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Chris Spencer – Product Line Marketing Manager

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1 Chris Spencer – Product Line Marketing Manager
VMware Sales Byte Existing Customers Seamlessly Extend to the Cloud with vCloud Hybrid Service Chris Spencer – Product Line Marketing Manager This presentation is designed to provide you with an introduction to the VMware vCloud Hybrid Service – what it is, who it’s targeted at, your opportunity, what you sell. For more detailed information, please refer to the Partner Central website (Partners) or Vault (Direct Sales).

2 VMware Sales Byte Overview
Customer Challenges Partner Opportunity VMware vCloud Hybrid Service Overview Customer Profile This is what we’ll cover in this presentation. Next Steps

3 Bridging the Gap Between the Business and IT
Two Key Challenges Growing chasm between Business and IT due to lack of agility Lack of trust for business-critical workloads in the public cloud Line of Business Requires speed, agility and the ability to innovate IT Team Focused on maintaining reliable, secure infrastructure There are two key challenges that exist in businesses today. The first is the growing chasm between Business and IT due to lack of agility. The Line of Business (LOB) is all about speed and time to market. They want immediate access to compute resources to be able to create new applications on demand. The public cloud is a great way to get that, but they are still challenged to evolve existing applications and integrate and extend beyond what they have today. On the other hand, while IT is focused on meeting the needs of the business, they are also focused on maintaining a reliable and secure infrastructure. That leads to the second challenge which is IT’s lack of trust for putting business-critical workloads in the public cloud. The answer to both challenges is to extend a common platform across both private and public cloud and seamlessly link them together into the hybrid cloud.

4 Common Challenges For Considering Cloud
Customer problems: Cloud allows you to: 1 “I need the agility to scale IT services to meet the needs of the business, but have no budget to do it with.” Consume IT vs. construct IT Deliver redundancy without having to build on premise infrastructure Predictable billing that can fit into an organizations budgeting process Flat or Declining IT Budget 2 Decrease management overhead by deploying anywhere, yet managing once Eliminate additional training by leveraging the same tools you are familiar with Provide a consistent and scalable IT with one place to call – VMware “We have a cloud mandate, but our staff is stretched thin and we don’t have the budget to hire more.” Limited IT Staff and Resources Now let’s dig deeper into the customer problems that we can solve in 3 key areas: 1) IT budget which is flat or declining year over year, 2) Limited IT staff and resources, and, 3) The need to consume IT resources quickly, yet securely. Let’s start with 1) flat or declining budget. A sample customer quote here could be “I need the agility to scale IT services to meet the needs of the business, but have no budget to do it with.” vCloud Hybrid Service solves this problem by allowing customers to consume IT vs. having to procure, build and manage the IT infrastructure themselves. It also provides a predictable billing model that can fit into an organizations budgeting process without unexpected and wide fluctuations in cost. 2) Limited IT staff and resources. A sample customer quote here could be “We have a cloud mandate, but our staff is stretched thin and we don’t have the budget to hire more.” Here is the age old “having to do more with less”. While customers may have some flexibility in their CapEx budget to address key IT initiatives, the showstopper is when they don’t either have enough IT staff or the right expertise in house to succeed. vCloud Hybrid Service solves this dilemma by allowing customers to deploy anywhere, yet manage once. Applications don’t need to be modified when moved into the cloud, and since they will be leveraging the same tools they are already familiar with – no additional training is required. It also provides a seamless extension to their own data center with one place to call for support – VMware. No more time wasted troubleshooting or finger pointing. And, 3) The need to consume IT quickly, yet securely. An example customer quote here could be…”I need a cloud as secure and accessible as my internal environment.” As outlined earlier – one of IT’s key challenges is trying to meet the demands of the business, yet still maintain a secure and reliable infrastructure. vCloud Hybrid Service solves this by providing the best of all worlds. The ability for IT to seamlessly deliver resources and applications to the business, but do so in a secure way. In a market currently dominated by commodity, low performance, and insecure public cloud offerings, vCloud Hybrid Service enables companies to extend their data center to the public cloud with flexibility, scalability, security, and operational efficiency. vCloud Hybrid Service is built on VMware vCloud Suite, leveraging the trusted foundation of vSphere and including common management and security models alongside a community of over 130 vCloud Data Center and vCloud Powered service providers worldwide so customers can deploy with confidence. 3 Deliver IT resources and applications to the business on demand Support existing workloads and new application development Offer secure multi-tenancy and organization isolation Need to Consume Quickly, Yet Securely “I need a cloud as secure and accessible as my internal environment.”

5 Challenges Extending the Private Cloud to the Public Cloud
Proprietary Platform Your Data Center / Private Cloud The Public Cloud Optimized for New Apps Only Limited Network Integration Separate Management Tools Various Challenges exist when attempting to extend Private Cloud into the Public Cloud. Including problems with proprietary platforms, public clouds being optimized for new apps only, sometimes limited network integration and connectivity, different management tools or interfaces and different processes or actions on public and private. This leads to increased OpEx for additional Staff, as well as continued CapEx spend for those postponing public cloud due to the perceived complexities of most public or hybrid cloud operators. Vmware is here to solve these problems with the vCloud Hybrid Service Separate Processes, Skillsets, Leads to increased OpEx due to the additional staff and training required to manage all these disparate tools.

6 Seamlessly Extend To The Cloud with vCloud Hybrid Service
IaaS cloud owned and operated by VMware based on VMware software Existing & New Apps Seamless Networking Common Management One Support call VMware vCloud Hybrid Service VMware vSphere & vCloud Suite So what is vCloud Hybrid Service? Consider vCloud Hybrid Service the Software-Defined Data Center “for rent”, More specifically, vCloud Hybrid Service is an Infrastructure as a Service (IaaS) cloud that is owned and operated by VMware, and built on the trusted foundation of vSphere. It brings together the best of both the private and public cloud enabling customers to deploy workloads anywhere, yet be able to manage them once. With vCloud Hybrid Service, applications don’t need to be modified when moved into the public cloud, and since they will be leveraging the same tools they are already familiar with – no additional training is required. Now to create this truly seamless hybrid cloud experience requires some fundamental components. They include: a common management and orchestration platform, unified networking, a common security model and one place to call for support. This means IT can remain in control using all the same procedures and tools they are already familiar with, and the line of business can get to the cloud faster without having to re-architect the application. vCloud Hybrid Service is the Ready-to-Run cloud. Meaning any application, with no changes. Your Data Center Software-Defined Data Center The Ready-to-Run Cloud. Any Application. No Changes.

7 Partner Opportunity: Increase Reach, Maintain Relationship
Bill Bill vCloud Hybrid Service Partners Customer Enhance your role as a strategic advisor Focus on value-added services Differentiate from your competition Benefit from a recurring revenue business model Continue to own the relationship with your customers: pricing, billing, and services VMware is offering the vCloud Hybrid Service to meet the growing market opportunity for public cloud and to provide a solution set for partners who choose not to build-out and host cloud services directly. This service is a complement to your existing business. It will address customer demand for a standardized public cloud service, enabling you to enhance your customer relationships as a strategic advisor, and increase your influence and opportunities in the cloud conversation. You have the opportunity to sell two service offerings: Dedicated Cloud, for more predictable high volume work loads and Virtual Private Cloud, for more variable, or seasonal workloads. You will still maintain your on-premises business with your customers, as well as expand into a recurring revenue business model. You will continue to own your customer relationships for pricing, billing, and services. The combination of VMware and our extensive ecosystem of partners are well positioned to deliver a highly competitive, differentiated hybrid cloud solution to the marketplace.

8 vCHS Provides All the Cloud Infrastructure Required
Customers bring their own tools, VMs, and licenses. We do the rest. vCHS Delivery Components vCHS provides all the cloud infrastructure required including all areas of compute, storage, networking and security, and infrastructure, but with enough flexibility to allow customers to bring their own tools, VMs, and third-party licenses. The good thing is that this is totally seamless with the customers own infrastructure.

9 Deploy Today’s and Tomorrow’s Applications
2,200+ ISV Tech Partners 5700+ Apps Certified on VMW Platform Top 5 Telecom Apps Top 10 Finance Apps Top 10 Healthcare Apps New Cloud Applications Design, build, and run new cloud-native applications APIs and automation PaaS integration Your Existing Applications There are more than 5,700 applications supported on VMware vSphere, including the mission-critical applications customers rely on All of these existing applications can be deployed onto the vCloud Hybrid Service without having to make any changes or having to spend months re-tuning the application to work. These applications will run with the same reliability, availability you are accustomed to in your vSphere environment. To protect your applications from downtime and degradation, our service also provides fully automated redundancy and live migration. - vCloud Hybrid Service also is the ideal environment to build and run new applications. - a new generation of applications that are deployed in a hybrid model day one with the highly scalable front end of the application deployed on our public cloud offering, leveraging applications that reside inside the client’s data center, such as: -deploying new analytics tools to help measure the performance of marketing campaigns or improve the efficiency of supply chains these new applications require a public cloud service that can be used to rapidly develop and test the application and then quickly scale up for production use, Most importantly these analytic tools need to get access to data that resides in databases that are located on premises – perhaps your ‘crown jewel customer data’ vCloud Hybrid service allows for this connectivity out of the box – with both ends of the service residing on VMware technology, it just works seamlessly 5700+ apps certified on VMW platform -

10 5 Use Cases for Hybrid Cloud
Get on the road to hybrid cloud, start at any point Dev/Test Take a low-risk first step and free up valuable on-premises data center capacity by hosting dev/test workloads in hybrid cloud Packaged Applications Facilitate pre-production testing for upgrades and host new apps, e.g., Microsoft Exchange in hybrid cloud Disaster Recovery Deliver disaster recovery and extend the data center for dev/test, seasonal workloads, and additional geo locations New Enterprise Applications Build and host business-critical applications and virtual desktops in hybrid cloud, including new applications in traditional 3-tier architectures (Java) Next Generation Hybrid Applications Evolve from traditional applications to next generation applications (Spring, Ruby on Rails) to deliver on any platform, anywhere Here are the Five main Use Cases for vCHS, including Dev/Test Packaged Applications Disaster Recovery New Enterprise Applications Next-Generation Hybrid Applications

11 vCloud Hybrid Service Key Differentiators
Existing & New Apps Seamless Networking Common Management 1 2 3 Direct vSphere Integration Leverage Existing Tools Leverage Existing Skillsets The Same Platform Used On-Premises Seamless Network Integration Advanced Network Virtualization Extend Beyond Your Current Data Center Drive Down Risk and Cost of Ownership The Fastest Path to Cloud Broadest OS & App Support Reliable Security & Performance Compatible Platform for New Apps The three pillars to differentiation are: vCloud Hybrid Service is the fastest path to cloud VMware is delivering a true hybrid cloud with this service that is a natural extension to customers’ existing data centers And vCHS is the most pragmatic approach to cloud which drives down the risk and cost of going to the cloud The first point is about our ability to support more workloads in a cloud environment than any other service out there – In other words, vCHS is the best public cloud. The second point is about delivering on the promise of hybrid cloud that goes far above what other services can do – In other words vCHS and VMware deliver the best hybrid cloud. The last point is about how we make it easy and painless for companies to adopt vCHS, removing the barriers that often hold companies back.

12 2014: Action by Region Rest of World: *Phased roll-out in 2H2014
Actively probe customer base for hybrid cloud opportunities Capture leads ACTION: Leverage and Partner Central to learn more USA UK Rest of World: *Phased roll-out in 2H2014 Passively probe your customer base Capture opportunities Direct customers to to learn more information Download customer facing content to assist in presenting to your customer Rest of World For 2014, vCloud Hybrid Service is available in the United States, UK and expanding into more of EMEA and into Asia. Key market segments for the service include high-end mid-market, commercial, and enterprise with expansions into a Government and SLED offering in late 2014, so companies with 500 to 10,000 employees. For 2014 we will focus on the IT Manager/Director, IT Architects and the LOB. We sell to the vSphere Admin today so here is our opportunity to sell higher in the organization. The other buyers and influencers will be phased in at a later time as more market research is conducted. *Exception: Multi-national company looking for a data center in the United States and will transact in US dollars. For vCHS Sales Inquiries (Vmware partners):

13 Focus on the Targets for Success
Public Cloud Triggers Product Combination Use Cases Cloud Mandate Mergers & Acquisition New Applications Fast Time to Market H/W Lease or Refresh Data Center Capacity Limited IT Resources Business Continuity/ Disaster Recovery Packaged Applications Exchange, SharePoint, SAP, Oracle, Microsoft, Data Analytics, Business Intelligence Web Hosting/eCommerce 3-Tier Web Apps, Mobile App Development, Content Delivery Solutions Backup/Archiving/Storage Secondary backup and archiving site Outsourced Data Center On demand data center expansion Test/QA/Development New application development, pre-production testing Customers that have: vCenter Server w/Heartbeat + View vSphere Are likely candidates to adopt Hybrid Cloud Cloud adoption can result from a variety of different triggers including mergers & acquisition or application development which typically requires fast time to market. Another trigger could be associated with businesses having reached data center capacity and needing to scale quickly. And the last public cloud trigger is around business continuity and disaster recovery. Many businesses don’t have the luxury of having a disaster recovery facility today – but that doesn’t circumvent the need to replicate to another like infrastructure in the event of a disaster. Focus on the 5 key typical use cases: The first is around packaged applications. This is for customers who are looking to offload the hosting of standard packaged applications such as Exchange or SharePoint to the public cloud in order to free up resources for more variable and higher value applications. Another ideal use case includes Web or eCommerce applications so 3-tier Web apps or Mobile applications. These applications can be dynamic in nature in terms of resource requirements so the cloud offers a cost-effective and easy-to-scale platform. Another use case is around backup, archiving and storage. Customers don’t want to have to take on the capital expense or management burden associated with creating a secondary site – so the cloud provides a good option. Another is the need to outsource their data center functionality. The hybrid cloud is a critical stepping stone in migrating to a fully outsourced data center. And last, is leveraging the cloud for test, QA and development. This is ideal for new application development or any pre-production testing. And based on a recent adjacency study done by VMware – it showed that customers who have vCenter Server plus View plus vSphere are likely candidates to adopt a hybrid cloud. 2013 Market Basket Analysis Adjacency Study by VMware Data from existing VMware Public Cloud Customers

14 Qualifying Questions Are you considering public cloud or have a public cloud initiative/mandate? Who is responsible for selecting which public cloud services to use or to consider? What public clouds are you using today? Is IT involved? What workloads are being placed in the public cloud today or being considered for the future? Are there any imminent projects or initiatives (within IT or LOB) that have a need for public cloud? These are initial qualifying questions that you can have in your cloud conversation with your customer. There are more detailed probing questions in the vCloud Hybrid Service ValuePrompter which you can download from Partner Central (Partners) or Vault (Direct Sales).

15 In Summary: Extend Your Workloads into the Hybrid Cloud with VMware
Infrastructure as a Service (IaaS) cloud owned and operated by VMware Built on the trusted foundation of vSphere with support for 90+ operating systems and 3,800+ applications Supports existing workloads, third party applications and new application development We give IT control back with common management, unified networking and security for extending into the public cloud One place to call for support from the VMware you know and trust vCloud Hybrid Service is the Software-Defined Data Center for Rent

16 vCHS Offers Two Services: Choose One or Both
Dedicated Cloud Virtual Private Cloud Physically isolated Your own private cloud instance Logically isolated Fully private networking 120GB vRAM* 30GHz vCPU* 6 TB* 50 Mbps allocated* 1 Gbps burstable* 3 Public IPs* 20GB vRAM* 5GHz vCPU (burst to 10 GHz)* 2 TB* 10 Mbps allocated* 50 Mbps burstable* 2 Public IPs* Sold in monthly, yearly & ELA terms Customer use cases: Steady state, predictable performance for production workloads Dedicated compute for mission critical and security/compliance-driven applications e.g. SAP, Oracle, Exchange, CRM, HR, payroll, new application development, etc. Sold in monthly, yearly & ELA terms Customer use cases: Burst workloads, smaller deployments, short-term projects that don’t require a dedicated infrastructure Workloads that can be deployed on a variable, lower performance platform e.g. Test/dev, Web/mobile apps, marketing campaigns, development environment, etc. vCloud Hybrid Service offers two service offerings that can be deployed individually or in combination with one another. Both Dedicated Cloud and Virtual Private Cloud can be deployed in monthly, yearly or ELA terms. The first is a Dedicated Cloud that is physically isolated – meaning there are no shared compute resources. It has a dedicated cloud management stack and the networking and storage are logically isolated. The service offering provides a minimum compute service of 30GHz vCPU / 120GB vRAM, and a minimum of 6TB storage and 50 megabits per second (Mbps) of bandwidth. The Dedicated Cloud delivers steady state, predictable performance which means it is ideal for production and mission-critical and security/compliance-driven workloads. Some example workloads for the dedicated cloud include Oracle, SAP, Exchange or other vertical-specific workloads or new application development. The second offering is the Virtual Private Cloud. This is a multi-tenant virtual private cloud service where compute, networking and storage are logically isolated. This service offering provides a minimum compute service of 5GHz reserved / 10GHz burst vCPU / 20GB vRAM, and a minimum of 2TB storage and 10 megabits per second (Mbps) bandwidth. The Virtual Private Cloud delivers burst workloads and is ideal for smaller accounts or short-term projects that don’t require a dedicated infrastructure. Example workloads include test and development, Web or mobile applications, or basically any development type environment. This offering is also ideal for a vCHS proof of concept. It is important to note that the capacities listed are minimum and that all compute, storage & networking capacities can be increased. *Minimum capacities listed. All compute, storage and networking capacities can be increased.

17 vCloud Hybrid Service Add-ons
Direct Connect: A private, direct, high-throughput path between two endpoints Data Protection: an agentless, policy-driven free data protection service for virtual workloads across both Dedicated Cloud and Virtual Private Cloud service tiers. Offline Data Transfer: enables data to be exported securely from one cloud to another. OS & Application Catalog: Purchased through the VMware Marketplace, OS and application licenses can be purchased. Direct Connect: helps to address some of the limitations around routing traffic through standard internet including variable latency and limited bandwidth by providing a private, direct, high-throughput path between two endpoints. Data Protection: Enables self-service, policy-based protection of business-critical data with image-level backups to ensure all operating system, file system and application data residing within a virtual machine are captured as a snapshot image before committed to backup media. It is an agentless, policy-driven free data protection service for virtual workloads across both Dedicated Cloud and Virtual Private Cloud service tiers. It provides daily, synthetic full and encrypted backups to ensure that all data is backed up and available for on-demand restore. Scheduling and retention is customizable and restore requests unlimited. Encryption in flight (not at rest) – copies are kept for 30 days. Offline Data Transfer: This service option can be activated via the MyVMware portal and enables data to be exported from one cloud to another. To ensure a secure transfer, vCloud Connector encrypts the data before writing it to a NAS device. A vCHS operator then imports the data using the vCloud Connector UI where the workload then appears in the vCHS portal. OS & App Catalog: Customers can purchase licenses on demand via the vCloud Hybrid Service OS and Application catalog. These licenses are billed in arrears based on allocation. These licenses can be purchased through the VMware marketplace.

18 Next Steps Prepare for the customer conversation
Get the Sales BYTES Toolkit - Print out the vCloud Hybrid Service ValuePrompter Get more information about the service: Identify customers for a vCloud Hybrid Service Conversation Keep up with the latest on vCloud Hybrid Service Partner Central - Facebook - Blog - Twitter Prepare for engaging with your customers by getting the other sales tools available to you in the Sales Bytes kit on the Partner Central website or Vault (Direct Sales). Visit the vCloud microsite for more customer-facing deliverables you can share with your customer such as white board demos, use cases, and customer testimonials. Also, subscribe to these social media channels to keep up with the latest news. You can now offer a highly standardized, easy to transact hybrid cloud to your customers, that is owned, operated, and updated by VMware. You will be able to expand your relationship with your customers while continuing to own the billing relationship and can deliver value-added services.

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