DATE: AUGUST 6, 2024
DEPARTMENT: FINANCE DEPARTMENT
FROM: SELINA ANDREWS, ACTING FINANCE DIRECTOR
BY: CARLOS ORTEGA, IT DIVISION MANAGER
TITLE: VMWARE SUPPORT AGREEMENT RENEWAL
RECOMMENDED MOTION:
A motion to approve a Resolution authorizing the City Manager and Purchasing Agent to complete the purchase of VMware Cloud Foundation licensing from CDW-G LLC. to provide on-going maintenance and support for the City’s virtual server infrastructure in an amount not to exceed $83,827.20.
EXECUTIVE SUMMARY:
Approval of the Resolution will allow the City to continue to provide reliable and consistent access to servers that run City-wide technology applications. Virtualization technology enables the City to leverage fewer hardware resources while providing fault-tolerance and scalability. This translates to fewer hardware servers, single points of failure, and resource limitations that would be present in a non-virtualized server environment. VMware Cloud Foundation licensing includes access to new software releases, security patches, and technical support.
BACKGROUND:
The City’s core server infrastructure utilizes VMware’s virtualization software stack including vCenter, vSAN, and other products included in the vSphere Enterprise platform. The City moved to VMware in 2016 as part of a migration effort to move away from a legacy Citrix system. Until last year, VMware customers had the option to purchase the software with ownership rights. However, as of November 2023, Broadcom Inc. acquired VMware and has changed its licensing model. The new licensing model requires customers to choose from two subscription options: VMware Cloud Foundation or VMware vSphere Foundation. Licensing purchased under the existing model is no longer valid and customers must pay a yearly license fee for either of the two options to be eligible for new software releases, security patches, and technical support.
Due to the change in subscription options that resulted from Broadcom’s acquisition, the cost is primarily based on a sliding fee schedule that increases with the amount of computational and storage resources. The City’s virtual infrastructure has expanded and will continue to expand over the years to support the growth of business applications and processing requirements.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
STRATEGIC PLAN INITIATIVE:
The purchase of VMware Cloud Foundation licensing supports the City Council’s Goal of Effective and Culturally Responsive Government by ensuring that the information systems can support city programs, projects can City services for the community.
DEPARTMENTAL COORDINATION:
This staff report has been coordinated with City Manager’s Office and City Attorney’s Office.
FISCAL AND SUSTAINABILITY IMPACT:
Fund /
Appropriation
Appropriation
Name
Total Appropriation
Amount for recommendation
FY 24-25 Operating Budget Page*
Last Budget Action (Date, Resolution)
1000.20.2033
Outside services-Software
$810,595.55
$83,827.20
123
6/11/24, 22979
* The FY 24-25 Adopted Budget was adopted on June 11, 2024.
ATTACHMENTS:
1. Resolution
2. CDW-G LLC., Quote
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