Any vCloud Service providers around? info for starting in VSPP program?

Hi, im trying to understand how the vspp program works, but I haven't found a simple how-to. Could someone enlighten me:

If I have my hardware (3-server cluster, without vSphere licenses), and a small building with redundant power, and dedicated circuit to a data center, can I enroll in VSPP and start "renting" vmware IaaS, by purchasing "points" from a vspp aggregator?

So for example as an entry-level VSPP partner I have to buy 360 points -- but how are these points used? Let's say I have 10 customers who need 3 VM's each, with their vCenter management console.. How do I calculate how many points I need? Also, how do I calculate how much bandwidth I should start with?

Is there any resource discussing this offering from the service provider's perspective? has anyone here had any luck with it as a business?

Are there competing solutions that I should also consider?

Thank you.
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Andrew Hancock (VMware vExpert / EE MVE^2)VMware and Virtualization ConsultantCommented:
this document shows you how many points you will need for your 10 customers and 3 VMs.

Amazon and Rackspace, and other's that have set themselves up as VSPPs and Cloud Providers.
darkbluegrAuthor Commented:
ok thanks.. now it makes more sense!

so for example VMware vCloud Standard Service Provider Bundle -> 5 points per month per GB of RAM

Do i need to purchase my own vSphere, my own vCloud Director and vCenter perpetual licenses, before I start hosting for others, or is the software I need for my own internal "service provider" use, also coming through the rental program?
Andrew Hancock (VMware vExpert / EE MVE^2)VMware and Virtualization ConsultantCommented:
You need to be a little cautious and check the program, because internal use software and not for resale, can mean not for your production machine. Also depending upon your level you can also have Demo for Customers.

As a Partner you will be entitled to discounts off VMware software.So you company needs to define what you need the licenses for?
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darkbluegrAuthor Commented:
Thanks! Can you recommend the "essential" building blocks you recommend I order, so that I can get started? for example am I OK with the following?

hardware with redundancy
network connectivity with redundancy
building & power supply with redundancy
360 vspp points per month
licenses of vSphere for my hardware (??)

Am I missing anything in order to start a "proof of concept" data center? My objective is to start small and if I have enough customers, expand..
Andrew Hancock (VMware vExpert / EE MVE^2)VMware and Virtualization ConsultantCommented:
define what services your customers want?
darkbluegrAuthor Commented:
cloud hosting (small virtual datacenters)
Andrew Hancock (VMware vExpert / EE MVE^2)VMware and Virtualization ConsultantCommented:
yes, what does that mean to me as a customer?

test, lets play devils avocate...lm the customer.....

what services do you offer, I want to a Windows 2008 R2 host with you a Web Application with Zero Downtime, and Backups every 15 mins? e.g. 100 % uptime!

how much and can you do it?
Andrew Hancock (VMware vExpert / EE MVE^2)VMware and Virtualization ConsultantCommented:
and at the end of every month, the last day of the month, the server MUST be UP 100% with Zero Downtime, because of reporting and Money transfers for the banks payroll.
Andrew Hancock (VMware vExpert / EE MVE^2)VMware and Virtualization ConsultantCommented:
I would think Premier Bundle would be a good starting point.
darkbluegrAuthor Commented:
Hmm i dont know if i can offer 100% uptime right from the get-go so maybe i will avoid mission-critical applications in the beginning.. i plan to use veeam for data protection, but
my weakest link would be the bandwidth provider.. as i dont have much options in the islands (im not in us or europe).

So Premier bundle is 7 points per GB, which means my entry-level package of 360 points per month would give me enough points for 51GB of Ram (which can be 50% overcommitted ie. actually 102GB of Ram). so with 102GB of RAM I could rent out up to 25 VM's at 4GB's each in a month, is that correct as a "back of the envelope" calculation?
Andrew Hancock (VMware vExpert / EE MVE^2)VMware and Virtualization ConsultantCommented:
Correct. As much bandwidth as you can afford!

Depends on what you are hosting!
darkbluegrAuthor Commented:
Thank you, now I will have to come up with ideas for pricing/charging the service offerings
darkbluegrAuthor Commented:
Will close the question tomorrow in case anyone else would like to share their perspective from VSPP
Andrew Hancock (VMware vExpert / EE MVE^2)VMware and Virtualization ConsultantCommented:
Charge a monthly contract! Do not get into charging for resouces used, e.g. CPU and Memory, it' becomes difficult!

So work out a monthly figure for a VM.

e.g SmallVM, MediumVM, LargeVM on a monthly basis. Minimum 12 month contract etc
darkbluegrAuthor Commented:
Sounds like a great idea! will do some research on the existing vCloud providers to see how they price theirs. and also I could go through the research of mspmentor and other industry publications, as a benchmark.

I think renting vm's will be a good start but the real value will be later on, offering cloud services like disaster recovery as a service, security as a service, etc!
Andrew Hancock (VMware vExpert / EE MVE^2)VMware and Virtualization ConsultantCommented:

Do not try to compete with Amazon, and charge by usage, that's what they do, and are good at it!

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darkbluegrAuthor Commented:
Does anyone know if the "management cluster" in the reference design by VMware needs to be licensed outside of the VSPP program? are the VSPP licenses that we get only for the resource clusters? Thanks!
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