What Internationalization of services really means?

First time on podcast? Or you've been on podcast before? First time, I guess. Yeah, first time. First time, it's always good for the first time, you know, like never, never, never too late. Turn it on again. So where have you been the last time on the podcast? It was one of these IT newspaper, blah, blah, blah, guys there who also ran a podcast. I have to admit, it was already on Evoila Times. But I don't know anymore what was the topic, I have to admit. It's quite some time ago. No, I'm not an experienced podcaster.

I don't worry about it. Like nobody is. That's why everybody likes podcast. Nobody is experienced in that. When we met first time? Five years ago? Four years ago? 5 lat temu zacząłem pracę z evoila. To około 5 lat temu zacząłem pracę. 4 lata. I ile mamy teraz? 11 krajów? 12? 7? W Europie obecnie mamy 11 krajów. We are working on one additional company and country in Europe.

O tym, o czym chcielibyśmy dzisiaj porozmawiać, bo były jakieś pytania na rynku, na temat tego, gdzie idziemy, jaka grupa planuje. Myślę, że najlepszy człowiek jest ten, który tutaj przedstawił. Zaczęliśmy rozmowę na temat 11 krajów, ale myślę, że powinniśmy trochę odpocząć i najpierw zacząć od biznesu, który w rzeczywistości sprawia, że jest jeszcze bardziej interesujący, ponieważ robimy wiele biznesów z partnerami CSP, czyli w zasadzie sprzętami cloudowymi, World. Right now we can say not only Europe, but world. And from what does business come from? What's happening right now? Why it's such an interesting subject for many out there? Well, actually we used to work for many, many years with big cloud providers, but mainly from a consulting point of view.

And some few years ago Our core partner VMware by Broadcom changed a little bit the strategy there and changed the program. Which got us into the position that we applied becoming one of the white label partners in helping smaller cloud providers being able to run their cloud infrastructure across Europe. So that was mainly a European business we have driven there. Recently there were some new announcements on that program that changed Names mentioned in English.

So the new terms basically changed in a way that Broadcom really likes to make sure that there are cloud providers out on the market, which are really providing cloud solutions. And when we're talking about cloud solutions, it needs to have the right stake in place, which is Broadcom's VCF stake. And that is the main thing around. So there are some changes now in that program. Which we are going to take care and have also provided and put an offering in place helping our partners but also others staying in that program and staying with that stack. And this became now from a predominantly European solution what we are offering more and more now and a true global solution and a true global offering what we have in place.

Wydaje mi się, że to bardzo interesujące, bo to jak poziom, jakość serwisu w ramach innych kluczów, kluczowych sprzętów, tak jak stak VCF, jest to w zasadzie jeden stopniowy sklep dla swoich prywatnych kluczów, prawda? I wtedy możesz mieć to na całym świecie, w firmie, w której byś miał wiele lat, taką samą jakość, jaką będziesz miał w swoim własnym centrum danych, prawda? The thing that is changing right now is basically, like you said, program is running out and there is an option to go beyond that with evoila. What is the proposition here? What Broadcom is saying, they see as the real competitor for these cloud solutions that the big hyperscalers.

So there's a lot of discussion currently around sovereignty, having cloud solutions really on the ground, especially in Europe or in the European Union, being independent from the big hyperscalers like Google, like AWS, like Microsoft. What they are saying is if you like to compete with them, which is anyway very difficult, because you cannot basically cope and catch up basically what they have developed in the last 20 years with billions of dollars they put into that. But if you'd like to provide something similar, you need to have a proper stake in place, which is VCF. So that's number one. If you like to be in that program there you need to have this. Number two what they're saying is Broadcom can support that competition only if they focus on some few ones.

If they you know that's going there and putting a little bit of water onto everyone is not letting them grow big. So they're saying we like to focus on some few of them we are working with to grow them really into becoming A real competitor on the local markets with the sovereign cloud setups there on that. Which in our opinion from an evoila perspective is understandable, but we also believe that that is a bit of challenge, especially in Europe. Because we believe that European is what we call a hyperlocal market. So it's a lot of SMB business and it's not about that we have three cloud providers in Europe. It's also not about that I'm an Austrian guy.

It's not about that we have one cloud provider in Austria. It's more about having one in Vienna, one in Graz, one in Innsbruck. And that is basically how the European market works. And this is something we started developing our solution around and saying, being compliant on the one hand side with the Broadcom new terms of the program, but also taking into consideration that We do have that hyperlocal approach being very close to these SMB customers in Europe. And that is something where we were able to put together in making sure that VCF is implemented and maintained and life cycled properly. So that is something where we are taking care. What we also need to take care is we need to take care about the asset ownership from a compute hardware point of view because that's one thing how Broadcom defines that this is a service providing their terms from their partnership point of view.

What we have now with the big vendors contracting place which allow us to offer very competitive compute hardware to our partners. We still provide the licenses like we did on the white labeling before as well, but we also need to provide them this wraparound with some managed services together with the customer to comply to the Broadcom terms in lifecycling the VCF stack there. With that we try to set up and standardize automated European, if not global VCF network of smaller providers, which then can really become a true local sovereign competition then towards the big hyperscalers.

Superimportant what you said, that it's not directly us to the SMBs, but that our approach here is to go to the partners that existed over those many years at those markets, that they know the customer, they know their needs, and support them to deliver the unified, let's say, virtualization or infrastructure level across their localizations. And so it's not like we want to enter into the picture Wielkie dzięki i do zobaczenia!

Subcontractor, that you work over the years and they bring you infrastructure locally. You want to stay with them if this cooperation is successful for the next years. So we basically support those partners of yours, if you are end customer. If you are this partner, we support you with the local hardware and software stack. Plus, I think there is additionally some service attached to it. Exactly. We also try to keep that to a minimum, because we also acknowledge and understand that that is part of their value proposition. Also what is important to mention, the only requirement is that we own and be asset owner of the compute hardware.

If you have a 3-tier architecture and you have your Cisco switches and your NetApp storage, whatever, that's still yours. It's your data center, it's your cooling, it's your rack, it's whatever on that, your cabling. We're not going to provide something on that. And also from a service point of view, there are some things we need to do because Broadcom really likes to ensure that there is an Best practice, standardized VCF stack deployed and maintained and life cycled properly on that and that is something we need to to under sign there towards Broadcom that we are going to take care for that but still we do have meanwhile a good service split definition in place where we're saying what is still in your responsibility what you are able to do what what we are doing

And that's maybe also important to say we have some different flavors of the product we are offering there. The product we are calling VCF as a service for the hyperlocal market. And depending on the product flavor you choose for it, there's also a bit of difference in what is done by the customers and what by the service providers was done by us. So giving you an example we have two product version one is called dedicated plus and one is called dedicated premium so plus is more for the smaller ones where we are putting a VCF stack into their data center including the management domain but the fleet management which is quite overhead intensive it's something we are going to provide centrally so they save some of the overhead costs what you would normally have to implement VCF there.

Dedicated premium, you're having really the full stack then in your data center. This is the point, right? So in any stage of development, your infrastructures, we can have solution for that in terms of VCF, right? Because for many customers, smaller size especially, The overhead of BCF would be a challenge. Here they can go for locally stored workload domains or locally stored everything. It depends where they are in their development. Ale z perspektywy klienta, konsumpcja serwisu jest praktyczna dla każdego z tych partnerów, ponieważ mamy VCF na tej stronie.

To jedna część. To jest bardziej technologiczna część, jak chcemy ją rozwiązać, jak chcemy współpracować z partnerami. Ale jest też strona konsumpcji. What we see at least in Polish market is like growing the VCF footprint. So there is a standard edition. There is enterprise, VVF and VCF. And the customers start to seeing the value of the product. So they have more and more VCF. I think what is super important here is to underline that You get the same stuff, basically. So if you have procedures working in your own data center and you want to not refactor, put very sophisticated change towards your infrastructure and move it to your partner.

And hopefully, if you are a cloud provider, you will choose us, right? That's the whole point, because you get the entire stack. Should I mention something additionally? Do you think that... That was a very good point. So a lot of crowd providers got now this letter from Broadcom. I think it was beginning of last week that the program is going to end. So the number of providers which are still in the program, which is moved from a three-tier program. So there was before Pinnacle, Premier and Registered. Names mentioned in English.

With maybe the initially perceived drawback of the program requirements I mentioned before, or the alternative is moving into something different. Building a complete new stack, building on whatever technologies, open source, whatever. The big question then is, is that something everybody is able to do and willing to do? And that's the reason why we said we need to provide something to our customers, to our existing customers and also to the market to be able to continue with this stake. Because we strongly believe that's the best stake you can have in place to build your cloud solution on. Right now we have, when we started this journey with White Label, we had 140 customers, right?

I have to admit, I would have said 160. 160-ish customers. So why are we talking about it? The thing is, guys, that some of customers for sure listening to us right now, The solution after the program termination is in place, right? So if you don't know what to do, just contact us. For sure we'll drop some link in the description because there is solution. So it's not to be hard ride for you or bumpy ride, right? We can go for it. We can start from even day one, from tomorrow, cooperate with us, even if you didn't cooperate back in the days.

I'm pretty sure that our specialists are able to do it. But the thing is here, why I'm saying that it's like, even if the change is happening, We're coming to you guys with some solution in regards that, for example, you can move right now to us. You can as well operate like you operate till the end of your contract with some, of course, drownbacks, right? Like, what is the main thing here? Like, what you cannot do if your contract is terminated, allegedly? Do we have this information? Like you are the cloud provider, right? And your information get that program is ending. What you cannot do? You cannot onboard new customers, right?

Something like this? There are some changes to the current program. So one thing is the option of overage has been removed. When you had the possibility before, if you put an additional host into your infrastructure, you were able to use it there for two weeks and then take it out and you were basically charged on the hour. That option has been removed. Another thing what had happened is there's a minimum order volume now in place of 500 VCF cores for the current program. There is also the topic that they are saying on the new program, you are not allowed to add additional new customers there, which is most probably the more difficult one to recognize on it, but the others are definitely affected there, which I also like to add to our existing customers, what we have on evoila.

That would not be of any impact, because we do have meanwhile around about 90,000 cores on our wide label partners, so we always have this 500 cores minimum increase, so at the end of the day we provide to our customers that they are able to upgrade whatever they want. And we also do still provide overage on that one because we are hedging that ourselves. So from that perspective, there's for our customers literally no real impact on that one. But yes, you're right. That's my point. And that's my point, right? So if you're facing that issues and if they are going to impact you, you can move to us with your contract.

Niemniej nie od jutra, ale powiedzmy od całego cyklu miesięcznego, prawda? I to będzie osiągnięte tylko przez przenoszenie kontraktów do nas, więc będziesz mógł się wzmocnić, będziesz mógł zainstalować nowych klientów i wzmocnić swój biznes jak byłeś, prawda? I wtedy przygotuj się do... Names mentioned in English For most of the customers, what do we have? Do we have 11 months, 12 months? No, it's basically the new term starts on the first of April and then it's 12 months. I don't like it to correct your magic, but I have to.

So this is a pretty easy move if one of the premier partner, maybe they're having their own white label customers and partners, then moving a premier partner is very easy because that premier partner has a contract that is allowing to terminate that contract and let them move, for example, to evoila. That is easy possible. If you are a registered partner with another premier partner, obviously you are having the contract with the premier partner. So if the premier partner is saying, nope, I don't let you, then it's, let's have a discussion. So still possible to reach out to us. It's not that easy then to move over, but maybe it's then an option to do an earlier move into our, we call it VCSP 2.0 program.

So the VCF as a service. There are options but the easy one is really for registered partners if they do have an issue with exactly those things and they can become even more complicated because if they have in the contract that their partners for example can increase the number of cores how they want and they could increase for example for 32 cores but on the backhand they need to commit to Broadcom always 500 that can become Names mentioned in English.