Jacob Gorm Hansen Kristian Bisgaard Lassen VMware

VMware – The Proven Industry Leader Company Overview ~$1.9 billion in 2008 revenue Over $2 billion in cash 20%+ operating margins ~7,000 employees worldwide 5 th largest infrastructure software company in the world Proven in the Trenches 150,000+ VMware customers 100% of Fortune % of Fortune Global % of Fortune % of Fortune Global 500 2

VMware – The Proven Industry Leader Company Overview ~$1.9 billion in 2008 revenue Over $2 billion in cash 20%+ operating margins ~7,000 employees worldwide 5 th largest infrastructure software company in the world Proven in the Trenches 150,000+ VMware customers 100% of Fortune % of Fortune Global % of Fortune % of Fortune Global 500 3

VMware – The Proven Industry Leader Company Overview ~$1.9 billion in 2008 revenue Over $2 billion in cash 20%+ operating margins ~7,000 employees worldwide 5 th largest infrastructure software company in the world Proven in the Trenches 150,000+ VMware customers 100% of Fortune % of Fortune Global % of Fortune % of Fortune Global 500 4

VMware – The Proven Industry Leader Company Overview ~$1.9 billion in 2008 revenue Over $2 billion in cash 20%+ operating margins ~7,000 employees worldwide 5 th largest infrastructure software company in the world Proven in the Trenches 150,000+ VMware customers 100% of Fortune % of Fortune Global % of Fortune % of Fortune Global % of all virtualized applications in the world run on VMware. Gartner, December % of all virtualized applications in the world run on VMware. Gartner, December 2008

The Problem – Complex, Inefficient, Inflexible Source: VMware Fortune 100 Customers Cause Overwhelming complexity Reliance on brittle infrastructure Effect >70% of IT budgets just “maintaining” status quo <30% of IT budgets goes to innovation and competitive advantage Where IT Energy Is Spent 42% Infrastructure Maintenance 30% Application Maintenance 23% Application Investment 5% Infrastructure Investment Business Agility Depends on IT Agility 6

The Solution – Business Infrastructure Virtualization Virtualizing all IT assets – from the desktop through the datacenter to the cloud – using a common virtualization platform, to create a dynamic, flexible infrastructure for the business 7

Capital and datacenter costs Average power, cooling and real estate needs Time spent on routine admin tasks Financial Energy Human EnergyEarth’s Energy The Result – Saving Energy Organizations are looking at ways to cut costs, better utilize assets, and reduce implementation and management time and complexity. Virtualization addresses all of these concerns. Gartner Organizations are looking at ways to cut costs, better utilize assets, and reduce implementation and management time and complexity. Virtualization addresses all of these concerns. Gartner Source: Gartner Dataquest Insight: Virtualization Market Size Driven by Cost Reduction, Resource Utilization, and Management Advantages, Jan09 8

Capital and datacenter costs Average power, cooling and real estate needs Time spent on routine admin tasks Financial Energy Human EnergyEarth’s Energy The Result – Saving Energy 9

Capital and datacenter costs Average power, cooling and real estate needs Time spent on routine admin tasks Financial Energy Human EnergyEarth’s Energy The Result – Saving Energy Capital costs reduced by 50% - 60% Delayed data center expansion Operational costs reduced by 25%+ Optimize Financial Energy Get more done with less Optimize Financial Energy Get more done with less 10

Capital and datacenter costs Average power, cooling and real estate needs Time spent on routine admin tasks Financial Energy Human EnergyEarth’s Energy Capital costs reduced by 50% - 60% Delayed data center expansion Operational costs reduced by 25%+ The Result – Saving Energy Shift Human Energy Shift from serving hardware to serving the business Shift Human Energy Shift from serving hardware to serving the business Average of 33% reduction in routine admin time E.g. provision a server in minutes 11

Average of 33% reduction in routine admin time E.g. provision a server in minutes Capital and datacenter costs Average power, cooling and real estate needs Time spent on routine admin tasks Financial Energy Human Energy Capital costs reduced by 50% - 60% Delayed data center expansion Operational costs reduced by 25%+ The Result – Saving Energy Up to 80% reduction in data center energy costs Save Earth’s Energy Use less, and use it more wisely Save Earth’s Energy Use less, and use it more wisely Earth’s Energy 12

Financial Energy Human EnergyEarth’s Energy Capital costs reduced by 50% - 60% Delayed data center expansion Operational costs reduced by 25%+ Up to 80% reduction in data center energy costs The Result – Saving Energy Energize Business Through IT Spend more money on innovation, less on maintenance Energize Business Through IT Spend more money on innovation, less on maintenance Average of 33% reduction in routine admin time E.g. provision a server in minutes 13

Real Customer Results – Saving Energy 70% 30% Funding Innovation Infrastructure Maintenance “Business as Usual” Physical Infrastructure Funding Profile Business Infrastructure Virtualization Funding Profile Funding Innovation Infrastructure Maintenance New Funds for Innovation Process and Technology Transformation Reduction in Valueless Activities and Costs Using VMware VMware customers who saw a savings of 25% or more. One-time server management tasks “overall” Day-to- day tasks “overall” 83% 66% 25% saved >75% 25% saved > 50% 33% saved > 25% 14% saved >75% 14% saved > 50% 38% saved > 25% 14

Real Customer Results – Saving Energy 70% 30% Funding Innovation Infrastructure Maintenance “Business as Usual” Physical Infrastructure Funding Profile Business Infrastructure Virtualization Funding Profile Funding Innovation Infrastructure Maintenance New Funds for Innovation Process and Technology Transformation Reduction in Valueless Activities and Costs Using VMware VMware customers who saw a savings of 25% or more. One-time server management tasks “overall” Day-to- day tasks “overall” 83% 66% 25% saved >75% 25% saved > 50% 33% saved > 25% 14% saved >75% 14% saved > 50% 38% saved > 25% The draw is saving money, but after a year or so, surveys show that adopters believe the key is agility. Tom Bittman, Gartner The draw is saving money, but after a year or so, surveys show that adopters believe the key is agility. Tom Bittman, Gartner 15

Product Strategy 16

VMware Leading the Industry Journey VMware Infrastructure Virtual Resource Pools 2003 Virtualize Automate Extend VMware ESX ® Server Virtualization 2001 VMware Workstation Virtualization 1998 VMware vSphere ™ Complete Virtualization Platform From Desktop through the Datacenter… to the Cloud

Platform Focus Infrastructure Abstraction The Power of the Platform Key Benefit = Consolidation Early Generation Focus Multiple Apps per Machine Key Benefit = Dynamic, Flexible Infrastructure 18

VMware Workstation 19

VMware Workstation for IT Administrators Use ScenarioBenefits ►Configure and test desktops and servers in virtual machines before deploying them to production ►Test new multi-tier applications, service packs, application updates, and OS patches on a single PC ►Host legacy applications within virtual machines, thus facilitating OS migrations and eliminating the need to port legacy applications ►Create a virtual library of end-user configurations on a shared drive ►Reduce hardware costs by 50-60% ►Increase operations efficiency by up to 50% ►Reduce time needed to test new software and improve quality of deployments ►Eliminate risk to production networks by creating isolated virtual test networks ►Complete OS migration projects with minimal end-user disruption ►Accelerate help desk resolution of end-user problems

Workstation on Vista with XP guest

Record-replay Record all input to virtual machine. Recordings can be played back later to, e.g., reproduce bugs and crashes. Recording is deterministic. Debugger integration allows you to follow the playback in, e.g., Visual Studio or Eclipse

Demo 23

VMware Leading the Industry Journey VMware Infrastructure Virtual Resource Pools 2003 Virtualize Automate Extend VMware ESX ® Server Virtualization 2001 VMware Workstation Virtualization 1998 VMware vSphere ™ Complete Virtualization Platform From Desktop through the Datacenter… to the Cloud

vSphere 25

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Live Migration of Virtual Machines (vMotion) Virtual machines can be moved between physical hosts without downtime. Used for hardware maintenance load balancing (distributed resource scheduling) distributed power management Virtual machine keeps running while being copied. Tracks changes and sends deltas later. Downtime frequently less than 1 second. 31

High Availability (HA) Simple method for keeping virtual machines available after host crashes. If a host crash is detected the virtual machines are started on a different host. Main difficulty for vSphere is to ensure that only a single instance of the virtual machine is running at any time. 32

Demo 33

Fault-Tolerance (FT) Use record-replay to maintain an exact replica of a virtual machine on a different host. If the primary host fails, then the backup virtual machine takes over without service interruption And a new replica gets created on a third host. 34

Demo 35

Causes of Downtime Source: Continuity Central and Steeleye Survey, n = 184 Software Maintenance Network Outage Network Maintenance Hardware Maintenance Application Failure Terrorism Hardware failure Power failure OS failure Natural Disaster Denial of Service Rank these causes of application downtime based on how common they are for business critical applications within your organization (1 = more common, 5, = less common) Planned downtime is most common But unplanned downtime is also crucial

Site Recovery Manager (SRM) Replicate an entire datacenter to a second site. If main datacenter goes down it fails over to the second site’s datacenter. 37

Protected Site Recovery Site VirtualCenter Site Recovery Manager VirtualCenter Site Recovery Manager Datastore Groups Array Replication Datastore Groups X VMware Site Recovery Manager (SRM) At A Glance

Simplifying the Disaster Recovery Process Eliminate recovery steps No operating system re-install or bare-metal recovery No time spent reconfiguring hardware Standardize recovery process Consistent process independent of operating system and hardware Configure hardware Install OS Configure OS Install backup agent Start “Single-step automatic recovery” Restore VM Power on VM Physical Virtual 40+ hrs < 4 hrs

Testing and Executing Recovery Plans Steps in recovery plan Status and time stamps When to execute User confirmation message

VMware Impact on Disaster Recovery Expand disaster recovery protection Any virtualized workload can be protected with minimal incremental effort and cost Reduce time to recovery Single button kicks off recovery process Increase reliability of recovery Automation ensures repeatable recovery Hardware independence eliminates failures due to different hardware Easier testing based off of actual failover sequence allows more frequent and more realistic tests

Preparing for the TechTonic Shift Mainframe + Centralized mgmt + Secure - Limited access - Inflexible - Costly + Distributed CPU utilization + Added flexibility - Complex and costly to deploy and manage - Not secure - Not efficient Client/Server + Simple to deploy and manage + Broader access + Scale - Limited flexibility - Limited efficiency - Not secure Web + Frictionless deployment + Simplified mgmt through abstraction + On-demand scale + Unparalleled flexibility + Secure + Highly efficient “Cloud” 42

Questions? 43