(WEB HOST INDUSTRY REVIEW) — Since it launched in the fourth quarter of 2008, the VMware Service Provider Program has seen significant growth with a recent spike in program enrollment, the company reported last week.
Now, with more than 700 service providers enrolled, VMware (www.vmware.com) has expanded the VSPP to offer more benefits, helping service providers to better serve customers and grow their VMware-based services with the lowest possible overhead.
According to Geoff Waters, director of emerging channels for VMware, the growth in the VSPP has been fueled by three driving factors: recent enhancements to the program, the vCloud initiative, and the introduction of vSphere 4.
One of those recent enhancements is the switch to a more flexible VMware licensing model, which lets VSPP members pay for as many or few VMware licenses as they require. By paying for monthly access to the VMware platform on a per-virtual machine basis, service providers can make the prices they pass on to customers a little more granular. It also enables a service provider to start up and grow a VMware-based services business without the startup capital and time they would otherwise need.
Another important enhancement lies within the development of the company’s network of “aggregators,” – partners specially qualified in working with service providers and distributing subscription-based licenses. The program currently has aggregators in North America and EMEA, and will continue expand into other markets around the world in the third quarter of 2009.
“That’s really going to be key,” says Waters, “we’ve been able to leverage some of the VSPP aggregators that have relationships with the service providers that have the tools and processes to handle the cycles, services delivery, billing, reporting and collections.”
Service provider partners and aggregators enrolled in the VSPP continue to see a greater need for cloud-based IT services built on the VMware vSphere 4 platform, which offers reduced capital and operating expenses, increased IT flexibility and a smaller carbon footprint.
One of the more crucial steps the company took in establishing a successful program was changing its marketing approach to service providers, says Waters.
“A year and a half ago, we looked at service providers almost as customers or an end user in the way we sold to them,” says Waters. “We’ve really turned that around to treat service providers as partners. We’ve created marketing tools, which is our partner website, the logo usages, the training modules, licensing benefits specifically designed for service providers, and of course, the subscription model.”
Waters says VSPP provides a great entry point for service providers, allowing them to take advantage of VMware’s recently released vSphere 4.0 platform and the company’s vCloud initiative. VSphere 4.0 lets users scale their offerings to support more customers with fewer service interruptions.
Meanwhile, the company’s vCloud initiative lets service provider partners create and deploy cloud computing services for customers, providing them with more flexible and cost-effective solutions.
Waters says that if service providers can find success with these entry-level solutions, the program can then help them implement even more complex offerings and continue to build their customer base.
“In the past, there have been some barriers to entry,” says Waters. “We’ve removed all these barriers to entry for service providers, which is really what they’re looking for. They’re looking for low start-up costs, they’re looking for pay as you grow, especially in this environment.”
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