VMWARE PARTNER CONNECT PROGRAM GUIDE - EXPERTEACH

 
VMWARE PARTNER CONNECT PROGRAM GUIDE - EXPERTEACH
VMware Partner Connect
                                                                                             Program Guide

               PROG RA M       G U I D E– M A Y 2 0 2 0
VMware Confidential – made available to VMware authorized partners solely for their internal reference
VMWARE PARTNER CONNECT PROGRAM GUIDE - EXPERTEACH
2

Table of Contents
       1. Partner Connect Program Overview                                                                                            5. Partner Connect Program Benefits
             Program Value                                                                                                                  Program Incentives and Investments
             Partner Connect Program Overview                                                                                               Benefit Eligibility
             Program At-a-Glance                                                                                                            Benefits At-a-Glance by Business Model
                                                                                                                                            Benefits Deep-Dive
       2. Partner Enrollment
                                                                                                                                            Co-selling
          Partner Enrollment and Transaction Rights                                                                                         Training Benefits
          Partner Connect Journey                                                                                                           Marketing Benefits
                                                                                                                                            Additional Marketing Benefits
        3. Business Models
                                                                                                                                            Sales Acceleration, Support and Services, Enablement
             Choosing the Right Business Model
             Resell                                                                                                                   6. Partner Resources
             Cloud
             Services                                                                                                                 7. Appendix
                                                                                                                                           Cloud Provider Licenses
        4. Program Progression and Requirements
                                                                                                                                           Managed Services Provider
           Partner Connect Path Framework
                                                                                                                                           Operational Information
           Partner Connect Progression
           Requirements At-a-Glance                                                                                                        Sales Territory Restrictions and Order Requirements
           VMware Partner Competencies                                                                                                     Territory Location and Additional Country List
           Territory Restrictions                                                                                                          Market Maturity List
           A Value-Based Tier Credit Strategy                                                                                              Solution Maturity List
           Tier Credit Calculation Example                                                                                                 Product Mapping
                                                                                                                                           License Maturity
                                                                                                                                           Glossary

Copyright © 2020 VMware, Inc. All rights reserved. This product is protected by copyright and intellectual property laws in t he United States and other countries as well as
by international treaties. VMware products are covered by one or more patents listed at http://www.vmware.com/go/patents. VMware is a registered trademark or
trademark of VMware, Inc. in the United States and other jurisdictions. All other marks and names mentioned herein may be tra demarks of their respective companies.
VMWARE PARTNER CONNECT PROGRAM GUIDE - EXPERTEACH
3

     LEGAL NOTICE AND UPDATES
     PLEASE NOTE: Your participation in the Partner Connect Program may be limited by your partner program agreement with VMware. This Partne r Connect Program Guide
     only applies to the activities authorized under your current partner program agreement(s) and does not expand your current co ntract authorization(s). For example, if your
     current agreement is a VMware Cloud Provider Program Agreement, you are not fully authorized to resell VMware offerings. To b e fully authorized to transact in the
     different Partner Connect business models, you must sign the new Partner Connect Program Agreement.
     This guide may be translated into multiple languages. Should there be any discrepancies between translated versions and the E nglish version, the English version will
     prevail. This guide will be periodically updated to account for programmatic changes. Please refer to this table for the latest updates.

                              Date                                                                                                        U pdate Description                                     Page Number

       February 10, 2020                                             Program Guide published for Partner Connect Launch                                                         All

                                                                     Updated links to align with new portal: clarification made for Services-only partner                       All pages with links plus the following pages: 7,
       March 3, 2020
                                                                     requirements; additional MSP information                                                                   19, 24, 32, 34-37, 46-49, 59
                                                                     Ne w or updated content: additional operational steps, tier credit calculation timeline,
                                                                     license rental/MSP transactions, license rental benefits and technical support, product                    Following pages: 6, 8, 9, 13, 21, 26, 31, 33, 35,
       May 4, 2020
                                                                     hierarchy, marketing benefits. Re moved content: Pre-launch or outdated materials (i.e.,                   39, 45, 59 and 60.
                                                                     Partner Journey, previous Slide 5)

       June 22, 2020                                                 Enrollment Form link fix                                                                                   Page 8.

       July 6, 2020                                                  Intake Form availability, Service-only partners benefits and overall benefits update                       Page 8, 18 and 31.

Copyright © 2020 VMware, Inc. All rights reserved. This product is protected by copyright and intellectual property laws in t he United States and other countries as well as
by international treaties. VMware products are covered by one or more patents listed at http://www.vmware.com/go/patents. VMware is a registered trademark or
trademark of VMware, Inc. in the United States and other jurisdictions. All other marks and names mentioned herein may be tra demarks of their respective companies.
Table of Contents
          4                                                                                        Progression and
                                                                                     Overview                           Benefits        Resources         Appendix
                                                                                                    Requirements

Program
Value
                  Program Value
                  VMware Partner Connect reimagines the way we do business with our partners.
Partner Connect
Program           Designed to deliver simplicity, choice, and innovation, Partner Connect aligns with your business model so you can optimize profitability.
Overview

Program at-a-
Glance

                  Simplicity: Clear paths to
                  profitability with consolidated
                  requirements across routes to
                  market.
                                                                                                                            Simplicity
                  Choice: Easily extend services
                  across our portfolio with access to
                  the resources you need to help
                  your customers scale and                                                                           Choice
                  succeed.

                  Innovation: Offer new ways to                                                      Innovation
                  grow your business by solving the
                  challenges of tomorrow and
                  leading the industry with
                  innovative service offerings.
Table of Contents
          5                                                                                              Progression and
                                                                                              Overview                        Benefits         Resources             Appendix
                                                                                                          Requirements

Program
Value
                  Partner Connect Program Overview
                  VMware Partner Connect offers a simplified, consistent experience designed to provide clearer paths to profitability, whether you want to resell
Partner Connect   software or services, manage or host services, or provide value-add services to your customers.
Program
Overview

Program at-a-
Glance            Partner Program Framework
                                                                V MWARE PARTNER NETWORK

                                                                        Solution Provider
                  Resell: Resell licenses and                      Cloud Provider (VCPP)
                  support and/or resell VMware
                  SaaS offerings                                       Corporate Reseller

                                                                        Regional Premier

                                                                Managed Service Provider                                           Cloud
                  Cloud Provider: Cloud Hosting                                                               Resell                                       Services
                  or resell of VMware SaaS                                        OEM*                                            Provider
                  offerings
                                                                             Distributor*

                                                                            Aggregator*
                                                                                                                      Aligned to VMware IT Strategic Priorities
                  Services: Deliver professional
                                                                                  Telco*
                  services and/or subcontract
                  with VMware professional                       Disparate individual RTM
                  services                                              programs

                                                         *To be included in future releases
Table of Contents
          6                                                                                                                                                                   Progression and
                                                                                                                                                               Overview                                   Benefits                Resources              Appendix
                                                                                                                                                                               Requirements

Program
Value
                                 Program At-A-Glance
                                           PROGRAM COMPLIANCE                                                                                                                  PARTNER MASTERY AND MATURITY
Partner Connect                                                                                                                                                                      Tier requirements are specific per IT path
Program
Overview                                                   A d ditiona l Operational Requirements
                                                       • (1) VOP-CP w/ Committed Contract                                                                                                                                         1 Master Services Competency

                                                                                                                         Performance Investment
                                                       • (1) VOP-SE                                                                                                                                                                               +
Program at-a-
                                                                                                                                                                                                                                   1 or 2 Solution Competencies
Glance                                                                                                                                                1 Solution Competency             1 Solution Competency
                                                      F o undational Requirements For All Partners                                                                                                                                    (depending on the path)
                  REQUIREMENTS

                                                       • VMware Partner Connect Contract
                                                       •   (2) VSP Foundation
                                  Partner              • Ethics and Compliance Training

                                                                                                                             Sales
                                  Connect              • Due Diligence Questionnaire
                                                                                                                                                                                                                                          1M Tier Credits
                                  Enrollment           • $895 flat fee for mature markets 1 only,
                                  Form                     due annually at time of renewal.                                                                                               50K Tier Credits
                                                                                                                                                              NA

                                   Enrolled                                 Enrolled
                                                                                                                                                             PARTNER                        ADVANCED                                      PRINCIPAL
                                    New                                    Authorized

                                        Limited             • Tr ansaction Rights (no                                                             Enrolled benefits plus:        Partner tier benefits plus:                 Advanced tier benefits plus:
                  BENEFITS 2

                                         Portal               incentives)
                                                                                                                                                  •   Exclusive Opportunity      •    Sales Rewards                          •    Badging
                                        Access              • Training Discount
                                                                                                                                                      Registration               •    Solution Rewards                       •    Educational Co-investment
                                                            • Full Portal Access
                                                            • Partner Technical Support                                                           •   Partner Locator            •    Development Funds      3
                                                                                                                                                                                                                             •    Field Sales Engagement
                                                            • NFR/IUL                                                                             •   Additional NFR/IULs             (proposal-based)                       •    Partner Locator with Additional
                                                            • Partner Demand Center                                                               •   SETs                       •    SaaS Incentives                             Sales Tags
                                                                                                                                                  •   Partner Connect Logo       •    Additional NFR/IULs                    •    Additional NFR/IULs
                                                                                                                                                  •   Sponsorship                •    PCT Program (MSC     Required)         •    SET Early Access
                                           For Cloud Providers only to transact
                                           Hosting/Managed Services offerings                                                                                                    •    Purchasing Program Eligibility         •    CAL Academy
                                           Required to transact subscription-                                                                                                    •    Press Release Templates                •    Livefire Training
                                           based offerings
                                                                                                                                                                                                                             •    Learning Zone License
                                    1 Market Maturity lists included in Program Guide Appendix.
                                    2 Specific financial incentives for partners who have been designated as services-only partners are available to those transacting a

                                    minimum of $10,000 (USD) during the first 12 months out of the last 15 months are eligible for consideration. See full list here
                                    3 Development Funds (DF) eligibility does not guarantee funding. Funding is subject to budget availability, prior approval by

                                    VMware, and submission of proof of performance as defined in the DF Guide. Note that additional eligibility criteria may apply
                                    depending on partner tier.
7

    Partner Enrollment

               VMware Confidential – made available to VMware authorized partners solely for their internal reference
Table of Contents
          8                                                                                                                 Progression and
                                                                                          Overview                                                                 Benefits             Resources                     Appendix
                                                                                                                             Requirements

Partner Enrollment
and Transact ion      Partner Enrollment
Rights
                      Partner agreements and training
                      To become an Enrolled New partner, you simply need to accept the VMware Enrollment Agreement online; however, to transact within Partner
Partner Connect
Journey
                      Connect, you must be Enrolled Authorized. To become Enrolled Authorized, you must accept the VMware Partner Connect Program Agreement
                      online and meet all foundational training requirements. In addition, Partner Integrity requirements apply.

                          Partner Connect Forms and                 Partner Connect Foundational                                                     Partner Connect                   Ready to progress to Partner
                          Agreements                                and Compliance Training                                                          Program Fee                       Connect mastery tiers

                                                                                                     VM war e
                                                                                                     Ethics & Comp liance Tr aining for Par tner s

                                                                                                                                                        4 . The organization’s compliance contact should also complete:
                     1 . Complete the Partner   2. Partner achieves E nrolled   3 . Within 120 days of enrollment,
                     Connect Enrollment         Ne w status and VMware          the following must be completed:                                        • Intake Form (can be done in parallel with Foundational
                     Form and accept the        provides limited access to      • (2) VSP Foundation                                                        Training)
                     Enrollment Agreement       the Partner Connect portal      • Ethics and Compliance training                                        • Partner Integrity Due Diligence Questionnaire (if required)
                                                                                                                                                        Visit the Partner Integrity Initiative page for more information
                                                                                                                                                        and timelines.

                     5. Complete the Partner Connect     Note : Resell               6. Pay the program                                              A dditional Operational Steps:
                     Authorization Form to achieve       Partners are                fee: $895 flat for                                              • Cloud Providers must complete (1) VOP-CP training
                     E nrolled Authorized status. Form   requested to                mature markets* only.                                           • If selling subscriptions, one team member must complete (1)
                     includes acceptance of the VMware   select a ‘Preferred         Program Fee due                                                    VOP-SE training
                     Partner Connect Agreement and       Distributor’                annually at time of                                             • Cloud Providers sign a rental agreement with their Aggregator
                     acknowledgement of the                                          renewal                                                         • Cloud Providers must click on the “Activate Cloud” button in
                     Code of Conduct                                                                                                                    the Partner Connect Portal to enable Cloud transactions
                                                                                                                                                                              *Market Maturity lists included in Program Guide Appendix.
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          9                                                                                                                                                Progression and
                                                                                                                                      Overview                                         Benefits              Resources             Appendix
                                                                                                                                                            Requirements

Partner Enrollment
and Transact ion     Partner Connect Journey
Rights
                     Tier cycle example - illustrative purposes only
Partner Connect
Journey              Within the Partner Connect tier cycle, we proactively manage contracts on the following cadence:

                     • On a monthly basis, you will have the opportunity to move up in levels with access to corresponding eligible incentives.
                     • On an annual basis, we will conduct an audit that will be the one time per year that down-leveling is applied.

                        FYQ4                               FYQ1                                                  FYQ2                                         FYQ3                                    FYQ4                      FYQ1

                       Jan             Feb                Mar                Apr              May                Jun              Jul            Aug          Sep          Oct          Nov           Dec         Jan           Feb

                     Enroll        Program                                                 Partner                    Example:                              Partner      Partner       Partner
                                                                                                                                                                                               End-of-Year
                                   Transition                                              Monthly                 Partner Eligible                         Monthly      Monthly       Monthly                      Partner Click-to-accept
                                                                                                                                                                                                  Audit
                                     audit                                                  Audit                   for Incentives                           Audit        Audit         Audit    Tier and           program execution
                                                                                                                    Occurs 1st day of next                                                           compliance
                                                 Program                                    Occurs                   fiscal month of up-                                   Occurs        Occurs
                                                                                                                                                                                                                    Program Fee Payment*
                                                                                                                                                             Occurs
                                                 Migration                                every month                                                                    every month   every month    elements
                                                                                                                       level designation                   every month                                              Partner Renewal Date
                                                                                                                                                                                                                    Date is specific to each partner
                               Sign Contract &     Partner Eligible                                   Partner                                  Mid-Year
                               Pay Program Fee, for incentives in                                    Up-leveling                             Health Check
                               if applicable*        new program                                                                               Tier and
                                                         tier                                        Occurs 1st day of                        compliance
                                Complete Foundational +                                                fiscal month                            elements                                                      Yearly
                                relevant Progression                                                                                                                                                      Down-leveling
                                Training                                                                                                                                                                Occurs 1st day of new
                                                                                                                                                                                                            fiscal year

                                     Program Transition                                     Monthly Up-leveling Example                                                                              Yearly Down-leveling Example

                         * $895 flat fee for mature markets only. Program Fee due annually at time of renewal.
10

     Business Models

               VMware Confidential – made available to VMware authorized partners solely for their internal reference
Table of Contents
           11                                                                                          Progression and
                                                                                         Overview                          Benefits        Resources         Appendix
                                                                                                        Requirements

Choosing the Right
Business Model
                        Choosing The Right Business Model
                        VMware Partner Connect is a single program with one set of requirements covering multiple business models. You have the flexibility to add or
Resell                  change business models as it makes sense for your business. As a partner, consider which business model(s) makes sense for you.

Cloud

Cloud (License
                                     Resell
Rental Lifecycl e)

Cloud (License Rental        •   I want to resell VMware offerings, potentially wrapped with professional services
– How It Works)              •   I want VMware to own the license terms and provide support to my customer

Cloud (MSP
Lifecycl e)
                                     Cloud Provider
Cloud (MSP –
How It Works)
                            •    I want to build services utilizing VMware offerings myself, in my own data center (license rental) or utilizing
                                 VMware Cloud Services (MSP)
Services
                            •    I want to own the license terms with my customer and provide support to my customer

                                     Services

                            •    I want to deliver professional services to my customer and/or subcontract with VMware professional services for
                                 my customer
Table of Contents
           12                                                                                           Progression and
                                                                                          Overview                             Benefits      Resources         Appendix
                                                                                                         Requirements

Choosing the Right
Business Model
                        Resell
                        VMware resellers are partners whose primary business model is value-added reselling and/or services delivery. By providing customers with an
                        unbiased opinion, VMware resellers combine their technology expertise along with services to deliver VMware solutions to address specific
Resell
                        customer business problems. VMware resellers typically advise customers to understand their customer’s business needs.

                        Partner Connect gives resell partners access to benefits, rewards and resources that help drive license and services business, create new
Cloud
                        opportunities, increase profitability, and differentiation from competitors.

Cloud (License
Rental Lifecycl e)

Cloud (License Rental
– How It Works)

Cloud (MSP
Lifecycl e)              ENGAGEMENT
                              MODEL
Cloud (MSP –
How It Works)
                                                                                                                          DISTRIBUTOR
                                                     CUSTOMER
                                                                                  PARTNER
Services                                                                          CONNECT
                                                                                  RESELLER
Table of Contents
           13                                                                                                                                                           Progression and
                                                                                                                                              Overview                                             Benefits            Resources         Appendix
                                                                                                                                                                         Requirements

Choosing the Right
Business Model
                        Cloud
                        VMware Cloud Services: There are two models used to deliver cloud services - License Rental and Managed Services Provider .
Resell

                          VMware Cloud Provider                                                                                                                                                                                     Cloud Provider
                                                                                                                                                                                                                                       leveraging
Cloud
                          License Rental*                                                                                                                                                                     VMware Software      VMware software
                                                                                                                                                                                                                 Licenses            technology to
                          Under the License Rental model, Cloud
                                                                                                                                                                                                                                    stand up their
Cloud (License            Provider (CP) partners leverage VMware
                                                                                                                                                                                                                                          own
Rental Lifecycl e)        software licenses to build out their own                                                                                                                                            Cloud Provider’s       infrastructure
                          infrastructure offerings and managed services                                                                                                                                         Data Center            and deliver
Cloud (License Rental
                          in their own data centers.                                                                                                                                                                                    managed
– How It Works)           *Cloud Provider License Details here                                                                                                                                                                      services on top

                                                                  AND
                                                                   OR
Cloud (MSP
Lifecycl e)

                                                                                                                                                                                                              VMware Cloud
Cloud (MSP –              VMware Managed                                                                                                                                                                         Services
How It Works)                                                                                                                                                                                                                       Cloud Provider
                          Services Provider**                                                                                                                                                                                           leveraging
                                                                                                                                                                                                                VMware
                          Under the Managed Services Provider (MSP)                                                                                                                                           Operated Data          VMware SaaS
Services                  model, partners purchase VMware Cloud services                                                                                                                                                                 offerings
                                                                                                                                                                                                                 Centers
                          and offer managed services on top to resell to                                                                                                                                                                  without
                          their customers.                                                                                                                                                                                           investment in
                          A key requirement of participating in MSP is that                                                                                                                                                         the ir own data
                                                                                                                                                                                  Cloud Provider owns
                                                                                                                                                                                                                OnDemand                  ce nter
                          the Cloud Provider owns the terms of service and                                                                                                           customer TOS
                                                                                                                                                                                                                                      infrastructure
                          all support for their end customers. Geographic
                                                                                                                                                                                                                                        and deliver
                          expansion is a key use case for the MSP model,                                                                                                          Vertical Expansion           GEO Expansion
                                                                                                                                                                                                                                         managed
                          where partners can quickly expand to new                                                                                                                                                                  services on top
                          regions without expensive data center                                                                                                             VMware XaaS Technology              Hybrid Cloud
                          investments.
                         **Managed Services Provider Details here

                         For License Rental and MSP transactions, tier credits are credited to the Cloud Provider path and the product’s other primary path (e.g. VMC on AWS).
Table of Contents
           14                                                                                            Progression and
                                                                                              Overview                          Benefits           Resources          Appendix
                                                                                                          Requirements

Choosing the Right
Business Model
                        Cloud (License Rental Lifecycle)*
                        Below is an overview of the VMware License Rental lifecycle.
Resell
                        1.   Commit Contract–Partner signs the License Rental Commit
                             Contract with a VMware Aggregator. The Commit Contract
                             specifies the minimum monthly Partner consumption amount,
Cloud
                             and provides discounts based on volume.                                                             Aggregator
                                                                                                                                  Commit
                                                                                                                                  Contract
                        2. Build & Host Your Cloud–Flexibility to choose from dozens of

                                                                                                                                      1
Cloud (License             VMware products listed in the Product Usage Guide. VMware
Rental Lifecycl e)         SETs (Solution Enablement Toolkits) package VMware services,
                           sales, and marketing IP that enable you to capitalize on SDDC,
Cloud (License Rental      EUC, and Hybrid Cloud services opportunities.                                  CP reports
– How It Works)                                                                                            monthly                                        CP builds &
                        3. Market & Sell Your Hosted Solution–Explore differentiated and                   product                                       hosts VMware
                           monetizable cloud services you can deliver as a Cloud Provider.               consumption                                        solution
Cloud (MSP                 Offer networking, security, cloud management, cloud
Lifecycl e)                migration, hybridity, datacenter consolidation, and more,                         5                                                 2
                           exceeding customer expectations and outperforming your
                                                                                                                           LI CENSE RENTAL CLOUD
Cloud (MSP –               SLAs.                                                                                                 PROVIDER
How It Works)
                        4. P rovide S upport to Your Customers–Partners are responsible
                           for all Customer support to their customer base. VMware
                           provides Production Level support to the Partner. Enhanced                             CP provides                 CP markets,
Services
                           support options, and optional technical resources are available.                        support to                  sells their
                                                                                                                      their                     hosted
                                                                                                                   Customers                    solution
                        5. Report Monthly Product Consumption–By the 5th of every
                           month, Partner will log into the Commerce Portal to input and
                           confirm the prior month’s usage. Partner reviews the report                                 4                             3
                           and submits it to their Aggregator. Pay for just what you
                           consume every month. (above the minimum commit).
                           Aggregator bills Partner for previous month’s usage.

                             *Cloud Provider License Details here
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           15                                                                                                                     Progression and
                                                                                                              Overview                                       Benefits           Resources           Appendix
                                                                                                                                   Requirements

Choosing the Right
Business Model
                        Cloud (License Rental – How It Works)*
                        There are four participants in the License Rental model: the Customer consuming the Partner’s solution, the License Rental Partner (hosting
Resell                  the solution), the Aggregator (owns the contract with the Partner / billing & collection), and VMware.

                        The License Rental Partner will work with Aggregator for contract and billing, and VMware for product and support.
Cloud
                        The License Rental contract is held between the Aggregator and the Partner. The contract is a commitment to a minimum monthlyspend,
                        the Partner will be entitled to a discount for the VMware products consumed every month. At the end of the month, the Partnersubmits a
Cloud (License
                        usage report with the Aggregator. The contracted discount will be applied to those purchases.
Rental Lifecycl e)
                        The Partner provides support to their Customer, and VMware provides support to the Partner.

Cloud (License Rental
– How It Works)

                              Customer                                              License Rental                                     Aggregator                                        VMware
Cloud (MSP
Lifecycl e)               ▪ Customer for the                                  ▪ Commits to a License                               ▪ Sets up minimum                                ▪ Provides product
                            Partner Hosted                                      Rental contract level                                monthly commit                                   and license keys to
                            Service                                           ▪ Builds and hosts VMware                              contract with Partner                            Partner
                                                         Contract & Billing     solution                     Contract & Billing                                Contract & Billing
Cloud (MSP –
                          ▪ Purchases Cloud                                   ▪ Markets and sells solution                         ▪ Serves as billing and                          ▪ Provides
How It Works)
                            Services from the                                   to their customers                                   collection agent for                             Production Level
                            Partner                                                                                                  products consumed                                support to Partner
                                                                              ▪ Provides support to their                            by Partner                                       (not Customer)
                          ▪ Receives support                                    customer base
Services                                                                      ▪ Receives Production Level
                            from the Partner                                                                                       ▪ Does not provide                               ▪ Provides technical
                                                                                support from VMware                                  product support                                  and GTM resources
                          ▪ Has no direct                                     ▪ Pays the Aggregator for                                                                               to Partner to
                            contact with                                        VMware products                                                                                       effectively build
                            VMware                                              consumed every month                                                                                  and sell

                                                         Or der & Support                                                             Or der & Support

                           *Cloud Provider License Details here
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           16                                                                                               Progression and
                                                                                                 Overview                          Benefits         Resources           Appendix
                                                                                                             Requirements

Choosing the Right
Business Model
                        Cloud (MSP Lifecycle)
                        Below is an overview of the VMware MSP lifecycle.
Resell
                        1.   Commit Contract–Partner signs the Commit Contract with their
                             preferred Aggregator. Partner then commits to VMware an MSRP
                             (list price) spend to obtain a volume discount for their purchases.
Cloud                                                                                                                               Aggregator
                        2. Cloud Provider builds MSP Pipeline–Partner initiates go to market                                         Commit
                                                                                                                                     Contract
                           activities and starts building their business for Managed Services.

                                                                                                                                         1
Cloud (License
Rental Lifecycl e)      3. Deliver Managed Services and Own the Terms of Service–
                           Once the opportunity has been identified, order Cloud Service
                           from VMware and provide Managed Services as part of the
Cloud (License Rental                                                                                                                                       CP builds
                           offering to your customers. Partners must provide their own terms                 CP reports
– How It Works)                                                                                                                                                MSP
                           of service to their customers. Partners must provide managed                      and pays
                                                                                                                                                             pipeline

Cloud (MSP
Lifecycl e)
                           services as part of the offering to the customer. At a minimum this
                           must include technical support for the service and all functions                     5                                                2
                           associated with service configuration, add-ons, renewals and
                           anything pertaining to billing.
                                                                                                                               M ANAGED SERVICES
Cloud (MSP –                                                                                                                       PROVIDER

How It Works)
                        4. On-Board and Provide Support to your Customers–Partner will on-
                           board the VMware Cloud services for their customers.
                           Subsequently, Partner may obtain technical support from VMware
                                                                                                                                                   CP delivers
Services
                           with the following provisions. In turn, Partners are responsible for                      CP provides                      ToS,
                           all customer support, which may include but not limited to                                 support                       managed
                           customer communication, any managed services, answering                                                                  services
                           installation, configuration and usage questions.                                               4
                        5. Complete Monthly End Customer Reports and Pay Invoices–On the
                                                                                                                                                      3
                           5th of every month, Partner will log into the Commerce Portal and
                           review the prior month’s usage. Partner will review the report and
                           submit it to their Aggregator. Following that, the Aggregator will
                           send the Partner an invoice for the month.

                         *Managed Services Provider Details here
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           17                                                                                                                       Progression and
                                                                                                                 Overview                                  Benefits            Resources            Appendix
                                                                                                                                     Requirements

Choosing the Right
Business Model
                        Cloud (MSP – How It Works)
                        There are four participants in the Managed Services Provider (MSP) model – the Customer for the services, the Managed Services Provider
Resell                  (“MSP”), the Billing Agent (“Aggregator”) and VMware.

                        The MSP will work with both an Aggregator and VMware in order to transact and purchase the cloud services.
Cloud
                        The Aggregator is a billing agent for VMware and will work with the MSP to get a commit contract level signed. By committing to a MSRP
                        spend, the MSP will be entitled to a discount for the cloud services purchased from VMware. Additionally, the MSP will be granted access to
Cloud (License
                        VMware’s ordering portal (VMware Cloud Portal) in order to purchase cloud services directly from VMware. All purchases madefrom
Rental Lifecycl e)      VMware will be at MSRP (list price). At the end of the month, the MSP will receive a consolidated bill from the Aggregator for the services
                        consumed from VMware during the prior month, and it is at this time that their contracted discount will be applied to those purchases.
Cloud (License Rental   The MSP owns the terms of service (ToS) for their customers and is responsible for all transactions and support for them, which includes
– How It Works)         contract, order, support and billing. Please refer to the graphic below for more details.

Cloud (MSP
Lifecycl e)                     Customer                                                    MSP                                          Aggregator                                     VMware

                            ▪ Customer for the                                  ▪ Commits to an MSP                                  ▪ Sets up MSP on a                            ▪ Sells and provisions
Cloud (MSP –                  Managed                                             contract level                                       Commit Contract                               Cloud Services to
How It Works)                 Services                                          ▪ Purchases Cloud Services                             level with VMware                             MSP’s
                                                           Contract & Billing     from VMware                  Contract & Billing                             Contract & Billing
                            ▪ Purchases Cloud                                   ▪ Provides managed services                          ▪ Serves as billing                           ▪ Owns Terms of
                              Services from the                                   on top of VMware as-a-                               agent for VMware for                          Service for MSP
Services                      MSP                                                                                                      services consumed                             only (not for the
                                                                                  Services offerings and
                                                                                  resells to their customers                           by the MSP’s                                  customer)
                            ▪ Receives support
                              from the MSP                                      ▪ Owns the Terms of Service                          ▪ Does not provide                            ▪ Provides escalation
                                                                                  for their customers                                  product support                               support only to the
                            ▪ Has no direct                                     ▪ Receives escalation support                                                                        MSP (not to the
                              contact with                                        from VMware, however,                                                                              customer)
                              VMware                                              provides support directly to
                                                                                  their customers                                                                                  ▪ Bills the
                                                                                ▪ Pays the Aggregator for                               Or der & Support                             Aggregator for
                                                           Or der & Support
                                                                                  Services consumed                                                                                  services consumed
                                                                                                                                                                                     by the MSP

                         *Managed Services Provider Details here
Table of Contents
           18                                                                                                 Progression and
                                                                                              Overview                           Benefits        Resources       Appendix
                                                                                                               Requirements

Choosing the Right
Business Model
                        Services
                        VMware recognizes that certain partners want to focus on services                To become a Services-Only partner, please ensure you have completed
                        delivery capabilities and business models. The Partner Connect                   all required competencies for Principal tier. Contact
Resell                                                                                                   partnerconnect@vmware.com to request this designation.
                        Program enables these partners to invest in professional and
                        implementation services offerings, through the Services-Only path,
                        centered on Solution and Master Services Competency capabilities.
Cloud

                        The Services-Only path provides partners with an opportunity to
Cloud (License          commercialize services investments in VMware technology and the
Rental Lifecycl e)      training provided is designed to equip partners with the skills and
                        tools to deliver exceptional customer services. The Services-Only path
Cloud (License Rental
                        is at the Principal tier, given the level of skill and investment required.
– How It Works)         Partners earn all non-financial benefits of the Principal tier, as well as
                        those benefits realized by achieving the Master Services Competency.
Cloud (MSP
                        Partners who have been designated as Services-only partners
Lifecycl e)
                        transacting at least one single booking of $10,000 (USD) or greater
                        with VMware during the previous 12 months are eligible for
Cloud (MSP –            consideration of specific financial incentives.
How It Works)

                        Please note:
Services
                        • Partners who have been designated as Services-
                          only partners and are non-transacting with
                          VMware may be eligible for consideration of
                          specific financial incentives within the cloud
                          incentives rebate.

                        • Partners who have been designated as Services-
                          only partners and are non-transacting with
                          VMware are not eligible for financial incentives
                          within the Development Funds program.
19

     Program Progression
     and Requirements

               VMware Confidential – made available to VMware authorized partners solely for their internal reference
Table of Contents
           20                                                                                                    Progression and
                                                                                                Overview                                   Benefits             Resources        Appendix
                                                                                                                  Requirements

Partner Connect Path
Framewo rk
                       Partner Connect Path Framework
                       Partner Connect offers multiple paths to success, allowing you to focus on the strategic IT priorities that best align with your business focus.
Partner Connect        Completing foundational requirements allows you to transact with customers across our portfolio and is the start of your journey with
Progressio n           VMware.

                       From here, you can choose where you want to focus and how much you want to invest for each area, knowing that greater investment
Requirement s at-
a-Glance
                       unlocks greater value. For example, across the different paths you can achieve Principal Level in one path, Advanced Level inanother path,
                       or no tier at all in paths that are not relevant for your business. As you progress to higher tiers within each path, rewardsand incentives also
                       increase. Principal and Advanced Level partners receive both non-financial and incremental incentives and rewards, while Partner Level
VMware Partner         receives minimal non-financial rewards, and Enrolled Authorized partners can transact, but no incentives are granted.
Competenci es

                       Whether you are just beginning and building
Territo ry
                       new practice areas or have validated capabilities
                                                                                                                                                                 Transform
Restriction s          to deliver the greatest customer value, Partner                                                             Multi          Modern         Networking   Empower
                                                                                                        Hybrid Cloud                                                           Digital
                       Connect offers you opportunities to                                                                         Cloud         Applications       and
                                                                                                                                                                              Workspace
                                                                                                                                                                  Security
                       build profitable business with VMware.
A Value-Based Tier
Credit Strategy                                                                                      Cloud
                                                                               Data Center                         Cloud      VMware Cloud        Modern        Network and    Digital
                                                                                                 Management
                                                               PRINCIPAL       Virtualization
                                                                                                and Automation
                                                                                                                  Provider      on AWS          Applications      Security    Workspace
Tier Credit
Calculation
Example

                                                ADVANCED

                                  PARTNER
Table of Contents
           21                                                                                             Progression and
                                                                                               Overview                                   Benefits                     Resources                       Appendix
                                                                                                           Requirements

Partner Connect Path
Framewo rk
                       Partner Connect Progression
Partner Connect
Progressio n

Requirement s at-      Ensure Foundational and/or                   Complete Training                     Meet the Sales Performance                                             Progress to the
a-Glance               Operational requirements                     Requirements in the                   Thresholds in the desired IT                                           corresponding higher
                       have been met                                desired IT path                       path                                                                   tier in the IT path
VMware Partner
Competenci es

Territo ry
                         In order to progress to Principal, you must complete one or two                         If you attain all the corresponding Solution Competencies +
Restriction s
                         Solution Competencies (depending on the path) and one Master                            Mastery* and earn 1 Million Tier Credits in the same IT path,
                         Services Competency mapped in the desired IT path(s), plus                              you achieve the Principal tier in that IT path, unlock the
A Value-Based Tier       specific tier credit requirements. Some of the training                                 highest incentives and rewards, such has the Partner Connect
Credit Strategy          requirements could have been already acquired in the previous                           Principal badge.
                         tier; you must obtain any additional accreditations or tier credits
Tier Credit              to progress to Principal. Badging under Partner Connect is only                         *Cloud Verified attainment fulfills the Mastery requirement in the Cloud Provider IT path.

Calculation              available at this tier level.
Example

                                                                                                                 If you meet the Solution Competency requirement and earn
                         In order to progress to the Partner and
                                                                                                                 more than 50K Tier Credits in the same technology area, you
                         A dvanced tiers, you must complete at least
                                                                                                                 achieve the Advanced tier in that IT path.
                         one Solution Competency mapped in the
                         desired IT path(s)—some paths may have
                         more than one option—plus the specific tier
                         credits requirements.

                         Go to Partner University to                                                             If you meet the Solution Competency requirement but earn
                         complete the Solution                                                                   under 50K Tier Credits in the same IT path, you achieve the
                         Competencies training.                                                                  Partner tier in that IT path.
                                                               PARTNER           ADVANCED        PRINCIPAL
Table of Contents
           22                                                                                                                                                            Progression and
                                                                                                                                               Overview                                                       Benefits                     Resources                      Appendix
                                                                                                                                                                          Requirements

Partner Connect Path
Framewo rk
                       Requirements At-A-Glance
Partner Connect                                                                                                                                                                                                                       Transform
                                                                                                                                                                                Multi                     Modern                                                   Empower
Progressio n                                                                                                                Hybrid Cloud                                                                                             Networking                     Digital
                                                                                                                                                                                Cloud                   Applications                 and Security                  Workspace

Requirement s at-
a-Glance                                                                         Da ta Center               Cloud Mgmt. and                      Cloud                   V M ware Cloud                   M odern                   N etwork and                    Digital
                                                                                 V irtualization              A utomation                       Pr ovider                   on AWS                      A pplications                 Security                    W orkspace
                                                                                                                   Cloud
VMware Partner                                                                     Data Center                                                                             VMware Cloud                   Cloud Native                   Network
                                                         Mastery                                               Management and                                                                                                                                    Digital Workspace
                                                                                   Virtualization                                                                            on AWS                     ( c oming soon)                Virtualization
Competenci es                                                                                                    Automation

                                                                                                              •Management                                                                                                                                       •Desktop
                                                                             •Server Virtualization
                           PRINCIPAL                                                                          Automation                                                                                                                                        Virtualization
                                                        Solution             -AND-                                                                                         VMware Cloud                                                  Network
                                                                                                              -AND-                           Cloud Provider                                                   PKS                                              -AND-
Territo ry                                            Competencies           •Hyper-Converged                                                                                on AWS                                                    Virtualization
                                                                                                              •Management                                                                                                                                       •Mobility
                                                                             Infrastructure (HCI)
Restriction s                                                                                                 Operations                                                                                                                                        Management

                                                   Sales Performance             1M Tier Credits                1M Tier Credits              1M Tier Credits               1M Tier Credits              1M Tier Credits              1M Tier Credits              1M Tier Credits

A Value-Based Tier                                                           Any (1) aligned SC:              Any (1) aligned SC:                                                                                                                               Any (1) aligned SC:
                                                                                                                                                                                                                                  Any (1) aligned SC:
Credit Strategy                                                              •Server Virtualization           •Management                                                                                                                                       •Desktop
                                                        Solution                                                                                                           VMware Cloud                                           •Network
                                                                             •Hyper-Converged                 Automation                      Cloud Provider                                                   PKS                                              Virtualization
                                                      Competencies                                                                                                           on AWS                                               Virtualization
                              ADVANCED                                       Infrastructure (HCI)             •Management                                                                                                                                       •Mobility
                                                                                                                                                                                                                                  •SD-WAN
Tier Credit                                                                  •Business Continuity             Operations                                                                                                                                        Management
Calculation
                                                   Sales Performance             50K Tier Credits              50K Tier Credits              50K Tier Credits             50K Tier Credits             50K Tier Credits             50K Tier Credits             50K Tier Credits
Example
                                                                             Any (1) aligned SC:              Any (1) aligned SC:                                                                                                                               Any (1) aligned SC:
                                                                                                                                                                                                                                  Any (1) aligned SC:
                                                                             •Server Virtualization           •Management                                                                                                                                       •Desktop
                                                        Solution                                                                                                           VMware Cloud                                           •Network
                                    PARTNER                                  •Hyper-Converged                 Automation                      Cloud Provider                                                   PKS                                              Virtualization
                                                      Competencies                                                                                                           on AWS                                               Virtualization
                                                                             Infrastructure (HCI)             •Management                                                                                                                                       •Mobility
                                                                                                                                                                                                                                  •SD-WAN
                                                                             •Business Continuity             Operations                                                                                                                                        Management
                                                                                                                                         Foundational Requirements
                                                         Additional Operational
                                                                                                                      (1) VOP-CP with Committed Contract to Transact for Hosting/Managed Services offerings, (1) VOP-SE for subscription-based offerings
                                                                 R equirements

                                                  Foundational Requirements                 VMware Partner Connect Contract | (2) VSP Foundation | Ethics and Compliance Training | Due Diligence Questionnaire (if required) | Program Fee, if applicable ($895 flat fee for
                                                            Fo r All Partners                               mature markets only, due annually at time of renewal) Once met, allows partners to transact. Financial benefits applicable starting at the Partner level.

                       •    C l oud Verified Badge, Rental Only
                       •    V M ware Sales Professional (VSP) Foundation accreditation offers basic sales techniques for VMware’s core products, including pricing, with strategies for competitively positioning those solutions to end customers.
                       •    V M ware Master Services Competencies are designed to validate your company’s capacity to deliver services related to specific VMware technologies. These designate a high level of service capability as validated by your customers. Additional information on competency
                            offerings and associated benefits, requirements is available in the VMware Master Services Competencies Program Guide.
                       •    A V M ware Solution Competency is an organization-level designation of partner enablement designed to help partners achieve and demonstrate expertise in VMware digital foundation-focused solutions. Additional information on competency offerings and associated
                            benefits, requirements is available in the VMware Solution Competency Program Guide.
Table of Contents
           23                                                                                                                                                            Progression and
                                                                                                                                               Overview                                                       Benefits                     Resources                      Appendix
                                                                                                                                                                          Requirements

Partner Connect Path
Framewo rk
                       Requirements At-A-Glance For Service-Only Partners
                       As a reminder, the Services-Only path provides partners with an opportunity to commercialize services investments in VMware technology
Partner Connect        and the training provided is designed to equip partners with the skills and tools to deliver exceptional services for your customers. The
Progressio n           Services-Only path is at the Principal tier, given the level of skill and investment required. To become a Services-Only partner,
                       please ensure you have completed all required competencies for Principal tier. Contact partnerconnect@vmware.com to request
                       this designation.
Requirement s at-
a-Glance

VMware Partner
Competenci es                                                                                                                                                                                                                         Transform
                                                                                                                                                                                Multi                     Modern                                                   Empower
                                                                                                                            Hybrid Cloud                                        Cloud                                                Networking                     Digital
                                                                                                                                                                                                        Applications                 and Security                  Workspace
Territo ry
Restriction s
                                                                                 Da ta Center               Cloud Mgmt. and                      Cloud                   V M ware Cloud                   M odern                   N etwork and                    Digital
                                                                                 V irtualization              A utomation                       Pr ovider                   on AWS                      A pplications                 Security                    W orkspace
A Value-Based Tier
Credit Strategy                                                                                                    Cloud
                                                                                   Data Center                                                                             VMware Cloud                   Cloud Native                   Network
                                                         Mastery                                               Management and                       N/A                                                                                                          Digital Workspace
                                                                                   Virtualization                                                                            on AWS                     ( c oming soon)                Virtualization
                                                                                                                 Automation
Tier Credit
Calculation                PRINCIPAL
                                                                                                              •Management                                                                                                                                       •Desktop
Example                                                                      •Server Virtualization
                                                                                                              Automation                                                                                                                                        Virtualization
                                                        Solution             -AND-                                                                                         VMware Cloud                                                  Network
                                                                                                              -AND-                                 N/A                                                        PKS                                              -AND-
                                                      Competencies           •Hyper-Converged                                                                                on AWS                                                    Virtualization
                                                                                                              •Management                                                                                                                                       •Mobility
                                                                             Infrastructure (HCI)
                                                                                                              Operations                                                                                                                                        Management

                                                                                                                                 Foundational Requirements
                                                         Additional Operational               (1) VOP-CP with Committed Contract to Transact for Hosting/Managed Services offerings, (1) VOP-SE for subscription-based offerings and/or (1) VeloCloud Orchestrator and badges
                                                                 R equirements                                                                   specific to support required for VeloCloud partners providing L1/L2 support.

                                                  Foundational Requirements                 VMware Partner Connect Contract | (2) VSP Foundation | Ethics and Compliance Training | Due Diligence Questionnaire (if required) | Program Fee, if applicable ($895 flat fee for
                                                            Fo r All Partners                               mature markets only, due annually at time of renewal) Once met, allows partners to transact. Financial benefits applicable starting at the Partner level.

                       •    C l oud Verified Badge, Rental Only
                       •    V M ware Sales Professional (VSP) Foundation accreditation offers basic sales techniques for VMware’s core products, including pricing, with strategies for competitively positioning those solutions to end customers.
                       •    V M ware Master Services Competencies are designed to validate your company’s capacity to deliver services related to specific VMware technologies. These designate a high level of service capability as validated by your customers. Additional information on competency
                            offerings and associated benefits, requirements is available in the VMware Master Services Competencies Program Guide.
                       •    A V M ware Solution Competency is an organization-level designation of partner enablement designed to help partners achieve and demonstrate expertise in VMware digital foundation-focused solutions. Additional information on competency offerings and associated
                            benefits, requirements is available in the VMware Solution Competency Program Guide.
Table of Contents
           24                                                                                        Progression and
                                                                                       Overview                            Benefits        Resources         Appendix
                                                                                                      Requirements

Partner Connect Path
Framewo rk
                       VMware Partner Competencies
                       Master Services Competencies and Solution Competencies
Partner Connect
Progressio n           At VMware, competencies are meant to recognize sales and technical proficiency, delivery expertise, and customer success for next-generation
                       VMware IT priorities. Achieving a VMware partner competencies allow you to strengthen your services capabilities and unlock valuable partner
                       benefits.
Requirement s at-
a-Glance
                       VMware offers you two types of competencies:

VMware Partner
Competenci es
                         SOLUTION COMPETENCIES                                         MASTER SERVICES COMPETENCIES

Territo ry              VMware Solution Competencies are a first step in achieving    VMware Master Services Competencies require achieving advanced technical
Restriction s           sales and technical expertise in VMware virtualization and    certifications and proof of high-level service capability and expertise as
                        cloud computing solutions.                                    validated by your customers.
A Value-Based Tier                                                                    Unlike Solution Competencies, a partner organization must demonstrate
                        Solution Competencies are attained at the organizational
Credit Strategy                                                                       services delivery experience and capability by providing customer references
                        level. They include sales training as well as both pre- and
                        post-sales technical trainings.                               for recently completed projects in order to achieve a Master Services
Tier Credit                                                                           Competency (in addition to meeting the training requirements).
Calculation
Example
                                                   For more information see the                                              For more information see the Master
                                                  Solution Competency Guide here                                              Services Competencies Guide here

                       Key to Principal: Exhibiting Mastery
                       VMware Master Services Competent partners are trusted and certified partners with the resources, knowledge, skills, and tools to successfully
                       deliver services. When you achieve an MSC, you prove solution mastery and your ability to deliver customer value, a critical component to
                       unlocking maximum benefits with Partner Connect. NOTE: Attaining the Cloud Verified badge fulfills the MSC requirement in the program Cloud
                       Provider IT path.
Table of Contents
           25                                                                                            Progression and
                                                                                          Overview                            Benefits        Resources           Appendix
                                                                                                          Requirements

Partner Connect Path
Framewo rk
                       Territory Restrictions
                       The VMware Partner Connect Program is designed to promote local relationships between customers and VMware partners. As a
Partner Connect
Progressio n           result, there are territorial restrictions governing the purchase, distribution and use of VMware offerings, based upon the countries in
                       which the customer, Partner Connect partner, and VMware authorized distributor/aggregator are located.

Requirement s at-      Complete details on the VMware Sales Territory Restrictions and Order Requirements Guide is available in the Appendix.
a-Glance

VMware Partner
Competenci es

Territo ry
Restriction s

A Value-Based Tier
Credit Strategy

Tier Credit
Calculation
Example
Table of Contents
           26                                                                                                          Progression and
                                                                                                       Overview                                   Benefits                  Resources               Appendix
                                                                                                                        Requirements

Partner Connect Path
Framewo rk
                         A Value-Based Tier Credit Strategy
                        Accelerating investments across business models, markets, and solution maturity
Partner Connect
Progressio n
                                         Licensing Model                                             Market Maturity*                                              Solution Maturity**
Requirement s at-
a-Glance
                                                                                                              =
                          0X Perpetual License                 1X SaaS                                                           5X
VMware Partner                                                                                       0X                   = Credits                        0X                     1X                    2X
Competenci es                                                                                     =Credits
                                                                                                              ==                                           DCV
                                                                                                                                                                                 Di gital
                                                                                                                                                                               W orkspace
                                                                                                                                                                                                     V M C on
                                                                                                                                                                                                      AWS
Territo ry                                                                                                                                              Master Services        Master Services      Master Services
                                                                                                                         1X                             Competencies           Competencies         Competencies
Restriction s                                                                                                        = Credits
A Value-Based Tier
Credit Strategy                                                                                * Market Maturity Country List here                                ** Solution Maturity List here

Tier Credit
Calculation            Eligible Transactions: Net sales of license and Support plus Subscription (SnS) (initial purchase), Consumption of xPP Credits, Subscription, License Rental and MSP
Example                transactions based on the consumed points or revenue.
                       Excluded Transactions: OEM Revenue, Renewal bookings, PSO, Education and NRE.
                       License Rental and MSP transactions: Tier credits are credited to the Cloud Provider path and the product’s other primary path (e.g. VMC on AWS).

                                                                                      15 months back
                                  C A L C UL ATI O N T I M EL I NE * E X A MP LE ( M A R 2 0 1 9 – F E B 2 0 2 0 )                                                            Last 3 months not included

                              Mar         Apr        May         Jun         Jul       Aug         Sep        Oct       Nov         Dec          Jan          Feb             Mar            Apr        May

                                                                                                                       Tier credit calculation: Last Wednesday of the fiscal month
                                                                                                                                Pa rtner progression: Last Friday of the fiscal month

                                                                                   F Y 2 0                                                                                      F Y 2 1
                                                                            2 0 1 9                                                                                       2 0 2 0
                                                                                                                             *Visit the Tier Credit Calculation Timeline document for more details
Table of Contents
           27                                                                                                  Progression and
                                                                                             Overview                                   Benefits                     Resources                     Appendix
                                                                                                                Requirements

Partner Connect Path
Framewo rk
                       Tier Credit Calculation Example
                       Partner drives USD$25,000+ of SaaS consumption in an emerging country
Partner Connect
Progressio n
                           Earned
Requirement s at-
a-Glance
                            Tier
                           Credits
                                       =     Base Tier Credits          +       License Maturity
                                                                                Tier Credits                   +      Market Maturity
                                                                                                                      Tier Credits*                          +          Solution Maturity
                                                                                                                                                                        Tier Credits**

VMware Partner                                  CALCULATION 1                        CALCULATION 2                        CALCULATION 3                                      CALCULATION 4
Competenci es                                     Base Tier Credits             Licensing Model Tier Credits           Market Maturity Tier Credits                      Solution Maturity Tier Credits

                                                 $25,000 Eligible                    25,000 Base Tier                     25,000 Base Tier                                   25,000 Base Tier
Territo ry                                     Transaction Revenue                       Credits                              Credits                                            Credits
Restriction s
                                                                                             x                                      x                                                     x
                                                   25,000 Base                                                               Mature: 0                                            Mature: 0
A Value-Based Tier                                  Tier Credits                       Perpetual: 0                         Developing: 1                                       Developing: 1
Credit Strategy                                                                          S aaS: 1
                                                 $1 = 1 Tier Credit                                                         Emerging: 5                                         Emerging: 2

Tier Credit
                                                                                                                          * Market Maturity                                  ** Solution Maturity
Calculation
Example
                                                                                                                          Country List here                                       List here

                                                     Eligible Transaction Revenue to Base Tier Credits             $25,000 = 25,000 Base Tier Credits
                                                     Base Tier Credits X Licensing Model Accelerator               25,000 X 1 = 25,000 Licensing Model Tier Credits
                                                     Base Tier Credits X Market Maturity Accelerator               25,000 X 5 = 125,000 Market Maturity Tier Credits
                                                     Base Tier Credits X Solution Maturity Accelerator             25,000 X 2 = 50,000 Solution Maturity Tier Credits
                                                     Total Credits for Transaction                                 225,000 Total Tier Credits

                                                         Partner earns 225,000                     Partner meets Advanced Partner Tier Requirement
                                                               Tier Credits                        22.5%        Progression: Principal Partner Tier Requirement
                                                                                                                                                      +All   currency examples ($) represented in USD
28

     Partner Connect
     Benefits

               VMware Confidential – made available to VMware authorized partners solely for their internal reference
Table of Contents
             29                                                                                                                                                      Progression and
                                                                                                                                            Overview                                                       Benefits                     Resources      Appendix
                                                                                                                                                                      Requirements

Program Incentives
                         Program Incentives And Investments*
and Investment s
                        Partner Connect not only simplifies the way you do business with VMware it also rewards your activities and investments, which increases your
                        potential incentives and rewards.
Benefit Eligibility
                        There are three Incentive and Investment Programs within Partner Connect: Advantage+, Solution Rewards, and Development Funds. Your incentive
                        and investment opportunity is directly aligned to your level within the Partner Connect program.
Benefits At-a-Glanc e
by Business Model       Specific incentive details—including the latest updates to terms and conditions, discount and reward percentages, and eligibility considerations—are
                        included in the individual program guides and web pages. Click the links below to learn more.

Benefits Deep- Div e
                        If you have specific questions regarding incentive programs, please contact the Partner Support Center: partnerconnect@vmware.com.

Co-Selling
Training Benefits

Marketing Benefits

Additional Marketin g
Benefits
                                              Advantage+                                                                        Solution Rewards                                                                     Development Funds**
                             VMware’s sales incentives program                                                    VMware’s back-end rebate program                                                            VMware’s pre-sales investment to
Sales Acceleratio n ,
Support and Services,
                             to drive bookings, pipeline visibility                                               focused on rewarding partners who                                                             drive incremental demand and
Enablement                           and deal advantage                                                          have demonstrated their dedication to                                                       increase strategic partners’ capacity
                                                                                                                    selling and delivering VMware                                                                  for VMware technologies
                                                                                                                               solutions

                              For more information click here                                                         For more information click here                                                         For more information click here

                              *Specific Incentives and Investment program details can be found in the Terms and Conditions documents: Advantage+ Ts&Cs, Solutions Rewards Ts&Cs and Development Funds Ts&Cs.
                              **Development Funds (DF) eligibility does not guarantee funding. Funding is subject to budget availability, prior approval by VMware, and submission of proof of performance as defined in the DF Guide. Note that
                              additional eligibility criteria may apply depending on partner tier.
Table of Contents
             30                                                                                                                                                       Progression and
                                                                                                                                            Overview                                                       Benefits                      Resources        Appendix
                                                                                                                                                                       Requirements

Program Incentives
                         Benefit Eligibility*
and Investment s
                        The new Partner Connect program rewards partners for growing their business, achieving solution competencies, and progressing to Advanced or
                        Principal tiers. Incentive eligibility is determined and applied by program tier level, market maturity, and business model.
Benefit Eligibility

Benefits At-a-Glanc e
by Business Model

Benefits Deep- Div e

                                                                                            Advantage+                                                       Solution Rewards                                                 Development Funds***
Co-Selling
Training Benefits
                             By Tier                Principal

                                                                                                                                                        Eligible for Financial Benefits
Marketing Benefits                                  Advanced

                                                    Partner                            Exclusive Opportunity
Additional Marketin g                                                                                                                                                                                  Not Eligible
Benefits
                                                                                         Registration only

Sales Acceleratio n ,
Support and Services,
                             By Market                                                                                                          • Mature markets** receive a specific
Enablement                                                                                                                                              incentive structure                                                            All Markets Eligible
                                                                                         All Markets Eligible
                                                                                                                                                • Developing/Emerging combined to
                                                                                                                                                 receive a separate incentive structure

                              *Specific Incentives and Investment program details can be found in the Terms and Conditions documents: Advantage+ Ts&Cs, Solutions Rewards Ts&Cs and Development Funds Ts&Cs.
                              **Market Maturity lists included in Program Guide Appendix.
                              ***Development Funds (DF) eligibility does not guarantee funding. Funding is subject to budget availability, prior approval b y VMware, and submission of proof of performance as defined in the DF Guide. Note that
                              additional eligibility criteria may apply depending on partner tier
Table of Contents
             31                                                                                                                           Progression and
                                                                                                                            Overview                            Benefits         Resources            Appendix
                                                                                                                                           Requirements

Program Incentives
                        Benefits At-A-Glance By Business Model
and Investment s
                                                                                                                                                                                        Re sell Cloud Se rvices1
                        The Partner Connect program’s
                        overall benefit structure is                                                                                       Badging                                                        
                                                                                                                                           Educational Co-investment                                      
                        designed so partners with
                                                                                                   Principal
Benefit Eligibility
                                                                                                                                           Field Sales Engagement                                         
                        demonstrated mastery in                                                                                            Partner Locator with Additional Sales Tags                     
                        delivering customer outcomes                                                                                       Additional NFR/IULs                                            
Benefits At-a-Glanc e   receive maximum benefits.                                                                                          SET Early Access                                               
by Business Model
                                                                                                                                           CAL Academy                                                    

                        Completing foundational                                                                                            Livefire Training                                              

                        requirements allows you to start                                                                                   Learning Zone                                                  

Benefits Deep- Div e    your journey with VMware and
                                                                                                                                           Solution Rewards                               
                        transact with customers across
                                                                                                                                           Sales Rewards                                  
                        our portfolio. As you invest in
Co-Selling                                                                                                                                 SaaS Incentives
Training Benefits
                        VMware through increased                                                               Advanced                    Development Funds5
                                                                                                                                                                                          
                                                                                                                                                                                                 
                                                                                                                                                                                                            2, 3
                                                                                                                                                                                                            2, 4
                        training and overall achievements                                                                                  Additional NFR/IULs                                            
                        across the customer lifecycle, you
                                                                                                                                           PCT Program (MSC Required)                                     
                        earn incremental and impactful
Marketing Benefits                                                                                                                         Press Release Templates                                        
                        rewards—both financial and non-                                                                                    Purchasing Program Eligibility                 
                        financial.
                                                                                                                                           Exclusive Opportunity Registration             
                         Partners who have been designated as Services-only
                                                                                                                  Partner
                        1
Additional Marketin g   partners have accelerated pathways to Principal that do not
Benefits                require achievement of minimum sales performance                                                                   Partner Locator                                                
                        targets. As such, Service-only partners are not eligible for
                        sales and solution reward benefits.
                                                                                                                                           Sponsorship                                                    
                        2 Partnerswho have been designated as Services-                                                                    Additional NFR/IULs                                            
Sales Acceleratio n ,   only partners transacting at least 1 single booking of
Support and Services,   $10,000 (USD) or greater with VMware during the                                                                    SETs                                                           
                        previous rolling 12 months are eligible for
Enablement              consideration of specific financial incentives.                                                                    Partner Connect Logo                                           

                        3Partners  who have been designated as Services-only
                                                                                                                                           Transaction Rights (no incentives)
                        partners and are non-transacting with VMware may be
                        eligible for consideration of specific financial incentives
                                                                                                                    Enrolled Authorized
                        within the cloud incentives rebate.                                                                                Training Discount
                        4Partners who have been designated as Services-only partners and are non-                                          Full Portal Access                                 Applicable to all
                        transacting with VMware are not eligible for financial incentives within the
                                                                                                                                           Partner Technical Support                          Business Models
                        Development Funds program
                                                                                                                                           NFR/IUL
                        5Development Funds (DF) eligibility does not guarantee funding. Funding is
                        subject to budget availability, prior approval by VMware, and submission of proof                                  Partner Demand Center
                        of performance as defined in the DF Guide. Note that additional eligibility criteria
                        may apply depending on partner tier.                                                            Enrolled New       Limited Portal Access
Table of Contents
             32                                                                                                                                                       Progression and
                                                                                                                                            Overview                                                        Benefits                      Resources                      Appendix
                                                                                                                                                                       Requirements

Program Incentives
                        Benefits Deep-Dive
and Investment s        To stay current on all Incentive and Investment Program changes, please be sure to visit each incentive/investment Terms and Conditions page:
                        Advantage+ Ts&Cs, Solutions Rewards Ts&Cs and Development Funds Ts&Cs.

Benefit Eligibility                               Incentive Category                                      Partner                                      Advanced                                                Principal                                       Profitability

                              Advantage+
                                                               ELA                                                                                           ELA Rebate/ELA Preferred Pricing                                                                   Up to 12%
Benefits At-a-Glanc e
by Business Model
                                                               SPF                                                                                                   Additional SPF Discount 3                                                                  Up to 15%

                                                   Standard Discount                                                                                                     Discount by Product4                                                                  Up to 30%
Benefits Deep- Div e
                                                        Registration                                                                     Exclusive Opportunity Registration                                                                            Exclusive Opp. Reg

Co-Selling
Training Benefits
                                                         Partner Tier                                                                                                                                       Principal Bonus                                      Up to 4%
                           Rewards 1

                                                                ELA                                                                                                              Cap with MSC                                                                  5M per deal
                           Solution

Marketing Benefits                                         Capability                                                                                                                    MSC                                                                     Up to 4%

                                                       Product Focus                                                                                                   Advanced Technologies5                                                                    Up to 4%
Additional Marketin g
                                                         Competency                                                                                                          Base level Rebate                                                                   Up to 4%
Benefits

Sales Acceleratio n ,                                    Partner Type                                     Partner                                      Advanced                                                 Principal                               Contractual–GCSS
                            Development

Support and Services,
Enablement
                              Funds 2

                                                                                                                                                                Common DF : Proposal Based                                                                         Earned
                                                                                                                                                                              One Partner Rewards Portal Experience
                                                             Process
                                                                                                                                                                                              One Dev Funds Policy

                                                                                                                                                                                        Subject to Budget Availability

                                           1License/sub/upgrades (no SNS), Rebate % of Gross Bookings [after discount] for BOTH ELA and Non -ELA. Solution Rewards do not apply for Cloud Provider and VMC on AWS IT paths | 2 Development Funds (DF) eligibility does not
                                           guarantee funding. Funding is subject to budget availability, prior approval by VMware, and submission of proof of performance as defined in the DF Guide. Note that additional eligibility criteria may apply depending on partner tier | 3   -4

                                           Not applicable for VMC on AWS IT path | 5 Not applicable for Data Center Virtualization and Digital Workspace IT paths
Table of Contents
             33                                                                                             Progression and
                                                                                              Overview                             Benefits               Resources            Appendix
                                                                                                             Requirements

Program Incentives
                        Co-Selling
and Investment s        Co-selling is prioritized for all Principal Partners. VMware direct field and partner sellers align to drive customer success through: Joint
                        account planning, account development, and working together to grow revenue.
Benefit Eligibility
                        Training Benefits
                        VMware recognizes the important role our partners play in delivering exceptional service to our joint customers. To ensure partners have the
Benefits At-a-Glanc e   latest sales and technical knowledge about our products, VMware offers many different training opportunities. Partners can learn in a self-paced
by Business Model
                        environment, on-line as well as various in-person, instructor-led classes.

                               Benefit                            Description                                    Details                                    Tier Eligibility
Benefits Deep- Div e    Training Discount       VMware offers a 20% discount on training.           All VMware products                       All Partners (except Enrolled New)
                                                                                                    • 50% off on-demand training
                        Incremental Training                                                                                                  Principal
Co-Selling                                                                                          • 40% off instructor-led training
                        Discounts
Training Benefits                                                                                   • 30% off onsite training

Marketing Benefits
                        Training Resources
                        Training benefits will give you the opportunity to persue the following:
Additional Marketin g
Benefits

Sales Acceleratio n ,
                               Training                                         Description                                               Details                      Tier Eligibility
Support and Services,
Enablement                                                                                                                    • VSP
                         Accreditations         Accreditations recognize knowledge on the different VMware Solutions.                                                 All Partners
                                                                                                                              • VTSP
                                                They are awarded at the individual level.
                                                                                                                              • VOP
                                                VMware is committed to providing industry-leading certifications that         •   VCA
                                                demonstrate partner individual expertise. Certain VMware certifications       •   VCP                                 All Partners
                         Certifications
                                                help your company achieve Solution Competencies by fulfilling the             •   VCAP
                                                Technical Post-Sales accreditation requirement.                               •   VCDX
Table of Contents
             34                                                                                            Progression and
                                                                                           Overview                              Benefits          Resources             Appendix
                                                                                                            Requirements

Program Incentives      Training Resources (Continued)
and Investment s

Benefit Eligibility

                            Benefit                                        Description                                                Details                  Tier Eligibility
Benefits At-a-Glanc e
by Business Model                         VMware Master Services Competencies are designed to validate your                  There are five
                                          company’s capacity to deliver services related to specific VMware                  available Master Services
                                          technologies. These designate a high level of service capability as validated      competencies in
                        Master Services
Benefits Deep- Div e                      by your customers. Your organization attains a Master Services Competency          seven solution areas.         All Partners
                        Competencies
                                          by having the required number of individuals complete a set of advanced,           Cloud Native MSC is
                                          solution-specific VMware certifications and submission of customer                 coming soon.
Co-Selling                                references.
Training Benefits

                                          Solution Competencies demonstrate your sales and technical proficiency,
                                          and proven customer success and expertise in a specialized area of                 There are twelve
Marketing Benefits      Solution          business. Attaining a VMware Competency allows you to differentiate by             available Solution
                                                                                                                                                           All Partners
                        Competencies      showcasing proficiency in selling solutions in a specific solution area. Note in   competencies in
                                          addition to being a benefit, Competency attainment is tied to overall              different solution areas
Additional Marketin g                     program compliance. Competencies are awarded at an organizational level
Benefits

                                          HoLs are virtual labs that help partners and customers prepare for
Sales Acceleratio n ,                                                                                                        • Offered for different
Support and Services,   Hands-on Labs     certifications, validate features, and provide access to learn about the latest
                                                                                                                               experience levels
Enablement              (HoLs)            VMware Products. The environments are fully configured, tested, and                                             All Partners
                                                                                                                             • Classified by
                                          documented for on-line access. For an in-person learning experience attend           technology
                                          the SociaLabs.

                                          vmLIVE daily webcasts serve as continuing education for the entire global
                        vmLIVE                                                                                               • Regional
                                          VMware partner community. Each session provides key updates across                                              All Partners
                                                                                                                             • Global
                                          products/solutions, partner programs and incentives, sales, and marketing.
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