Transformational License Agreements - Dell Technologies...TLA Types SIMPLE TLA Any undeployed SW can be substituted Once deployed, licenses are perpetual to frame unless classified

Transformational License Agreements

Terms subject to credit approval and documentation provided by and acceptable to DFS.

2

• Single software contract

• Consolidation of license and maintenance billing

• Ease of SW deployment & control

SIMPLIFICATION

• Economies of scale and scope

• OpEx/CapEx savings

• Predictable TCO & price protection

VALUE

3

• Unlocks software-tied-to-hardware

• Maximizes value & agility with license substitution and T-Credits

• Agreements can be site-specific or global in nature

AGILITY

1

Transformational License Agreement

A Transformational License Agreement (TLA) is a highly customized software

contract that offers unprecedented flexibility in the way software titles are consumed and maintained, especially as requirements change over time.

Establish a pool of license entitlements with single maintenance bill:

• Ability to bring in and retain current install base

• Purchase licenses to refresh or transform environment

Software

Software

Software

Software

Software Software

Software Software

Software Software

Software Software

Software Software

Software

Software

Substitution Add new software

HOW THE TLA WORKS

Deploy SW as needed Pool shrinks as SW is deployed NEW software can be added with no additional fee Titles in the pool can be swapped on $ for $ basis as needed

Software Software

TLA Types

SIMPLE TLA • Any undeployed SW can be

substituted • Once deployed, licenses are

perpetual to frame unless classified as an open SW title

TERM TLA • Deployed and

undeployed titles can be used for substitution

• Flexibility at end of term: • Renew TLA • Expire SW • Buyout SW

All TLA’s Based on a pool of SW entitlements sufficient to cover multi-year needs

Allows for title substitution on a $ for $ basis

Addition of new titles at any cost

Four Sources of Flexibility

Flexible Payment Solutions

Add New Titles

Substitutions

T-Credits

Freely substitute among all SW titles included within the agreement

Optional pool of pre-paid credits; exchange for professional services,

education, or additional SW

Fluid payment structures

optimized to your budget and strategy

Add new software titles at no

additional cost

Substitution

Capacity on any TLA title may be freely exchanged for additional capacity of any other title (based on value per unit) up to the end of the TLA duration

License B

175TB @ $200/TB

License A 20TB

@ $600/TB

License B

145TB Used

License B

30TB Unused

License A 20TB Used

License B

145TB Used

License A 20TB Used

License A

10TB Unused

Excess License B valued at $6,000 ($200/TB x 30TB) $6,000/$600 per TB = 10 TB of License A

Substitute License B for additional License A

Simple TLA’s - Substitutions only for undeployed titles

Term TLA’s - Substitute for both deployed and undeployed titles

Adding New Titles

New software products may be added to a TLA with $0 amendment which increases agility and investment protection.

TLA for $480K of • 500TB License A @ $600/TB • 450 TB License B @ $400/TB

New License for $0 • Substituting 200TB of License A valued

at: 200TB x $600/TB = $120,000 worth

• Performing an amendment to add

License C @ $300/TB: $120,000 substituted ÷$300/TB = 400TB of License C added

Amendment enables • $120K (400TB) of new

License C

• Future substitutions of this

new title

+

Zero Charge Substitution:

Pool of license entitlements with single maintenance bill

Implementation

Education

Virtustream EC

Virtustream SC

TBD

Software

Software

Software

Software

Software

Software

Software T-Credits Pool

Consulting

Software

Software Software

Software Software

Driving transformation with T-Credits

• T-Credits reside in a separate pool for critical services, education, consultation, cloud, etc.

• As T-Credits are used the available pool shrinks

• Unused T-Credits can be shifted to the SW pool protecting investment and increasing the main pool available

EMC TLA Lifecycle Management

Health Check Schedule (Example)

Year 1 Year 2 Year 3

Quick TLA

Health Check

Remote TLA

Health Check

Onsite TLA

Health Check

• Empowers customers to maximize value of their Dell EMC investment

• Dell EMC Asset Management Services provides Health Checks free of charge

• True lifecycle management helps manage risks due to both over-usage and under-usage by offering:

– Regular visibility

– Actionable information

TLA Collaborative Lifecycle

• Dynamic process to develop an optimal TLA to support your key objectives

• Collaborative decision-making process to shape the current and future states of the business

• Identifies opportunities to optimize your storage investment on an ongoing basis

• Establishes a strategic partnership for your IT transformation journey

Confirmation of

assumptions

Consultation

TLA Agreement

TLA Health Check

1 2

3

4

5

Proposal

Next Steps

Identify

Determine stakeholders and resources necessary to identify needs and scope

Framework

Select optimal TLA structure and payment method Review sample documents to tailor acquisition approach

Build Out Confirm Software titles and capacities

Finalize

Review and sign the final contract Issue the PO

Back Up Slide

Restricted - Confidential

Primary Data Sources

CMC - ELA-specific Contracts

SYR - Symmetrix

AutoSupport - Data Domain

Available customer data (e.g. ViPR SRM)

Secondary Data Sources

Sales Orders - MyQuotes (if needed)

SFDC - Confirm Recent SOs

RMA - Return Material Pick Up

Avalanche - Avamar

EMC Secure Remote Support (ESRS)

Tertiary Data Source

ELMS - eLicensing Management System

Quick Health Check Data Sources