Data center fo the future software defined DC

It took us 4 years to get to 1 million VMs, now we add 1 million VMs every 2 months 2

Cloud? What s different? 3

Three Key Trends Drive Us Towards a New Model X86 Price/ Performance Virtualization for all Apps Virtualization of all Hardware Components 4

Innovation in CPU and Memory. CPU RAM 10000 µm process technologies $100 $/GB 1000 1 µm $75 100 100 nm $50 10 10 nm $25 1 nm 1 1968 1978 1988 1998 2008 2018 $0 2005 2007 2009 2011 2013 Source: Gartner Dataquest, Forecast: DRAM Market Statistics (1Q11) 5

Leads to More Processing Power per Server Threads Per Socket (2 per core) Maximum Memory in GB 35 2,500 30 2,000 25 20 1,500 15 1,000 10 5 500 0 2000 2002 2005 2008 2010 2013 0 2000 2002 2005 2007 2009 2010 2011 Source: Forrester Research, The x86 Server Grows Up And Out (October 8, 2010) 6

at Lower and Lower Cost $25,000 Average Cost Per Virtualized Server $20,000 $15,000 2013 = $5K $10,000 $5,000 $0 2006 2007 2008 2009 2010 2011 2012 2013 Cost Includes the entire server (i.e. CPU, memory, etc.) except for add-on cards. Source: IDC Worldwide Virtualization Tracker, 2010 7

The World is Majority Virtualized % Virtualized (of all installed workloads WW) 33% 42% 51% 59% 65% 69% 9% 14% 22% 2005 2006 2007 2008 2009 2010 2011 2012 2013 A New Datacenter Architecture 8 Source: IDC Worldwide Virtualization Tracker, 2010

Deploying more Business Critical Applications on VMware 68% % of Tier 1 Apps Running on VMware 53% 47% 41% 43% 38% 34% 28% 28% 25% 25% 18% June 2011 Jan 2010 Microsoft Exchange Microsoft SharePoint Microsoft SQL Oracle Middleware Oracle DB SAP Source: VMware Customer Survey 9

The Result? Hyper-density! In 2014, an average server: 2-CPU 16 core per socket 300 GB RAM 320 VMs Leading to the all-x86, software-driven datacenter 10

A New Approach to Cloud The Software Defined Datacenter 11

The Software Defined Datacenter is the Architecture for Cloud 12

New Approach is Needed 13

Virtualization Simplifies Provisioning of VMs, But Additional Steps Needed to Deploy in a Production Environment Past Present Enterprise storage VLAN networks + Firewall, load-balancer $10,000 10 weeks $1,800 $300 5 days, 2 minutes 2 minutes IDS, security, monitoring Availability 14

Software-Defined Datacenters Simplifies Process to Define an Application and All the Resources It Needs Future VDC Software-defined Datacenter Services 5 days, 2 minutes 3 minutes 15

Only VMware Offers the Best of Both Worlds with Hybrid Cloud Apps Apps! Common platform! Common management! Common security Private Cloud VMware Enterprise Security Hybrid Cloud Cloud Infrastructure Management vcloud Service Provider Cloud Infrastructure Cloud Computing Moves from a Technology Discussion to a Business Decision 16

Hybrid Cloud is the Most Elastic and Cost Effective Model Annual total IT spend (100=Total IT spend with all on-premise infrastructure) Cloud services IT Services Internal Services Software Hardware Facilities and Fabric Telecom Non x86 100 82 80 76! Hybrid cloud offers lower IT spend through: Virtualization and consolidation Optimized workload sourcing Optimized provisioning Higher productivity in application development and maintenance! This requires standardization of frameworks & infrastructure across public and private cloud: Common platform Common management Common security Legacy IT Pure private cloud Pure public cloud Hybrid cloud 17 SOURCE: Gartner, IDC market data; Gartner IT Key Metrics Data 2009; EMC and VMware team analysis SaaS, Private cloud and IaaS savings modeled only for x86 workloads (assumed 80% of spend)

The Leading Public Clouds All Partner with VMware 4,000+ vcloud IaaS Partners App Cloud PaaS Partners Source: Gartner (December 2010) 18

Our Management Mission VMware simplifies and automates IT management and empowers IT to govern services across multiple platforms and providers Broker of IT Services Multi-platform Hybrid Multi-provider 19

Our Management Journey Multiple Clouds and Platforms The Suites Portfolio Expansion vcloud Suite Virtualization Management A la carte products in few spaces EMC Ionix & Intergrien acquisitions Support for heterogeneous Mgmt. Expanded Hybrid Cloud support Broader Application Mgmt. support New IT Business Mgmt. DigitalFuel All management suites updated DynamicOps acquisition Log Analytics acquisition 2009 2010 2011 2012 2013 20

VMware Cloud Management vcloud Automation Center IaaS PaaS DaaS vcenter Operations Mgmt vcloud Networking and Security vcloud Director vcloud Connector vcenter Site Recovery Manager vfabric Application Mgmt vcloud Service Providers Other Service Providers Hypervisors Hardware IT Business Mgmt vsphere 21

VMware Cloud Management What s New in Q4 2012 vcenter Operations Management Suite 5.6 vcloud Connector 2.0 Advanced vcloud Automation Center 5.1 (formerly Dynamic Ops) ITBM 7.5 IT Benchmarking Service vcloud Automation Center IaaS PaaS DaaS vcenter Operations Mgmt vcloud Networking and Security vcloud Director vcloud Connector vcenter Site Recovery Manager vfabric Application Mgmt vcloud Service Providers Other Service Providers Hypervisors Hardware IT Business Mgmt vsphere vcloud Suite vfabric Application Director 5.0 vfabric Application Performance Manager 5.0 22

An Integral Part of the SDDC and the vcloud Suite SOFTWARE DEFINED DATACENTER CLOUD MANAGEMENT CLOUD INFRASTRUCTURE 23

New and Updated Components of the vcloud Suite Q4 2012 Cloud Infrastructure & Management Cloud Management Cloud Infrastructure Price (per CPU, license only) vcloud Automation Center Provisioning and management of IT services in vsphere environments vfabric Application Director Automated configuration and deployment of multi-tier cloud applications vcenter Operations Management Application Monitoring OS, middleware, databases Storage Adapters for EMC Symmetrix and Netapp Configuration Compliance OS-level change, patch and configuration Configuration Compliance vsphere change and configuration mgmt Performance & Capacity Optimization analytics, dashboards and alerting Application Awareness discovery dependency mapping Chargeback metered utilization reporting and accountability vcenter Site Recovery Manager Automated disaster recovery planning, testing, and execution vcloud Networking and Security Advanced continuous availability firewall and network Software defined networking, security, and ecosystem integration vcloud Director & vcloud Connector Virtualized datacenters with multi-tenancy and public cloud extensibility vsphere Enterprise Plus Virtualized infrastructure with policy-based automation vcloud Suite Standard $4,995 $7,495 $11,495 vcloud Net & Sec Standard vsphere Enterprise Plus vcloud Suite Advanced vcops Advanced vcloud Net & Sec Advanced vcloud Suite Enterprise SRM Enterprise vcloud Net & Sec Advanced vcd & vcc Adv vcd & vcc Adv vcd & vcc Adv vsphere Enterprise Plus App Dir for Provisioning vcops Enterprise vsphere Enterprise Plus 24 New or Updated component

vcloud Suite Delivers the Software Defined Datacenter vcloud Suite Standard vcloud Suite Advanced vcloud Suite Enterprise vcloud Director vcenter Ops Mgmt Suite Adv vcloud Automation Center Self-service Self-service fulfillment Chargeback User-centric catalog vfabric App Dir for Prov. Multi-tier app deployment vsphere Enterprise+ vcenter Ops Mgmt Suite Adv vcenter Ops Mgmt Suite Ent Self-optimizing Resource prioritization App-aware monitoring Compliance mgmt Host profiles Capacity optimization Storage extensibility vsphere Enterprise+ vcloud Net & Sec Advanced vcenter Site Recovery Mgr Self-healing Failure resilience Firewall and network availability Disaster recovery vcloud Net & Sec Standard Multi-cluster security 25

vcloud Service Providers Other Service Providers Hypervisors Hardware Summary 1 Build on our differentiated vision for Management Simple, automated management for heterogeneous and hybrid clouds Cloud Service Provisioning Cloud Operations Management Cloud Business Management SOFTWARE DEFINED DATACENTER 2 Further deliver on the vision of the SDDC and the vcloud Suite CLOUD MANAGEMENT CLOUD INFRASTRUCTURE 3 Extend to multi-platform, multi-cloud service provisioning and management vcenter Operations Mgmt vcloud Automation Center IaaS PaaS DaaS vcloud Director vfabric Software Software Application Defined Defined Mgmt Networking & Storage & IT Business Mgmt Security Availability vsphere 26

3 Upgrade Paths from vsphere Enterprise Red = promo ending December 15 Free upgrade to vcloud Std vsphere Enterprise+ 35%-off $5500 Upsell vcloud Suite Enterprise Challenge: Lack agility to respond to business Lack of visibility and control in cloud environment Manual, unreliable DR Benefit: IaaS & Hybrid Cloud Connectivity Cloud Networking and Security Automated Ops Mgmt for Cloud Automated DR Cloud enabled app provisioning Virtualize business critical apps $685 vcloud Suite Advanced Challenge: Lack agility to respond to business Lack of visibility and control in cloud environment Benefit: IaaS & Hybrid Cloud Connectivity Cloud Networking and Security Automated Ops Mgmt for Cloud vsphere Enterprise vcloud Suite Standard Challenge: Lack agility to respond to business Challenge meeting SLAs Benefit: Policy based datacenter automation IaaS & Hybrid Cloud Connectivity Cloud Networking and Security Customers below vsphere Enterprise edition are not typical sales targets for vcloud Suite. 27

28 Thank you