1. VMware - takaisinmaksuaika 6kk! Petri Ulmanen Sr. Systems Engineer pulmanen@vmware.com

2. Agenda Economic Environment in 2009 Why VMware is a Strategic Investment Proven Customer Success

3. The Rough Road Ahead…. Source: Goldman Sachs IT Spending Survey, Nov 2 nd 2008 Source: IMF World Economic Outlook Report, Nov 6 th 2008 Total IT spending is the “lowest in the history of the survey”. Goldman Sachs IT Spending Survey A global economic recession is forecasted for 2009 US -0.7% GDP growth EMEA -0.5% GDP growth The economic environment is a leading indicator of tech spending 71% of CIOs anticipate flat or decreasing IT spending budgets IT budgets in developed countries set to decline by 5%

4. The IT Dilemma I am supposed to still do the same job, but with less budget and headcount?!?

5. Agenda Economic Environment in 2009 Why VMware is a Strategic Investment Proven Customer Success

6. Recent CIO Surveys Agree: Virtualization is the Top CIO Priority in a Tough Economic Environment Source: Merrill Lynch CIO Survey, Oct 28 th, 2008 Source: Goldman Sachs IT Spending Survey, Nov 2nd, 2008 “The current environment has moved virtualization toward the top of the priority list for CIOs.” “Total cost of ownership (TCO) reductions will be a key driver of the acceleration in server virtualization deployments as CIOs are forced to cut capital spending and reign in management, administrative and power/ cooling costs.”

7. Customers Are Still Moving Ahead with Virtualization in 2009 CIOs expect to double the percentage of servers virtualized in 2009 Source: Goldman Sachs IT Spending Survey, Nov 2 nd, 2008

8. Which software providers are gaining share of your IT spending dollars? 1 12 Quarters # Source: Goldman Sachs IT Spending Survey, Nov 2 nd, 2008 VMware Continues to be the #1 Software Investment for CIOs in a Tough Economy Gaining 1.VMware 2.Cisco Software 3.Red Hat 4.Oracle 5.Informatica 6.salesforce.com 7.Microsoft 8.EMC Software 9.Symantec 10.Citrix VMware

9. Source: Goldman Sachs IT Spending Survey, Nov 2 nd, 2008 “VMware’s incumbent position at the top of the rankings demonstrates that server virtualization momentum remains alive and well with a strong ROI case for a declining budget environment.” -- Goldman Sachs 11/2/2008 Which software providers are gaining share of your IT spending dollars? VMware is the Proven Leader and Provides the Highest ROI

10. Top 3 Reasons Why VMware is the Right IT Investment in a Tough Economic Environment Increase Productivity, Operational Flexibility and Responsiveness 3 Reduce Datacenter Operating Cost (e.g. Power & Cooling) 2 Reduce Physical Infrastructure Cost 1

11. 11 Reduce Server Spend Through Consolidation VMware… Decouples software from hardware Encapsulates Operating Systems and applications into “Virtual Machines” A Server or Desktop Virtual Machine Typical Consolidation: 10:1 Typical Excess Hardware Capacity: 3 Years!

12. Copyright © 2005 VMware, Inc. All rights reserved. Reduce Energy Consumption Copyright © 2005 VMware, Inc. All rights reserved. Highest consolidation rates on most secure and reliable virtualization platform Safely improve utilization rates 80% energy reduction Dynamic server and storage migration Power off unneeded servers in real-time Migrate storage dynamically 25% energy reduction Host desktop PCs in the datacenter Use thin clients, double refresh cycle Reduce storage for similar desktop images 70% energy reduction

13. Total Savings per Workload Servers100080$5,816 Network Switches 8410$296 Power (kWh) 40752$759 Cooling (kWh) 50964$949 Real Estate (Sq ft) 2053257$431 Savings per Workload (Over 3 years) $8,251* BEFOREAFTERSAVINGS Actual customer savings per application; represents typical savings Includes estimated cost of VMware licenses, Support and Subscription VMware consolidates servers, storage and networking infrastructure to safely achieve higher utilization Physical Infrastructure 1 Operating Cost 2

14. Decreasing Operating Costs Workloads per Admin 30–75 Before VMwareAfter VMware 90–225 Source: IDC and VMware TAM program Do more work with the same number of people = operating cost savings Drivers of productivity improvements: Instant provisioning Dynamic patching Zero downtime maintenance Built-in high availability Automated disaster recovery Productivity, Flexibility & Responsiveness 3

15. VMware is Lowest TCO Per VM VMware VI3 Foundation VMware VI3 Enterprise Other Solutions 2-way server (16GB RAM) $7,000 Cost: Guest Windows licenses 1 $5,998 Cost: Virtualization license $995$5,750$0 Subtotal $13,993$18,748$12,998 Total VMs 2 (2GB each) 15* 7 Cost per VM $933$1,250 $1,857 1 List price for 2-socket Windows 2003 Server Datacenter Edition 2 Assumes a 2:1 memory overcommit ratio based on VMware advanced memory mgmt technologies * Assumes 1GB of memory used by “host virtualization SW” for all vendors VI3 Enterprise includes advanced functionality such as live server and storage migration, dynamic workload balancing, built in high availability, data protection, and power management which competitors don’t have. VMware’s cost-per-VM beats even “free” products… plus …

16. Agenda Economic Environment in 2009 Why VMware is a Strategic Investment Proven Customer Success

17. 17 Meet Service Levels Efficiently Using VMware virtual infrastructure, we can offer the same levels of service and more flexibility for up to 40 percent lower server and operating costs.” Rob Jones, Director of Technology, ALSTOM Reduce Costs “Using VMware software has brought a huge cost benefit to IT - avoiding costs by $1.1 million is fantastic. For every production virtual machine, we estimate a $7,500 cost avoidance per server. We multiply 150 applications by $7,500 and estimate a $1.1 million cost avoidance. Barry Naber, Technology Manager at International Truck and Engine Corporation Customer Testimonials Simplify Management The net impact of utility computing with VMware Infrastructure 3 for the business is higher service levels, for IT - it is simplified and easier to manage infrastructure. Fazil Habibulla, Vice President and System Architect, NATIXIS Capital Markets

18. Top 3 Reasons Why VMware is the Right IT Investment in a Tough Economic Environment Increase Productivity, Operational Flexibility and Responsiveness 3 Reduce Datacenter Operating Cost (e.g. Power & Cooling) 2 Reduce Physical Infrastructure Cost 1

19. Available Resources Online ROI/ TCO Calculator: Robust and customizable analysis of virtualization’s impact on your IT budget and datacenter costs www.vmware.com/calculator Why Choose VMware: Vendor selection checklist to ensure a Complete, Robust, Proven Virtual Infrastructure www.vmware.com/technology/why vmware/

20. Appendix Petri Ulmanen Sr. Systems Engineer pulmanen@vmware.com

21. VMware & Sähkönkulutus

22. Energiankulutus ei kiinnosta? Gartner: ”Sähköenergian kustannukset tällä hetkellä ovat n 10% IT- budjetista ja voivat nousta 50%:iin muutamassa vuodessa” IDC: ”Vuoteen 2008 mennessä palvelinten sähköenergian kulutus ylittää palvelinten hankintahinnan” Esimerkkilaskelma: Keskisuuri yritys maksaa sähköenergiasta n 6snt/kwh Palvelimen sähkönkulutus 0.4kwh 0,58€/vrk => 18€/kk => 216€/v 1kwh palvelimessa = 2kwh muualla (jäähdytys, varavoima, ym) Palvelimen aiheuttama sähkönenergiankulutus vuodessa 216€ + 2x216€ = 648€/v/palvelin

23. 40 fyysistä palvelinta – 13815 W Palvelimet: CPU: 2xQuadcore RAM: 6GB/palvelin Hinta: 4000€/palvelin Yht: 320CPU, 240GB 160.000€

24. Virtualisoitu ympäristö 4 palvelinta – 1536 W Palvelimet: CPU: 2xQuadcore RAM: 32GB/palvelin Hinta: 5000€/palvelin Yht: 32CPU, 128GB 20.000€

25. Esimerkkikokoonpanon energiankulutus Sähköenergian hinta 6snt/kwh 1kwh palvelimessa = 2kwh muualla (jäähdytys, varavoima, ym) Virtualisoimaton ympäristö: Palvelimet13,8kWh Jäähdytys27,6kWh Yhteensä 41,4kWh x 0,06snt = 2,5€/h = 60€/vrk = 21.900€/v Virtualisoitu ympäristö: Palvelimet1,53kWh Jäähdytys3,07kWh Yhteensä4,60kWh x 0,06snt = 0,28€/h = 6,6€/vrk = 2.418€/v Säästöt energiankulutuksessa 36,8kWh = 19.482€ VMware lisenssit + ylläpito alle 20.000€ (svh)

26. Appendix Petri Ulmanen Sr. Systems Engineer pulmanen@vmware.com