Speakeasy Template 2006

Journey to IT TransformationCopyright 2009 VMware, Inc. All rights reserved. This product is protected by U.S. and international copyright and intellectual property laws. VMware products are covered by one or more patents listed at http://www.vmware.com/go/patents. 1AgendaVMware at a GlanceWhat We Do ?Why You Should Care ?The Journey to IT TransformationQ/ACopyright 2009 VMware, Inc. All rights reserved. This product is protected by U.S. and international copyright and intellectual property laws. VMware products are covered by one or more patents listed at http://www.vmware.com/go/patents. VMware The Proven Market LeaderCompany Overview~$1.9 B in 2008 revenueOver $2B in cash20%+ operating margins~7,000 employees worldwide200+ employees in CanadaProven in the Trenches140,000+ VMware Customers100% of Fortune 100100% of Fortune Global 10096% of Fortune 100095% of Fortune Global 500

Copyright 2009 VMware, Inc. All rights reserved. This product is protected by U.S. and international copyright and intellectual property laws. VMware products are covered by one or more patents listed at http://www.vmware.com/go/patents. 310th largest enterprise software company*

Company Overview~$1.9 B in 2008 revenueOver $2B in cash20%+ operating margins~7,000 employees worldwide200+ employees in CanadaProven in the Trenches140,000+ VMware Customers100% of Fortune 100100% of Fortune Global 10096% of Fortune 100095% of Fortune Global 500

VMware The Proven Market Leader89% of all virtualized applications in the world run on VMware. Gartner, December 2008Copyright 2009 VMware, Inc. All rights reserved. This product is protected by U.S. and international copyright and intellectual property laws. VMware products are covered by one or more patents listed at http://www.vmware.com/go/patents. 410th largest enterprise software company*

What We Do ? Copyright 2009 VMware, Inc. All rights reserved. This product is protected by U.S. and international copyright and intellectual property laws. VMware products are covered by one or more patents listed at http://www.vmware.com/go/patents. 555VMware Infrastructure is the new computing platform forming the foundation for the most efficient, reliable and robust computing across the IT environment from the corporate data enter to the remote office and the branch, Pioneering Wide-Scale Use of VirtualizationAggregation and Coordination of All Underlying ResourcesDramatic Performance and ScaleIntegrated Availability and ReliabilityIntegrated Policy and ComplianceExtensible ManagementSelf-Service DatacenterManage at Service Level2009+The Virtual Datacenter OS

VMware vSphereFoundation for Internal and External Clouds2003Cooperating Hypervisors and Management2000The Server Hypervisor1999The Client HypervisorCopyright 2009 VMware, Inc. All rights reserved. This product is protected by U.S. and international copyright and intellectual property laws. VMware products are covered by one or more patents listed at http://www.vmware.com/go/patents. VMware Product / Service LinesvSphereMarket Leading Virtualization Platform

Consolidate Simplify FortifyvCenterAutomate Virtual Processes

Manage Control AutomateViewDesktop Independence

Liberate Centralize SecurevCloud OfferingsExtend the Datacenter

Extend Supplement ChooseCopyright 2009 VMware, Inc. All rights reserved. This product is protected by U.S. and international copyright and intellectual property laws. VMware products are covered by one or more patents listed at http://www.vmware.com/go/patents.

Business Loss Due to Datacenter Outage**Sys Admin per 100 Apps*VMware Delivers Business OutcomesInfrastructure Cost per App

Reduction in Datacenter Capital Expense2.0-3.0

$14,235$5,6940.3 1.0Reduction in Datacenter Operating Expense$30 MM$4 MMReduction in Risk*Source: IDC and VMware TAM program** Source: VMware customer a $2bn insurance company. Estimates based on 40 hrs needed to recover before virtualizing and 4.5 hrs needed for the same recovery after virtualization. Copyright 2009 VMware, Inc. All rights reserved. This product is protected by U.S. and international copyright and intellectual property laws. VMware products are covered by one or more patents listed at http://www.vmware.com/go/patents. 88888This is an example of a VMware customers dramatic results from building this transparent cloud infrastructure is an economic break-through. Customers save up to 60% in CapEx on a per application basis. Similarly customers increase labor productivity / decrease datacenter operating cost by ~2-3x. Supporting data:CapEx. VMware has hundreds of documented customers case studies where companies have been able to decrease the physical infrastructure cost per application by more than 50%. OpEx Before VMware, IDC claims an average of about 30 servers per admin. After virtualization, they typically see the number increase 3x.In the TAM program, we considered collecting this statistic. A large money management firm in the US achieved 300 : 1 ratio (Approximately 1500 VMs to 5 Admins). A leading banks in the US with about 2000 VMs had between 8 to 10 VI administrators (200:1). IDC has claimed that average server to admin ratios with VMware are 3x or 90 server per admin (John Humphreys, Vforum preso / Virtualization 2.0).Risk reduction: Safeco a $2 bn insurance company calculates that before Vmware they would have taken about 40 hrs to recover from a disaster resulting in about $30 MM business loss. After Vmware they would need about 4.5 hrs to recover from disaster, reducing the business loss from $30 MM to about $4MM.VMware Delivers Business Outcomes

ServerConsolidationReduce CapEx / OpExPower / CoolingDesktop Mobility SolutionsMobility, Thin Client, Anywhere Access

Security & ComplianceSecuirty & ComplianceFDA CFR Part 11

Application Availability Disaster RecoveryData Center Business Continuity

Mergers/AcquisitionsSpeed IntegrationReduce Costs & Risk

Desktop AccessibilityDisaster or PandemicAccess Desktops Remotely in case of disaster

Copyright 2009 VMware, Inc. All rights reserved. This product is protected by U.S. and international copyright and intellectual property laws. VMware products are covered by one or more patents listed at http://www.vmware.com/go/patents. 9Always On, On Demand Data Center

X

Automated Resource AssuranceDynamic BalancingContinuous Optimization Increased AvailabilityAutomatedAcross Applications

On Demand Capacity Non-disruptive Scaling Flexible, Reconfigurable++

As virtualization matures and becomes default, the "next big thing" will be automation.

Copyright 2009 VMware, Inc. All rights reserved. This product is protected by U.S. and international copyright and intellectual property laws. VMware products are covered by one or more patents listed at http://www.vmware.com/go/patents. 10AppInfrastructureOn PremiseData Center

Availability

Security

QoS

Lowest TCO

AvailabilityPerformanceSecurityAppWhat Customers Have Been Waiting ForCloud Provider

Copyright 2009 VMware, Inc. All rights reserved. This product is protected by U.S. and international copyright and intellectual property laws. VMware products are covered by one or more patents listed at http://www.vmware.com/go/patents.

What customers really want is to be able to provision an application when needed and enable service levels for that application at the click of a button. They want to set the availability parameter, the security parameter, the QoS parameter and then provision it to the place that has the lowest TCO. If thats the on premise data center then the app gets provisioned on-premise. However, if the off premise datacenter or cloud has a better TCO story then it is simple to just move the app over therealong with the same service level parameters as before, or maybe with changed ones.On PremiseData Center

Cloud Provider

Other?LinuxWindowsAppApp

What Customers Have Been Waiting ForCopyright 2009 VMware, Inc. All rights reserved. This product is protected by U.S. and international copyright and intellectual property laws. VMware products are covered by one or more patents listed at http://www.vmware.com/go/patents.

What customers really want is to be able to provision an application when needed and enable service levels for that application at the click of a button. They want to set the availability parameter, the security parameter, the QoS parameter and then provision it to the place that has the lowest TCO. If thats the on premise data center then the app gets provisioned on-premise. However, if the off premise datacenter or cloud has a better TCO story then it is simple to just move the app over therealong with the same service level parameters as before, or maybe with changed ones.The Goal ITas a Service

Just like..Inexpensive, pay as you go, pay for what you useUbiquitously availableReliableChoice of providersCopyright 2009 VMware, Inc. All rights reserved. This product is protected by U.S. and international copyright and intellectual property laws. VMware products are covered by one or more patents listed at http://www.vmware.com/go/patents. 131313Why You Should Care?Copyright 2009 VMware, Inc. All rights reserved. This product is protected by U.S. and international copyright and intellectual property laws. VMware products are covered by one or more patents listed at http://www.vmware.com/go/patents. 14For a panel, list moderator in this slide and panelists on the following slide.

The Problem Complex, Inefficient, InflexibleSource: VMware Fortune 100 CustomersCauseOverwhelming complexityReliance on brittle infrastructureEffect>70% of IT budgets just maintaining status quo 500 VMsCopyright 2009 VMware, Inc. All rights reserved. This product is protected by U.S. and international copyright and intellectual property laws. VMware products are covered by one or more patents listed at http://www.vmware.com/go/patents. Scope of DeploymentInitial AdoptionCross-Dept. ExpansionEnterprise StandardizationInitial RepeatableDefinedManagedOptimized

Virtual Maturity and Business ValueOperational CapabilityConsolidateManageAutomate Capacity MgtProblem/ Incident MgtResource MgtConfiguration Mgt

ChargebackService Level MgtAvailability MgtChange Mgt

BCDR Planning>70% TotalCost Savings50-60% TotalCost Savings30-50% Total Cost Savings20-30% TotalCost Savings*

12345Recovery time down to mins>50% Apps under DR PlanImprove response times by > 60%>90% Apps have>99.9% availabilityMost processes Stan-dardized / AutomatedAll Apps under DR PlanThe Path to VMware MaturityCopyright 2009 VMware, Inc. All rights reserved. This product is protected by U.S. and international copyright and intellectual property laws. VMware products are covered by one or more patents listed at http://www.vmware.com/go/patents. 20Service DeliveryPerformanceBusiness requirementsServices catalogService levels redefinedLOB utilization control

ConfigurationSecurity and integrationSystems monitoringDeployment tools

GovernanceComplianceOperational changeITIL process deploymentProcess documentationOrganizational Expertise Center of Excellence (CoE)TrainingCross-organization controlExecutive sponsorshipProcessTechnologyPeopleVirtualization TransformationCritical Integration for IT TransformationCopyright 2009 VMware, Inc. All rights reserved. This product is protected by U.S. and international copyright and intellectual property laws. VMware products are covered by one or more patents listed at http://www.vmware.com/go/patents. What are some of the challenges of moving along this adoption curve? TechnologyNetworkStorageSystems ManagementDeploymentExample:Thinking of VMs like PMs and configuring the CPU or memory at the same levels.PeopleTrainingControlSponsorshipPerceptionExamples: Control: Cross-functional teams not all in agreement and not wanting to work together.Training: Center of Excellence. The lack of the right skill sets can cause delay.Sponsorship: Very common to have lack of executive sponsorship. Important to drive decisions from top down.Perception: Deploying too quickly (State Farm example) in a less than optimal way created performance issues. LOB had a poor perception of virtualization. Company first had to overcome the perception problem to move toward standardization.

Process Examples:OperationsChange ManagementServiceChargebackExamples: Operations: Is all of your documentation completed and adjusted to include VMs, including run-books and escalation procedures?Service (Incident and problem management): When the calls come in to the help desk, does your support organization know how to trouble-shoot for an application in a VM? Sometimes just the fact that virtualization is involvedeven if virtualization isnt the issue--makes people uncomfortable and not confident in what to do.Change Management: (combo example below) Some companies have to work through the concept of not requiring approval every time a VM is moved with VMotion.Chargeback: (combo example below)One customer (Russell Investments) had a performance problem. An assessment uncovered that the problem was due to a SLA with the hosting provider. The hosting provider was paid $500 per each server that was visible on the network. This created incentives for the hosting provider to consolidate. Without the appropriate capacity management, they were soon oversubscribed and had poor performance. The solution included the need for the SLA with the hosting provider to be renegotiated.

Thank You.Copyright 2009 VMware, Inc. All rights reserved. This product is protected by U.S. and international copyright and intellectual property laws. VMware products are covered by one or more patents listed at http://www.vmware.com/go/patents. Chart1304

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