Barriers To Virtualization For SMBs And why they re not as formidable as they seem KEVIN MCLAUGHLIN, SENIOR EDITOR, CRN

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1 Barriers To Virtualization For SMBs And why they re not as formidable as they seem KEVIN MCLAUGHLIN, SENIOR EDITOR, CRN

2 Speaking Today Kevin McLaughlin, Senior Editor, UBM Channel Brandon Sweeney, VP, U.S. Mid-Market & Small Business Sales, VMware Frank Rauch, VP, Americas Partner Organization, VMware Patrick Fettuccia, VP & GM, Midmarket Sales, AdvizeX

3 Barriers To Virtualization: What SMBs Face Virtualization provides all kinds of benefits to organizations, and larger ones got there first Small and medium businesses of course want a piece of this action. Cost savings from consolidating servers looks enticing. One of the first barriers they encounter, psychological or otherwise, is: How Much Will It Cost? Many organizations expect to react like this to the costs

4 Barriers To Virtualization: What SMBs Face

5 Barriers To Virtualization: Common Concerns Used to be, SMBs concerns were justified Vendors would re-package enterprise offering simply by slapping an SMB label on products and licensing As a result, SMBs that have made the jump into virtualization sometimes don t use all they are paying for The integration and management implications of moving to a virtualized infrastructure are also daunting

6 Barriers To Virtualization: More Pitfalls VDI in particular has been way more expensive than many SMBs expected, despite the many attractive benefits Some SMBs that virtualize servers are going slowly, nervous about virtualizing mission critical apps like CRM and ERP Upfront costs can be prohibitive, making it difficult to even get discussions going with cost-conscious SMBs

7 SMB Virtualization Barriers Starting To Fall Things are changing as SMB start paying more attention to upgrading their backup and disaster recovery products, and using data de-duplication technology, for example Many vendors are now rolling out SMB specific products and channel programs to address fears no more shared storage requirement is one example Overall maturity of virtualization technologies, and perceived cost savings, helping sway SMBs

8 Industry Perspective On SMB Virtualization According to Symantec's 2012 SMB Disaster Preparedness Survey, 34 percent of SMBs are deploying or already reaping benefits from server virtualization. According to Spiceworks 2012 first half State Of SMB IT report, 64 percent of SMBs are currently using virtualization, and they're virtualizing an increasing number of apps

9 Conclusions SMBs have been slow to the virtualization party Now they re arriving, albeit slowly, and they re realizing what they ve been missing out on costs savings, management and disaster recovery improvements Vendors are helping by better understanding SMB customer needs and catering products to meet them

10 Simplify IT. Grow Your Business. Brandon Sweeney, Vice President U.S. Mid Market & Small Business Sales, VMware Frank Rauch, Vice President Americas Partner Organization, VMware 2010 VMware Inc. All rights reserved

11 VMware Cloud and Virtualization Leadership Corporate Snapshot SMB Market Leadership 3.8B in 2011 Revenues; 32% YoY Growth 11,000 Employees 300,000+ Customers Customer Passion Dedicated SMB Business Unit R&D and Marketing Investments Field: Inside / Outside sales and Presales 100% Partner Led and Fulfilled 11

12 Extensive Global Partner Ecosystem 1,500+ Technology and Consulting Partners 5,400+ vcloud Service Provider Partners ~ 25,000+ Channel Partners 21,000+ channel partners Top Distributors, Resellers, System Top Vendors distributors, and resellers, Integrators system vendors and integrators 60,000+ VMware Certified Professionals 12

13 Business and Market Pressures Weigh Heavy on SMBs Contain costs and improve productivity React quickly to changing market conditions Improve quality of products and processes Grow revenues and customers Continually innovate to beat competition Sources: SMB Group 2011: Top 10 SMB Technology Market Trends; Zoomerang 2011 Study: SMB Business Perspectives; Forrester

14 Helping Customers Grow Their Business with VMware Simplify and maximize your IT investment Protect your business with a solid IT foundation Shift time and money from managing IT to innovation Meet demands of today and the future Simplify IT. Grow Your Business with VMware. 14

15 The Customer Journey Phase 1: Server Virtualization Phase 2: Tier 1 Apps Phase 3: Disaster Recovery Phase 4: End User Computing Cloud: IT as a Service Reduce TCO & more Efficiently Run your Apps Implement Virtual Infrastructure to handle Tier 1 App Demands: Automation Performance Availability Compliance Control Leverage Virtual Infrastructure to deliver Automated DR & Application Availability Move from Device Mgmt. to EU Mgmt.; Provide Improved Experience / Productivity & Maintain Security / Compliance Highly Virtualized Infrastructure, Modern App Development & Anywhere, Anytime Access 15

16 Virtualization Changes the Economics of Computing Cost per VM hour (2GB instance) Increase utilization VMware Real Advantage with Your Cloud: Policy-Based Automation 2 Increase automation % 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% Utilization 16

17 Policy-Based Automation & other Control Points for Your Cloud YOUR CLOUD Policy-Based Automation Set a configuration for an application and it retains those policies no matter where it travels in the cloud infrastructure VMW Supports these Control Points Performance & Resource Pooling Networking Security Compliance Disaster Recovery Health: Current & Future state Capacity Monitoring & Modeling Chargeback Self-Provisioning & Lifecycle Mgmt. 17

18 Myron Steves PROFILE Profile Industry Headquarters Employees 200 The Numbers Insurance Wholesaler Houston, TX Consolidated 72 physical servers to virtual servers 100 virtual desktops Servers percent virtualize VMware Products & Services VMware vsphere 4.1 Site Recovery Manager VMware View Partner: SynchroNet With VMware virtualization we know we can switch our business over to our backup datacenter anytime and be up and running within a few hours. And it costs a fraction of what we paid for the third-party disaster recovery service we used before. Tim Moudry, Associate Director of IT, Myron Steves Customer Objectives Replace expensive and unreliable disaster recovery outsourcing service by moving to a trusted vendor Replace their conventional servers with virtualized environment to automate server replication between two facilities Solution Virtualized server infrastructure on vsphere and implemented vcenter Site Recovery Manager 100 VMware View desktops available on an as-needed basis for their 200 employees Business Impact Business can fail over to backup servers within hours, vs. days Eliminated $400K in outsourced disaster recovery service costs Future server sprawl was avoided, saving $200K in payroll costs and $150K in annual maintenance costs 18

19 Seven Corners Profile PROFILE Industry Travel Insurance Provider Kudos to Cisco, and NetApp, and VMware, and Netech for getting it done. It used to take six to eight hours to run. Afterwards I had one of the owners who run some of his own reports come into my office and ask if we had been using black magic, because the report was printing before his hand was off the mouse. George Reed, CIO, Seven Corners Headquarters Employees 175 The Numbers Carmel, IN 144 virtual servers 99.9% virtualized desktop environment 99% server virtualized VMware Products & Services VMware vsphere 5 VMware vcenter Operations Site Recovery Manager VMware View 5.1 vcloud Director, vshield Horizon, ThinApp Partner: Netech Customer Objectives Replace antiquated technology with a virtualized environment Build private cloud to service 15,000 portal members Improve SLAs and credibility of IT organization Solution Virtualized server infrastructure with vsphere/flexpod solution Private cloud powered by vcloud Director and vshield Business Impact Expecting to reduce costs by $900K with private cloud Reduced monthly report runs from 6 to 8 hours to less than 30 seconds Enabled BYOD program 19

20 Next Steps Determine where your customers are in their Infra Journey: Phase 1: Server Consolidation with some Business Continuity 1 Phase 2: Tier 1 Applications with Policy-Based Automation Phase 3: Disaster Recovery Phase 4: End-User Computing Ensure they are Leveraging their VMW Investment Fully Security, Networking, DR, Management, Health 2 Contact a VMware SMB sales rep for help 20

21 2011 Was A Very Good Year for Partners $1.9B 85% $24B VMware 2011 Americas Revenue Through Partners Total Partner Revenue 21

22 2012 Will Be Even Better $175B Total Partner Opportunity Ent Partner Leveraged Commercial Partner Led SMB 22

23 Americas Partner Incentives Advantage+ (Opp Reg Discount) Protect Partner profitability in white space accounts while gaining more pipeline visibility of Partner led value added activities 10% Discount Ent / Premier +10% Rebate New Account Solution Rewards (Partner Rebate) Reward Partners for selling adjacent products for the first time including vsphere Competency Business Continuity Desktop Virtualization VBCA / Management Repeat Initial* 10% 20% 10% 20% 10% 20% *Cannot be combined with the Advantage+ New Account Rebate 23

24 SMB Club Partner Program What is it? Elite group of partners focused on selling into the SMB segment Benefits to Partners: Incremental MDF for enablement & demand generation VMware BANT qualified SMB leads Accounts list and contacts for whitespace opportunity SMB sales plays & selling best practices Joint prospecting with VMware SMB Inside Sales teams How do I learn more? Contact your VMware Partner Business Manager 24

25 AdvizeX Headline to Be Placed Here TRUSTED IT ADVISORS CONSISTENT GROWTH LEADING TECHNOLOGISTS PROFESSIONAL SERVICES REGIONAL OPERATIONS Over 36 years providing IT solutions 98% Customer loyalty Privately held 3-year growth rate > 25% 100+ Technologists and 75+ Account Executives with over 800 certifications Enabling the Virtual Data Center Applications, Servers, Networks & Storage Sales/Services support across 13 regions National coverage BROAD CUSTOMER BASE Over 3,000 customers covering the manufacturing, healthcare, education, state and local government, business services, financial and retail markets LEADING TECHNOLOGIES Comprehensive IT infrastructure solutions with leading technologies from HP, EMC, VMware, Cisco and Microsoft 25

26 Q&A: Submit Your Questions Now Kevin McLaughlin, Senior Editor, UBM Channel Brandon Sweeney, VP, U.S. Mid-Market & Small Business Sales, VMware Frank Rauch, VP, Americas Partner Organization, VMware Patrick Fettuccia, VP & GM, Midmarket Sales, AdvizeX

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28 Thank You