Broadcom VCF Division

VMware Cloud Service Provider Route to Market

Broadcom VCF Division

Product Licensing Guide (PLG) for the
VMware Cloud Service Provider (VCSP)
Route to Market

Publish Date: March 26, 2024

Broadcom VCF Division
Product Licensing Guide (PLG) for the VMware Cloud Provider Route to Market

Table of contents

About the Product Licensing Guide (PLG) 3

Definitions 3
Partner Offering Requirements 3
Packaging Requirements 3
Pricing Requirements 4
Products 4
VMware Cloud Foundation 4
Add-ons 5
VCSP additional entitlements 5
Licensing Metrics 6
Products Pricing and Packaging 6
MSRP Pricing 6
CCM Reporting 6
Billing and Payment Model 6
Commitments 7
Overage 8
Discount 8
Mandatory Automated Reporting and Usage Meter 8
License Portability 10
Software Download and License Fulfillment 11

This Product Licensing Guide (“PLG”) governs product pricing, packaging and usage by our VMware Cloud Service
Providers (“VCSP”) under the Broadcom Advantage Partner Program. Access to and participation in the VCSP route to
market, requires, amongst other things, that the VCSP partner be in good standing under the applicable partner
program and associated terms and conditions as well as having an approved contractual arrangement with an
approved Cloud Commerce Manager (“CCM”) under the Broadcom Advantage Partner Program.

THIS DOCUMENT AND THE INFORMATION IN IT ARE DEEMED CONFIDENTIAL AND SOLELY FOR THE USE OF VCSP
PARTNER, AND MAY NOT BE DISCLOSED TO ANY THIRD PARTY OR USED FOR ANY THIRD-PARTY PURPOSE WITHOUT THE
EXPRESS WRITTEN PERMISSION OF BROADCOM.

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Broadcom VCF Division
Product Licensing Guide (PLG) for the VMware Cloud Provider Route to Market

About the Product Licensing Guide (PLG)

This PLG forms an integral part of and is incorporated by reference in the Regional Partner Agreement and
Appointment of Rights authorizing our Partners to participate in the VCSP route to market and provides essential terms
and conditions on permitted uses and restrictions as well the pricing and packaging terms of VCF and any Add-ons
made available under the VCSP route to market. The terms found in this PLG are in addition to those found in the in
the applicable VCSP Regional Partner Agreement and Appointment of Rights as well as all referenced terms, including
the Product Guide (collectively “Partner Agreement”) which enable VCSP partners to combine their managed services
with certain Broadcom products, as authorized herein, to offer to end users combined service offerings on a
subscription basis (“Partner Offering”).

Definitions
In this PLG, the following terms have the meanings set forth:
● “Broadcom Partner Portal” means the portal that Broadcom makes available for the purposes of the
Broadcom Advantage Partner Program.
● “Partner” means a partner in good standing under the Broadcom Advantage Partner Program and the VCSP
route to market.

Any capitalized term not defined herein has the same meaning ascribed to it in the Partner Agreement.

Partner Offering Requirements

Partners are authorized to procure subscriptions to and use VCF and any Add-ons, both as described below, to offer a
Partner Offering that meets all requirements described herein.

Packaging Requirements
● Distinct Offering. Partner may offer a single or multiple configuration(s) of a Partner Offering, provided that
each Partner Offering must be a clearly defined, published, and distinctly offered and priced as a cloud
offering.
● Mandatory Bundling. Partners must bundle at least one VCF component with at least one of its managed
services to create and offer their Partner Offering.
● Mandatory Products. Partners must use at least one VCF component, and at least one managed service to
create and offer their Partner Offering.
● Optional Products. Partners may use any Add-ons, as an additional software to VCF, to create and offer their
Partner Offering.
● Subscription Only. The Partner Offering must be provided on a subscription basis.
● License Holder. Subject to License Portability exception provided below, Partner is and will be the sole licensee
of VCF and any Add-ons used to create and deliver Partner Offering.
● Management Responsibilities. Partner may allow its customer of the Partner Offering to discharge certain IT
infrastructure tasks (such as management of updates and upgrades), provided Partner retains responsibility

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Product Licensing Guide (PLG) for the VMware Cloud Provider Route to Market

for the management of the Partner Offering and provides services for which Partner receives bona fide cash
consideration. In such cases, the Partner remains the licensee to any Products licensed hereunder for that
Partner Offering and remains responsible to Broadcom for complying with the terms of this Guide and the
License Agreement. For clarity, this customer managed option discussed in this bullet is not the same as the
License Portability capability discussed later in this document.
● Support. Partner must provide all levels of support to end users of Partner Offering. Broadcom’s sole support
obligation is to provide L3 support to Partner.
● Sole Source for Partner Offering. Partner must procure all entitlements for use in this route to market under
the Partner Agreement and is not authorized and expressly prohibited from utilizing entitlements obtain
elsewhere, with the exception of the permitted use of a Partner customer’s License Portability entitlements
under the conditions detailed below.

Pricing Requirements
● Licensed Cores. Partner must license a minimum of 16 Cores of VCF per CPU for each host. For clarity, Partner
may offer configurations of Partner Offering with less than 16 Cores per CPU for each host, provided that the
Partner has licensed the required 16 Cores minimum per CPU for each host.
● Physical Cores. All Physical Cores on a host must be licensed even if a lower number of Cores is required. If
any number of Physical Cores are: i) disabled at a BIOS level, ii) not visible at the vCenter Server level and iii)
not running any workloads, then those Physical Cores do not need to be licensed.
● Not for Resale (NFR) Cores. Premier Partners are eligible for up to 256 NFR Cores, and Pinnacle Partner are
eligible for up to 512 NFR Cores, for free (more NFR Cores may be available subject to written approval
pursuant to Broadcom’s then-current process which may be obtained from the regional represenatives). NFR
Cores are to be used for Partner testing and customer demos only. NFR cores cannot be used in customer or
Partner production environments.
● Consumption Model. Partner Offering may only be provided as a cloud or managed service offering on a
subscription or on-demand consumption model.

Products
• The products available for licensing by Partner are VCF and Add-ons as described in this Section.
• Partner must license VCF for each Partner Offering, while Add-ons are optional.
• Licenses to VCF and any Add-ons are only available on a subscription basis.

VMware Cloud Foundation

● Components, Features and Functionalities. Broadcom continuously enhances features, functionalities, and
components of VCF. For the latest update on the features, functionalities, components and other details of
VCF, please refer to the following resource: https://www.vmware.com/products/cloud-foundation.html
● General Components. The general components of VCF as of the effective date of this PLG version are as shown
below:

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Broadcom VCF Division
Product Licensing Guide (PLG) for the VMware Cloud Provider Route to Market

● vSAN. The vSAN Enterprise component available in VCF is limited to 1 TiB per core as further described in the
Product Guide. Additional consumption requires licensing vSAN Add-on licenses.
● Mandatory Upgrade Regiments.
● Partner must provide an adoption plan to show their aim to maintain on current VCF releases. The VCSP
route to market expected (but not mandatory) software version currency regiment is that new Partner
Offering deployments should be using VCF releases which have been released within the prior 12 months.
For existing Partner Offering deployments, Partners should be using releases which have been released
within the prior 24 months.
● Partner is required to deploy consistent software versions for all deployed components of VCF.

Add-ons
● Available Add-ons. Licenses to the following software are available as “Add-on” and must be used along with
VCF (not licensed to be used on hosts not running VCF):
● vSAN Enterprise
● VMware Firewall
● VMware Load Balancer
● Tanzu Mission Control – Self Managed

● Components, Features and Functionalities. Broadcom continuously modifies features, functionalities, and
components of Add-ons. For the latest update on the features, functionalities, components and other details
of Add-ons, please refer to the following resources:
● vSAN Enterprise: https://www.vmware.com/products/vsan/resources.html
● VMware Firewall: https://www.vmware.com/products/nsx-distributed-firewall.html
● VMware Load Balancer: https://www.vmware.com/products/nsx-advanced-load-balancer.html

VCSP additional entitlements

● No charge. The following products are available to Partner at no additional charge for use with the Partner
Offering only:
o VMware Cloud Director (VCD).

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Broadcom VCF Division
Product Licensing Guide (PLG) for the VMware Cloud Provider Route to Market

o VMware Cloud Director Availability (VCDA) Migration.

o VMware vCloud Usage Meter (UM).
● Restricted Use. These products can only be used in the Partner licensed environment and cannot be used on
hosts that are not running the licensed VCF software.
● VMware Cloud Director Availability. The VMware Cloud Director Availability made available for free
hereunder includes only the migration feature, no other feature is authorized for such free use.

Licensing Metrics
● Licensing Metrics. The licensing notes and the licensing metrics of VCF and the Add-ons are found in the
Product Guide.
● Summary Table. The following is a summary of the licensing metrics (for clarity, the details of such metrics,
including additional terms, are found in the Product Guide):
Figure 1: Licensing Metrics.

Product Licensing Metric

VCF Per Core

vSAN Enterprise Per TiB

VMware Firewall Distributed Firewall: per Compute Core (1 Compute Core = 1 Core)
Gateway Firewall: per Gateway Firewall Core (1 Gateway Firewall Core = 4 Cores)

VMware Load Balancer Per Service Unit

Products Pricing and Packaging

● Partners pay fees for VCF and any add-ons based on the MSRP described below minus the discount described
below.

MSRP Pricing
● MSRP Price List. The then current MSRP price for VCF and Add-ons can be found in the in the Broadcom Portal
(“Price List”) and the then current Price List will govern all orders and overages.

CCM Reporting
● Billing and Reporting. The CCM serves the role of a billing agent between Broadcom and the Partner.

Billing and Payment Model

● Billing Model. The single supported subscription selling model between Partner and Broadcom is a
commitment for capacity for a specific term with the possibility of overage. (e.g. 500 cores per month for three

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Broadcom VCF Division
Product Licensing Guide (PLG) for the VMware Cloud Provider Route to Market

years, with overage billing). This commitment can be made at the Partner’s aggregate level or on a Partner’s
customer by customer level as described below.
● Basis of measure. Each Product is measured in a non-currency measure (Cores, instances, etc.).
● Payment Model. Partners may use this model with two payment models:
o An up-front billing model, with overage (if any) billed monthly in arrears. (e.g. $1.2M 1 year contract
for 7,700 cores at 55% discount, with $100K billed monthly regardless of actual usage, commit
recognized forward, plus overage above commit billed monthly in arrears based on actual reporting).
Note: this is not a burn-down fund.
o Monthly billing model, with monthly billing forward for committed capacity and overage based on
usage billed in arrears. (e.g. $1.2M contract for 500 cores, $100K/month billed for the month forward,
overage billed monthly in arrears based on usage above the 500 cores).

Commitments
● Commitment Types. There are two types of commitments: Aggregate Commitment and Customer
Commitment.
● Applicable to all commitments.
o Commitment Measure. All commitments are product specific and based on the quantity of the
applicable license metrics. For example, a commitment (regardless of type) may be for 68,000 Cores
of VCF for 3 years.
o Minimum Commitment Term. All commitments must have a minimum term of 3 years.
o Payment Due Date. Commitments can be paid pre-paid for the term, annually, or monthly. Annual
payments are due at the beginning of each year of the commitment term. Monthly payments are due
at the beginning of each month of the commitment term.
o Types of Invoices. Broadcom generates two invoices for each commitment: Commitment Invoice and
Overage Invoice.
o Hourly Measure. Commit and overage is measured hourly. Hourly is calculated by dividing the
applicable annual rate by 8,760.
o No aggregation of commitments. Partner’s Customer Commitments and Aggregate Commitments are
all measured individually.
o No partial month. Commitments cannot contain a partial month, i.e., all commitment terms start the
first day of a month and end on the last day of a month.
o No grace period. The commencement date of the commitment period is the date when fees begin to
get charged. Any use before or outside of the commitment period will be charged the overage rate.
● Applicable to Aggregate Commitment.
o Define. This type of commitment allows a Partner to make one commitment that covers multiple
customers. Therefore, Partners can consolidate commitments they receive from multiple customers
and support those with a single Aggregate Commitment to Broadcom.
o Shared Hosts. Multi-tenancy at the host level is permitted, meaning hosts can be shared amongst
multiple tenants of a Partner delivering a Partner Offering using the Aggregate Commitment model.
o Co-termination. Additional commitments for a Partner can be co-termed to the original commit of the
same Partner.

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Broadcom VCF Division
Product Licensing Guide (PLG) for the VMware Cloud Provider Route to Market

oNo Co-sell. Co-sell is not available for a Partner Offering made using the Aggregate Commitment
model.
● Applicable to Customer Commitment.
o Definition. This type of commitment is on a per Partner’s named customer per term basis.
o No-Multi Tenancy. Multi-tenancy at the host level is not permitted. Each host is dedicated to a
customer and cannot be shared among Partner’s tenants.
o Co-termination. Additional commitments for a customer can be co-termed to the original
commitment of the same customer.
o Co-sell. Co-sell is only available on a customer-by-customer basis commitments of Pinnacle Partners.
Figure 2: Commits

Pinnacle Premier

Partner Aggregate Commit eligible Yes Yes

Minimum Partner Aggregate Commit (number of VCF cores only, not add-on cores) 7,000 3,500
Customer Commit Yes Yes
VMware Cosell eligible Yes No
Partner to provide L1 and L2 support Yes Yes

Overage
● Any non-commitment use. Any use outside of the commitment period, or more than the committed amount,
will be charged the overage use rate.
● Payment Due date. Overage usage is paid monthly in arrears.
● No discounts. Overage usage does not receive any discounts off the standard published Price List.

Discount
● Discount Factors. The discount a Partner receives depends on two factors: 1) commitment type and 3)
payment term. See Discount Table below.
● Add-ons. Add-ons receive the same discount as applicable to the VCF instance the said Add-ons are
supplementing.
Figure 3: Discounts

Customer Commit Partner Aggregate Commit On-Demand

Term Upfront Annual Monthly Payment Upfront Annual Monthly Payment Monthly Payment
Payment Payment
3+ Years Term Commitment 55% off MSRP 48% off MSRP 45% off MSRP 38% off MSRP 0% off MSRP

Mandatory Automated Reporting and Usage Meter

● Mandatory Tools. The latest version of VMware vCloud Usage Meter, or any successor or additional metering
and reporting tool that Broadcom may require, (“UM”) must be used to monitor and report usage of VCF as
well as Add-on products. For clarity, deployment of UM is mandatory for the authorization to produce and use
licenses to VCF and any Add-ons, and all the components of such products must always be connected to the

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Broadcom VCF Division
Product Licensing Guide (PLG) for the VMware Cloud Provider Route to Market

UM and UM needs to be connected to Broadcom systems at all times. Partner must use, and not interfere
with, the UM’s automated reporting feature to ensure automated and accurate reporting.
● Air-gapped and data sovereign deployments. Upon Broadcom’s written approval and to the extent required
by law, Partner may use an alternative Broadcom approved solution to automated reporting for environments
that must be air-gapped or otherwise legally prohibit automated reporting directly to Broadcom. For clarity,
in such cases monthly usage metering and reporting remains mandatory, but Partner will be provided with an
alternative process for reporting.
● Mandatory Automated Reporting to Broadcom. By the 5th day of each month, Partner must provide
Broadcom and Broadcom’s CCM the following data (“Hosting Customer Usage Data”) for each of its customers
in an automated manner in accordance with this PLG:

Customer ID Blank for Aggregate Commitment

Partner ID/ ERP ID Partner ID as mentioned in the Broadcom Partner Portal

Customer Name In case of Customer Commitment. Blank for Aggregate Commitment.

Customer Address In case of Customer Commitment. Blank for Aggregate Commitment.

HQ Country Customer HQ Country

Sale Type “VCF Standard”

Deployment Country Where the instance is deployed

Subscription ID Subscription Identifier

Subscription Term 3 or more

Subscription Start Date Date when the subscription starts (Please note all subscription are billed from 1st of the
month irrespective of the actual subscription start date)

Subscription End Date Date when the subscription ends (Please note that there is no proration)

Usage Start Time 2023-11-02T00:00:00Z

Usage End Time 2023-11-02T01:00:00Z

Quantity 1100.0000 (Please note that this is the total used quantity, we do not need overage
calculated separately)

UOM "CORE"

Usage Generation Time "2023-11-02T01:00:00Z"

Time Scale "HOUR"

Product "VCF"

Usage Period "2023-11"

License Key "ASSD-88JHH-HSHS-323HH"

BYOL Yes/No

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Broadcom VCF Division
Product Licensing Guide (PLG) for the VMware Cloud Provider Route to Market

● Limited Use. Broadcom will use the Hosting Customer Usage Data only for the following purposes: (i)
identification of the appropriate sales/market segment and sales representative; (ii) internal revenue
recognition; iii) internal operations and support resource allocation; iv) improvements to products and
programs; and v) billing and invoicing verification.
● Cadence. Hosting Customer Usage Data in the UM is configured to be shared daily at a mutually agreed hour
and the data granularity is hourly.
● Download and Installation Responsibility. UM is available for download on the Broadcom Portal. It is the
Partner’s responsibility to install and configure the UM using, and in accordance with, the following resources:
o Setting customer rules on UM appliances (please refer to https://docs.vmware.com/en/vCloud-
Usage-Meter/4.8/Deployment-and-Administration/GUID-9936F1A0-FD91-4CCA-8977-
E2A50DE7AEBC.html for product documentation for further details)
o UM API can be found at https://developer.vmware.com/apis/1706/
o UM Documentation can be found at http://developer.vmware.com/
● Upgrade. Partners are required to upgrade to the latest version of UM within 30 days of a new minor or major
version release. Broadcom will use commercially reasonable measures to enable automatic upgrades.

License Portability
● VCF License Portability Entitlement. Broadcom has authorized certain customers who purchased
subscriptions to its new VCF offering (qualifying version 5.1 or above) a new license portability entitlement
which allows such customers to use those licenses with certain Broadcom partners’ certified and onboarded
cloud offerings. In such cases, Customer retains the original license entitlement.
● Partner Certification Requirement. For License Portability, each Partner Offering must be certified and
registered by Broadcom business and engineering teams as a supported platform for VCF, and listed on its
public website listing all VCF Certified Public Clouds. In the event a Partner wishes to add additional
configurations, they must self-certify and register the new configuration and satisfy Broadcom’s certification
requirements consistent with Broadcom’s then current policies and procedures.
● Partner Certification Process. Broadcom will announce the process on how to certify and register a Partner
Offering for License Portability on or around April 2024 by issuing an update to this Guide.
● Customer Certification Requirement. Partners under with Partner Offerings certified for License Portability
have additional requirements as part of their onboarding to govern areas such as verifying the entitlement of
a customer and usage reporting.
● Renewal. At time of renewal, the customer will have the ability to renew the ported licenses with the Partner,
Broadcom or choose to let them expire. The Partner is responsible for managing this renewal event including
notifying the customer of license expiration and provisioning and billing the customer accordingly if the
licenses lapse and the customer is reverted to overage capacity.
● Support. Partner is responsible for providing support to its customers. Broadcom’s only support obligation is
to provide L3 support to the Partner.
● Independent of Commitments. Use of licenses consumed by customer’s License Portability entitlements do
not count towards commitments.

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Broadcom VCF Division
Product Licensing Guide (PLG) for the VMware Cloud Provider Route to Market

Software Download and License Fulfillment

● Downloads. All products and add-ons can be downloaded from the Broadcom Portal.
● License Fulfillment. License fulfillment depends on the triggering event as follows:
o Partner Sign-up: Partners will receive licenses corresponding to their Aggregate Commitment
committed number of Cores plus, pursuant to Broadcom’s current processes, 20% additional licenses
to allow for overage (charged at an overage usage rate). These additional licenses do not count
towards the Aggregate Commitment. For example, if a Premier partner commits to 5,000 VCF Cores,
it will receive licenses for 5,000 + 1,000 VCF Cores. For clarity, the 20% additional licenses i) are not
not-for-resale licenses, and their usage will be charged as overage, and ii) are provided as part of
Broadcom’s then-current process to support elasticity for overage and are not to be construed as
overage being capped at 20% (i.e. Partner may request more, and Broadcom’s policy may change to
provide more in advance).
o Customer Commit: Each new Customer Commitment triggers the issuance of a new set of licenses
corresponding to the committed number of Cores and 20% additional licenses to allow for overage.
Example: If a Partner commits 500 VCF Cores on a 3-year term for a customer, it will receive licenses
for 500 + 100 VCF cores.
o Aggregate Commit Increase: A Partner can increase their Aggregate Commitment which will be co-
termed as per Broadcom’s then current policy. In such an event, the Partner will receive licenses
corresponding to the additional number of committed Cores. Additional commitments will be charged
using the then-current list price.
o Additional Commit for a Customer: Additional customer commitments can be added to, and co-
termed with, an original customer commitment (i.e. for the same customer). In such an event, the
Partner will receive enough licenses corresponding to the additional number of committed Cores.
Additional commitments will be charged using the then-current list price.

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