Copyright 2015 EMC Corporation. All rights reserved. STRATEGIC FORUM PAT GELSINGER CEO, VMware

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1 STRATEGIC FORUM 2015 PAT GELSINGER CEO, VMware

2 Federation: VMware Perspective In a Period of Industry Tumult Being bigger and more strategic is good Customers Get Better Together Customers want choice and solutions from trusted partners Unique Model of Governance Increases focus on what matters and not distracted by other stuff Increased Strengths Capital, M&A, IP, R&D, reach & sales coverage

3 Federation Model in 2015 Major Wins One Cloud, Any App, Any Device & Federation Hybrid Cloud Software- Defined Storage Progress VCE coming into EMC is Huge Several Major wins in 2014 set the stage for accelerated GTM & PSO Unique End-to-End Offering: Private- Managed-Public SDS progress with Virtual Volumes & Hyper-Converged Infrastructure Major opportunity in Converged Infrastructure and acceleration of VMware technologies

4 A Very Good Year #5 Software Company in the World $ 6B 2014 Revenue Fastest Enterprise Software Co. to $6 Billion in History 16% YoY Growth >50 Million Virtual Machines >500K Customers #1 in Customer Satisfaction* * Source: Temkin

5 Compute Virtualization Network Virtualization & Security Software- Defined Storage Hybrid Cloud Cloud Management Mobile Workspace

6 Conventional Approach to IT Traditional Applications Modern, Cloud Applications On-Premises Public Cloud Outsourced

7 VMware Architecture for IT: One Cloud, Any App, Any Device Any Device Business Mobility: Applications Devices Content Any Application Traditional Applications Modern, Cloud Applications Cloud Management One Cloud SOFTWARE- DEFINED DATA CENTER PRIVATE Your Data Center HYBRID CLOUD MANAGED vcloud Air Network PUBLIC vcloud Air Virtualized Compute, Network, Storage Build-Your-Own Converged Infrastructure Hyper-Converged Infrastructure

8 VMware Focus Areas Any Device Any Application Make SDDC Mainstream Traditional Applications Business Mobility: Applications Devices Content Establish VMware vcloud Air as the Hybrid Cloud Platform Cloud Management HYBRID CLOUD Modern, Cloud Applications One Cloud Win the Network Architecture Battle SOFTWARE- DEFINED DATA CENTER PRIVATE Your Data Center MANAGED PUBLIC vcloud Air Leader vcloud Air in Network Business Mobility Virtualized Compute, Network, Storage Build-Your-Own Converged Infrastructure Hyper-Converged Infrastructure

9 Starting the Year with a Bang! Enterprise Mobility AirWatch 8 VMware vcloud Air & VMware NSX vcloud Air Enhanced Disaster Recovery vcloud Air Advanced Networking Services vcloud Air Hybrid Networking Services vcloud Government Service VMware + OpenStack VMware Integrated OpenStack VMware vsphere VMware vsphere 6 vsphere with Operations Management 6 vcloud Suite 6 VMware Software-Defined Storage Virtual SAN 6 Virtual Volumes (vsphere 6 feature) January 20 th January 29 th February 2nd February 5 February 24

10 VMware vsphere 6 Foundation for SDDC, Hybrid Cloud & End User Computing with 650+ New Features Breakthrough scale and performance for any application Industry first resilience and availability Simplified management at scale vsphere 6.0 is BADASS. The Register

11 Customer Example Major European Bank ONE YEAR AGO Multiple environments globally Limited automation TODAY One hybrid cloud for all countries Full SDDC, HC & EUC Goal: 100% virtualized compute by 2018 vblock & Pivotal Result: Comprehensive Federation solution

12 Software-Defined Data Center Customer Momentum Continues to Grow Growth in SDDC Customers in 2014*: 20X vsphere with Virtual Operations Management SAN vrealize VMware vcloud Suite * Actual production customers utilizing at least 3 out of 4 elements of the SDDC

13 Customer Example Major U.S. Bank ONE YEAR AGO vcloud Suite Advanced & ITBM Considering a variety of options for Network, Management TODAY Full SDDC rollout underway Commitment to NSX Commitment to EMC Storage & SDS Result: Deep partnership with VMware and the Federation

14 NSX 2014 Customer and Business Momentum 400+ $200M+ $10M NSX Customers Annual Bookings Run Rate Network-Only ELA 50+ additional partners

15 NSX Use Cases Over the next three years, 70% of organizations Use Cases will initiate major Source of Funds network redesigns SDDC & IT Automation* ~50% of sales Micro- Segmentation ~40% of sales IDC FutureScape 2015 Predictions for Datacenter Networking Budget ~50% Cloud & Security Budgets ~30% Other ~20% Source: VMware Analysis Other ~10% (including DR) *Cost reduction and speed of deployment

16 VMware vrealize: Critical Control Point Automation vrealize Suite Operations Business Customers: 20,000+

17 Customer Example: Honeywell International ONE YEAR AGO 36% Virtualized Limited VMware advanced technologies TODAY Q4 ELA, VMware a strategic partner SAP virtualized on EMC/VCE vblock 90% of new deployments virtualized VMware Horizon Strong Pipeline Result: Federation Essential, Strategic Relationship 17

18 VMware Software-Defined Storage Architecture Storage Policy Based Mgmt. Virtual SAN (Data coming from Parag Patel & team for chart on growth in VSAN revenue and increase in # of customers) VVOL VVOL-enabled Storage External SAN / NAS SSD HDD SSD HDD

19 Broad Ecosystem Support for Virtual Volumes

20 VMware Virtual SAN 6 Scale and Performance with Radical Simplicity All Flash Architecture Option Scale and Performance Increase Enterprise Data Services Critical Component for Hyper- Converged Infrastructure Result: Customers in the First 9 Months

21 Accelerating the Software-Defined Data Center Enterprise hardware becomes converged infrastructure NSX on VCE TBA TBA Simplicity Defined Hyper-converged Tremendous industry support VSPEX Blue Strong offering NSX Block vrealize Bundling Federation Hybrid Cloud Alignment EVO:Rail simplicity at Cloud Scale VMworld 2015 Additional partners TBA

22 OpenStack Runs Best on VMware + VMware Integrated OpenStack Deliver the OpenStack APIs Developers Want Best-of-breed compute, network, storage Elegant, rapid, and simplified operations Network Functions Virtualization Solution Best of All: Free for vsphere Enterprise Plus Users Goal: VMware #1 at Monetizing OpenStack

23 VMware Cloud-Native Strategy Containers without compromise VMware API OpenStack API Cloud Foundry API Open Container API Apps Apps Apps Apps Apps Apps Apps Apps Virtual SAN Virtual Volumes NSX vsphere Containers vrealize Suite Software-Defined Data Center

24 VMware Cloud Strategy Any Device Any Application Traditional Applications Business Mobility: Applications Devices Content Cloud Management Modern, Cloud Applications HYBRID CLOUD One Cloud DevOps IT PRIVATE Outside-In Consumption New Apps Your Data Center MANAGED Developer vcloud Air Network Disaster Recovery and Existing Apps PUBLIC vcloud Air Software-Defined Data Center Inside-Out Virtualized Consumption Compute, Network, Storage Build-Your-Own Converged Infrastructure Hyper-Converged Infrastructure

25 vcloud Air Network Momentum 4K+ $2B+* vcloud Air Network Partners vcloud Air Network * VMware estimate of vcloud Air Network partners revenue

26 Industry s Most Complete, Cohesive Business Mobility Solution Any Device Business Mobility: Applications Devices Content Horizon Desktop AirWatch Mobile Content Locker Workspace Services (Identity, Catalog, Gateway) Strong Alignment with VMware Portfolio

27 Ability to Execute Leader in Enterprise Mobile Management and Security Challengers Leaders AirWatch MobileIron IBM SAP Citrix Good Technology Soti Symantec BlackBerry Sophos Landesk Huawei Tangoe Globo Niche Players Visionaries Completeness of Vision AirWatch, a leader in 2014 Magic Quadrant for Enterprise Mobility Management 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 AirWatch. 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. 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.

28 Leader in Virtual Desktop Platforms Disruption Vectors Score 4.6 VMware Virtual- Desktop Platforms 4.4 Citrix 4.0 Microsoft 2.8 Dell 2.4 Amazon Deployment and delivery mode 15% Security 20% Enterprise integration 20% User experience 20% Management tools 25% Source: Gigaom Research 2014 Sector RoadMap: Virtual Desktops

29 Evolving Our Sales and Business Model: Capture Bigger & More Opportunities FROM TO Product Sales Solution Selling Traditional Routes to Market Traditional Business Models Tactical Engagement Multi-Channel Routes to Market Business Model: Velocity & Subscription Strategic Partner

30 Federation: VMware Perspective In a Period of Industry Tumult Being bigger and more strategic is good Customers Get Better Together Customers want choice and solutions from trusted partners Unique Model of Governance Increases focus on what matters and not distracted by other stuff Increased Strengths Capital, M&A, IP, R&D, reach & sales coverage

31

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