Key-Challenges-Shifting-to-a-Subscription-Model.pptx

Key-Challenges-Shifting-to-a-Subscription-Model

1. Key Challenges : Shifting to a Subscription Model 1 Cost Concerns A primary concern for customers is the potential for increased costs associated with the transition to a subscription model. While subscriptions offer ongoing access to updates and support, they also mean a recurring expense, which can be a significant factor for budgeting and financial planning. Smaller businesses, in particular, may face challenges adjusting to the new pricing structure. 2 Renewal Requirements Customers now need to ensure ongoing subscription renewals to maintain access to support, updates, and features. This requirement adds an extra layer of administrative overhead and potential logistical challenges, especially for large organizations with multiple deployments. 3 Value Proposition Customers are also looking for a clear understanding of the value proposition of the subscription model. What specific benefits do they receive compared to perpetual licenses? How does the subscription model align with their long-term IT strategy and goals? 4 Product Simplification: VMware has consolidated its product offerings into fewer bundles like VMware Cloud Foundation and VMware vSphere Foundation, this has led to discontinued features and potential limitations in customization options for customers.