Forward-Looking Statements

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2 Forward-Looking Statements This presentation contains forward-looking statements including, among other things, statements regarding the total addressable market for VMware in 2017; the momentum of its solutions for the software-defined data center, including the benefits for its customers; VMware s future go-to-market strategy; VMware s future integrations with EMC ViPR and partner Virtual Volumes solutions; and NSX momentum. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including but not limited to: (i) adverse changes in general economic or market conditions; (ii) delays or reductions in consumer or information technology spending; (iii) competitive factors, including but not limited to pricing pressures, industry consolidation, entry of new competitors into the virtualization and cloud computing markets, and new product and marketing initiatives by our competitors; (iv) our customers ability to develop, and to transition to, new products and computing strategies such as cloud computing, network virtualization and the software defined data center; (v) the uncertainty of customer acceptance of emerging technology; (vi) rapid technological and market changes in virtualization software and platforms for cloud and end user computing and networking; (vii) our ability to attract and retain highly qualified employees; and (viii) geopolitical events and stability. These forward-looking statements are based on current expectations and are subject to uncertainties and changes in condition, significance, value and effect as well as other risks detailed in documents filed with the Securities and Exchange Commission, including our most recent reports on Form 10- K and Form 10-Q and current reports on Form 8-K that we may file from time to time, which could cause actual results to vary from expectations. VMware assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release VMware Inc. All rights reserved. 2

3 Financial Analyst Day 2014 Raghu Raghuram Executive Vice President, Software-Defined Data Center VMware 2014 VMware Inc. All rights reserved.

4 Software-Defined Data Center Overview Momentum and Customer Adoption SDDC IT Outcomes Dramatic Economic Benefits SDDC Product Updates New Model of IT based on Choice and Open Standards 2014 VMware Inc. All rights reserved. 4

5 2014 VMware Inc. All rights reserved. 5

6 Continued Strong Software-Defined Data Center Customer Momentum vcloud Suite (Compute + Management) 2014 VMware Inc. All rights reserved. 6

7 Continued Strong Software-Defined Data Center Customer Momentum VMware NSX (Network) VMware Virtual SAN (Storage) 2014 VMware Inc. All rights reserved. 7

8 Software-Defined Data Center Overview Momentum and Customer Adoption SDDC IT Outcomes Dramatic Economic Benefits SDDC Product Updates New Model of IT based on Choice and Open Standards 2014 VMware Inc. All rights reserved. 8

9 Two Different Paths Forward: Hardware-Defined or Software-Defined Architecture? HARDWARE-Defined Approach SOFTWARE-Defined Approach SOFTWARE LAYER Manual Operations SOFTWARE LAYER Intelligence PROPRIETARY HARDWARE Intelligence Automated Operations EXISTING HARDWARE IT Struggles to Keep Up IT Moves at the Speed of the Business 2014 VMware Inc. All rights reserved. 9

10 Benefits of a Software-Defined Architecture IT Outcomes & Impact Delivered by Software-Defined Data Center Software-Defined Data Center enables new levels of CapEx and OpEx efficiency OpEx Reduction Streamlined and Automated Data Center Operations Improved Security to Effort Ratio Security Controls Native to Infrastructure Higher Availability High Availability and Resilient Infrastructure CapEx Reduction Data Center Virtualization and Standardization Improved Service Delivery Time App and Infrastructure Delivery Automation 2014 VMware Inc. All rights reserved. 10

11 VMware Software-Defined Data Center: Faster Time to Value, 49% Lower CapEx CapEx Comparison for Greenfield Deployment of 2,500 VMs $10.6M $1.9M 32% $7.2M $2.9M 49% $5.4M Comparison for Brownfield Deployment CapEx savings for Software-Defined Data Center vs. HDDC 42% $8.7M $4.4M $2.9M $2.5M CapEx savings for Software-Defined Data Center w/*cots HW 58% HDDC Virtualization Software Software-Defined Data Center Software-Defined Data Center w/*cots HW Compute, Storage and Network hardware *Commercial off-the-shelf. Source: Taneja Group white paper For Lowest Cost and Highest Agility, Choose Software-Defined Architectures - Study commissioned by VMware 2014 VMware Inc. All rights reserved. 11

12 SDDC Increases Velocity of IT Service Delivery More Efficient IT Operations OpEx Savings 70%+ Reduction in HW Support costs 50%+ Reduction in IT Admin hours CapEx Savings 49% Savings in CapEx Faster provisioning of Applications (compute, networking, and storage) ~50% Reduction in Power & Cooling 30%+ Reduction in DC Floor Space shift from IT maintenance to transformation Faster time to market Sources: VMW estimates for average cost and savings to operate a 2,500 VM environment. Taneja Group - Technology Brief, August Study commissioned by VMware VMware Inc. All rights reserved. 12

13 Software-Defined Data Center Overview Momentum and Customer Adoption SDDC IT Outcomes Dramatic Economic Benefits SDDC Product Updates New Model of IT based on Choice and Open Standards 2014 VMware Inc. All rights reserved. 13

14 SDDC Product Updates Management Compute Storage Network 2014 VMware Inc. All rights reserved. 14

15 Customer Adoption Building Towards the Software-Defined Data Center for Customer Value Customer Adoption of VMware Software-Defined Data Center Products Late majority Compute Virtualization Mainstream vsphere with Operations Management vcloud Suite vsphere-based Private Cloud Cloud Operations Management Early Majority Disaster Recovery Automation Early / Innovators Software- Defined Storage Network Virtualization Cloud Automation Time 2014 VMware Inc. All rights reserved. 15

16 VMware vcloud Suite 5.8 vsphere-based private cloud, components engineered to work together Improved business continuity and disaster recovery Enhanced next-generation applications Improved interoperability with NSX New proactive support Self-service, policy-based provisioning of DR tiers Increased scalability of protection and recovery capabilities Big Data Extensions support Hadoop 2 Customizable provisioning of NSX firewall and routing services Support Assistant identifies issues before problems occur 2014 VMware Inc. All rights reserved. 16

17 SDDC Product Updates Management Compute Storage Network 2014 VMware Inc. All rights reserved. 17

18 VMware: The Leader in Cloud Management Market Cloud Systems Management Market Shares 1 Data Center Automation Market Shares 2 VMware Cloud Management Business Momentum: 20.7% 16.8% 24.1% >30% YoY license bookings growth - Q % 9.6% 9.0% 13.8% 12.2% 10.9% Last 12 months: 110% increase in customers 7.3 ~150% growth in trained partners Strategic GTM with Global SIs and OEMs #1: 2nd 3rd 4th 5th #1: 2nd 3rd 4th 5th VMware VMware 1 IDC, Worldwide Cloud Systems Management Software 2013 Vendor Shares, June 2014, Mary Johnston Turner, # IDC, Worldwide Datacenter Automation Software 2013 Vendor Shares, May 2014, Mary Johnston Turner, # VMware Inc. All rights reserved. 18

19 vrealize Suite Traditional Applications Cloud-Native Applications On-Premise Cloud Automation Cloud Operations Cloud Business As-a-Service Physical Virtual Cloud 2014 VMware Inc. All rights reserved. 19

20 vrealize Suite Comprehensive Capabilities, Delivered On-prem and As a Service Products Individual offerings CapacityIQ DynamicOps Functional Offerings Covering automation, operations or IT Business management Automation Cloud Management Platform Comprehensive management capabilities Run as software, or delivered as a service vrealize Suite Automation Operations IT Business Hyperic Portals VC Ops Mgr Config Mgr Operations Services Costing Reclamation Capacity visualization Compliance Auditing Monitoring Bursting ITBM AppDirector IT Business Platform App Blueprints App SLA Infra Profiles Permission model Inventory Remediation Reporting Messaging Orchestrator 2014 VMware Inc. All rights reserved. 20

21 GTM Strategy: Land on vsphere Environments, Expand to Heterogeneous Environments VMware Cloud Management Penetration on Virtual Workloads On Premises (Private) All Other Platforms VMware vsphere Installed Base 12% Off Premises (Public) Managed by VMware Management Products 88% 2014 VMware Inc. All rights reserved. 21

22 SDDC Product Updates Management Compute Storage Network 2014 VMware Inc. All rights reserved. 22

23 The Hypervisor Opens Up a New Approach to Storage New application centric control plane Common consumption model across all storage tiers Dynamic composition of storage services Granular control of service levels vsphere Virtualize the data plane VM-centric abstraction of external storage Cloud Storage New hot-edge for vsphere: Hypervisor-converged storage tier on x-86 SAN / NAS 2014 VMware Inc. All rights reserved. 23

24 Enabling New Storage Tiers With Common Control Plane Storage Policy Based Mgmt. Virtual Volumes (Beta) Virtual SAN vcloud Air Virtual Datastore Virtual SAN Shared Datastore Cloud Storage SAN / NAS SAN / NAS 2014 VMware Inc. All rights reserved. 24

25 Virtual Volumes Will Soon Be Available and many more 29 Virtual Volumes Partners Virtual Volumes in Beta Partners Announcing GA 2014 VMware Inc. All rights reserved. 25

26 VMware Virtual SAN Radically simple hypervisor-converged storage The Basics vsphere + Virtual SAN Virtual SAN Shared Datastore Embedded in vsphere: Runs on standard x86 servers Elastically scalable: Pools HDD/flash into a shared distributed datastore Highly resilient: Protects against data loss through hardware failures High performance through flash cache acceleration Delivers policy-based management for storage 2014 VMware Inc. All rights reserved. 26

27 Virtual SAN: Unprecedented Customer Interest Best of Interop and Audience Choice Award Best of TechEd Virtualization Winner Customers in the first 3 months 300+ Virtual SAN takes VMware a big step closer to the software-defined datacenter... Charles Babcock It s really a no-brainer when the hypervisor you want to use also includes this virtualized storage. Ryan Hoenle IT Director of The Doe Fund 2014 VMware Inc. All rights reserved. 27

28 Virtual SAN: Common Use-Cases For Early Deployments Virtual Desktop (VDI) Tier 2 Production Disaster Recovery Target Staging & Test/Dev Site A Site B Mid-Market and Departmental VDI Tier 2 Workloads that do not need advanced data services Lower cost DR target for secondary sites Rapid and easy provisioning of dev/test farms 2014 VMware Inc. All rights reserved. 28

29 Integration with ViPR vsphere Storage Policy Based Mgmt. Virtual Volumes Virtual Datastore ViPR Controller ViPR Controller Common management layer across heterogeneous arrays vsphere, physical, non-vsphere Integrates into policy-driven control plane Simplifies and automates storage administration Resold by VMware SAN / NAS SAN / NAS 2014 VMware Inc. All rights reserved. 29

30 VMware + EMC: Common Vision For Software-Defined Storage vsphere Storage Policy Based Mgmt. Multi Hypervisor Physical Virtual SAN Virtual Volumes VASA ViPR Controller SSD HDD SSD HDD SSD HDD Virtual SAN Shared Datastore ViPR Data Services Hypervisor-Converged Storage 3 rd Party VNX Isilon XtremIO VMAX SAN / NAS Commodity 2014 VMware Inc. All rights reserved. 30

31 SDDC Product Updates Management Compute Storage Network 2014 VMware Inc. All rights reserved. 31

32 Customer Momentum for VMware NSX: Over 150 Customers top investment banks enterprises & service providers 2014 VMware Inc. All rights reserved. 32

33 Introducing: VMware NSX 6.1 NSX App App App VMware NSX 6.1 L2, L3, L4-7 Network Services Advanced Network Micro-Segmentation Capabilities Virtual Network Virtual Network Virtual Network Hybrid Cloud Connectivity Network Hypervisor Requirement: IP Transport Equal Cost Multi-Path (ECMP) for highbandwidth uplink to physical networks vcloud Automation Center 6.1 Integration General Purpose Networking Hardware 2014 VMware Inc. All rights reserved. 33

34 Industry Momentum for NSX VMware named Visionary in Gartner Data Center Networking Magic Quadrant VMware is the only software pure play vendor Leading technology firms shipping integrated products Gartner, M. Fabbi, T. Zimmerman, A. Lerner, Magic Quadrant for Data Center Networking, April 24, Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose VMware Inc. All rights reserved. 34

35 SDDC Product Updates Management Compute Storage Network 2014 VMware Inc. All rights reserved. 35

36 vsphere Platform Growth Continues to be Strong Accelerating Market Leadership in Compute Virtualization Today ~50M VMs 500K Customers Broad Installed Base Positions VMware to Deliver Additional Value with Software-Defined Data Center Offerings vsphere 6 Beta : Continued Innovation Scale-up & Scale-out Performance and Scale In-Memory Database Container support Break-through Availability vmotion Enhancements Multi-Processor Fault Tolerance Automation Policy Based Management Virtual Data Center Gartner Magic Quadrant for x86 Server Virtualization Infrastructure by Thomas J. Bittman, Mark A. Margevicius, Philip Dawson, July 2, This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from VMware, Inc. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose VMware Inc. All rights reserved. 36

37 Software-Defined Data Center Overview Momentum and Customer Adoption SDDC IT Outcomes Dramatic Economic Benefits SDDC Product Updates New Model of IT based on Choice and Open Standards 2014 VMware Inc. All rights reserved. 37

38 VMware Integrated OpenStack 2014 VMware Inc. All rights reserved. 38

39 Delivering Choice Without Disruption VMware API OpenStack API Apps Apps Apps Apps Virtual SAN / vvol NSX vsphere vrealize Suite Software-Defined Data Center 2014 VMware Inc. All rights reserved. 39

40 One Platform for Any App VMware API OpenStack API Cloud Foundry API Apps Apps Apps Apps Apps Apps Virtual SAN / vvol NSX vsphere vrealize Suite Software-Defined Data Center 2014 VMware Inc. All rights reserved. 40

41 One Platform for Any App VMware API OpenStack API Cloud Foundry API Open Container API Apps Apps Apps Apps Apps Apps Apps Apps Virtual SAN / vvol NSX vsphere Containers vrealize Suite Software-Defined Data Center 2014 VMware Inc. All rights reserved. 41

42 Customer Choice for Cloud Infrastructure Software-Defined Data Center Build Your Own Converged Infrastructure Hyper-Converged Infrastructure 2014 VMware Inc. All rights reserved. 42

43 Customer Choice for Cloud Infrastructure Software-Defined Data Center Build Your Own Converged Infrastructure Hyper-Converged Infrastructure Hyper-Converged Infrastructure 2014 VMware Inc. All rights reserved. 43

44 EVO:RAIL Go-to-market through OEM partners Integration & Testing EVO Sold & Supported by Qualified Partners Customer gets up and running quickly Software Qualified EVO OEM Partner Hardware 2014 VMware Inc. All rights reserved. 44

45 VMware Software-Defined Data Center Demonstrating technology leadership from vsphere, to VSAN to NSX Gaining mainstream momentum vcloud Suite driving adoption of Software-Defined Data Center components, tremendous traction with VSAN and NSX Enabling true hybrid data centers Comprehensive management with Cloud Management Platform (vrealize Suite) Choice and openness on what and how to deploy Continued investment on Openstack, containers, and traditional to hyper-converged infrastructure 2014 VMware Inc. All rights reserved. 45

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