sold more than $x dollars then it should be free?

If you had more than x certifications then it should be free (or a % discount per cert)?

What level of product volume should you be entitled to at different member levels? Member, Advanced and Premier?

I think you highlight the problem well in that the 'value' varies massively depending on the size and business of the BP. I think it does have to be linked to the 'commitment' of the BP to the vendor's cause - that could well be shown by sales, influence, loyalty or skills. Thus measuring that commitment is very tricky - as you know, Partnerworld does this using a points system which then feeds into the Member/Advanced/Premier level. However, I feel that measuring in this way then favours the larger BP, even if their loyalty to IBM is doubtful, where they could have a small IBM-focused team with a much larger MS (for example) department selling Domino to Exchange migrations, and still be a premier or advanced partner.

So can I answer your question? Umm not really. I am not sure how it should work, only that if you can get all your partners really using and evangelising about your software, then that can only help. My approach might be to make it free for the first year, then raise a charge for future years unless certain criteria are met - sales, certs etc. And loyalty to the IBM brand is mandatory.



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