1. Virtualization: Beyond Server Consolidation

2. Agenda VMware, Product & Solutions Adoption Trends Road Ahead

3. VMware By the Numbers Founded 1998 2006 Revenue $709 M Number of Employees 3,000+ Number of VMware Infrastructure Customers 20,000+ Number of Users 4+ million Number of Channel Partners 3,000+ Number of VMware Certified Professionals 10,000+

4. What is Virtualization? VMware provides hardware virtualization that presents a complete x86 platform to the virtual machine Allows multiple applications to run in isolation within virtual machines on the same physical machine Virtualization provides direct access to the hardware resources to give you much greater performance than software emulation With VirtualizationWithout Virtualization

5. Three Key Properties of Virtualization Partitioning Run multiple operating systems on one physical machine Fully utilize server resources Support high availability by clustering virtual machines Encapsulation Encapsulate the entire state of the virtual machine in hardware- independent files Save the virtual machine state as a snapshot in time Re-use or transfer whole virtual machines with a simple file copy Isolation Isolate faults and security at the virtual-machine level Dynamically control CPU, memory, disk and network resources per virtual machine Guarantee service levels

6. 1 st Generation 2 nd Generation 3 rd Generation The Virtualization Market is Evolving Rapidly 2002 - 20052006 +1998 - 2001 Server Partitioning Server Consolidation Virtual Infrastructure

7. Hypervisor  Partition a single server reliably and securely into multiple virtual machines

8. Virtual Infrastructure Hypervisor  Distributed Virtualization  Partition a single server reliably and securely into multiple virtual machines Aggregate entire farms of systems, storage and network into a shared IT service

9. Virtual Infrastructure Hypervisor  Distributed Virtualization  Management & Automation  Partition a single server reliably and securely into multiple virtual machines Aggregate entire farms of systems, storage and network into a shared IT service Automate end-to-end IT processes

10. The Virtual Infrastructure Stack Today Infrastructure Optimization SW Lifecycle Resource MgtAvailabilityMobility Hypervisor  Distributed Virtualization  Management & Automation  Desktop Management Business Continuity

11. The Virtual Infrastructure Stack Today Hypervisor  Virtual Infrastructure  VI Management  Infrastructure Optimization SW Lifecycle Resource MgtAvailabilityMobility Desktop Management Business Continuity > 87% of customers have deployed in production > 43% of customers are standardizing on VMware Infrastructure 49% use DRS > 48% use HA > 52% use VCB 56% use VMotion 66% use Virtual Center 55% use VI3 for BC/DR Evals at 40% of VMworld attendees >10K evals

12. 1 st and 2 nd Generation Drove Consolidation Servers100080$5,816 M HBAs500160$290 M SAN Switches228na Network Switches8410$296 M Power (kW)40752$759 M Cooling (kW)50964$949 M Real Estate (Sq ft)2053257$431 M Total Savings (per workload over 3 years) $8,541* * Note: Savings include estimated cost of VMware licenses, Support and Subscription Example: Utility Company BEFORE VMwareAFTER VMwareSAVINGS

13. …With Significant CAPEX & OPEX Gains… Increased server utilization to nearly 80% percent Consolidated servers by a 12:1 ratio Reduced datacenter space by a 20:1 ratio Virtualized 60% of x86 environment Infrastructure / workloads doubled but staffing has not increased in 2.5 years Deployed new servers in hours rather than weeks Standardizing their infrastructure on VMware SAN Production VMs Backup Server DR - Site Backup Server Storage Reserve DEV/TEST Production

14. Virtualization brings significant power and space savings BEFOREAFTER TypeQtyPower Rating 1 CPU300475 W 2 CPU500550 W 4 CPU200950 W 8 CPU--1600 W 200 racks or 4,700 sq ft approx $289,878 / year in power $362,348 / year in cooling TypeQtyPower Rating 1 CPU--550 W 2 CPU38675 W 4 CPU381150 W 8 CPU41900 W 10 racks or 235 sq ft approx $36,718 / year in power $45,897 / year in cooling IT budgets are increasingly consumed by data center power and cooling costs Power supplies are constrained in some geographies Heat causes servers to fail and results in service interruption Data centers are full and new projects cannot start due to lack of space For every 1 server that is removed from the datacenter, approximately 11.4 tons of CO2 emissions are saved

15. The Virtual Mainframe Capacity On-demand Always on Policy Based Automation The Value Proposition Has Broadened Mainframe-class infrastructure on commodity hardware OS and hardware agnostic, Infrastructure-wide Aggregate and Virtualize Not just about server virtualization but about virtualization as an architecture

16. X Automated Resource Assurance Dynamic Balancing Continuous Optimization Increased Availability Automated Across Applications On Demand Capacity Non-disruptive Scaling Flexible, Reconfigurable ++ …Delivering The Always On, On Demand Data Center

17. > Data protected with low RPO by storage replication > System protected with tape – 24 hour RPO > Recovery has high RTO due to tape restore > Unreliable recovery – system disk is tied to the source HW > System state is protected like data – low RPO > Recovery is a simple VM boot – low RTO > 100% reliable recovery – system state is tied to unchanging virtual HW X X DR Before and After VMware Infrastructure (VI)

18. DR at Praetorian Primary Data CenterRecovery Site 30 miles Replication RPO of 15 minutes and RTO of <4 hours Reduced TCO by 50% Saw ROI of 600% in 4 months FC SAN Virtual Infrastructure FC SAN Virtual Infrastructure

19. Agenda VMware, Product & Solutions Adoption Trends Road Ahead

20. 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 200520062007200820092010 Source: IDC, Virtualization and Multicore Innovations Disrupt the WW Server Market, March 2007 Server Virtualization Forecast: 2005 - 2010 1.4M VMs7.9M VMs CAGR = 40.6% Virtualized Physical Servers Logical Servers

21. The Virtual Infrastructure Stack: What Matters Hypervisor  Distributed Virtualization  Management & Automation   3 rd generation; more than 20,000 production customers Selection Criteria VMware  Deployments with thousands of virtual machines  65% of VMware customers run multiple OS on the same server  Only virtual infrastructure suite with distributed virtualization, management & automation  2/3 of VMware customers run databases and enterprise applications in virtual machines 0%5%10%15%20%25%30% Heterogeneous OS Suppport Scalability Management & Automation Performance Maturity Percentage of Users, N=151

22. Widely used in Production Environments >20,000 virtual Infrastructure customers 87% in production 65% running different OS on the same server 63% plan to virtualize more than 50% of their x86 infrastructure in 3 years 43% standardizing on virtual infrastructure Percentage of customers deploying following Windows workloads in virtual machines 63% 72% 81% 82% Infrastructure Workloads Application Servers Databases Enterprise Applications Source: Comprehensive survey of VMware customers conducted in September 2006. N=2256 respondents

23. VMware Category Leadership Copyright © 2004 VMware, Inc. All rights reserved. VMware Customers Deploying VI as Standard Customer Commitment to VMware 26% 59% VMware exclusively VMware favored 85% of customers will exclusively or strongly favor VMware for future purchases 23% 20% 31% 13% 8% 0% 4% 1% Default Server Policy Most Production Servers Some Production Servers Non -critical Apps Only Test/ Dev Only Source: Comprehensive survey of VMware customers conducted in September 2006. Sample size 1846 respondent

24. Agenda VMware, Product & Solutions Adoption Trends Road Ahead

25. The Virtualized Data Center - Tomorrow Massive Compute Supply Mandates Virtualization High core count Large memory High speed converged I/O fabric Future Hardware Minimizes Virtualization overhead 3 rd generation hardware assist Virtualization-aware ecosystem X86 Continues Upstream 70 - 80% business compute needs Compute nodes realized

26. Acceptance Across the Technology Stack I/O Subsystem CPU Operating System Networking Storage Management Applications

27. Virtualization Economy: $B+ Value Creation Global OEMs Global ISV & Technology 100+ Emerging Technology 4,000+ Distributors, Resellers, Consulting Partners Global System Integrators 400+ Virtual Appliance Vendors

28. Summary Virtualization is mainstream today and the VMware Infrastructure transforms the IT landscape VMware Customers are achieving transformative benefits, increased by the greater innovation brought by strong ecosystem partners VMware is the undisputed market leader, the only safe, proven choice

29. Thanks!!! Matteo Uva Channel Manager Italy and Greece June 12 th 2007