VMware Partner Program Plan

VMware ConfidentialCopyright © 2002 VMware, Inc. All rights reserved.

VMwareRevised VIP Reseller Program Proposal

2


Agenda

• Current Situation• VMware Needs / Goals • Partner Needs • Industry Benchmarks• Proposed Program Structure• Channel Marketing Activities• Project Timeline

3


Growing Numbers of Resellers

Worldwide VIP Reseller Growth

0

100

200

300

400

500

600

700

Jun-03

Jul-03

Aug-03

Sep-03

Oct-03

Nov-03

Dec-03

Jan-04

Feb-04

Mar-04

Apr-04

May-04

Jun-04

Jul-04

Aug-04

Sep-04

Oct-04

Nov-04

Dec-04

Jan-05

Enterprise Professional

4


Reseller Coverage By Technology Focus

Overlap With VB500 By Chief Technologies

8%

18% 10%24% 8%

10% 15%

0

100

200

300

400

500

600

Overall Entr Strg Netw orking Intel / Unix Srvrs Netw ork Mgmt OS/Platforms Storage SW

Non-VMware VMware

5


Overlap with Other Vendor Resellers

NA Reseller Overlap With Other Vendor Resellers

53%

22% 38% 22% 24% 37% 29%

0

10

20

30

40

50

60

70

80

90

IBM Premier (SANfocus)

VB500 Intel Srvr - HP VB500 Intel Srvr - IBM Citrix Platinum VB500 - Veritas VB500 Unix Srvr - IBM VB500 Unix Srvr - HP

Non-Vmware VMware

6


NA Enterprise Reseller Coverage by Geography

1 1 2 5 1 1 1 1 1 2 1 1 1 1 1 5 1 2 7 2 15 2 2 2 6 3 4 5 3 3 10 8 7 80

500

1000

1500

2000

2500

3000

3500

4000

4500

# Comps./ Ent VIP # Ent VIP HQs

7


Multiple Partner Programs

• Separate Partner Programs– VIP for Resellers (potential 1,000+)– VAC for Consultants (potential 100+)– V-SIP for Global/Large System Integrators (potential 12-20)– ISV Partner Program (potential 500+)

• Contracts• Communications and Marketing• Databases• Administration

8


Sales / Business Needs

• Growth of Reseller Channel to Meet Sales Goals• Partner Profile / Segmentation / Development • Channel Pricing Conflicts• Incentive Compensation Models and Administration• Cost of Program Elements vs. Value

– Program Fees– Technical Support– Training/Certification– Marketing Funds

• Business/Marketing Planning

9


Channel Marketing Needs

• Alignment of Channel Marketing and Corporate Goals• Value of Value-Added Resellers• Marketing Collateral/ Sales Tools • Control of Marketing Funds to Partners

– Allocation / Approval– Proof of Performance– ROI Analysis

• Partner Communications • Standardized Processes (e.g. launch)

10


Infrastructure Needs

• Partner Relationship Management System– Application processing– Secure access– Unique partner profiles for partner locator and communications– Confidential sales tools and collateral– Lead Distribution, Management, Forecasting– MDF management– Forums– Partner Success Stories– Online Training– Partner Report Card

11


VIP Requirements

Requirements Partner Preferred EliteProgram FeesAnticipated Number (North America) 1,000+ 200 - 300 40 - 50Partner Agreement Yes * Yes * Yes *Annual Program Fee No $1,000 * $2,000 *VAC Program Participation No Available RecommendedRevenue CommitmentsAnnual Business Plan No Yes * YesQuarterly Revenue Quota* No $125K * $250K *Forecast No Yes YesTraining & CertificationMinimum # of VMware Trained (Certified) Sales People Per Location 0 2 4Minimum Number of VMware Certified Technical Reps Per Location Suggested 2 4Marketing# Of Required Marketing Activities N/A 4 per year >4 per yearCase Study / Reference N/A 1 2OtherPartner Profile/Logo Yes Yes YesRelationship Mgr/Internal VMware Champion Suggested Yes YesExecutive Sponsorship No Yes Yes* varies by region (e.g. Americas, EMEA, APAC)

12


VIP BenefitsBenefits Partner Preferred EliteProductVMware Licenses GSX / Workstation All products All productsVMware Consulting Services No VAC VACFinancial Incentives

Margindistributor receives 10%

discount *distributor receives 10%

discount *distributor receives 10%

discount *

Accrual (Rebate) NoYes (up to 10% of qualifying

sales) *Yes (up to 10% of qualifying

sales) *Accrual (Co-op/MDF) No 1% 2% *Software Not for Resale Demo Licenses (1 Physical copy, remainder ESD requested through CSM)

1 each WKS & GSX (ESD only)

ESD copies as needed for SEs and Training Labs

ESD copies as needed for SEs and Training Labs

Discount on Internal Use Licenses 25% off list 50% off list

No charge for 4CPU of VIN +VCP mgmt, 50% off list for

additional *Release Candidate Participation No Yes YesTechnical Support ServicesKnowledgebase Access Yes Yes Yes

Technical SupportEmail support; 10 incident paks - $5K

Email support; Limited phone support included, 10 incident paks 20% discount

Email Support, Partner hotline w/10 incidents, additional 10 incident paks 20% discount

Dedicated Online Forum No Yes YesEducation, Training & CertificationSales Training/(Certification when implemented) Online - no charge Online - no charge Online - no charge

Technical Training/Certification Available 20% discount, reimbursed by

up to $2,500 from MDF *20% discount, reimbursed by up

to $5,000 from MDF *

Field Sales Training No CSMs to provide group training* CSMs to train regional offices Training Web Casts Yes Yes Yes* varies by region (e.g. Americas, EMEA, APAC)

13


VIP Benefits

Benefits Partner Preferred EliteSales Support Account Management No Contact Account ManagerQualified/Unqualified Leads Through distributor Yes * YesSubcontracting/Consulting Services Leads No VAC program VAC programBusiness Planning No Yes YesMarketing SupportWelcome Kit (CD) w/ Plaque No Yes YesMarketing Planning No No Yes - QuarterlyCustomized Marketing Programs No No YesQuarterly Channel Tools Updates No Yes YesAccess to Channel Connect Yes Yes YesPartner Profile/Directory Listing Yes Yes (web link) Yes (Detailed)Partner Identifier Yes Yes YesSeminar/Event Support No Yes YesSeminar Tool Kits No Yes YesQuarterly Channel Newsletter Yes Yes YesChannel Flash Yes Yes YesJoint Case Studies/Success Stories No No YesJoint Press Release Opportunities No No YesOtherPartner Advisory Council No No MembershipUser’s Conference Invitation Invitation Invitation 2 free passes* varies by region (e.g. Americas, EMEA, APAC)

14


Channel Marketing Activities

• Partner Recruitment– Gap Analysis– Program Collateral and Presentations– Application Processing

• Partner Development– Product Sales Training Presentations for Channel Sales Managers– Periodic Training Webinars– Online Sales Training Courses– Partner Conference– Reseller Council (planned)

• Partner Communications– Welcome Kits / Guides– Newsletters– Flashes– Webinar Briefings– Success Stories

15


Channel Marketing Activities

• Partner Portal– Partner profiles, locator, news, collateral, access to resources as they

become available

• Partner Marketing– Seminars and Webinars– Ads / Direct Mail / Email / Web Banner Templates– Telemarketing Scripts– Banners / Posters– Logo Merchandise

• Sales Support– Sales Tools (sell sheets, PPTs, demos, solution stacks)– Price Lists– How-To Guides

16


Project Timeline – Phase 1

Gather input from VMware sales/marketing, VMware resellers, other partner programs, analysts

Finalize revised partner program

Document/publish processes, RDs, agreements, revised web site

Communications, press release & training

Completed

Pending

Milestone

Phase II

Go live 7/1

Apr May Jun Jul

Implement systems