EMC AND VIRTUSTREAM MAY 26, Copyright 2015 EMC Corporation. All rights reserved.

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1 EMC AND VIRTUSTREAM MAY 26,

2 FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements as defined under the Federal Securities Laws. 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 information technology spending; (iii) the relative and varying rates of product price and component cost declines and the volume and mixture of product and services revenues; (iv) competitive factors, including but not limited to pricing pressures and new product introductions; (v) component and product quality and availability; (vi) fluctuations in VMware, Inc. s operating results and risks associated with trading of VMware stock; (vii) the transition to new products, the uncertainty of customer acceptance of new product offerings and rapid technological and market change; (viii) risks associated with managing the growth of our business, including risks associated with acquisitions and investments and the challenges and costs of integration, restructuring and achieving anticipated synergies; (ix) the ability to attract and retain highly qualified employees; (x) insufficient, excess or obsolete inventory; (xi) fluctuating currency exchange rates; (xii) threats and other disruptions to our secure data centers or networks; (xiii) our ability to protect our proprietary technology; (xiv) war or acts of terrorism; and (xv) other one-time events and other important factors disclosed previously and from time to time in EMC s filings with the U.S. Securities and Exchange Commission. EMC disclaims any obligation to update any such forward-looking statements after the date of this presentation. This presentation contains non-gaap financial measures which include, but are not limited to, non-gaap Gross Margin, non-gaap Operating Margin, non-gaap EPS, non-gaap Net Income, Free Cash Flow and Non-GAAP Income Tax Rate. 2

3 ANNOUNCEMENT SUMMARY Virtustream will form EMC s new managed cloud services business A transformational element of EMC s Federation strategy to help customers move to cloud-based IT environments Virtustream will be a key enabler for the EMC Federation to deliver the industry s most comprehensive hybrid cloud portfolio Portfolio delivered directly to customers and through EMC s global partner ecosystem 3

4 TRANSACTION DETAILS EMC to acquire privately held Virtustream Virtustream CEO, Rodney Rodgers will become CEO of EMC s managed cloud services business All cash transaction of approximately $1.2 Billion Transaction expected to close in 3Q 2015 No material financial impact expected in 2015 Expected to be revenue additive and EPS accretive in

5 VIRTUSTREAM BUSINESS OVERVIEW Global Cloud Service Provider that focuses specifically on hosting mission-critical workloads, including SAP and others Provides cloud computing management software, IaaS, and managed services to enterprises, governments and service providers Software for private, public and hybrid clouds that enable customers to move existing applications to the cloud Enterprise-grade security and compliance, performance SLAs, multitenancy, and consumption based charging (µvm) Professional services and support for cloud assessment, migration and onboarding, and application support 5

6 VIRTUSTREAM CUSTOMER VALUE OFFERING Emerged as the platform of record for running large-scale, missioncritical applications in the cloud, including SAP Architected, designed and managed to optimize enterprise application performance across hybrid clouds both on and off premise Allows application landscape automation across applications and interrelated infrastructure using a digitized library of blue prints deployed as needed Consumption-based billing across hybrid clouds for 100% of applications Single-pane-of-glass management across all deployment models Defense, in-depth security and governance is built-in 6

7 A RECOGNIZED LEADER IN MANAGED CLOUD INFRASTRUCTURE AND SERVICES Cloud IaaS Magic Quadrant Hosted Private Cloud Solutions (1) 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. 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. Source: The Forrester Wave : Hosted Private Cloud Solutions, Q

8 STRONG PARTNERSHIP WITH SAP BROAD AND DEEP SAP CAPABILITIES Innovation Group Ongoing HANA Collaboration Performance Benchmarking HANA Encryption COIL Virtustream Customer SAP Runs Their Demo Showrooms on VS IaaS NS2 Runs Their Federal Cloud on VS Fed IaaS SAP is an xstream Software Customer Specific Industry Engagement Federal and Public Sector Regulated Industries Consumer Products Sales Enablement S4 Early Adopter Partner HANA Factory Collaboration Cloud Partner Ecosystem Federation Orchestration SAP Certified Partner HANA Certified Partner Certified Cloud Provider Certified Hosting Partner Corporate VS is an MCaaS Participant Regional Field Engagement Brazil Asia Pac Middle East 8

9 GREAT SET OF CUSTOMERS INCLUDING: Enterprise Public Sector Service Provider 9

10 CUSTOMERS LOOKING TO LEVERAGE CLOUD They are seeking a partner who can help them: Build a world class private cloud for applications that must remain in customer owned data centers Enable public cloud economics in 3 rd party data centers for workloads with lower performance and compliance constraints Move mission critical apps that cannot move to public cloud, but can run in off-premise data centers to low cost managed private clouds finding a partner that can seamlessly provide all 3 models across the customers entire application portfolio is a market opportunity no one has adequately fulfilled to date 10

11 A VARIETY OF CLOUD MODELS 11

12 EMC S COMPLETE HYBRID CLOUD PORTFOLIO Presently, EMC provides the Federation Hybrid Cloud Solution - an on-premise private cloud offering that provides on-ramps to public cloud services such as VMware vcloud Air Virtustream brings to the EMC portfolio a managed cloud services capability - whether on or off premise With the addition of Virtustream, EMC will enable customers to move their entire application portfolio into a cloud environment Virtustream s cloud software and Infrastructure-as-a-Service portfolio will be delivered directly to customers and through partners Service providers will receive access to Virtustream s cloud management software platform and be enabled to adopt and deliver their own branded services based upon it 12

13 FEDERATION HYBRID CLOUD PORTFOLIO Enterprise Hybrid Cloud (EHC) Virtustream Managed, Mission Critical Off-Premise VMware vcloud Air 13

14 POWERFUL PARTNER ECOSYSTEM Ecosystem of Partners will be fully enabled on the technology, software, and services IP of the EMC Cloud Services offering portfolio A primary operational component of the EMC Federation s cloud business Reduces Partners expenses to deploy cloud solutions Accelerates Partners ability to respond to customer demand Differentiates Partners value to their customers through consulting, application migration/integration, business process integration, etc. Expands Partners market reach by customer type, industry, geography, etc. Ensures a world class repeatable consistent customer experience 14

15 SUMMARY Cloud is transforming the way IT is architected, deployed and consumed Virtustream is a leader in cloud software and Infrastructure as a Service (IaaS) Virtustream is transformational for the EMC Federation s hybrid cloud portfolio including the Federation Enterprise Hybrid Cloud Solution and VMware vcloud Air After closing, with Virtustream forming EMC s new managed cloud services business, the EMC Federation will have the most comprehensive hybrid cloud portfolio This complete offering is unique in the industry and will be available directly and through the Federation s expansive global partner ecosystem 15