In case you missed it, there are new pricing updates for VMware Cloud on AWS.
In November, we made 1-year and 3-year subscription pricing available. These longer-term commitments help customers get a 30% and 50% discount respectively over on-demand pricing. Combined with our Hybrid Loyalty Program that allows a maximum of 25% discount, customers can achieve significant cost savings with VMware Cloud on AWS.
Let’s go through a few examples to understand how:
The pricing example below illustrates what you can expect to pay for a 1-year subscription of 4 hosts. At a list price of $51,987/year/host the price for 4 hosts turns out to be $207,948/year ($51,987×4).
As you can see, this is approximately 30% cheaper than the on-demand service. If utilized continuously over the same duration of a year, the on-demand service would cost $293,218/year (8.3681/hour*4 hosts*24 hours*365 days).
With me so far?
Great, now let’s move onto the Hybrid Loyalty program.
The hybrid loyalty program is valid only with 1-year and 3-year subscription pricing. It is the savings you can achieve on VMware Cloud on AWS based on licenses* you own on-premises as long as you are active on support and subscription for those licenses. The way it works is that for every 2 CPU licenses that you have on premises you get this discount on 1 host (2 CPUs) of VMware Cloud on AWS.
Now, let’s look at an example where you purchase a 1-year subscription of 10 hosts and have made investments with us on-premises. At a list price of $51,987/year/host the price for 10 hosts turns out to be $519,870/year ($51,987 x10). In order to understand how the Hybrid Loyalty Program works let’s consider three scenarios.
You have 100 CPUs of vSphere Enterprise Plus licenses on-premises that are active on Support and Subscription. You can receive a 10% discount on all 10 hosts.
So, your expected bill would be ($51,987x (1-10%) x 10) = 467,883 which results in 36% savings over on-demand.
You have 100 CPUs of vSphere Enterprise Plus Licenses and 10 CPUs of NSX licenses on-premises that are active on Support and Subscription. You can receive a 20% discount first 5 hosts and 10% on the remaining 5.
The expected bill in this scenario would be ($51,987x (1-20%) x 5) + ($51,987x (1-10%) x 5)= 441,890 which results in 40% savings over on-demand.
You have 100 CPUs of vSphere Enterprise Plus Licenses, 20 CPUs of NSX licenses and 20 vSAN licenses on-premises that are active on Support and Subscription. You can receive a 25% discount on all 10 hosts.
So, your expected bill would be ($51,987x (1-25%) x 10) = 389,903 which results in 47% savings over on-demand.
In the above example, the combined 1-year subscription and Hybrid Loyalty Program savings over on-demand go up till 47%. You can further maximize your cloud savings by opting for a 3-year subscription pricing which combined with the hybrid loyalty program can result in savings up to 63% over on-demand. It is also worth noticing that the larger your on-premises foot-print the more you save on VMware Cloud on AWS.
With the Hybrid Loyalty Program, you can continue to confidently invest in VMware on-premises and use this investment to save on cloud infrastructure that you may need now or in the future. All you need to do is stay active on your on-premises support and subscription.
It’s really that simple!
You can also find out more about all of our VMware Cloud Services at cloud.vmware.com.
Visit our resources page and discover more about VMware HCX technologies.