VMware Sales Byte Net New Customers Server Consolidation

Rob Chen – Sr. Marketing Manager Global SMB & Commercial Solutions Marketing August 2013

© 2011 VMware Inc. All rights reserved

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VMware Sales Byte Overview

Customer Challenge Partner Opportunity VMware Solution Overview Customer Profile Next Steps

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Top Of Mind For Customers - Opportunities For Partners



Top of Mind

 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….

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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

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?

Top IT Priorities

• BC/DR • Security • Consolidation • Virtualization and automation Upgrade BC/DR capabilities Upgrade our security Consolidate IT infrastructure Maintain or implement virtualization and automation Mobile/tablet apps Consolidate app Implement or expand collaboration IaaS 0% 20% 40% Source: Forrsights Budgets And Priorities Tracker Survey, Q2 2012, Forrester Research, Inc, 2012 VMware market segment definition: SMB: 1-999 employees, Commercial: 1000-4999 employees, Enterprise: 5000+ 5 60% 80%

% critical or high priority

SMB Commercial Enterprise

Virtualization still tops for major IT spending priorities

6 Source: IDC State of the Market: IT Spending Review & 2013 Outlook, November 2012

Market Still Largely Untapped

20%*

physical servers virtualized Opportunity

Seize White Space

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*Source - IDC Opportunity to talk to net new customers about:

• Server consolidation • Reducing IT capex and opex • Improving IT agility and flexibility

Partner Opportunity

• • •

Virtualize with VMware Solutions

vSphere with Operations Management Standard Acceleration Kit vSphere with Operations Management Enterprise Plus Acceleration Kit vSphere Essentials Plus Kit 8 $ • •

Complimentary VMware Solutions

vSphere Data Protection Advanced vSphere Site Recovery Manager • • • •

Other Technologies & Opportunities

Storage infrastructure, Network infrastructure, Security solutions Infrastructure for the secondary site : Servers, Storage, Network, etc … Professional Services/Consulting/Installation & Configuration Business continuity and disaster recovery

Virtualization

Encapsulation Consolidation vSphere 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

Cost-Efficient Infrastructure

• Improve hardware utilization and reduce footprint • • Reduced hardware requirements at recovery site Use recovery hardware to run low-priority apps 9

Hardware Independence vSphere vSphere Flexible Infrastructure

• • Leverage a pool of servers to avoid failures Eliminate need for identical hardware across sites • Enable waterfalling of equipment to recovery site

Server Virtualization Benefits

Server Consolidation Capex & Opex Savings IT Agility Innovation

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10:1 Consolidation Ratio Up to 50% Savings 80% Greater Resource Utilization

Virtualize Smarter – vSphere with Operations Management

vSphere with Operations Management VMware vSphere The proven compute virtualization platform

• Insight to workload capacity and health

vSphere vCenter Server

• • • •

Capacity planning

– know how many days before capacity runs out so IT can continue to be responsive

Optimize efficiency

– know on which virtual machines might be overprovisioned

Improve performance

- faster root cause identification of emerging issues

Proven virtualization platform

– provide availability for your business applications 11

vSphere Virtualization Platform

Before Virtualization After Virtualization

• • • • •

Capabilities

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

Benefits

• • • • • 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 12

Operations Automation

Capabilities

 Proactively manage performance and improve availability for vSphere environments  Understand performance trends across VMs, clusters, and farms  Optimize capacity by reclaiming unused VMs, and rightsizing under-provisioned VMs  Reduce false alerts through patented analytics

Benefits Guarantee SLA

Quick root cause identification and resolution

Improve CapEx/OpEx Savings

30% higher resource utilization by rightsizing VMs and harnessing unused resources

Simplify Management

Dashboard view of environment for easy perf. and capacity mgmt. and troubleshooting 13

Recapping the Business Benefits

vSphere with Operations Management delivers… Increased Service Levels Operational Efficiency

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Detect performance issues before they impact your business Increase capacity utilization by 40% and hardware savings by 30%* Reduce time spent on diagnosing and resolving problems by 26%* Run Business Critical Apps with Confidence Get More out of Your Hardware Investments Optimize Your Productivity

* Sept 2012 Management Insights Study

VMware: The Industry-Leading Virtualization Software Company

   $4.61 billion in revenues for 2012  • More than 500,000 customers 99% of the Fortune 100 • • 99% of the Fortune 500 99% of the Fortune 1000 • 100% of the Fortune Global 100 • 99% of the Fortune Global 500 Over 55,000 partners worldwide ~13,800 employees worldwide 15

VMware Leads The Market

OpEx 20% Scalability 91%

• • •

Minimize Total Cost of Ownership (TCO)

Better hardware utilization vs Microsoft Hyper-V Spend less time on management tasks Minimize the negative impact of downtime • • •

Build for the Future

Secure, reliable, platform not built on top of a legacy operating system Only virtualization platform proven across 500K+ customer deployments Move seamlessly from private to public cloud environments • • •

Virtualize Anything

Virtualize servers, desktops, network, storage at your pace Simplify management, improve availability, increase flexibility, lower costs Run your business on public, private or hybrid clouds • • • •

Maximize Uptime

Extensive application insight to meet SLAs for critical apps Production tested reliability and performance for critical applications VMotion performs 5 times faster than Microsoft Live Migration VMware HA works when 50%+ cluster hosts go down – Microsoft HA doesn’t

See notes for links to details

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Customer Profile – Server Consolidation

Who to talk to

• Head of IT Infrastructure, Head of IT Operations • Server or Application admin, IT Architects • Industries: Manufacturing, Retail, Government, Healthcare, Education and Emerging Markets 17

What to look for Questions to ask

• Customers who are not virtualized • Server refresh projects • IT/application downtime or challenges with performance or SLAs • Increasing IT costs • Growing businesses and industries and M&A activity • Are you looking to save on server hardware & operations costs?

• Do you feel that you are getting the most out of your existing server environment?

• Are high-availability, performance, scalability, security and agility priorities for your IT environment?

• Are you overburdened with having to manage a expanding and increasingly complex server environment?

vSphere Essentials and Acceleration Kits

Entitlements (VM / Core / vRAM) vCPU / VM

Features

vSphere vCenter Operations Management Suite 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) vSphere Replication Data Protection vShield Endpoint Distributed Resource Scheduler and Distributed Power Management

vSphere Essentials Plus Kit

Server Consolidation and Business Continuity Unlimited 8-way

Essentials Plus Foundation

● ●

HA only

● ● ● Storage APIs for Array Integration, Multipathing Application High Availability Distributed Switch Storage DRS and Profile-Driven Storage I/O Controls (Network and Storage) and SR-IOV 18

Note: This is a partial listing of available features. Please see vmware.com for the complete list.

vSphere with Operations Management Standard AK

Scalable Server Consolidation & No Planned Downtime Unlimited 8-way

Standard Standard

● ● ● ● ● ● ● ● ●

vSphere with Operations Management Enterprise AK

Powerful & efficient resource management Unlimited 32-way

Enterprise Standard

● ● ● ● ● ● ●

Advanced

● ● ●

vSphere with Operations Management Enterprise Plus AK

Policy based datacenter automation Unlimited 64-way

Enterprise Plus Standard

● ● ● ● ● ● ●

Advanced

● ● ● ● ● ● ●

Next Steps

Prepare for the customer conversation

 Print out the Server Consolidation Value Prompter  Get the Sales Toolkit www.vmware.com/go/salesbytes  Identify a customer to discuss server consolidation

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

• VMware SMB Blog http://blogs.vmware.com/smb • VMware SMB on Twitter http://twitter.com/VMwareSMB 19