DNS/IBM Graham Hunt IBM Alliance Manager UK&I

2 VMware By the Numbers 100 / 924 Fortune 100 / Fortune 1000 Customers 1,000,000+ VMware Workstation Licenses Sold 20,000+ VMware Infrastructure Customers ~5,000+ Employees 1998 Year Founded Nearly 10,000 Channel Partners 15,000+ VMware Certified Professionals ~500 Technology Partners $1.33 B 2007 Revenue 88% 2006 Year-Over-Year Growth

3 Is It Too Late to Embrace Virtualization? 1.0M Installed Servers with Virtualization 2006 Estimate 35.6M Installed Servers without Virtualization 5.6M Installed Servers with Virtualization 2010 Forecast 26.5M Installed Servers without Virtualization IDC Doesn’t Think So

4 Award-Winning Technology VMware VirtualCenter VMware Converter VMware Capacity Planner VMware Site Recovery Manager VMware Virtual Desktop Infrastructure VMware ACE VMware Lab Manager VMware DRS with DPM VMware High Availability VMware Consolidated Backup VMware Storage VMotion VMware VMotion VMware Update Manager VMware ESX Server VMware ESX Server 3i VMware Virtual SMP VMware VMFS VMware Server VMware Workstation VMware Fusion VMware Player

5 Clear, consistent leadership. Market leadership “VMware holds an estimated 80% of the market for virtual-machine software that runs on computers powered by industry-standard microprocessors.” “ The market leader.” InfoWorld, July 2006 “The clear brand leader in virtualization." Gordon Haff Illuminata, Feb 2007 VMware Marketshare March 2007 “The dominant player in the x86 server virtualization space.” Galen Schreck Jan 2007 Extensive certifications 200 hardware platforms 60 operating systems Robust partner ecosystem supporting our customers Partner leadership Nearly 10,000 channel partners Leading distributors, resellers, x86 system vendors and SIs Strategic partner of world’s leading server, processor, storage, networking and software vendors Technology leadership Founding member of power-conservation alliance More than 30 awards for product excellence in past year Holds U.S. Patent # for the approach of virtualization Leading driver of Open Standards

6 VMware Values Partners Virtualization is a strategic initiative for your business and for your customers VMware can be a profitable line for you VMware software and solutions are proven technology leaders in the industry Virtualization is being driven by customer demand VMware is committed to the channel We derive >75% of our revenue from our channel partners

7 Drag on other practices 3X to 5X drag on other practices Consulting Services Growing 4X to 6X VMware-related Services Licenses Growing 2X to 4X Deployment Size Large Standardize Adoption What Is The Market Opportunity For Partners?

8 VMware is Committed to Driving Channel Success Accelerate revenue with your virtualization practice Accelerate your virtualization expertise Accelerate virtualization opportunities to customers of all sizes

9 ACCELERATING YOUR VMWARE VIRTUALIZATION EXPERTISE Comprehensive Partner Training Curriculum Free Online Sales and Technical Training VMware Sales Model Encourages Partner Led Services Partner Resource Center (PRC) On-line Partner Training Helpdesk Resource Library

10 ACCELERATING VMWARE VIRTUALIZATION OPPORTUNITIES TO COMPANIES OF ALL SIZES Extensive Product Portfolio for Companies of all Sizes Exclusive Partner Communications Free Sales & Marketing Tools Partner Central – Exclusive Partner Portal Partner-Specific Events

11 Expanded SolutionTrack - Objectives Create a strategic, integrated go-to-market approach with partners around Virtual Infrastructure and key solution areas Penetrate new accounts by “teaching partners to fish” for new VMware opportunities Differentiate top partners who demonstrate key solutions skills; intermediate training—builds on foundation training and skills Accelerate partner selling and delivery skills around key solutions Maintain WW consistency of messaging between VMware demand generation and partner training by geo

12 Disaster Recovery Software Lifecycle Enterprise Desktop VDI Virtual Infrastructure SolutionTrack Training Benefits Solutions Training Sales Kit Coming Soon Q1 2008

13 NEW – Virtual Infrastructure SolutionTrack “I’ve been selling VMware for several years but this is the first time I’ve been able to tell the complete story around VMware” – VI SolutionTrack attendee “What I especially liked was the “Selling the Value of Virtual Infrastructure” whiteboard flipbook… I believe this has got to be the best sales training tool I’ve ever seen, because it’s something that continues to be valid after the training, in the real world - Jack Perry – ergogroup

14 Virtual Infrastructure Whiteboard - Business

15 Virtual Infrastructure Whiteboard - Technical

16 SolutionTrack whiteboard presentation with voice-overs and flash Available globally and translated. Sample – DR English - Feb 13 th, translated for EMEA and APAC - Feb 25 th VI (English) - Feb 25 th NEW – SolutionTrack Online

17 ESX Server 3i / VI 3.5 Launch Summary ESX Server 3i Next generation hypervisor architecture Small form factor Delivered  Integrated with hardware starting November 2007 OR  Sold standalone New products and features in VI3.5 Storage VMotion: non disruptive migration of virtual machine disks Distributed Power Management (part of DRS): reduces power consumption through intelligent workload balancing Update Manager – automates patch and update management for VMware ESX Server hosts and virtual machines Guided Consolidation (part of VirtualCenter Management Server): enables companies to get started with server consolidation in a step-by-step tutorial fashion

18 What is ESX Server 3i? Thin architecture: Unparalleled security and reliability Compact 32MB footprint Only OS-independent design focused on virtualization Integrated in server systems: Easiest way to deploy and manage virtualization Hardware is certified and ready-to-run Intuitive start up experience that dramatically reduces deployment time Optimized for central management Next generation, thin hypervisor integrated in server systems

19 Upsell Opportunity with ESX Server 3i Broad Market seeded with readily available and easy-to-use hypervisor Up sell to Central Management Up sell to Departmental Consolidation Up sell to the Automated, On Demand Data Center Up sell Opportunity ESX Server 3i VI Foundation VI Standard VI Enterprise

20 ESX Server 3i VI Starter VI Standard VI Enterprise VI Editions After VI 3.5/3i Launch VI Foundation

21 Central Mgmt Enterprise VMs Live VM Migration Live VM Disk File Migration Next Generation Hypervisor Backup Storage Virt. Resource Management Power Management ESX Server 3i VMFS Virtual SMP™ ESX Server 3i VMotion ™ Storage VMotion High Availability DRS DPM VC Agent VI Foundation VI Standard VI Enterprise Consolidated Backup Update Manager VMFS Virtual SMP ™ ESX Server 3i OR ESX Server VC Agent Consolidated Backup Update Manager High Availability VC Agent Consolidated Backup Update Manager Availability Patch Management VMFS Virtual SMP™ ESX Server 3i OR ESX Server VMFS Virtual SMP™ ESX Server 3i OR ESX Server New VI Editions

22 VI 3.0 to VI 3.5 Entitlements VI3 customers will receive new 3.5 functionality at no extra charge as part of their valid subscription agreements, as outlined here VI3.0VI3.5Changes VI3 StarterVI Foundation Add ESX Server (Remove CPU Limits, Remove Memory Limits, remove storage connectivity limits) Add ESX Server 3i Add VSMP Add VCB Add Update Manager VI3 StandardVI Standard Add ESX Server 3i Add VCB Add Update Manager Add HA VI3 Enterprise Add ESX Server 3i Add Update Manager Add Storage VMotion VMotionVMotion + Storage VMotion Add Storage VMotion DRSDRS+DPM None (DRS and DPM will be a single license) HA None VCB None VC for ServerVC Foundation None – must notify customers of change in entitlement + ability to manage 3 VI suites

23 VI 3.5 Upgrade Components From Products Included To VI Standard VI Enterprise HA VMotion +Storage VMotion DRS + DPM VMotion +Storage VMotion DRS + DPM VI Foundation VI Enterprise VI Foundation VI Standard

24 New VI Bundles VI Foundation Acceleration Kit VI Standard HA Acceleration Kit VI Midsize Acceleration Kit VI Enterprise Acceleration Kit (existing bundle) Components  VI Foundation for 6 processors  VirtualCenter Foundation  VI Standard for 4 processors  VirtualCenter Foundation  VI Enterprise for 6 processors  VirtualCenter Foundation  30 PSO credits  VI Enterprise for 8 processors  VirtualCenter Support  Mandatory for first year for all bundles  Purchased separately Gold: $629 Platinum: $749 Gold: $1,259 Platinum: $1,499 Gold: $2,414 Platinum: $2,874 Gold: $4,879 Platinum: $5,809 Rationale Managed VI for smaller environment HA solution for SMB and ROBO markets VI Enterprise for smaller environment Existing SKU – SnS now sold separately

25 Summary ESX Server 3i is a single node entry point and is separate from VI suites ESX Server 3i will seed market and create upsell opportunity Updated VI suites follow a similar pricing and packaging model VirtualCenter Foundation allows lower entry point for SMBs and provides an entry point for enterprises New VI suites and bundles are designed as attractive entry points for companies of all sizes including SMBs VI Enterprise adds significant new functionality and remains the gold standard for virtual infrastructure