VMware Sales Byte Net New Customer Improve Business Continuity and Disaster Recovery (BCDR) with Managed Virtualization Chris Westphal – Sr. Marketing Manager Global SMB & Commercial Solutions Marketing February 2013

VMware Sales Byte Overview Customer Challenge Partner Opportunity VMware Solution Overview Customer Profile Next Steps

Top Of Mind For Customers - Opportunities For Partners 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 Virtualization 3 out of 4 SMBs planning virtualization projects BYOD 85% SMBs surveyed stating employees use personal devices for work. Disaster Recovery 43% never re-open after disasters and 29% close within 2 years Resources IT departments focus 70% of resources on maintenance leaving little for innovation Infrastructure Virtualization IT projects create the opportunity for Server, Storage and network infrastructure. Services Partner opportunity to position services like consulting, installation, configuration, management, etc….

Challenges of Traditional Computing Environments 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 Cost and complexity restricts the solution Some applications are left unprotected No easy way to test = unpredictable results in the event of an outage

Business Continuity Threats and Impact Source of an Outage Impact Of An Outage Natural Disaster Man Made Externally Facing Service Loss of customers to competitors Loss of revenue Impact to reputation Attack Internally Facing Services Decrease in employee productivity Slip in project schedules Increase in project costs Decrease in output quality IT Service Demand

Top Technology Priorities 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) Q. Which of the following initiatives are likely to be your IT organization top technology priorities over the next 12 months? Improving BCDR capabilities #1 priority for SMBs BCDR is #1 driver for virtualization: 46% of VMware customers reported “Use virtualization to improve BCDR” in their top 5 objectives for virtualization % critical or high priority Source: Forrsights Budgets And Priorities Tracker Survey, Q2 2012

Partner Opportunity Virtualize and Improve BCDR with VMware Solutions vSphere Essentials Plus Kit vSphere with Operations Management Standard Acceleration Kit vSphere with Operations Management Enterprise Plus Acceleration Kit Complimentary VMware Solutions vCenter Site Recovery Manager - Business Continuity/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 Managed services (e.g. health monitoring, risk assessment, capacity planning & patch management)

Characteristics of Virtualization 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 I want to review 3 key features of virtualization that lead to better disaster recovery. Encapsulation. Because virtualization captures everything about a server into just a few files on disk, the real benefit here is mobility. The ability to move your VMs wherever you want. You can back them up in the same way you currently protect your other files. You can also replicate them to your disaster recovery site, so that they will be available when you need to recover from an outage. Consolidation. Server consolidation means doing more with less. You’re reducing your physical footprint, which also means you can streamline your disaster recovery plans and standardize your recovery process. Hardware Independence. This means being able to recover onto any x86 hardware. So, you have the flexibility to buy different servers for your recovery site, or even fewer servers. Continuing to virtualize your production site will free up additional machines that can then be moved over to your recovery site. 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

VMware Managed 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 Before Virtualization After Virtualization 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 VMware Solution Options vSphere with Operations Management Enterprise Plus vSphere with Operations Management Standard vSphere Essentials Plus

Operations Management Immediate Problems Future Problems Opportunities to Optimize Integrated management capabilities Identify immediate problems across the virtualized environment Resource utilization recommendations Insight into future capacity requirements Capabilities Increase IT efficiency and reduce OpEx Improve resource utilization and reduce CapEx Minimize downtime for critical applications Proactively plan for future capacity Benefits Operations Immediate problems What is happening right now? What do I need to pay attention to? Short And Long Term Capacity Forward Looking Are there areas that I should be concerned about from a capacity perspective? Have I deployed my VI in the most efficient manner?

vSphere Data Protection Simplify backup and recovery with integrated data protection Capabilities VMware vSphere Data deduplicated And stored on VDP appliance VDP Integrated backup and recovery Included in vSphere Essentials+ and above Based on EMC Avamar technology Benefits Highly efficient global deduplication across all VMs Simple setup and management through vCenter Speedy recovery of VMs vSphere Data Protection (VDP), an entirely new backup and recovery solution included with vSphere 5.1. It replaces vSphere Data Recovery and included with all editions of vSphere Essentials+ and above. First, VDP is very space efficient. The usage of a variable-length deduplication algorithm ensures minimum amount of disk space is used and reduces ongoing backup storage growth. Data is deduplicated across all Virtual Machines (VMs) associated with the VDP virtual appliance. A change at a beginning of a file will be processed to find that change – not considered as an entire file change. This type of algorithm has the highest rates of deduplication with an average of 99% seen in file systems and 96% in databases. Second, VDP reduces the load on hosts and required network bandwidth. Through tight Storage APIs for Data Protection (VADP) integration, VDP leverages Changed Block Tracking, sending only daily unique changes over the network in order to minimize traffic. The process is transparent and automated, enabling up to eight VMs to be backed up concurrently. Since VDP resides in a dedicated virtual appliance, backup processes are offloaded from production VMs. VDP is very easy to use and tightly integrated with vCenter, allowing users to quickly set up backup policies. And everything can be managed directly from the vSphere Web Client. Setting backup schedules is simple and efficient, since administrators can define different policies based on specified retentions and schedules. Policies are applied to groups of virtual machines, based on business needs and data types. Finally, VDP is based on EMC Avamar and provides numerous capabilities and performance optimizations for VMware Virtual Machine backup and recovery. The underlying technology found in VDP has been successfully deployed at over 6000 customers, so you can rest assure your data is reliably protected. This initial version of VDP is ideally suited to protect smaller environments with up to 2TB of deduplicated storage or 100VMs. Larger environments can be protected by scaling out multiple VDP virtual appliances. VMware Solution Options vSphere Data Protection vSphere Data Protection Advanced

VMware Disaster Recovery Protect your applications and business from downtime with highly reliable and available infrastructure Capabilities Set up recovery plan in minutes Automated disaster recovery Test solution without business disruption Support for heterogeneous infrastructure Choice of Multi-site or DR to Cloud Benefits Simplify BCDR plan and configuration Eliminate time-consuming, error prone recovery processes Increase solution confidence and predictability Cost effective DR site infrastructure Flexible deployment options VMware Solution Options vCenter Site Recovery Manager DR To The Cloud (vCloud Service Provider)

vSphere BCDR Capabilities Integrated Backup and Recovery vSphere Data Protection – Integrated, simple, cost effective backup and recovery for virtual machines. Management and Monitoring vCenter Operations Management Suite Standard – performance and capacity management  Hardware & Software Failure Protection vSphere High Availability - automatic restart of VMs after a failure vSphere Fault Tolerance - zero data loss in the event of a failure Flexible Application Scalability Hot Add - add CPU, memory or devices to VMs without service disruption Infrastructure Protection vShield Zones - simplify security management vShield Endpoint - centralized anti-virus and anti- malware for virtualized environments Simplified/Cost Effective Shared Storage vSphere Storage Appliance (VSA) - use locally attached disks to enable shared storage Protection from Site Level Failures vSphere Replication - replication of VMs across LAN or WAN vCenter Site Recovery Manager – simplify and automate disaster recovery. Zero Downtime Maintenance vSphere vMotion - move running VMs between hosts vSphere Storage vMotion - move live VM disk files between storage arrays

VMware Leads The Market Industry analysts estimate that over 80% of all virtual machines in the world already run on VMware. 80% VMware offers lower capital and operational costs than Microsoft due to VMware’s higher scalability and greater levels of administrative automation. 20% 91% Scalability OpEx VMware delivers and enables solutions that provide extensive application insight, to enable IT to deliver on business-level SLAs. VMware VMotion performs 5 times faster than today’s Microsoft Live Migration. 5X VMware HA (High Availability) works even when half or more hosts in a cluster go down; Microsoft "HA" doesn’t. HA

Customer Profile – Server Virtualization & BCDR Who to talk to Head of IT Infrastructure, Head of IT Operations Server or Application Admins, IT Architects Industries: Financial Services, High Tech, Business Services, Government, Healthcare, Education What to look for Customers not virtualized or those using free products Customers upgrading hardware and applications Customers struggling to manage their IT environment Applications and services that are critical to the business Customers who recently experienced an outage Questions to ask Is it expensive to upgrade hardware and applications? Do you find it difficult to ensure availability? Are unable to protect your entire IT infrastructure? Can you test your current solution often enough/at all?

Title to edit Master title style Head of IT Infrastructure or IT Operations Contact BUSINESS ISSUE Ensuring availability of applications that are critical to the business in order to minimize negative impact to revenue or employee productivity. Title to edit Master title style ANXIETY QUESTION What is the impact on your company objectives or employee productivity when you can’t quickly restore your critical applications and services in the event of an outage? For more information, visit www.visualize.com © 1993-2012 ValueSelling Associates, LLC P R O B L E M S O L U T I O N Click to edit Master text styles First level Second level Third level Open Question… Many of your industry peers see BCDR as a top IT priority. Does this align with your IT priorities? Probing Questions… Is it a problem for you today that you… find it challenging to manage your current IT infrastructure because of cost and complexity are underutilizing your IT resources? lack the tools and visibility to efficiently manage your IT environment? find it difficult to ensure availability for your most business critical applications? are unable to protect your entire IT infrastructure because of cost or complexity? are unsure of how your recovery plan will be executed or how it will perform in the event of a failure? find your service levels are impacted when you need to perform IT maintenance? do not have a solution in place to protect from a catastrophic, site level failure? Confirm: So what I am hearing is that this challenge is causing frustration or irritation? Are there other IT problems you’d like to address? Open Question… Do you have an achievable plan to to improve application availability in your IT environment? Probing Questions .. What if VMware could give you the capability to help you .... reduce IT costs and simplify IT management? get the most of the IT resources that you already own? automate performance, capacity & config. management with an analytics & policy-based approach? improve availability across all applications including those that are the most critical to your business? enable a BCDR solution that is comprehensive, cost effective and simplified? test your recovery plan to give you confidence and predictability in the event that it is needed? perform maintenance with zero downtime or impact to users? protect your applications from site level failures with a solution that is cost effective, easy to configure, deploy and test? Confirm: Would these capabilities enable you to address your issues? Have we missed anything that would address your issue? OPEN Probe Confirm OPEN Probe Confirm V A L U E P O W E R Open Question: How would you quantify the impact of downtime in your business? How does this affect you personally? Probing Value Questions .. What is the value if we can deliver a solution that… reduces cost and complexity while optimizing performance and increases availability? that ensures optimal resource utilization with tools monitor and manage your infrastructure? provides single view of your IT environment for health, performance and capacity management? eliminates the risk of impact to revenue or productivity due to a service outage? provides comprehensive protection across your entire IT infrastructure? is reliable and predictable even in the most challenging IT environments such as failure situations? improves IT agility & eliminate risk of impact to revenue or productivity due to maintenance requirements? enables cost effective, comprehensive, full site recovery that is easy to configure, deploy and test? Confirm: Is there anything more important for you and your business? Where does this sit on your priority list? How would a solution like this impact your effectiveness in your role? Identify influencers and decision makers and key careabouts. VP of Infrastructure – convince them of improved capabilities and benefits VP of Operations – convince them of improved capabilities and benefits CxO/Senior Leadership – need to provide financial justification IT Administrator or Architect OPEN Probe Confirm PL A N Understand current issues, priorities and desired end state Identify gaps and measures of success Develop a proposal for short term and long term technology adoption Gain access to key stakeholders and present solution Prove value with customer examples, ROI tool, demo, eval Creators of the Value Selling Framework OPEN Probe Confirm OPEN Probe Confirm Copyright © 2002 by ValueVision Associates, LLC

vSphere Options Features vSphere Essentials Plus Kit vSphere with Operations Management Standard vSphere with Operations Management Enterprise vSphere with Operations Management Enterprise Plus 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 / VM 8-way 32-way 64-way Features vSphere Essentials Plus Standard Enterprise Enterprise Plus vCenter Operations Management Suite Foundation 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 Data Protection and vSphere Replication vShield Endpoint Distributed Resource Scheduler and Distributed Power Management Storage APIs for Array Integration, Multipathing Distributed Switch Storage DRS and Profile-Driven Storage I/O Controls (Network and Storage) and SR-IOV Host Profiles and Auto Deploy ● New in vSphere with Operations Management Note: This is a partial listing of available features. Please see vmware.com for the complete list.

vSphere Data Protection Options VDP VDP Advanced Scalability Limits Max Deduplicated Storage per appliance 2TB 8TB Max protected VMs per CPU Unlimited Features Agent-less + Variable-length deduplication CBT for backup and restore vSphere Web Client management Self-service backup and recovery Full VM and File-level recovery Integrity check and rollback mechanism Dynamic storage provisioning Exchange and SQL Server agents vSphere Data Protection (VDP) is an entirely new backup and recovery solution included with vSphere 5.1. It replaces vSphere Data Recovery (VDR) and it’s included with all editions of vSphere Essentials+ and above. VDP is very storage space efficient. The usage of variable-length deduplication algorithms ensures minimum amount of disk space is used and reduces ongoing backup storage growth. Data is deduplicated across all Virtual Machines (VMs) associated with the VDP virtual appliance. A change at a beginning of a file will be processed to find that change – not considered as an entire file change. This type of algorithm has the highest rates of deduplication with an average of 99% seen in file systems and 96% in databases. Second, VDP reduces the load on hosts and required network bandwidth. Integrated to the vStorage APIs for Data Protection (VADP), VDP leverages Changed Block Tracking (CBT), sending only daily unique changes over the network in order to minimize traffic. The process is transparent and automated, enabling up to eight VMs to be backed up concurrently. Since VDP resides in a dedicated virtual appliance, backup processes are offloaded from production VMs. VDP is very easy to use and tightly integrated with vCenter, allowing users to quickly set up backup policies. And everything can be managed directly from the vSphere Web Client. Setting backup schedules is simple and efficient, since administrators can define different policies based on specified retentions and schedules. Policies are applied to groups of virtual machines, based on business needs and data types. Finally, VDP is based on EMC Avamar and provides numerous capabilities and performance optimizations for VMware Virtual Machine backup and recovery. The underlying technology found in VDP has been successfully deployed at over 6000 customers, so you can rest assure your data is reliably protected. This initial version of VDP is ideally suited to protect smaller environments with up to 2TB of deduplicated storage or 100VMs. Larger environments can be protected by scaling out multiple VDP virtual appliances.

Next Steps Prepare for the customer conversation Print out the BCDR ValuePrompter (Slide 16) Get the Sales Toolkit - www.vmware.com/go/salesbytes Identify a customer to walk through a BCDR Conversation Leverage Current Promotions Use the VMware Promotion app on your mobile device Point your browser to: www.vmware.com/go/promoapp Keep up with the latest from the VMware SMB Team VMware SMB Blog - http://blogs.vmware.com/smb VMware SMB on Twitter - @VMwareSMB