FAQ: Faction’s White-Label VMware Private Cloud Offerings for Registered Tier Partners

Faction is now a Premier Tier partner in the Broadcom Advantage Partner Program. We’re fully embracing the changes in Broadcom’s licensing programs for VMware as an opportunity to continue serving our existing clients’ needs for a VMware private cloud, and by creating a new white-label program.

This blog post is specifically focused on Faction’s white-label program for Broadcom Registered tier partners in the Broadcom Advantage Partner Program (AAP). If you are an existing Faction end-user client, this information won’t be of much relevance to you. 

What’s happening with VMware’s licensing programs for cloud service providers? 

In November 2023, Broadcom announced the acquisition of VMware, highlighting that this merger will accelerate Broadcom’s “ability to help global enterprises embrace private and hybrid cloud environments.” Shortly after, in December 2023, Broadcom announced the termination of the VMware Cloud Partner Program (VCPP). In its place, Broadcom has established a new Broadcom Advantage Partner Program for VMware cloud service providers. Broadcom has indicated that approximately 3,500 VCPP partners were not invited to participate in the tiers of the AAP that enable direct entitlement to VMware licensing. 

What happens to cloud service providers who were not invited into the Premier/Pinnacle tiers of the Broadcom Advantage Partner Program? 

Broadcom has created a Registered tier of the AAP that enables displaced former VCPP partners to acquire licenses from Premier/Pinnacle tier APP participants. Broadcom refers to this program as a “White-Label” program. Essentially, this program enables Premier/Pinnacle tier partners to resell VMware licenses to Registered tier partners so that the Registered tier partners may continue to provide VMware cloud services under their brand to end-user clients.

What can Registered tier AAP participants expect from Faction’s White-Label licensing program? 

Faction has a long history of white-label partnerships in the VMware ecosystem and the business model is at the core of how we have historically gone to market with solutions. As a result, we have designed our white-label program to support Registered tier APP participants with access to VMware licensing on a business model that supports their long-term sustainability. 

What pricing and subscription term options is Faction offering?

We understand the importance of offering clients a competitive price for VMware Private Cloud solutions. Faction is offering a variety of pricing models for VMware licensing including short-term and long-term subscriptions, as well as monthly payment plans and up-front payment invoicing models including:

• One and three-year committed term subscription options;
• Up-front and monthly payment invoicing/billing models;
• Access to usage-based (overage) licenses; and
• Graduated pricing, which reduces your licensing cost on incremental core counts that exceed specified breakpoints.

The diversity and flexibility of our pricing structure enables our white-label partners to select the licensing model that best fits their business model and the structure of their contracts with existing clients. 

Is it true that Registered tier APP participants must disclose the names of their end-user clients to their license resale partner?

Yes, as a part of the Broadcom Advantage Partner Program, Premier/Pinnacle tier partners who provide white-label license resale are obligated to report the names of the end-user clients of their downstream Registered tier partners. In turn, Registered tier partners are obligated to report their end-users to their white-label partner.

Registered tier partners would be wise to select a white-label partner who will not compete with them for the business of their end-user clients.

Faction’s white-label contracting terms include provisions that protect our white-label partners from the concern that we might compete for the business of their end-user clients.

Why choose a white-label solution from Faction? 

Faction has a long-standing history of providing VMware private cloud to its clients and supporting white-label partners. We have more than a decade of experience in delivering VMware Private Cloud services. In addition, we have a broad range of, multi-cloud, hybrid cloud, and private cloud storage solutions enabling our clients to extend their business model into new areas. 

Further, because we have a long history of supporting white-label arrangements, we know how to support our clients and their end-user clients. Our 24×7 Network Operations Center (NOC) is staffed by experienced engineers who have deep experience with VMware Private Cloud solutions. We boast a Customer Net Promoter Score of 55 (top quartile) and a transactional NPS score of 76 (top decile).

Finally, we will not compete with our partners for the business of their end-user clients. 

What’s included in Faction’s white label solution? 

Our white-label solution includes access to VMware Cloud Foundation (VCF) licensing on a variety of subscription terms and payment-model structures.

In addition, our solution includes 24-hour support through our engineer-staffed Network Operations Center (NOC). Faction white-label program partners are responsible for Tier 1 and Tier 2 support with their end-user clients. Faction will provide Tier 3 support and manage any escalation to VMware support, as necessary.

Finally, Faction will support the installation of necessary license-usage metering tools required by Broadcom.

What if I want to exit the business of VMware private cloud hosting and focus my efforts on building my managed services practice?

For those who are considering exiting the VMware private cloud hosting business for all or a portion of their installed base, Faction has created a migration program to support these needs. 

During a migration period, Faction will re-license any VCF licenses to ensure continuity of services for any existing clients, and transition all or a portion of these clients to Faction’s VMware Private Cloud services. For Registered tier partners who choose this option, we are offering discounted month-to-month core licensing during the migration period.

How can I get more information about Faction’s white-label program? 

To learn more about Faction’s white-label solutions for Registered tier AAP participants, simply send an email to John Drake.