VMware gets NewLease for SaaS

Under the terms of the agreement, NewLease can deliver services as part of the VMware Service Provider Program (VSPP) to its partners on a month-to-month subscription basis, as an alternative to upfront perpetual licences.

Paul Harapin, vice president at VMWare Australia, told CRN that NewLease was selected due to their expertise in this space and the penetration that they have into the Australian hosting marketplace.

“It has the systems and process in place to provide service to their (and Vmware’s) customers. Working with them gives us a strong head start in this space,” he claimed.

According to Harapin everyone from SMB’s to enterprise customers will benefit from having easier access to VMware rental licensing, allowing organisations to align their monthly cycles with infrastructure requirements.

“This deal with NewLease opens up the program to a range of customers and gives access to our rental program to organisations that couldn’t previously access it,” he said.

However he said the deal wasn’t aimed at VMware’s general reseller community.

“It is a licence rental scheme for the ‘service provider’ community (telcos, hosting, SaaS and Internet access providers),” said Harapin.

Doug Tutus, CEO of NewLease claimed the deal will allow both large and small service providers to rent Vmware’s ESX server on a month to month usage mode

“NewLease has the ability to rent enterprise level virtual servers for less than AUD$50 per month as a result of licensing rights to virtualization software,” he said.

“NewLease has looked at the local market size and can see great opportunity for the growth of a monthly recurring revenue stream from the rental of VMware’s ESX server.”

According to Harapin, the deal with NewLease in Australia was a world first and VMware is looking to replicate this model in all geographies.

“Going forward, we expect to have two-three [agreements] in each geography.”