Dell Financial Services DFS Payment Solutions for Flexible Consumption

Agenda What is flexible consumption (FCM) DFS Payment Solutions for FCM ecosystem Growth Solutions Variable Usage Software financing solutions * Terms subject to product availability, credit approval, execution of documentation provided by and acceptable to DFS. Dell Financial Services

Flexible Consumption (FCM)Portfolio Transform How Your Customers Pay Consumption-based financial solutions are specifically engineered to more closely align technology expenses with actual usage. Customers simply pay for what they need, when they need it—with little to no obligation. Flexible consumption models offer greater predictability as their organization undergoes transformation. Dell EMC and DFS offer a broad range of financial solutions to address their specific requirements as needs evolve. Enable Customers to Adapt to Change Their Way Provision and Pay Your Customers Can Adopt a Better Solution Today Solutions for flexible consumption help reduce the financial risk associated with new technology adoption. Deploying a better long-term business solution today can reduce potential costs in the future. Adapt to Change Ready Capacity Flexible Leasing // KEY POINTS // Flexible Consumption is an umbrella term that we use for flexible financing solutions. 75% of Dell’s Flexible Consumption models are provided by DFS // SCRIPT // The concept of Flexible Consumption Models allows customers to customize IT solutions and pay for them in a way that works for their needs. Shifting from traditional capital expenditures to an operating expense payment model frees up financial resources for increased business and IT innovation. Dell EMC flexible consumption models speed technology adoption while ensuring your customers’ IT investments reap rapid rewards. // REFERENCES // Internal link to flyer (must download and send prior to meeting): FCM Website: https://www.emc.com/en-us/flexibleconsumption/index.htm

DFS Payment Solutions for Flexible Consumption Portfolio Pay as you Grow Growth Solutions Variable Usage Software Solutions Flexible Leasing Flex On Demand Software installment payments Cloud Flex for HCI Transformational License Agreements (TLAs) Provision and Pay Ready Capacity // KEY POINTS // The DFS flexible solutions for flexible consumption are grouped into 3 main categories: Growth, Variable Usage, and Software Solutions. These finance solutions range from basic leasing and financing through highly customized offers to support all types of business needs. The solutions in blue text are part of DFS Open Scale products which make up the majority of our FCM solutions. The next slide shows the ecosystem of these Open Scale products and how they are positioned according to the customers needs.

Open Scale Payment Solutions from Dell Financial Services - Ecosystem Consumption Influencers Capex or Opex | Product or Service | Committed Payment or Measured Usage | On Premise or Off Premise Workload Characteristics Predictable / Forecastable Volatile / Burst Capacity Commitment – Yes $ charge per unit consumed Capacity Commitment – No $ charge per unit consumed Committed Payment Stream Metered Usage Payment PAY AS YOU GROW FMV LEASE FINANCE LEASE PROVISION AND PAY READY CAPACITY Off Premise FLEX ON DEMAND CLOUD FLEX On Premise // KEY POINTS // This slide has animations. Follow the script and the “click” prompts below Get unparalleled choices for technology consumption with Open Scale payment solutions from DFS. Overview: This slide highlights consumption vs. leasing and financing – the idea of choice around solutions, choice of solutions, and choice of how you use them “Click” Consumption influencers: These are basic questions you should ask in order to determine which Open Scale solution is right for your customer. Is the expense going to come out of their Capex or Opex budget? Are they looking for a product or a service? Do they want a committed payment or do they only want to pay for what they use? Do they want their solution to be on premise or off premise? Workload characteristics: Greater predictability = lower cost, less predictability = higher cost, need to understand customer workloads and attributes We have an entire portfolio of consumption solutions to address both workload characteristics: For committed payment streams we have our leasing and financing offers as well as our growth solutions. We will be going into more detail about each of these offerings later on in this presentation. Now, let’s discuss volatile/burst area, we offer a public cloud option through Virtustream, high level value prop, measured accurate charge per use to help you be more competitive Finally, Cloud Flex is available on hybrid cloud and hyper-converged solutions allowing customers to deploy, evaluate and scale the solution that is right for their business. Dell Financial Services

DFS Payment Solutions for Flexible Consumption Portfolio LEASING & FINANCING Acquire the technology now and pay for it over time, either returning or owning the equipment at the end of the term. Pay as you Grow Growth Solutions Flexible Leasing Provision and Pay Ready Capacity // SCRIPT // Let’s look at Flexible Leasing. We have many leasing and financing offers that allow your customer to acquire the technology they need now and pay for it over time, either returning or owning the equipment at the end of the term.

Fair Market Value Lease facilitates regular technology refresh Flexible Leasing Rotation Ownership Fair Market Value Lease facilitates regular technology refresh Finance Lease (or $1out) allows customers to make payments over time for ownership **Payment solutions provided and serviced by Dell Financial Services L.L.C. or its affiliate or designee (“DFS”) to qualified customers. Offers may not be available or may vary in certain countries. Where available, offers may be changed without notice and are subject to product availability, credit approval, execution of documentation provided by and acceptable to DFS, and may be subject to minimum transaction size. Offers not available for personal, family or household use. Dell EMC and the Dell EMC logo are trademarks of Dell Inc. Restrictions and additional requirements may apply to transactions with governmental or public entities. FINANCE LEASE: At the end of the initial Finance Lease term, lessee may 1) purchase the equipment for $1 or 2) return the equipment to DFS. FAIR MARKET VALUE (“FMV”) LEASE: At the end of the initial FMV Lease term, lessee may 1) purchase the equipment for the then FMV, 2) renew the lease or 3) return the equipment to DFS. // KEY POINT// Rotation leasing offers several unique benefits when compared with financing Key benefits including protection against technology obsolescence and the ability to reduce the total cost of ownership (TCO). DFS also provides end-of-lease products and services to facilitate a more efficient asset disposal process. Ownership leases allow customers to pay over time and own the equipment at the end of the lease agreement. // SUMMARY// Customers who lease technology assets typically do so to achieve two common goals: 1) protection against technology obsolescence and 2) reduction of costs. Let’s examine those topics a bit more closely, as well as the additional end of lease services that DFS offers. Protect against technology obsolescence: Leasing facilitates a fixed rotation schedule whereby assets are replaced on a regular interval. Because costs are operationalized, technology can be refreshed as part of the normal lease cycle, as opposed to depending on capital budget approval. Refresh intervals can be staggered so that technology is refreshed gradually when it’s convenient for your customer. Additionally, DFS does not impose lengthy auto-renewals at the end of term; instead, the customer has the flexibility to renew their contract on a month-to-month basis. Simplify asset disposal: One of the unique benefits that DFS provides is our knowledge of the resale market. We are the largest reseller of Dell EMC products and we know what those products are worth in several years’ time. That value is subtracted from the lease cost, making our Fair Market Value rates some of the most competitive in the industry. At the end of lease, a variety of options are available, including data wipe and return logistics. We can manage as much or as little as your customer likes, and any incremental costs can be operationalized as part of the lease agreement. Unlike banks, we do not impose lengthy auto-renewals. They have the ability to pay month-to-month following lease expiration. And we have a dedicated team of EOL specialists who can help them determine which option is best for their business prior to contract expiration. Reduce TCO: In addition to protecting against technology obsolescence, one of the key benefits of rotation leasing is its ability to lower the total cost of ownership. This is evidenced by a reduction in internal support costs, i.e. the time their IT staff is spending maintaining declining assets vs. innovating. By keeping assets current, IDC has shown a significant savings over a six year ownership term.

Flexible Leasing - VDI Complete Build or Buy a Highly Customizable VDI Complete Solution // KEY POINT// VDI Complete is an example of a bundled solution with a monthly price per user. The monthly price per user is based on the bundled price and a 36mo FMV lease. // REFERENCES // Direct sales customer microsite: www.dell.com/vdicompletesolutions Channel sales customer microsite: www.dell.com/vdicomplete SalesEdge video: Dell EMC VDI Complete Solutions video YouTube video: Dell EMC VDI Complete Solutions video Sales resources Dell EMC VDI Complete Solutions Customer Deck

DFS Payment Solutions for Flexible Consumption Portfolio PAY AS YOU GROW Acquire all assets up front with payments that scale to match forecasted business growth. Pay as you Grow Growth Solutions Flexible Leasing Provision and Pay Ready Capacity // KEY POINTS //

Acquire the entire solution with Pay As You Grow $$$ $$ $ 100% business increase 50% business increase 20% business increase Lowest payments in year one Payments increase per defined schedule Payments match your growth // KEY POINTS // Pay As You Grow delivers the full solution up front Customers pay on a tiered plan with the lowest payments in year one // SCRIPT // Pay As You Grow helps your customer control unpredictable technology needs by allowing them to deploy the full solution for now and making tiered payments to match their planned business growth. Payments are lowest in year one and increase based on a pre-defined schedule, regardless of utilization. // REFERENCES // Internal link to flyer (must download and send prior to meeting): SalesEdge https://dell.gosavo.com/Document/Document.aspx?id=40818564&view= Runbook https://inside.emc.com/servlet/JiveServlet/download/220336-27-769572/Pay+As+You+Grow.pdf

Pay As You Grow Example: Adding 50 new 14G servers Equipment is delivered up front, allowing your customer to deploy it as needed. Payments increase based on a defined schedule, regardless of utilization. // KEY POINT// This example shows a customized payment plan for adding fifty new 14G servers. // SCRIPT // In this example, a cloud hosting provider needed to deploy fifty 13g servers with ProSupport Plus to prepare their business for rapid growth. Their current revenue did not support a large equipment deployment. With Pay As You Grow, they were able to install the equipment they needed to onboard new customers without technology delays. // REFERENCES // Internal link to flyer (must download and send prior to meeting): SalesEdge https://dell.gosavo.com/Document/Document.aspx?id=40818564&view= Runbook https://inside.emc.com/servlet/JiveServlet/download/220336-27-769572/Pay+As+You+Grow.pdf

DFS Payment Solutions for Flexible Consumption Portfolio PROVISION AND PAY Acquire technology over time with recurring plan, deploy, pay cycles. Pay as you Grow Growth Solutions Flexible Leasing Provision and Pay Ready Capacity // KEY POINTS //

Grow technology over time with Provision and Pay Plan Deploy Pay The process can be adjusted to fit their schedule, whether monthly or quarterly. $ DFS works with your customer to forecast equipment needs. They order based on those projections. Equipment is delivered. Your customer can install and deploy work-loads as needed. Billing for the equipment begins after deployment. // KEY POINTS // Provision and Pay works on a plan, deploy, pay cycle Cycle timing can be either monthly or quarterly // SCRIPT // Provision and Pay can help make lengthy procurement cycles a thing of the past while allowing your customer to grow your technology over time. This cyclical process involves the following stages: Plan: DFS will help your customer analyze their current IT and forecast their equipment needs in the future. They will then order equipment based on those projections. Deploy: Once the equipment is delivered, they can install it and deploy it on their own timeline and on an as-needed basis. Pay: Only after the equipment is deployed do payments start. Also, payment streams are separate so they can refresh units as each individual billing cycle expires. // REFERENCES // Internal link to flyer (must download and send prior to meeting): SalesEdge https://dell.gosavo.com/Document/Document.aspx?id=40816074&view= Runbook https://inside.emc.com/servlet/JiveServlet/download/220336-27-769575/Provision+and+Pay.pdf

Provision and Pay Example: Adding 5 new 14G servers per quarter for three quarters // KEY POINT // This example shows the deployment, billing and refresh lifecycle for a customer that adds five 14G servers per quarter for three quarters // SCRIPT // To accommodate rapid growth, a cloud hosting provider needed to add five new servers each quarter for the next three quarters. They did not want to pay up front but did not want to deal with long lead times either. Provision and Pay allowed them to plan ahead, receive equipment and deploy their new servers before payments were due. // REFERENCES // Internal link to flyer (must download and send prior to meeting): SalesEdge https://dell.gosavo.com/Document/Document.aspx?id=40816074&view= Runbook https://inside.emc.com/servlet/JiveServlet/download/220336-27-769575/Provision+and+Pay.pdf

DFS Payment Solutions for Flexible Consumption Portfolio Pay as you Grow Growth Solutions READY CAPACITY Acquire base and buffer capacity now while deferring buffer capacity payments until it is activated or nine months have elapsed. Flexible Leasing Provision and Pay Ready Capacity // KEY POINTS //

Increase storage on demand with Ready Capacity 10 – 12 months 0 – 3 months 6 – 9 months Baseline and buffer capacity is delivered on day one. Payments begin for baseline capacity. As usage increases, buffer capacity is activated. Payments include both baseline and buffer capacity. Once buffer usage is maximized, additional capacity is added. Payments now include baseline, buffer and incremental buffer capacity. // KEY POINTS // Ready Capacity allows customers to receive both baseline and buffer capacity up front while deferring the buffer capacity payment until it is consumed // SCRIPT // When business is actively growing, it can be challenging to predict future storage needs. If you purchase too little capacity, you run out of room to expand – too much and you pay for technology you don’t need. Ready Capacity allows your customer to effectively manage their storage needs by providing the baseline capacity their business requires today, along with on-demand buffer capacity for future expansion. Payments only reflect baseline capacity until the buffer capacity is activated or until nine months have elapsed. Additionally, because baseline and buffer capacity are delivered together, they only need to execute a single procurement process. Incremental buffer capacity is shipped as needed as the original buffer capacity is consumed. With Ready Capacity, they can: • Optimize storage costs. Eliminate the expense of under-utilized capacity. • Gain operational control. Reduce procurement timing and grow their environment faster with ready-to-use capacity. • Streamline procurement. Baseline and buffer capacity are ordered and delivered together. • Grow on demand. Order additional buffer capacity at the pre-determined price threshold as their business needs increase. // REFERENCES // Internal links to flyer (must download and send prior to meeting): SalesEdge https://dell.gosavo.com/Document/Document.aspx?id=41155812&view= Runbook https://inside.dell.com/servlet/JiveServlet/download/220336-86-803155/Ready+Capacity.pdf

Ready Capacity Initial need: 1300TB Payments Example: Matching payments to storage utilization Initial need: 1300TB Payments Months 0 – 3: Baseline capacity only Months 6 – 9: Baseline and buffer capacity, 100TB at a time Incremental need: 200TB Months 10 – 18: Baseline, buffer and incremental buffer capacity // KEY POINT // This example shows how a customer utilized Ready Capacity to match their payments to their storage utilization // SCRIPT // After a recent acquisition, a financial institution faced a large data migration, which required critical data from the acquired company to be moved and stored in an existing data warehouse. The customer estimated that they would need at least 1300TB of VMAX storage but they were unsure when it would be fully consumed, and they didn’t want to pay for all of the storage up front. Ready Capacity allowed them to acquire 1000TB of baseline storage plus an additional 300TB of buffer capacity at the start of the project. In the first three months, they made monthly payments for the baseline storage. Payments then increased as each 100TB of buffer were activated, in months 3, 6 and 8. Once the buffer was fully consumed in month 8, DFS provided 200TB of additional buffer capacity, but the customer was not required to begin making payments for it until they utilized it in month 10. // REFERENCES // Internal links to flyer (must download and send prior to meeting): SalesEdge https://dell.gosavo.com/Document/Document.aspx?id=41155812&view= Runbook https://inside.dell.com/servlet/JiveServlet/download/220336-86-803155/Ready+Capacity.pdf

DFS Payment Solutions for Flexible Consumption Portfolio FLEX ON DEMAND Acquire base and buffer capacity now. Make a set minimum payment for base capacity, and pay for buffer as you use it. Variable Usage Flex On Demand Cloud Flex for HCI // KEY POINTS //

Pay based on usage with Flex On Demand How it works for the customer Available on all Dell EMC core storage products Customer establishes projected baseline capacity and the buffer needed to cover peak use Payments include fixed cost of committed capacity plus the variable cost of buffer capacity If usage drops, they no longer have to pay for that buffer amount If usage consistently consumes the majority of buffer capacity, the customer can receive additional buffer capacity // KEY POINTS // Flex On Demand is a usage-based model Committed Capacity Charge + Buffer Capacity Charge = Total payment // SCRIPT // With Flex On Demand, your customer can acquire the technology needed to support their changing business with payments that scale to match their actual usage. Instead of paying for extra capacity, they only pay for what they use beyond the Committed Capacity. There are two main components of Flex On Demand: Committed Capacity and Buffer Capacity. We will work with your customer to establish both up front. They will then make a regular, fixed payment for the Committed Capacity and a variable payment for the Buffer Capacity based on how much they use. Usage is measured via automated tools installed with the equipment. If usage consistently consumes a pre-defined Buffer Capacity threshold, they have the option to install additional Buffer Capacity. Should additional Buffer Capacity be installed, their level of Committed Capacity and the related payment will increase. Flex On Demand benefits include: • Align cost with usage: Don't pay for buffer capacity you don't use • Increase budget power: Pay for what you use and free budget for other projects. • Improve agility: Flex On Demand technology provides instant deployment and usage to address capacity spikes driven by the business. • Better overall value: Pre-configured technology is delivered and installed ready for your use. • Simple and easy to use: On day one, we install what you need now and in the future and measure your usage with automated tools installed with our equipment. // REFERENCES // Internal link to flyer (must download and send prior to meeting): SalesEdge https://dell.gosavo.com/Document/Document.aspx?id=40820981&view= Runbook

Flex on Demand How it works for the partner Receive 100% tier credit Paid an upfront % of as sold margin based on table Earn 125% margin when the customer reaches 90% usage Receive LOB incumbency

DFS Payment Solutions for Flexible Consumption Portfolio Variable Usage CLOUD FLEX Evaluate the feasibility of an on-premises hybrid cloud or hyper-converged product. Flex On Demand Cloud Flex for HCI // KEY POINTS //

Cloud Flex for Hyper-converged (HCI) Deploy Evaluate Scale $$$ $ Currently available on VxRail $0 Pay nothing upfront on the hyper-converged product. Return product at any time after the first 12 months, with no termination fee. Monthly rates drop up to 30% each year. // KEY POINTS // Cloud Flex allows your customers to evaluate hyper-converged solution and return it with minimal risk. So as our customer talk about moving to Public Cloud, we now have an answer. LOWER COST OF ENTRY MINIMAL OBLIGATION – can cancel at any time after 12 months The longer the customer uses, we will reduce the customer price

PO issuance will only include the $100K Yr 1 commitment Cloud Flex for HCI- Declining Cost Structure How it works for the customer Example: $250k solution deal Customer Payments ~$8k ~$3k ~$5k Y2 Y5 ~$6k Y1 Y4 Y3 Committed Uncommitted $100k $165k $225k $260k $300k Cumulative payment Monthly payment PO issuance will only include the $100K Yr 1 commitment $0 product cash upfront Can return at any time, with no termination fee after the first 12 months Monthly rates drop up to 30% each year Cloud Flex allows your customers to evaluate hyperconverged solution and return it with minimal risk. So as our customer talk about moving to Public Cloud, we now have an answer. LOWER COST OF ENTRY MINIMAL OBLIGATION – can cancel at any time after 12 months The longer the customer uses, we will reduce the customer price Here is a quick example $250k solution and in first year customer only pays $100k. At this time they can walk away. If they continue to use the private cloud solution, they pay month to month, can return at any time, and due to price drops it will take 4 years to get back to the original sales price, This is an amazing private cloud solution and it is NOW ENABLED IN THE CHANNEL Now, how does this impact our you, our partners

Cloud Flex for HCI How it works for the partner Receive margin annuity with 50% paid upfront 100% tier credit Ability to earn up to 125% of original margin Receive LOB incumbency (2H) Paid 50% of margin at time of installation At 18 months, paid 20% of margin At 24 months, paid 15% of margin At 36 months, paid 15% of margin At 48 months, paid 25% of margin, for total earnings of 125% original agreed margin Monthly payment Y1 Y2 Y3 Y4 Y5 Committed Uncommitted

Software installment payments DFS Payment Solutions for Flexible Consumption Portfolio SOFTWARE INSTALLMENT PAYMENTS Acquire the software needed today and plan for the future by taking advantage of multi-year maintenance discounts and meeting budgetary needs with installment payments. Software Solutions Software installment payments Transformational License Agreements (TLAs) // KEY POINTS //

Beat Budget Constraints Software Installment Payments In addition to financing hardware, services and peripherals, DFS can also fund 100% software transactions, including service and maintenance fees. This is done through Purchase Plan Agreements, which are designed to meet budgetary needs. DFS offers flexible solutions to accommodate software acquisition, including deferred and annual payments. Lock in Costs Preserve Cash Beat Budget Constraints Accelerate ROI Increase Efficiency Take advantage of publishers’ pre-paid, multi-year maintenance discounts and get the budgeting certainty your customer needs Unlock the power of IT while retaining cash for investing in the business Drive value in the organization by aligning multi-year license and maintenance costs to available budgets Reduce complexity and risk while phasing project payments to match benefits Effectively scale the organization with flexible upgrades

Transformational License Agreements (TLAs) DFS Payment Solutions for Flexible Consumption Portfolio TRANSFORMATIONAL LICENSE AGREEMENT (TLA) Enable your IT transformation through a single, simple software agreement for license and maintenance that provides maximum flexibility for future IT needs. Software Solutions Software installment payments Transformational License Agreements (TLAs) // KEY POINTS //

Transformational License Agreement (TLA) A Transformational License Agreement (TLA) is a highly customized software contract that offers unprecedented flexibility in the way software titles are consumed and maintained, especially as requirements change over time. Agility Simplification Value Unlocks software-tied-to- hardware Maximizes value & agility with license substitution and T- Credits Agreements can be site-specific or global in nature Single software contract Consolidation of license and maintenance billing Ease of SW deployment & control Economies of scale and scope Opex/Capex savings Predictable TCO & price protection

Transformational License Agreement (TLA)- How it Works HOW THE TLA WORKS Establish a pool of license entitlements with single maintenance bill: Ability to bring in and retain current install base Purchase licenses to refresh or transform environment Deploy SW as needed Pool shrinks as SW is deployed NEW software can be added with no additional fee Titles in the pool can be swapped on $ for $ basis as needed Software Software Software Software Software Software Software Software Software Software NEW Software Software Software Software Software Software Software Software Software Add new software Substitution // KEY POINTS // This slide has animations. Follow the script and the “click” prompts below Like our original TLA program, TLA 2.0 still has two basic offers – the Simple TLA and the Term TLA. Let’s start by discussing the Simple. This agreement still has the same core features as the original TLA. Customers purchase a TLA that contains the Software that they need for multiple years in a virtual pool, and get a single blended rate for maintenance on all covered Software across the entire period of the agreement. <CLICK> Like before, the customer deploys SW onto systems as needed, and their pool of available capacity shrinks. Customers can still substitute between the undeployed capacity of software titles in the agreement. But one incredibly important difference is that a customer can now add new Software to the agreement with no additional fee. So as Dell EMC adds new products to the portfolio, or introduces a new title into an account, that title can be added into the agreement at no cost, and undeployed capacity in other titles can be exchanged for capacity in the new title. The customer will have the same entitlements on their deployed Software as they would have outside of the TLA, so that Software can stay with the frame for as long as it is in service, and open Software has a full perpetual entitlement.

Learn More Flexible Consumption DFS DFS on the Partner Portal https://www.emc.com/en/us/flexibleconsumption/index.htm DFS http://www.dell.com/learn/us/en/04/by-service-type-financing-leasing DFS on the Partner Portal https://partner.dell.com/en-us/partner/auth/purchasing-and-business- management/dell-finance-options.htm * Terms subject to product availability, credit approval, execution of documentation provided by and acceptable to DFS. Dell Financial Services