Transcript vSphere 4 Packaging, Pricing, and Licensing Overview

Non-Disclosure Agreement for VMware Partners.
The VMware vSphere Product, Pricing, Packaging and Licensing information that is
being provided to you, our partner, is under a Non-Disclosure Agreement which is in effect
until April 21, 2009. No part of this information should be shared with any other third party
unless permission is obtained from VMware in writing.
vSphere 4 Packaging, Pricing,
and Licensing Overview
March 2009
CONFIDENTIAL INFORMATION.
“Confidential Information” means any information disclosed by one party to the other pursuant to this Agreement that is marked
“Confidential,” “Proprietary,” or in some similar manner. Each party shall treat as confidential all Confidential Information of
the other party and shall not use such Confidential Information except to exercise its rights or perform its obligations
under this Agreement. Each party shall not disclose such Confidential Information to any third party during the term of this
Agreement and for a protection period of three (3) years beyond such term. The terms and conditions of this Agreement shall be
Confidential Information subject to the provisions of this Section 6, whether or not marked confidential. This paragraph will not
apply to any Confidential Information that: (a) was rightfully in possession of either party prior to receipt of such
Confidential Information from the other party; (b) is or becomes a matter of public knowledge through no fault of the
party receiving such Confidential Information hereunder; (c) is rightfully received from a third party without a duty of
confidentiality; (d) is independently developed by the other party without breach of any confidentiality obligations; or
(e) is disclosed by either party with the other party’s written approval; or (f) the recipient is required to disclose by
applicable law or court order. The parties acknowledge that breach of this Section 6 will cause irreparable damage to
the disclosing party for which monetary damages will be an inadequate remedy. Accordingly, either party will be
entitled to seek and obtain injunctive and any other relief (legal or equitable) to restrain any breach or anticipated
breach of this Sec
VMware Confidential Information
Agenda
VMware vSphere Pricing and Packaging
Entitlement Paths and Upgrade Options
Acceleration Kits
New Licensing Mechanism
Selling vSphere
1
VMware Confidential Information
VMware vSphere 4 Launch
What is VMware vSphere?
First cloud operating system
Transforms datacenters into simplified environments for flexible,
reliable IT services
Delivers unparalleled efficiency, control and choice
Launch Highlights
April 21 marketing launch
May 21 price list takes effect – Date might be different for OEMs. Please
check with VMware counterpart
VI 3.x SKUs are replaced with vSphere 4.x SKUs overnight
All customer orders are placed for vSphere 4
We will honor existing quotes placed with the VI3 SKUs
vSphere 4.x licenses can always be downgraded to VI 3.x licenses
2
VMware Confidential Information
Pricing and Packaging: Summary of Changes
Change the name from “VMware Infrastructure” to “VMware vSphere”
Update the software versions and add new features
Introduce new editions and new price points:
vSphere Essentials editions for small and remote offices
vSphere Standard at a new, lower price point
vSphere Advanced for high availability at a mid-range price point
vSphere Enterprise Plus at a new top price point
End-of-Availability for old editions:
Foundation immediate end-of-availability
Enterprise availability continues during a transition period
Eliminate most a-la-carte offerings
Switch to one processor pricing
3
VMware Confidential Information
vSphere Components
vSphere is a distributed
software system with features
enabled by a management
server and hypervisor working
together
VMware vCenter Server is the
management server and cluster
coordinator (1 instance required)
VMware ESX / ESXi
VMware ESX / ESXi
VMware ESX / ESXi
VMware ESX / ESXi is the
hypervisor software running on
each host (1 instance per server
required)
vSphere editions are the licensed features enabled by
vCenter Server working with ESX / ESXi
4
VMware Confidential Information
vSphere 4 Software Changes
Move to up-to-date versions of the software:
VMware ESX 3.5
VMware ESX 4.0
VMware ESXi 3.5
VMware ESXi 4.0
vCenter Server 2.5
vCenter Server 4.0
Improvements in existing vSphere licensed features:
VMware High Availability (HA), VMware VMotion, VMware Storage
VMotion, VMware Update Manager, VMware Distributed Resource
Scheduler (DRS)
Addition of new vSphere licensed features:
VMware Fault Tolerance (FT), VMware Data Recovery, VMware
vShield Zones, VMware vNetwork Distributed Switch (VDS), VMware
Host Profiles
Training on new features and functions available separately
5
VMware Confidential Information
vSphere One Processor Licensing
vSphere moves to a one processor pricing model
Example: Customer buys Enterprise licenses for 3 four-socket servers,
12 processors total
VMware Infrastructure 3
(VI3)
VMware vSphere 4
6 x 2 Proc VI3 Enterprise
12 x 1 Proc vSphere 4 Enterprise
X $5750 / 2 Proc license
X $2875 / 1 Proc license
$34,500
$34,500
This is a “pricing example”
Note: A “processor” consists of one or more processing cores. Multi-core licensing is discussed later in this presentation
6
VMware Confidential Information
New Editions and Prices: VMware Objectives
Develop feature and price combinations to increase adoption in the
Small and Medium Business segment
Add additional features and products to increase the overall value of
the platform
Continually provide additional value at every price point
Important points :
• Prices given in these presentation are End User MSRP (Manufacturer Suggested Retail Price) in USD
• EMEA pricing still TBD
• OEM specifics will be mentioned when appropriate
7
VMware Confidential Information
New vSphere 4 Editions: Overview
VMware vSphere
ESSENTIALS PLUS
Integrated availability
solution for Small
Businesses
($2995 All-in-One for 3
Servers)
ESSENTIALS
Basic management of
free ESXi
($995 All-in-One for 3
Servers)
Scale limited,
Low initial price,
Small officeoriented features
STANDARD
($795 / CPU)
Simple
Consolidation
Basic management
for:
•Simple
consolidation
•Remote offices
•Test labs
ADVANCED
($2245 / CPU)
ENTERPRISE
($2875 / CPU)
Availability
Automated
Resource
Management
High availability for:
•Production
infrastructure
•Mission critical
applications
Scale unlimited,
Value price, Low TCO
Full featured
Note: US list pricing in USD – International pricing may vary
8
Automated
resource
management for:
•Production
infrastructure
•Mission critical
applications
ENTERPRISE
PLUS
($3495 / CPU)
Simplified
Operations
Large scale
management and
integration for:
•Internal cloud
•Tier 1
applications
VMware Confidential Information
Comparing Editions: VI3 to vSphere 4 Positioning
VMware Infrastructure 3
VMware vSphere 4
ENTERPRISE PLUS
$3495/CPU
Large scale management
and enterprise integration
License Price
ENTERPRISE
$2875/CPU
ADVANCED
$2245/CPU
VMotion, Fault Tolerance,
and availability features at
new lower entry point
STANDARD
$795/CPU
Lower license cost and lower
Support and Subscription
cost
STANDARD
$1495/CPU
FOUNDATION
$495/CPU
ESSENTIALS / ESSENTIALS
PLUS
Starting at $156/CPU
Note: US list pricing in USD – International pricing may vary
Note: These are NOT entitlement paths
9
Lower cost entry point for
management and availability
VMware Confidential Information
Comparing Editions: Enterprise Transition
VMware Infrastructure 3
VMware vSphere 4
ENTERPRISE PLUS
$3495/CPU
ENTERPRISE
$2875/CPU
ENTERPRISE
$2875/CPU
VALUE
ADVANCED
$2245/CPU
STANDARD
$795/CPU
STANDARD
$1495/CPU
FOUNDATION
$495/CPU
Note: US list pricing in USD – International pricing may vary
ESSENTIALS / ESSENTIALS
PLUS
Starting at $156/CPU
Enterprise availability will
continue through 12/15
targeted at existing VI3
Enterprise customers
VMware Confidential Information
New vSphere 4 Editions: Overview
VMware vSphere
ESSENTIALS PLUS
Integrated availability
solution for Small
Businesses
($2995 All-in-One for 3
Servers)
ESSENTIALS
Basic management of
free ESXi
($995 All-in-One for 3
Servers)
Scale limited,
Low initial price,
Small officeoriented features
STANDARD
($795 / CPU)
Simple
Consolidation
Basic management
for:
•Simple
consolidation
•Remote offices
•Test labs
ADVANCED
($2245 / CPU)
ENTERPRISE
($2875 / CPU)
Availability
Automated
Resource
Management
High availability for:
•Production
infrastructure
•Mission critical
applications
Scale unlimited,
Value price, Low TCO
Full featured
Note: US list pricing in USD – International pricing may vary
11
Automated
resource
management for:
•Production
infrastructure
•Mission critical
applications
ENTERPRISE
PLUS
($3495 / CPU)
Simplified
Operations
Large scale
management and
integration for:
•Internal cloud
•Tier 1
applications
VMware Confidential Information
vSphere 4 Editions: Essentials Packaging
All inclusive packages:
Licenses for 3 physical servers (up to 2 processors each)
License for central management server
Packages cannot be decoupled or combined; components cannot be
used with other vSphere editions
Data Recovery
x 6 CPUS
High Availability
x 6 CPUS
6 CPUS x
Update Manager
Update Manager
x 6 CPUS
6 CPUS x
VC Agent
VC Agent
x 6 CPUS
6 CPUS x
4-way vSMP
4-way vSMP
x 6 CPUS
VMware ESXi OR
VMware ESX
VMware ESXi OR
VMware ESX
vCenter Server for Essentials
(up to 3 servers)
vCenter Server for Essentials
(up to 3 servers)
ESSENTIALS
($995)
ESSENTIALS PLUS
($2,995)
6 CPUS x
1x
12
x 6 CPUS
x1
vCenter Server
for Essentials
VMware Confidential Information
vSphere 4 Editions: Essentials Pricing
vSphere Essentials introduces a new support model targeted to small
environments. Similar to ESXi support options
vSphere Essentials Plus uses the traditional vSphere Support and
Subscription model
vSphere Essentials ($995 all-in-one)
License
$879
Subscription (annual)
$116
Minimum one year required
Support (optional)
$299 per incident
vSphere Essentials Plus
License
$2,995
Support and Subscription (annual)
$629 for Gold
Minimum one year required
$749 for Platinum
OEM support part numbers and pricing are specific to each OEM
Note: US list pricing in USD – International pricing may vary
13
VMware Confidential Information
New vSphere 4 Editions: Overview
VMware vSphere
ESSENTIALS PLUS
Integrated availability
solution for Small
Businesses
($2995 All-in-One for 3
Servers)
ESSENTIALS
Basic management of
free ESXi
($995 All-in-One for 3
Servers)
Scale limited,
Low initial price,
Small officeoriented features
STANDARD
($795 / CPU)
Simple
Consolidation
Basic management
for:
•Simple
consolidation
•Remote offices
•Test labs
ADVANCED
($2245 / CPU)
ENTERPRISE
($2875 / CPU)
Availability
Automated
Resource
Management
High availability for:
•Production
infrastructure
•Mission critical
applications
Scale unlimited,
Value price, Low TCO
Full featured
Note: US list pricing in USD – International pricing may vary
15
Automated
resource
management for:
•Production
infrastructure
•Mission critical
applications
ENTERPRISE
PLUS
($3495 / CPU)
Simplified
Operations
Large scale
management and
integration for:
•Internal cloud
•Tier 1
applications
VMware Confidential Information
vSphere 4 Editions: Core Platform
Large scale management
of critical production
applications
New
License (1 CPU)
SnS (Gold/Plat)
Distributed Switch
DRS / DPM
DRS / DPM
Storage VMotion
Storage VMotion
vShield Zones
vShield Zones
vShield Zones
Data Recovery
Data Recovery
Data Recovery
Fault Tolerance
Fault Tolerance
Fault Tolerance
Hot Add
Hot Add
Hot Add
VMotion™
VMotion™
VMotion™
Thin Provisioning
Thin Provisioning
Thin Provisioning
Thin Provisioning
High Availability
High Availability
High Availability
High Availability
Update Manager
Update Manager
Update Manager
Update Manager
VCB / vStorage APIs
VCB / vStorage APIs
VCB / vStorage APIs
VCB / vStorage APIs
VC Agent
VC Agent
VC Agent
VC Agent
4-way vSMP
4-way vSMP
4-way vSMP
8-way vSMP
High availability
products for
protecting critical
production
applications
Basic
consolidation
of a lab or
small
environment
Host Profiles
VMware ESXi OR
VMware ESX
VMware ESXi OR
VMware ESX
VMware ESXi OR
VMware ESX
VMware ESXi OR
VMware ESX
6 Physical Cores / CPU
256 GB Physical Memory
12 Physical Cores / CPU
256 GB Physical Memory
6 Physical Cores / CPU
256 GB Physical Memory
12 Physical Cores / CPU
No License Memory Limit
STANDARD
ADVANCED
ENTERPRISE
ENTERPRISE
PLUS
$2,875
$604 / 719
$3,495
$734 / $874
$795
$273 / 323
$2,245
$471 / 561
Note: US list pricing in USD – International pricing may vary
Note: Most features require one (1) instance of vCenter Server 16
Note: At least 1 year of SnS is mandatory
OEM support part numbers and pricing are specific to each OEM
VMware Confidential Information
VMware vSphere and Multi-core
VMWare ESX Scaling:
Keeping up with core
counts
1000
VMware vSphere uniquely enables
customers to fully leverage the
power of multi-core
Number of Cores used
Current products provide support for
up to 6 physical cores
Oracle
100
SQLserver
Exchange
Avg4socket
Entitlement expressed as “licensed
cores per processor”
Web Servers
Entitlement summary:
Average Customer
Application
10
vSphere Advanced and Enterprise
Plus will provide support for up to 12
physical cores
Essentials / Essential Plus = 6
Standard = 6
Advanced = 12
1
1990
1995
2000
Year
2005
2010
2015
Enterprise = 6
Most applications
don’t scale beyond
4/8 way
17
Enterprise Plus = 12
VMware Confidential Information
vCenter Server
vCenter Server is required for most vSphere features
VI Management
License
SnS (Gold/Plat)
vCenter Server
Standard
$4,995
$1,049/1,249
vCenter Server Standard and
vCenter Server Foundation are
management servers
-No host limit
-Includes Linked Mode
-Includes Orchestrator
vCenter Server
Foundation
vCenter Server Foundation is
limited to 3 nodes of any size /
suite
$1,495
$545/645
$9,995
$2,099/2,499
One (1) instance is required for
most vSphere Standard,
Advanced, or Enterprise Plus
features
-3 ESX host limit
vCenter
Heartbeat
Per Instance (USD)
OEM support part numbers and pricing are specific to each OEM
Note: US list pricing in USD – International pricing may vary
18
VMware Confidential Information
A la Carte Pricing
VI Add-ons
ESXi Single Server
License
FREE
SnS (Gold/Plat)
Most features are no longer
available a la carte (e.g.
VMotion)
$495/595
(optional)
-Per incident support available at $299/incident
Data Recovery
$695
Data Recovery is available for
standalone sale on top of
vSphere Standard only
ESXi is still available for free as
“ESXi Single Server”
$146/174
-Only available for sale with vSphere Standard
Excellent solution for virtualizing
one or two servers
Does not include a vCenter
management agent
Per Processors (USD)
OEM support part numbers and pricing are specific to each OEM
Note: US list pricing in USD – International pricing may vary
19
VMware Confidential Information
Agenda
VMware vSphere Pricing and Packaging
Entitlement Paths and Upgrade Options
Acceleration Kits
New Licensing Mechanism
Selling vSphere
20
VMware Confidential Information
Entitlement Path Overview
Customers with valid subscription contracts receive vSphere 4 licenses for every
VI3 license
Each VI3 license edition maps directly to a vSphere 4 license edition (as depicted in the
following slides)
Licenses are fulfilled directly into the customer’s license portal on vmware.com and a
notification email is sent
Each VI3 2 CPU license maps to 2 x 1 CPU vSphere licenses
Enterprise License Agreements (ELAs) are fulfilled in the same manner
Customers with expired subscription contracts will not receive new vSphere 4
licenses:
If a customer does not renew support prior to the licenses expiring, they will be subject to
a 20% reinstatement fee. To reinstate maintenance support and subscription for a
license, maintenance must be back dated to the original date of expiration, renewed for a
12 month period from the current date and a 20% reinstatement fee added.
Policy: https://www.vmware.com/files/pdf/support/support_terms_conditions.pdf
Quote form: http://www.vmware.com/support/form/contract_renewal.html
21
VMware Confidential Information
VI3 Enterprise License Mapping
Your VI3 License:
ENTERPRISE
$2875/CPU
6 cores
(Including: VMotion, SVMotion,
DRS+DPM)
Your vSphere 4 License:
Add FT, vShield, Data
Recovery
ENTERPRISE
$2875/CPU
6 cores
(+ VMotion, SVMotion, DRS+DPM)
(FT + vShield + Data Recovery)
Upgrade
Promo:
$295 / CPU
Ending 12/15
• Enterprise customers fulfilled
additional products
• Promotional period upgrade to
Enterprise Plus
ENTERPRISE PLUS
$3495/CPU
+12 Cores
(+Host Profiles + Distributed Virtual
Switch)
• Enterprise is phased out during
transitional period ending 12/15
Specific OEM processes may apply for entitlement upgrades
Note: See Appendix B for information on a new process for selling SnS with Upgrades
22
VMware Confidential Information
VI3 Standard License Mapping
Your VI3 License:
STANDARD
$1495/CPU
6 Cores
+
(VC Agent + VUM + HA)
Your vSphere 4 License:
Add Thin Provisioning
STANDARD
$795/CPU
6 Cores
+
(VC Agent + VUM + HA)
(+Thin Provisioning)
Upgrade
Promo:
$745 / CPU
Ending 12/15
• Standard customers fulfilled an
additional product: Thin Provisioning
• Lower price point and decrease in
ongoing Support and Subscription
• Limited time promotion to Advanced
ADVANCED
$2245/CPU
+12 Cores
(HA + VMotion)
(FT + vShield + Data Recovery)
• Standard plus feature add-on paths
available in the Appendix
Specific OEM processes may apply for entitlement upgrades
Note: See Appendix B for information on a new process for selling SnS with Upgrades
23
VMware Confidential Information
VI3 Foundation License Mapping
Your VI3 License:
Foundation
$495/CPU
6 Cores
+
(VC Agent + VUM)
Your vSphere 4 License:
Add HA
Thin Provisioning
STANDARD
$795/CPU
6 Cores
+
(VC Agent + VUM + HA)
(+Thin Provisioning)
• Foundation customers fulfilled an
additional products: High
Availability (HA), Thin Provisioning
• Support and Subscription price
remains exactly the same as today
• Foundation plus feature add-on
paths available in the Appendix
Specific OEM processes may apply for entitlement upgrades
24
VMware Confidential Information
VirtualCenter Server License Mapping
Your VI3 License:
Your vSphere 4 License:
VirtualCenter Foundation
$1495/Instance
(3 servers)
vCenter Server Foundation
$1495/Instance
(3 servers)
VirtualCenter Server
$4995/Instance
vCenter Server Standard
$4995/Instance
(+Orchestrator + Linked Mode)
Add Orchestrator, Linked
Mode
• VirtualCenter Server is renamed
vCenter Server
• VirtualCenter 2.x licenses
translate into equivalent vCenter
4.0 licenses
Specific OEM processes may apply for entitlement upgrades
25
VMware Confidential Information
Acceleration Kits
Acceleration Kits are fulfilled at the component level
VI3 Acceleration Kit
vSphere 4 Licenses
Foundation Acceleration Kit:
VI3 Foundation
vSphere 4 Standard
vCenter Foundation
vCenter Server Foundation
Standard HA Acceleration Kit:
VI3 Standard
vSphere 4 Standard
vCenter Foundation
vCenter Server Foundation
Mid-size Acceleration Kit:
VI3 Enterprise
vSphere 4 Enterprise
vCenter Foundation
vCenter Server Foundation
Enterprise Acceleration Kit:
VI3 Enterprise
vSphere 4 Enterprise
vCenter Server
vCenter Server Standard
26
VMware Confidential Information
Version Downgrade Rights
vSphere 4 licenses can always be downgraded to VI3
licenses to run ESX 3.x and VC 2.x
vSphere 4 License
VI3 License
(ESX/ESXi 4.0 & vCenter 4.0)
(ESX/ESXi 3.x & vCenter 2.x)
vSphere 4 Enterprise Plus
VI3 Enterprise
vSphere 4 Enterprise
VI3 Enterprise
vSphere 4 Advanced
VI3 Standard
vSphere 4 Standard
VI3 Standard
Downgrade is enabled by a simple ‘point and click’ in the
vmware.com license portal
NOTE: Downgrades are not available for either Essentials package
27
VMware Confidential Information
Examples
Customer Situation
Result (Available in Customer’s License Portal)
Customer has 4 VI3
Enterprise licenses
8 CPU vSphere 4 Enterprise licenses
4 x 2 CPU = 8 x 1 CPU
VI3 Enterprise maps to vSphere 4 Enterprise
Customer has a mid-size
acceleration kit
6 CPU vSphere 4 Enterprise licenses and 1 vCenter Server
Foundation license
(3 x 2 CPU VI3 Enterprise +
3 x 2 CPU = 6 x 1 CPU
vCenter Foundation)
VI3 Enterprise maps to vSphere 4 Enterprise
vCenter Foundation maps to vCenter Server Foundation
Customer has 2 VI3
Standard and one VMotion
feature license
2 CPU vSphere 4 Standard licenses
Customer buys vSphere 4
Standard but wants to run
ESXi 3.5
Customer uses the license portal to generate a VI3 Standard
license
2 CPU vSphere 4 Standard plus VMotion plus Storage VMotion
licenses
28
VMware Confidential Information
Agenda
VMware vSphere Pricing and Packaging
Entitlement Paths and Upgrade Options
Acceleration Kits
New Licensing Mechanism
Selling vSphere
29
VMware Confidential Information
vSphere Acceleration Kits for New Customers
 Solution bundles targeted at new customers in Medium to
Commercial segments
 Bundles vSphere Editions together with vCenter management
VMware vSphere
VMware vSphere
Advanced
Acceleration Kit
Advanced
Acceleration Kit
With Training
(NA ONLY)
VMware vSphere
VMware vSphere
Enterprise Plus
Enterprise Plus
Acceleration Kit
For 6 Processors
Acceleration Kit
For 8 Processors
20-30% Savings
(Promotion through 12/15/2009)
Note: Acceleration kits will also be available via OEM’s with the exception of the
Acceleration Kit that includes training
VMware Confidential Information
vSphere Acceleration Kits for New Customers
Delivers superior application availability and data protection
together with centralized management for mid-sized businesses
at 27-30% off for a limited time.
VMware vSphere
Advanced Acceleration Kit
VMware vSphere
Advanced Acceleration Kit
With Training (NA ONLY)
Includes:
vSphere Advanced for 6 processors
vCenter Foundation
Includes:
vSphere Advanced for 6 processors
vCenter Foundation
30 PSO credits (Install & Configure Class)
List: $10,495* – 30% discount
List: $13,195 – 27% discount
Target:
• Small to Medium segment (20-50 physical servers)
• Interested in a complete availability solution
• May be interested to add training (Install & Configure class)
*EMEA local price TBD
VMware Confidential Information
vSphere Acceleration Kits for New Customers
Includes the full range of vSphere features together with scalable central
management for transforming datacenters into dramatically simplified
environments for the next generation of flexible, reliable IT services.
VMware vSphere
Enterprise Plus
Acceleration Kit for 6 Processors
VMware vSphere
Enterprise Plus
Acceleration Kit for 8 Processors
Includes:
vSphere Enterprise Plus for
6 processors
vCenter Server
Includes:
vSphere Enterprise Plus for
8 processors
vCenter Server
List: $20,895* – 20% discount
List: $26,395* – 20% discount
Target:
• Medium to Commercial businesses (> 50 servers)
• Need scalability of vCenter Server
• Interested in full VDC-OS solution
*EMEA local prices TBD
VMware Confidential Information
vSphere Acceleration Kits - Detail
Accel Kit
Components
vSphere Advanced Acceleration
Kit
6 CPU vSphere Advanced
6 CPU vSphere Advanced
(NORTH AMERICA ONLY)
30 PSO Credits
vSphere Enterprise Plus
6 CPU vSphere Enterprise
Plus vCenter Std
vSphere Enterprise Plus
Acceleration Kit for 8 Processors
VI3 SRM Acceleration Kit
$14,965
vCenter Foundation
vSphere Advanced Acceleration
Kit With Training
Acceleration Kit for 6 Processors
Component
List Price
$17,965
vCenter Foundation
8 CPU vSphere Enterprise
Plus vCenter Std
6 CPU VI Enterprise (VI3)**
6 CPU SRM
$25,965
$32,955
$32,745
Discount
10%
Regular
Bundle
List
$13,495
Promo
through
12/15/09
$10,495
$1,470
30%
off
$4,470 off
10%
$16,195
$13,195
$1,770
27%
off
$4,770 off
15%
$22,095
$20,895
$3,870
20%
off
$5,070 off
15%
$27,995
$26,395
$4,960
20%
off
$6,560 off
15%
$27,795
$4,950
VC Std
Additional Details:
•Available through all channels (inc OEM)
•Limitation of 1 per customer
•Mandatory SnS calc’d at 21/25% of bundle license (not including PSO for #2 – same SnS price and SKUs as for #1)
EMEA local prices TBD
** SRM will only be compatible
with VI3 at time of vSphere launch
VMware Confidential Information
Acceleration Kit Upgrades

Objective: Drive existing Acceleration Kit customers up to a higher-end vSphere bundles.

Promo pricing logic built on 50% off a la carte promos good through 12/15/09
From
To (VI4)
Components Delta
Components
Delta Price
(List)
Regular
$9,550
VI3 Foundation
Acceleration Kit
Advanced
Acceleration Kit
Upgrade to 6 CPU
vSphere Advanced
$8,700
VI3 Standard
Acceleration Kit
Advanced
Acceleration Kit
Upgrade to 6 CPU
vSphere Advanced
$8,700
VI3 Mid-Size
Acceleration Kit
vSphere Enterprise
Plus AK
Upgrade to 8 CPU
vSphere Enterprise Plus
$14,210
UG Price
(+10% dest lic)
(assumes Std
fulfillment)
Promo
price
$4,500
53% savings
$10,850
$4,500
59%
$15,650
$12,400
21%
+ VC Std upgrade
VI3 Enterprise
Acceleration Kit
vSphere Enterprise
Plus AK
Upgrade to 8 CPU
vSphere Enterprise Plus
+ VC Std upgrade
Note: Acceleration kits upgrades will also be available via OEM’s
$4,960
$5,450
$2,400
56%
VMware Confidential Information
Agenda
VMware vSphere Pricing and Packaging
Entitlement Paths and Upgrade Options
Acceleration Kits
New Licensing Mechanism
Selling vSphere
35
VMware Confidential Information
Simplified License Management in vSphere 4
Flex licensing is replaced by simple license keys
Each vSphere host is assigned only 1 single license key for the entire “bundle” (e.g., Enterprise) rather than a
separate license for each feature
Same license key can be shared by many vSphere hosts, subject to the key’s maximum CPU count
New centralized license key administration in vCenter
No separate license server to manage or monitor – license administration is a native vCenter feature
vCenter can be used to assign
license keys to vSphere hosts
via a simple UI
Centralized vCenter report on
all hosts and license keys in
inventory enables easy
monitoring of license state and
compliance
New license portal provides more accurate view of entitlement
License keys linked to purchase history, including upgrades and license recombinations (i.e., division/combination
of license quantities into more/fewer keys)
Contract administration self-service allows addition and removal of license admins and support admins with
access to specific licenses
VMware Confidential Information
Improved Activation Process
VI3 License Activation Is Failure-prone
Too many steps and “context changes” Customers have many opportunities to get confused or take “wrong
turns”
License files are the result of a long, multi-step portal transaction
Complexity illustrated: 40 pages in VI3 admin/install guide devoted to licensing
Go to
license
portal
0
1
Receive
activation
code in email
Choose
server or
host-based file
2
Generate new
license file
Download
or email
license file
3
4
5
6
Select license
qualities to
activate
Configure
licensing in
VC/ESX UI
Upload
license file
7
Install license
server if
needed
8
9
10
Re-read
license file
to server
Product
activated
A Dramatically Simpler Process In vSphere 4.0
A short and easy activation process was the single most important design requirement
License keys are sent in email and can be copied directly into the product – no portal activation step required
No separate license server means no additional installation, configuration or monitoring is required
Receive license keys in email
Enter license key into VC UI
Assign license key to ESX hosts
Product activated
0
1
2
3
VMware Confidential Information
Potential Transition Issues
Licenses are not backwards or forwards compatible!
How does a customer upgrade from VI3 to vSphere 4.0?
All VI3 customers with active SnS will automatically get vSphere 4.0 licenses at GA
VI3 licenses are not “traded in” or deactivated – customers will retain licenses for both versions,
but must not deploy licenses in excess of their entitlement
New vSphere 4.0 licenses are automatically added to customers’ online accounts, i.e. to their
license portal

Email notifications will go out, but will not contain any license keys or activation codes (as in
VI3 fulfillment)

Important: Automatic fulfillment of vSphere 4.0 licenses assumes that existing order and
contract data is correct. If account data needs to be modified, it is better to do so prior to
vSphere 4.0 GA. Customer can do this using self-service tools on the account portal.
Previously purchased “a la carte” features (e.g., Vmotion) will be fulfilled as “fixed” add-ons in the
vSphere 4.0 model (e.g., Standard+Vmotion)
How can a customer continue to obtain new VI3 licenses after vSphere 4.0 GA?
After vSphere 4.0 GA, only vSphere 4.0 SKUs will be on the price list
Customers who purchase vSphere 4.0 but wish to deploy VI3 can “downgrade” license keys on
the license portal
Downgrade will add additional VI3 license quantities to the customer’s VI3 portal - as in the
upgrade case, they will have access to both versions simultaneously and must manage
compliance accordingly
Licenses can only be upgraded or downgraded once
VMware Confidential Information
Agenda
VMware vSphere Pricing and Packaging
Entitlement Paths and Upgrade Options
Acceleration Kits
New Licensing Mechanism
Selling vSphere
39
VMware Confidential Information
vSphere 4 Enables “Virtualization Everywhere”
From the smallest environments…
Available, reliable platform for small and medium businesses
Simple solution for remote and branch offices
…to the largest datacenters
Efficiency to meet the performance demands of critical
applications
Control of service levels with leading management and
automation capabilities
Choice that enables customers to integrate with their choice of
datacenter management tools and processes
VMware Confidential Information
Degree of Virtualization
Driving Virtualization Adoption
Explore
Expand
Standardize
Simple consolidation of
nonproduction
environments
Increased adoption of
virtualization for capital and
operational savings
Broad adoption of
virtualization to create
computing cloud
vSphere 4 accelerates adoption of
virtualization
Security?
Manageability?
Performance?
Availability?
Interoperability?
VMware Confidential Information
Key Selling Motions for the Datacenter
1. Sell value of the platform
Drive adoption of VMware vSphere by new and existing
customers
2. Sell business continuity
Leverage virtualization to meet the availability and disaster
recovery demands of important applications
3. Sell virtualization management
Lab Manager, Stage Manager, Lifecycle Manager expand value
of virtualization to customers
42
VMware Confidential Information
Sales Opportunities with vSphere 4
Drive virtualization adoption by SMB customers
Compelling solution for meeting the availability, data protection,
and affordability requirements for SMBs
Drive deeper and broader adoption of virtualization in
the datacenter
•
Simplify remote and branch office deployment
•
Virtualize tier 1 applications
•
Upgrade and upsell
VMware Confidential Information
IT Challenges for SMBs
Environment
Challenges
• Small number of servers
• Budget constraints
• Limited IT staff with limited
specialization
• Complexity overwhelms IT staff
• Availability and recoverability are
critical to survival
• Options for increasing availability
are impractical
• Backup and restore are painful
and unreliable
VMware Confidential Information
vSphere for SMB
• Simplified backup and reliable restore
Integrated Data
Protection
• Support from all major backup vendors
• New! Efficient, integrated backup with VMware Data Recovery
• New! Integrated firewall for virtual machines
• VMware HA protection across server environment
Increased
Availability
• New! Continuous availability for critical workloads with VMware
Fault Tolerance
• Practical disaster recovery
Simplified
Management
Affordable IT
• Easy deployment with embedded ESXi
• Integrated management for provisioning, availability, backup
• New! Expanded pricing and packaging options
• Industry’s lowest cost per workload
VMware Confidential Information
vSphere Options for SMB
Availability Requirements
•
•
•
•
vSphere
Essentials
Plus
Larger scale (> 3 servers)
Continuous availability
Live migration (VMotion)
Integrated firewall (vShield Zones)
vSphere
Advanced
• Integrated data
protection and
automated
failover
• Larger scale (> 3 servers)
• Integrated continuous availability
and data protection
• Live migration (VMotion)
• Integrated firewall (vShield Zones)
vSphere
Essentials
vSphere
Standard
<3 virtualized hosts
>3 virtualized hosts
Size of deployment
• Larger scale (> 3 servers)
• Automated failover (HA)
VMware Confidential Information
Remote and Branch Office Challenges
Typical Remote Office:
Supported by central IT staff located
in the data center
Typically ~5-10 servers:
File/Print/E-Mail/Web/Network
Manual tape backup
Examples:
Retail store, bank branch, regional
office, warehouse, medical clinic,
manufacturing plant, call center
Challenges in Remote & Branch Offices:

Limited space, budget, and onsite IT staff in the remote offices

Slow provisioning process

Unreliable and insecure data protection and recovery processes

High costs resulting from duplicating entire remote office environments for disaster
recovery
VMware Confidential Information
vSphere for Remote and Branch Offices
Simplify IT Management
Standardize deployments
Remotely and centrally manage from the datacenter
Accelerate provisioning
Ensure Availability and Recoverability
Increase availability without the cost and complexity
Integrated backup and restore
Reduce Hardware and Operational Costs
Minimize costly setup and support trips
Reduce operational costs
Deploy new applications without adding hardware
VMware Confidential Information
vSphere Options for ROBO Deployments
Data
Recovery
vSphere
Essentials
vSphere
Essentials
Plus
vSphere
Standard
vSphere
Enterprise
Plus
$873 /
3 servers
$2995 /
3 servers
$795 (+ $695) /
CPU
$3495 /
CPU
• Limited scale
(<= 3 servers)
• Many vCenter
Servers
• Limited
requirements for
availability
• 3rd-party backup
solution in place
• Limited scale
(<= 3 servers)
• Many vCenter
Servers
• Want basic
failover
protection
• Looking for
integrated
backup solution
• Scale to >3
servers
• Integrated patch
mgmt
• (Data Recovery)
Looking for
integrated
backup solution
Size of remote/branch office
• Large,
standardized
deployments
• Manageability
and scalability
requirements
similar to large
datacenters
VMware Confidential Information
vSphere Meets the Needs of Tier 1 Applications
Maximized application throughput
Up to 8000 DB transactions per second per virtual machine
Over 200,000 IOPS per ESX host
Increased MS SQL Server throughput efficiency by 20%
Increased Citrix XenApp throughput by 30%
Up to 86% network throughput increases in consolidated environments
Up to 10 times more iSCSI throughput to storage
Record number of MS Exchange mailboxes per host
Increased availability, security and scalability
•
Continuous availability for critical applications with Fault Tolerance
•
Non-disruptive scale-up of virtual machine CPUs, memory and disks
•
8 way vCPU , 255 GB of RAM and 120 TB
VMware Confidential Information
% of Applications
vSphere 4 Delivers Performance for
Demanding Applications
95% of
applications
ESX 3.5
ESX 4.0
1 to 2 CPUs
4 VCPUs
8 VCPUs
< 4 GB at peak
64 GB per VM
255 GB per VM
< 2.4Mbits/s
9 Gb/s
40 Gb/s
< 100 at peak
100,000
Application Performance Requirements
1. Source: VMware Capacity Planner assessments
200,000+
VMware Confidential Information
I/O Throughput Optimizations for Business
Critical Applications
Network Transmit
Potential Gains
Performance increase in ESX 4.0
over ESX 3.5
iSCSI Maximums
iSCSI Max Gbps
9.1
86%
59%
23%
14%
.9
1VM
4VM
8VM
16VM
ESX 3.5
ESX 4.0
VMware Confidential Information
ESX 4.0 Performance with SQL Server 2008
Relative Scaling Ratio
VM
147.24
Native
133.12
94.04
Workload transaction
latency unchanged
between ESX 4.0
and Native
79.88
51.08
45.22
1 vCPU
2 vCPU
ESX achieves 90%
of native performance
on 4.0 vCPU VM
4 vCPU
VMware Confidential Information
Single VM Performance: Database OLTP Workload†
Next Generation Intel® Xeon® based 8-pCPU server
• < 15% overhead for 8
vCPU VM
• 8,900 total DB
transactions per second
• Near-linear scalability
from 1 to 8 vCPUs
• 60,000 I/O
operations/second
Transaction Rate (Ratio to 1-way VM)
RHEL 5.1
9
Oracle 11gR1
In-house ESX Server
8
VM
7
Native
6
5
4
3
2
1
0
1-way
†
A fair-use implementation of the
TPC-C workload; results are not
TPC-C compliant
2-way
4-way
8-way
VMware Confidential Information
Hardware Failure Tolerance
Meeting the Availability Needs of Critical Applications
Continuous
VMware FT
Automated
Restart
with VMware HA
Unprotected
0%
100%
10%
Application Coverage
VMware Confidential Information
vSphere Options for the Datacenter
Continuous availability,
live migration,
integrated security
Large-scale manageability, dynamic
optimization, integration with
network and storage ecosystem
vSphere Enterprise Plus
Basic availability
and management
vSphere Advanced
vSphere Standard
Basic consolidation
of a lab or small
environment
Integrated high
availability for
protecting critical
production
applications
Availability
Security
Scalability
Large scale management of
critical production
applications
VMware Confidential Information
Upsell Opportunities from VMware Ecosystem
Advanced network management
Third-party distributed virtual switch (e.g. Cisco Nexus 1000v)
Advanced storage management
Third-party multipathing plug-ins (e.g. EMC PowerPath)
Enhanced security
•
Security virtual appliances
•
Third-party security products leveraging VMsafe interfaces
VMware Confidential Information
From VI3 to vSphere 4: Why Upgrade
Cost savings from
enhanced efficiency
Increased operational
control
Deeper integration with
existing infrastructure
• Higher consolidation ratios due
to performance optimizations
• Continuous availability with
VMware Fault Tolerance
• Third-party distributed virtual
switch
• Up to 20% reduction in power
costs with Distributed Power
Management
• Operationally efficient security
with vShield Zones
• Third-party multipathing
• Up to 50% reduction in storage
costs with Thin Provisioning
• VMsafe products
• Dynamic scale up of virtual
machines with “hot”
add/plug/extend features
• Compliance to standardized
configurations with Host Profiles
• Single pane of glass view over
entire inventory with vCenter
Server Linked Mode
• Day to day task automation with
vCenter Orchestrator
Solution and services opportunities for partners in helping customers understand and
execute upgrades
VMware Confidential Information
Upgrade Opportunities: Upsell to New Packages
Ent → Ent+ Promotion:
Benefits:
$295 / CPU until
December 15, 2009
• Greater scalability:12 cores /
processor, 8-way SMP
vSphere
Enterprise Plus
• Integration with third-party distributed
virtual switches
vSphere
Enterprise
• Easier host management with Host
Profiles
vSphere
Enterprise Plus
vSphere
Standard
vSphere
Advanced
• Greater scalability:12 cores /
processor, 8-way SMP
• Dynamic optimization (DRS, DPM,
Storage VMotion)
• Integrated continuous availability,
security, data protection for
production applications
• Live migration (VMotion)
Std → Adv Upgrade Promotion:
$745 / CPU until December 15, 2009
Promotions also apply to OEM
Appendix A: Additional
Entitlement Mappings
VMware Confidential Information
APPENDIX: More Details on Entitlements
For previous releases, VMware sold ‘a la carte’ features, such
as VMotion and DRS
For vSphere 4, VMware is eliminating most a la carte features
for new sales
However, some customers still have unusual combinations of
VI3 licenses combined with feature licenses
The following slides show the entitlement paths for the various
potential combinations
Licenses such as ‘Standard + VMotion + Storage VMotion’ are
fulfilled as a single serial number enabling these features
61
VMware Confidential Information
VI3 Standard and Feature License Mapping
Your VI3 License:
Your vSphere License:
STANDARD
$1495/CPU
6 Cores
+
(VC Agent + VUM + HA)
STANDARD
$795/CPU
6 Cores
+
(VC Agent + VUM + HA)
STANDARD + VMotion
6 Cores
+
(+VMotion + Storage VMotion)
STANDARD + VMotion
6 Cores
+
(+VMotion + Storage VMotion)
STANDARD + VMotion + DRS
6 Cores
+
(+DRS)
ENTERPRISE
6 cores
+
(+ SVMotion + DRS+DPM)
(FT + vShield + Data Recovery)
Add FT, vShield Zones,
Data Recovery
62
VMware Confidential Information
VI3 Foundation and Feature License Mapping
Your VI3 License:
Foundation
$495/CPU
6 Cores
+
(VC Agent + VUM)
FOUNDATION + VMotion
6 Cores
+
(+VMotion + Storage VMotion)
FOUNDATION + VMotion + DRS
6 Cores
+
(+DRS)
Your vSphere License:
STANDARD
$795/CPU
6 Cores
+
(VC Agent + VUM + HA)
Add HA
STANDARD + VMotion
6 Cores
+
(+VMotion + Storage VMotion)
Add HA
Add FT, vShield Zones,
Data Recovery
63
ENTERPRISE
$2875/CPU
6 cores
(+ SVMotion + DRS+DPM)
(FT + vShield + Data Recovery)
Appendix B: SnS Extensions
VMware Confidential Information
SnS Extension Feature Summary
Product Upgrades (STD to ADV, ENT PL etc) are a key component of VMware’s
strategy of delivering significant value to our customers
The current process to execute upgrades results in a lengthy upgrade cycle and
creates both internal and external customer & partner confusion.
Using this functionality, VMware will be able to offer customers credit for any unused SnS on their Original License. This credit will in the form of “days of SnS”
that will be tagged on to the new 12-month SnS contract. Key benefits include
Eliminate all SnS Upgrade SKUs both for VMware and Partners
Reduction in the number of price-points managed thereby reducing complexity
Customers and Partners have to send fewer quotes and Pos
Upgrades are executed in a single step without any follow-on Renewals on the Original
License
The “credit” process is automatic and NO ACTION is REQUIRED from the
CUSTOMER or partner
Above SnS Rules also apply to OEMs
65
VMware Confidential Information
New Upgrade Process – SnS Extension
PROCESS Pre-VS4 Launch
(example: VI-STD to VI-ENT
Upgrade)
PROCESS POST VS4 Launch
(Example: VS4-STD to VS4-ENTPL upgrade)
Customer sends PO for VI-STD License and
VI-STD SnS
Customer sends PO for VS4-STD License and
VS4-STD SnS
Customer decides to upgrade and sends PO
for VI-STD-ENT-UG License and VI-STDENT-UG SnS
Customer decides to upgrade and sends PO for
VS4-STD-ENT-PL-UG License and VI-ENT-PL
SnS
Customer is then co-termed for SnS on STD
and the Upgrade
SnS duration is adjusted to add on extra
days to account for unused SnS on VS4STD (no action required from customer or
partner)
Customer Renews on VI-ENT
Customer Renews on VI-ENT-PL
A credit estimator will be available on Partner
Central and on the Product Page / S3P portal
Customers will be able to go to the S3P portal to
see the exact extension on their SnS
66