© 2011 VMware Inc. All rights reserved VMware Sales Byte Net New Customers Server Consolidation Rob Chen – Sr. Marketing Manager Global SMB & Commercial Solutions Marketing August 2013

2 VMware Sales Byte Overview Customer ChallengePartner OpportunityVMware Solution OverviewCustomer ProfileNext Steps

3 Top Of Mind For Customers - Opportunities For Partners Virtualization 3 out of 4 SMBs planning virtualization projects Virtualization 3 out of 4 SMBs planning virtualization projects Infrastructure Virtualization IT projects create the opportunity for Server, Storage and network infrastructure. Infrastructure Virtualization IT projects create the opportunity for Server, Storage and network infrastructure. Resources IT departments focus 70% of resources on maintenance leaving little for innovation Resources IT departments focus 70% of resources on maintenance leaving little for innovation Disaster Recovery 43% never re-open after disasters and 29% close within 2 years Disaster Recovery 43% never re-open after disasters and 29% close within 2 years Services Partner opportunity to position services like consulting, installation, configuration, management, etc…. Services Partner opportunity to position services like consulting, installation, configuration, management, etc…. BYOD 85% SMBs surveyed stating employees use personal devices for work. BYOD 85% SMBs surveyed stating employees use personal devices for work. Top of Mind  Keeping their business up and running, securely  Balance IT supply (resources and skills) with IT demand  Increase agility to quickly respond to new business requirements

4 Challenges of Traditional Computing Environments Cost and complexity restricts the solution Some applications are left unprotected No easy way to test = unpredictable results in the event of an outage 1:1 ratio of server/OS/application Low resource utilization across IT environment Server sprawl = Increasing cost and complexity Difficult to scale applications to keep up with demands Keeping applications available, optimized Silos of applications = silos of solutions for protection A comprehensive BCDR solution can be multi tiered and complex Lack of comprehensive visibility across the IT infrastructure

5 Source: Forrsights Budgets And Priorities Tracker Survey, Q2 2012, Forrester Research, Inc, 2012 VMware market segment definition: SMB: employees, Commercial: employees, Enterprise: Top Technology Priorities Q. Which of the following initiatives are likely to be your IT organization top technology priorities over the next 12 months? % critical or high priority Top IT Priorities BC/DR Security Consolidation Virtualization and automation Top IT Priorities BC/DR Security Consolidation Virtualization and automation “While the majority of Global 1000 enterprises are heavily virtualized, many smaller enterprises and those in emerging economies are still early in their virtualization effort.” — Gartner, 2012

6 Virtualization still tops for major IT spending priorities Source: IDC State of the Market: IT Spending Review & 2013 Outlook, November 2012

7 Market Still Largely Untapped *Source - IDC Opportunity 20%* physical servers virtualized Seize White Space Opportunity to talk to net new customers about: Server consolidation Reducing IT capex and opex Improving IT agility and flexibility

8 Partner Opportunity Virtualize with VMware Solutions vSphere with Operations Management Standard Acceleration Kit vSphere with Operations Management Enterprise Plus Acceleration Kit vSphere Essentials Plus Kit Virtualize with VMware Solutions vSphere with Operations Management Standard Acceleration Kit vSphere with Operations Management Enterprise Plus Acceleration Kit vSphere Essentials Plus Kit Complimentary VMware Solutions vSphere Data Protection Advanced vSphere Site Recovery Manager Complimentary VMware Solutions vSphere Data Protection Advanced vSphere Site Recovery Manager $ Other Technologies & Opportunities Storage infrastructure, Network infrastructure, Security solutions Infrastructure for the secondary site : Servers, Storage, Network, etc… Professional Services/Consulting/Installation & Configuration Business continuity and disaster recovery Other Technologies & Opportunities Storage infrastructure, Network infrastructure, Security solutions Infrastructure for the secondary site : Servers, Storage, Network, etc… Professional Services/Consulting/Installation & Configuration Business continuity and disaster recovery

9 Simple Application Protection Entire system – including application, OS, and data – is stored as virtual machine files Simplify availability and data protection for applications and virtual machines Encapsulation Cost-Efficient Infrastructure Improve hardware utilization and reduce footprint Reduced hardware requirements at recovery site Use recovery hardware to run low-priority apps Consolidation vSphere Flexible Infrastructure Leverage a pool of servers to avoid failures Eliminate need for identical hardware across sites Enable waterfalling of equipment to recovery site Hardware Independence vSphere Virtualization

10 Server Virtualization Benefits Server Consolidation Capex & Opex SavingsIT Agility 10:1 Consolidation Ratio Up to 50% Savings 80% Greater Resource Utilization Innovation

11 Virtualize Smarter – vSphere with Operations Management vSphere vCenter Server Capacity planning – know how many days before capacity runs out so IT can continue to be responsive Optimize efficiency – know on which virtual machines might be overprovisioned Improve performance - faster root cause identification of emerging issues Proven virtualization platform – provide availability for your business applications VMware vSphere The proven compute virtualization platform vSphere with Operations Management World’s leading virtualization platform Insight to workload capacity and health

12 vSphere Virtualization Platform Reduce CapEx, improve resource utilization, reduce IT management complexity Simplify backup and recovery infrastructure and processes Improve SLAs for virtualized applications Enable maintenance with zero downtime Simplify disaster recovery Benefits Before Virtualization After Virtualization Server consolidation Integrated backup and recovery Automatic failure detection and restart of services Move running VMs between hosts Replication of VMs across the LAN or WAN Capabilities

13  Proactively manage performance and improve availability for vSphere environments  Understand performance trends across VMs, clusters, and farms  Optimize capacity by reclaiming unused VMs, and rightsizing under-provisioned VMs  Reduce false alerts through patented analytics Operations Automation Guarantee SLA Quick root cause identification and resolution Improve CapEx/OpEx Savings 30% higher resource utilization by rightsizing VMs and harnessing unused resources Simplify Management Dashboard view of environment for easy perf. and capacity mgmt. and troubleshooting Benefits Capabilities

14 vSphere with Operations Management delivers… * Sept 2012 Management Insights Study Recapping the Business Benefits Operational Efficiency Reduce time spent on diagnosing and resolving problems by 26%* Optimize Your Productivity Increased Service Levels Detect performance issues before they impact your business Run Business Critical Apps with Confidence Increase capacity utilization by 40% and hardware savings by 30%* Get More out of Your Hardware Investments

15 VMware: The Industry-Leading Virtualization Software Company  $4.61 billion in revenues for 2012  More than 500,000 customers 99% of the Fortune % of the Fortune % of the Fortune % of the Fortune Global % of the Fortune Global 500  Over 55,000 partners worldwide  ~13,800 employees worldwide

16 VMware Leads The Market Minimize Total Cost of Ownership (TCO) Better hardware utilization vs Microsoft Hyper-V Spend less time on management tasks Minimize the negative impact of downtime20% 91% Scalability OpEx Virtualize Anything Virtualize servers, desktops, network, storage at your pace Simplify management, improve availability, increase flexibility, lower costs Run your business on public, private or hybrid clouds Maximize Uptime Extensive application insight to meet SLAs for critical apps Production tested reliability and performance for critical applications VMotion performs 5 times faster than Microsoft Live Migration VMware HA works when 50%+ cluster hosts go down – Microsoft HA doesn’t Build for the Future Secure, reliable, platform not built on top of a legacy operating system Only virtualization platform proven across 500K+ customer deployments Move seamlessly from private to public cloud environments See notes for links to details

17 Customer Profile – Server Consolidation Who to talk to Head of IT Infrastructure, Head of IT Operations Server or Application admin, IT Architects Industries: Manufacturing, Retail, Government, Healthcare, Education and Emerging Markets What to look for Customers who are not virtualized Server refresh projects IT/application downtime or challenges with performance or SLAs Increasing IT costs Growing businesses and industries and M&A activity Questions to ask Are you looking to save on server hardware & operations costs? Do you feel that you are getting the most out of your existing server environment? Are high-availability, performance, scalability, security and agility priorities for your IT environment? Are you overburdened with having to manage a expanding and increasingly complex server environment?

18 vSphere Essentials and Acceleration Kits vSphere Essentials Plus Kit vSphere with Operations Management Standard AK vSphere with Operations Management Enterprise AK vSphere with Operations Management Enterprise Plus AK Server Consolidation and Business Continuity Scalable Server Consolidation & No Planned Downtime Powerful & efficient resource management Policy based datacenter automation Entitlements (VM / Core / vRAM)Unlimited vCPU / VM8-way 32-way64-way Features vSphereEssentials PlusStandardEnterpriseEnterprise Plus vCenter Operations Management SuiteFoundationStandard Health Monitoring and Performance Analytics●●●● Capacity Management and Optimization●●● Operations Dashboard and Root Cause Analysis●●● vMotion●●●● Storage vMotion●●● High Availability and Fault Tolerance (1 vCPU)HA only●●● vSphere Replication●●●● Data Protection●●Advanced vShield Endpoint●●●● Distributed Resource Scheduler and Distributed Power Management ●● Storage APIs for Array Integration, Multipathing●● Application High Availability● Distributed Switch● Storage DRS and Profile-Driven Storage● I/O Controls (Network and Storage) and SR-IOV● Note: This is a partial listing of available features. Please see vmware.com for the complete list.

19 Next Steps Keep up with the latest from the VMware VMware SMB Blog - VMware SMB on Twitter - Keep up with the latest from the VMware VMware SMB Blog - VMware SMB on Twitter - Leverage Current Promotions  Use the VMware Promotion app on your mobile device  Point your browser to: Leverage Current Promotions  Use the VMware Promotion app on your mobile device  Point your browser to: Prepare for the customer conversation  Print out the Server Consolidation Value Prompter  Get the Sales Toolkit -  Identify a customer to discuss server consolidation Prepare for the customer conversation  Print out the Server Consolidation Value Prompter  Get the Sales Toolkit -  Identify a customer to discuss server consolidation