VMware introducing three per cent ELA rebate for partners

New incentive designed to encourage partners to secure more deals

VMware has used its VMworld Europe event to unveil a new three per cent enterprise licence agreement (ELA) rebate for partners.

It made the announcement at the partner day of the Barcelona-based shindig, which was attended by a record 6,500 partners.

Previously VMware did not offer partners any rebates on ELA deals.

Harvey Smith, manager of UK and Ireland strategic partner team at VMware, said: "We have seen a massive increase in the number of ELAs our partners are registering and there are huge opportunities for making margins with ELAs, but now with this rebate, this is something to encourage them further to secure these deals."

Ed Dolman (pictured), who stepped down as head of channel for UK and Ireland in April and is now senior manager of enterprise sales, said: "The idea of this is our enterprise partnering and sales teams are working hand in glove to put the best solution to the customer.

"To do that we are offering two programmatic benefits to the partner: Firstly there is price protection – which we call ELA preferred – which allows the partner to add value to the customer so they can be confident in signing them up to the ELA. Then once the deal is closed there is now an incremental rebate of three per cent for the partner."

Last year the ELA partner scheme, which was originally introduced as a UK pilot scheme, was rolled out across Europe. VMware also mandated that all ELA deals must include a partner last October after partners complained they were being left out.

The announcement comes after VMware chief executive Pat Gelsinger told CRN yesterday of the vendor's "unwavering commitment to the channel".