During this podcast, VMware partners heard from Andrew Berenato, Global Tanzu Alliances and Paul Maunder, U.S. Regional Director, SLED - Tanzu, VMware, who provided an overview of the VMware Tanzu portfolio.
Speaker 1: On behalf of VMware and Carahsoft, we would like to welcome you to today's podcast future proofing your customers business with modern application technologies from VMware. Today’s speakers are Andrew Berenato and Paul Maunder
Andrew Berenato: Welcome everyone. Really excited to be chatting with all your partners who joined us today. My name is Andrew and I look after our regional sales services and solution provider partners for Tanzu. Really excited to be joined by Paul Maunder, who leads our SLED business. He's going to be giving you an overview about the opportunity, we all have to help our customers with App modernization and tying together app and cloud modernization. Paul's an amazing resource. Some of you probably already know, Paul, he's been in his leadership role about three months where he joined us from another player in the space. And Paul, I'm gonna turn it over you but I'll leave you with a question. You know, why don't you just share with everyone what excited you about joining the VMware Tanzu team? And then you can jump into the pitch?
Paul Maunder: Yeah, yeah. Thanks, Andrew. And good morning. Good afternoon, everybody. Hope you're doing well. To answer Andrew’s question, what excites me the opportunity to have a different conversation with our customers here at VMware about application modernization. I think that's a fantastic segue for SLED customers who need help modernizing their citizen facing applications. And nobody is better positioned to do that than VMware. For the last 20 years, we've been helping customers already modernize into the virtual realm with VMs. Right, we've been adding all the software sddc type of components, we're helping them move to the cloud. And now this next iteration of helping them move to a modern apps environment to help them digitally transform gets me excited. In addition, I'm a builder. So the opportunity to build our go to market for Tanzu and modern applications, and build out the channel strategy, which you're going to come to learn is a significant focus for me and my team, build out our contract vehicles, build out our disty relationships with folks like Carahsoft. It's so exciting ISV relationships, talking to CIOs, CTOs CSOs, right in helping them better engage and develop relationships with citizens, patients, students. To me, that's, that's part of my passion. If you've worked with me in the past, I've got about 20 years in just SLED. And so I really enjoy helping these public sector servants help do more for their clients, just like all of you guys do. That's why we have a focus in this segment. So today, I'm going to spend about, I think it's about 40 minutes, and then Q&A. If you guys have stuff, Andrew is going to be monitoring the chat. But I'm going to spend some time taking you through what is Tanzu? What is the opportunity, who are the personas that we have? And then Andrew is going to come back in and talk a little bit about what are the opportunities for our partners to become enabled to understand the compensation plans and the programs so that you can then take the next step with us and Carahsoft to become more qualified to sell Tanzu with your clients. So let me begin. First off, here's our overview of our entire map be you map the us a new business unit within VMware stands for modern applications platform. So Tanzu is part of that Tanzu is as you know, Japanese word for containers. And if you think about where modern applications are heading, containers and Kubernetes is the future. That's why we came up with Tanzu. So Patrick Young's is my boss. He covers the entire public sector. I've got a couple of colleagues Mark Forstoffer. He's the he's the director for civilian nfsi. Amanda O'Connor is the director for defense in Intel. And then I have SLED CIO. But between the three of us all of the account managers for Tanzu work for us and then we work for Patrick. Here's a quick view into my SLED organization. Right now I've got three account managers covering the East Central West, and they are complemented by three solutions engineers and then we have three Tanzu partner business managers who work for on Andrew. And you can see their names on the far right side. So john, Kristin and Karen, their job is to help our partners get enabled, make sure you understand all the programs, that rebates where the information is, so that you can be successful selling Tanzu. So why should you focus on Tanzu? Right? What is the opportunity? Well, about four or five years ago, the market made a bet that containers and Kubernetes was going to be the next development platform for building cloud native applications. And if you take a look at some of the commercial entities, like AWS, Amazon is specifically Netflix, apple, many of these companies chose containers and Kubernetes to build their application platforms on why, because you're able to take a large application and chunk it up into small micro services. So you can be more agile, you can scale quickly, you could be on prem or in the cloud. And so we saw commercial entities go in that direction, financial services, they got to be fast and lean, retail, fast and lean. We then saw the feds moving in that direction. So Social Security Administration, right? Departments of Defense, building up these really large legacy applications and making them more nimble. Well, SLED now is also moving in that direction. You think about some of the issues and challenges that SLED had during COVID unemployment checks. And if you're in California like I am, they had some issues getting those COVID relief checks out REAL ID DMV, that DMV application that was developed 30 years ago, wasn't able to handle the load of new clients trying to get real IDs. So you're seeing a focus now on modernization? How can we modernize these apps, and make it more nimble for our clients to be able to have a better experience when they go to our customer facing websites. So if you take a look, application developers are moving more powerful decision making on what type of platforms, they're going to develop on 95% growth of containers, and we're going to see much more by 2025 86% of the environment should be moving to containers and Kubernetes. Since a lot of this is open source, there is an opportunity to do it yourself. And if you take a look at this slide, this is the cloud native computing foundation slide of the various components and communities for building a software platform on Kubernetes. NET, there's a lot of options. And it's very complex. And if you're really good do it yourselfer, you could probably stand up a software platform on day one, however, day two rolls around. And now we've got patching issues, we got security vulnerabilities, we've got scalability, we got testing we have to do and it all kind of falls apart. So folks, like VMware has worked with and created Tanzu. So that we could create a platform, this new software platform for developing cloud native applications on so that all the hard work is taken out of it. It's supportable, it's a subscription based offering. And it allows on prem or any multitude of public clouds for the clients to run their business in. Plus, since it's Kubernetes, you can choose anybody's platform to run it in. So there's no true lock in. So that's the that's why the opportunities there. And I'm just going to build this out for you. So you can see the entire VMware portfolio, it's really cool on what we can offer, actually what you can offer your clients, you can help them way upstream in the build process. And then as we've all been doing for years, if you're if you're a VMware partner, help them with the run, right? So v vSphere, V center, V realized suite, cloudhealth, VMC, all those components. And now if you're working and moving into the networking side, right, we've got Avi and velo cloud and all the NSX components for the network. So now we can connect all these different applications and the infrastructure across any variable type of data center. And then with our workspace, one environment. Obviously, we've got end users who are now every Whether they're mobile working from home or a traditional office building, right, we're able to make sure they can connect to those cloud native applications, do it in a cost effective way that doesn't have any issues with performance or scalability. And then lastly, and probably most importantly, as we all know, right, is we have to protect those environments. So with our carbon black investment, we've got all the policies, we've got the end user computing. And so now that we have security is intrinsically combined across all the business units. So whether you're building an application, just know that VMware is looking at how do we secure it from the actual container to the end user through all the components in between, if you're talking to your customer, this is a really wonderful way about explaining, you know, how VMware can help somebody not just in the data center, but at the end user in the network. And now in the developer, and CTO environment as well. The portfolio is really built on three areas. The build area, is working with developers, and who have an idea that they want to put a service out in front of their citizens or their students or their patients. So how do you go from an idea into the website or into the application right, in the quickest amount of time, allowing inherent security and agility to be built in throughout? So we've got products, whether it's spring runtime for Java, or steel toe for dotnet, that can help clients take a container and build it up, put it into an application catalog, be able to ensure that any outside open source components have been vetted, tested, secured, to help them in the development process, we then take that build process and moving into our platform, which is Tanzu Kubernetes. Grid, this is the run, right, this is where we take in those containers. Now we need to run them. And this is our new platform for running applications. The beauty here is that with a single control plane, a VI team can have traditional VMs and containers running side by side, those IT operations staff members who have been using VMware for years, can turn on a Kubernetes dial tone through vSphere as easily as they can stand up a VM. So now the developers have choice do they want to develop and containers do they want to develop on a traditional VM? Right? The beauty is that the VI admins can still manage, monitor secure, develop that so the developers have access to whichever environment they want. And if you notice, also, on the bottom, it's hybrid. So it can be on prem, or in any of the clouds. A lot of our clients have a cloud smart or cloud first initiative. So whether they're going to as your or AWS or GCP, they can run Tanzu in any environment there, they can move those containers, should they want to bring them back on prem, or if they want to move them to another public cloud as well. So we offer choice and consistency in any of the environments. Lastly, you need to be able to manage, right as these cloud native applications are not just in the data center, they're virtual, right, you need to be able to see from the actual build all the way across into production, you need to observe that environment to be able to ascertain How are we doing? Do we have production issues? Do we have performance issues? How many CIO may want to see especially one that's working? Like, I'll give a Department of Transportation? How many licenses? Can we renew within a given hour? Well, with our tool with our observability tool, we can help them see that in addition, how many CPU cycles, how many memory cycles is that taken? What's the network bandwidth, right, so now you have this observability, all across the continuum, so that you can ensure that there's no performance degradation. Service mesh is a global namespace. So it allows you to have a giant type of environment. So our really large clients like Health and Human Services, departments of justice, who have really big state legacy applications can now create a global namespace across on prem and public cloud environments. And then Mission Control is actually the policy in the operations. So being able to take a look at the total environment as well. This is the total portfolio of the software what we've done to make it easy for our partners is to love is to bundle it into three additions. And these are wonderful. And they can be bundled and turned on right through vSphere. So my message here is that if you're working with a client who's looking at upgrading to vSphere, seven, or adding more vSphere licenses, both basic Tanzu, basic Tanzu standard, the buttons are already within vSphere, they can get to it through v center v center, it is an additional license, and I'll show you that in a minute. But for them to be able to start playing with Kubernetes. And learning about containers, it's all built right in. And you could see here the sales motions, this is the wonderful thing is we've made these channel centric. So Tanzu basic, is really just turning on Kubernetes, on prem on top of vSphere. Right, it's just that type of environment. And it's a wonderful opportunity to say Hey, Mr. Customer, are you thinking about moving into containers and Kubernetes? If so, bundled within is Tanzu basic, would you like to take a look at that license, it's and by the way, it's $525. Right now it's on a big promo, I'll tell you a little bit more about that later. Tanzu standard takes all the same features that basic has, and then makes it cloud enabled. So now the client can run their Kubernetes environments, in any of the public clouds I mentioned previously, we've got a document to compare the various basic standard and advanced licenses. And by the way, advanced, and this, this sales motion is really channel with my team, because it's really looking at that whole devstack Ops, build, run, manage, right, whereas the first two basic standard is really around the run component. So we want to help customers create the platform. Hope that's helpful. More details around that. And by the way, if I didn't mention this previously, my contact info p maunder@vmware.com. If you have any questions about this, you want me on a deeper dive call with you and your team, your age, your SES, let me know happy to do that. How do you sell it now? Right? It's a different persona than I think that most folks have dealt with in the past, if you've been selling a lot of the VMware infrastructure type of software, the beauty is you have two ways and more to get in. I call it the bottoms up through the it operation side, and then the tops down through the developer application side of the house. If you if we start from the bottom and work our way up, right, what we're doing with Tanzu is providing stability to the IT ops teams. This is a great opportunity here to take the VI admins and show them that hey, there's another model for software development that's coming if you haven't heard of Kubernetes and VMware opened up the source code within vSphere. To add Kubernetes built in, we want to show you how you can enable it and turn it on. And in a minute, I'll show you also some of the enablement resources we have for the VI admins to become certified in Tanzu. We've got free training through either modern apps ninja Qube Academy, they can get a Tanzu certification. And I think that'll mean a lot to our customers and prospects who want to continue to continue to be relevant to their IT leadership team who wants to further development, their develop their skills, and then be able to have a great relationship with developers in the future. The other way, and this is fairly, fairly new, I believe, from a VMware partner perspective in selling Tanzu is actually going and talking to the application owners. It's a difficult conversation, if you hadn't had in the past developers can be tough, right? You got to understand languages and see ICD pipelines and build models and open source. And so this is where my team and I can help you get enabled Andrews partner, business managers, they can help you with the talk tracks. But this is also where the bigger opportunities happen. In general, we lead with an approach around application rationalization, right? Many of our clients have hundreds if not 1000s of applications, and they're trying to figure out what do I do with these applications? Do I leave them alone? Do I replatform them? Do I refactor some of them so that they can take advantage of microservices. You know, what do I do? Do I re host them to a whole new platform? I don't know. So the beauty is one of the other wonderful reasons why I'm over here is Tanzu Labs, who's our professional services team can work with your sales team, your service His team to help build an app or our portfolio navigator for our clients, so they can rationalize their hundreds or 1000s of applications and say, Alright, these 10 core apps are ripe for containerization. These ones you probably want to leave alone, it'd be too long, or they're too expensive to convert these apps, you can replatform and help build a strategy for the clients to get to that modernization or digital transformation journey. So those are those are just a couple of the ways to go. There's more talk to me and my team, and we'll help you out.
Andrew Berenato: Yeah, thanks so much, Paul. And I think he laid out that opportunity, right, there's not only going to be huge growth from a license acquisition perspective, but the services piece is really where you can be the most profitable and where we need help, right. We are a software company, we are growing and onboarding new customers at a rate that we cannot service the our Tanzu Labs and VMware PSL team. So we need partners at the platform level. And at the application level. Many of you out there may have DevOps and modern application organizations already, some of you may be at the beginning of your journey. So the first place is getting that expertise, getting trained up, we've got the traditional VMware competencies in place a solutions competency for sales and pre sales, as well as a master services competency for those partners that are looking to be our go to services partners. We've got hands on labs, we've got tons of sales assets to help you build your pipeline from demand and campaigns that partner demand center to sales playbooks, and scripts that can get the conversation started. And then you can leverage our Tanzu alliances team, we can bring in Paul's team and the federal team, we've got folks that can help support you, once you get a customer on the hook. Once you have that application conversation that you may not be, you know, super comfortable leaving, bring us in and we want to joint sell, we want to set you guys up in a position to you know, sell your own services, deliver them yourselves and build a practice off of that. But I talked about the competencies, those of you, you know, you're all VMware partners today. So you know, what our solutions competencies and master services competencies are, we launched our cloud native master services competency last year, we've already got over 30 partners that have achieved that. And we want to grow that we want to help you guys build out platform capabilities, we want to help you understand how to have application rationalization conversation. So we're taking a lot of that pivotal IP from the application side of the house. And we are documenting that building that into our competency plan. As you get these competencies. Obviously, your back end rebates go up. So you know that 22% solution rewards is the highest of any solution platform today. So it's great as you know, you sell those licenses, you rack up those back end solution rewards. Some really interesting and exciting new incentives, you know, the hammer, traditionally, we pay people around license resale. Well, as we shift to SAS to cloud to modern applications, we're trying to, you know, incentivize partners around services. So we just launched this year, our customer lifecycle incentives, there's three solutions in VMware that are eligible here Tanzu, VCF, and workspace one. So for MSC partners, once you gain that eligibility, and that status will pay you to do an application or a platform assessment 15k that will lead to an opportunity which you can then drive license sales, and then we want to position you to sell those services directly for a PLC will pay you guys 25k. So from a partner profitability perspective, we're helping you build out your practice, position your services on the front end, helping you sell and then we want you to lead those Deployment Services. And we have a huge focus on Tanzu from a net new logo perspective, from a joint solution. So if you sell Tanzu with another VMware solution, and we've got basic bundled with vSphere, we've got standard bundled with VCF we're going to be doing a lot more of CO selling our VMC and our cloud products, you're gonna get all those kickers 22% the largest back end solution awards of any franchise platform and VMware are really trying to focus on partner profitability. We need your help so we want to make this business successful and profitable for you guys.
Paul Maunder: Let me add a little bit that acquire new customer or sell new Tanzu to an existing customer. This is pretty much wide open. There is a there is a massive market here for us to go after. So this 5% 4% because that rebates pretty much a given right so this is great. 22% 21 Andrew, thank you very much appreciate you adding, obviously wrapping up call to action, attach Tanzu to every vSphere, VCF VMC dl or LA, there's incentives for you. Plus, I just think it's a wonderful thing to do, because it's top of mind for your customers. So it's a great opportunity to have that modern conversation with your client, your VI admin, maybe your change agent or CTO. Second, leverage our discovery workshops, the app portfolio navigator services, have those five hours of software rationalization conversations with your customer, and then follow the dollars. There's lots of federal funds flowing into SLED right now to modernize applications. So whether it's a Health and Human Services, public safety, transportation, labor, right, whether it's at a state, a county or a city, they're all looking at how do we enhance the citizen experience, ask them see if they're getting federal funds, a lot of those funds you can look up and the it's all public facing web pages, maybe a city that you're working with, you see that getting $80 million for a modernization effort, go talk to them, let's work together between VMware and your company and provide a solution right to their woes to help them have better experiences for their citizens. And with that, I'm done.
Speaker 1: Thanks for listening. If you'd like more information on how Carahsoft or VMware can assist your organization, please visit www.carahsoft.com or email us at vmware@carahsoft.com. Thanks again for listening and have a great day.