1. Program Study Topic: Virtualization Management -Global Results-

2.

This survey was conducted to determine the following:

• Current and planned investment in virtualization technology

• Importance of virtualizing various areas of the IT infrastructure

• Success in virtualizing each area of the IT infrastructure

• Ways in which organizations are using virtualization currently/18 months from now

• Perceived maturity level of the virtualization market today

• Importance of SOA and Web-based services in building effective virtual environments

• Primary drivers behind virtualization initiatives

• Length of time to deploy server virtualization solutions

• Benefits experienced as a result of server virtualization initiatives

• Challenges in managing the server virtualization environment

• Importance of managing the virtual server environment as well as perceived success in this area

• Importance of capabilities when managing the server virtualization environment

• Standardization on one platform for server virtualization management and perceived importance of standardization

• Expected utilization rates for virtual and physical server

• Perceived ROI on current virtualization investments

Research Objectives 3.

This study was conducted among IT management at companies with an annual revenue of $250 million or more and investing or planning to invest in virtualization technology.

The survey was administered online. Each sample member received an email invitation containing a URL link to access the survey, which they could click on or paste into their browser. Non-U.S. surveys were programmed in the native language of each country.

The U.S. survey was completed among qualified members of the target audience. Non-U.S. surveys were completed among an international panel of IT professionals.

The U.S. study was conducted between October 11, 2007 and October 24, 2007. The non-U.S. portion was completed between November 6, 2007 and November 12, 2007. A total of 300 surveys were completed online in the following regions:

• U.S. - 100 surveys

• EMEA - 100 surveys: UK (50) and Germany (50)

• APAC - 100 surveys: Australia (75) and Korea (25)

The margin of error for a sample of 300 is +/- 5.7 percentage points at the 95% confidence level.

Methodology 4. Respondent Company Profile 5. Annual Revenue QS1: Please select the dollar amount that best represents the annual gross sales or revenues for your organization or enterprise (all plants, divisions, branches, parents, and subsidiaries worldwide).Base: Global 300; U.S. 100; EMEA 100; APAC - 100 Average annual revenue: Global = $14.4 billion U.S. = $16.0 billion EMEA = $12.3 billion APAC = $15.0 billion 6. Job Title Q19: Which of the following best describes your title within your organization? Base: Global 300; U.S. 100; EMEA 100; APAC - 100 25% 29% 12% 22% IT-related management 9% 5% 10% 8% Other Professional 7% 4% 4% 5% Any non-IT corporate or business unit management 4% 2% 1% 2% Director/Manager IT Security 0% 5% 2% 2% CSO/CISO (Chief Security Officer/Chief Information Security Officer) 6% 1% 1% 3% VP Applications Development 4% 2% 2% 3% VP of Communications/Networking 6% 2% 3% 4% VP IT Security 6% 4% 2% 4% Director/Manager Communications/Networking 2% 4% 8% 5% Director/Manager Applications Development 3% 1% 11% 5% VP of IS/IT 2% 10% 12% 8% CIO/CTO 21% 12% 6% 13% Consultant/Systems Integrator 5% 19% 26% 17% Director/Manager IS/IT APAC EMEA U.S. Global 7. Number of Employees in Entire Organization Q20: Approximately how many people are employed in your entire organization or enterprise? (Please include all plants, divisions, branches, parents and subsidiaries worldwide.) Base: Global 300; U.S. 100; EMEA 100; APAC - 100 Average number of employees Global = 35,462 U.S. = 39,509 EMEA = 30,417 APAC = 36,459 8. Primary Industry Q21: Which of the following best describes your organizations industry or function? Base: Global 300; U.S. 100; EMEA 100; APAC - 100 7% 2% 7% 5% Other 0% 1% 0% 0% Construction 1% 0% 1% 1% Real Estate/Legal Services 1% 0% 2% 1% Publishing Broadcast Advertising Public Relations (incl. Internet Publishing) 23% 25% 14% 21% IT/Computer: Integrators Data Processing Services Consulting Web Svcs 0% 2% 2% 1% Utilities: Electric Gas 2% 2% 1% 2% Manufacturer of Pharmaceutical Products 2% 3% 1% 2% Petroleum/Refining 2% 4% 1% 2% Business Services (other than IT/computer) 2% 6% 2% 3% Education 4% 5% 3% 4% Insurance 8% 2% 5% 5% Transportation: Land Sea or Air 5% 8% 5% 6% Telecommunications/Communication Carriers 5% 4% 9% 6% Health Care/Medical Services 9% 6% 4% 6% Wholesale or Retail Trade (including computer related) 5% 8% 8% 7% Government: Federal State Local (including military) 7% 14% 17% 13% Manufacturer of Other Products (non-pharmaceutical related) 17% 8% 18% 14% Financial Services APAC EMEA U.S. Global 9. Detailed Survey Findings 10. Investment in Virtualization Technology QS2: Is your company currently investing or does your company plan to invest in some form of virtualization technology? [Definitions were shown see Appendix] Base: Global 300; U.S. 100; EMEA 100; APAC - 100 11. Agreement with Statements About Server Virtualization Q1: Please rate your level of agreement with the following statements about server virtualization. Base: Global 300; U.S. 100; EMEA 100; APAC - 100 12. Importance of Virtualizing Areas of the Company Q2a: Please rate the importance of virtualizing each of the following areas at your company. [Definitions were shown see Appendix] Base: Global 300; U.S. 100; EMEA 100; APAC - 100 13. Success in Virtualizing Areas of the Company Q2b: Please rate your companys level of success in virtualizing each of these areas currently.[Definitions were shown see Appendix] Base: Global 300; U.S. 100; EMEA 100; APAC - 100 14. Mean Score Differential: Average Success in Virtualizingvs. Average Importance of Virtualizing Each AreaQ2a: Please rate the importance of virtualizing each of the following areas at your company. Q2b: Please rate your companys level of success in virtualizing each of these areas currently. Base: Global 300; U.S. 100; EMEA 100; APAC - 100 Success scale: 5=Extremely successful; 1= Not at all successful Importance scale: 5=Critical; 1= Not at all important Mean Score Differential = Average Success - Average Importance 8 7 5 4 6 3 2 1 Worldwide Importance Rank -0.11 0.14 0.10 0.05 I/O or network -0.27 0.13 -0.12 -0.07 Application grids 0.30 0.04 -0.12 -0.14 -0.25 -0.18 Mean Score Differential APAC 0.30 0.16 0.18 Files 0.26 -0.33 -0.04 Entire enterprise/datacenter -0.12 -0.45 -0.27 Storage 0.28 0.29 0.31 Desktop -0.11 -0.51 -0.25 Applications -0.35 -0.62 -0.39 Servers Mean Score Differential EMEA Mean Score Differential U.S. Mean Score Differential GLOBAL 15. Likelihood of Investing in Each Type ofTechnology in the Next 18 Months Q2c: How likely is it that your company will invest in each of the following over the next 18 months? Base: Global 300; U.S. 100; EMEA 100; APAC - 100 16. Importance/Likelihood of Investing inVirtualization for Various Areas Worldwide Summary Q2a: Please rate the importance of virtualizing each of the following areas at your company. Q2b: Please rate your companys level of success in virtualizing each of these areas currently. Q2c: How likely is it that your company will invest in each of the following over the next 18 months? Base: Global 300; U.S. 100; EMEA 100; APAC - 100 For the most part, investment plans reflect the importance of virtualizing each area. Respondents in APAC are most likely to indicate that the importance of virtualizing these areas exceeds planned investments. 17. How Companies are Using Virtualization Now Q3a: How is your company currently using virtualization? Base: Global 300; U.S. 100; EMEA 100; APAC - 100 18. How Companies Plan to Use Virtualization 18 Months from Now Q3b: How do you expect your company will use virtualization 18 months from now? Base: Global 300; U.S. 100; EMEA 100; APAC - 100 19. Mission-Critical Business Services tobe Used in a Virtualized Environment Q3c: Which of the following are classified as mission-critical business services at your company that you will be using in a virtualized environment? Base: Global 219; U.S. 78; EMEA 78; APAC 63 (among those using or planning to use virtualization in a pilot test or in production to support mission-critical services 20. Perceived Maturity Level of the Virtualization Market Q4: Regardless of where your company is at with regards to its own initiatives, how would you rate the maturity level of the virtualization market today? Base: Global 300; U.S. 100; EMEA 100; APAC - 100 21. Importance of SOA and Web-based Servicesin Building Effective Virtual Environments Q5: In your opinion, how important are SOA and Web-based services in building effective virtual environments? Base: Global 300; U.S. 100; EMEA 100; APAC - 100 22. Primary Drivers Behind Server Virtualization InitiativesQ6: What are the primary drivers behind your companys server virtualization initiatives? Base: Global 300; U.S. 100; EMEA 100; APAC - 100 23. Length of Time for Deployment of Server Virtualization SolutionQ6a: Approximately how long did it take your organization to deploy its server virtualization initiatives?Base: Global 299; U.S. 100; EMEA 100; APAC - 99 (Among those with server virtualization plans) Average number of months: Global = 8 U.S. = 8 EMEA = 7 APAC = 8 24. Benefits Experienced as a Result of Server Virtualization InitiativesQ7: What benefits has your company experienced as a result of its server virtualization initiatives? Base: Global 299 U.S. 100; EMEA 100; APAC 99 (Among those with server virtualization plans) 25. Significance of Challenges When ManagingServer Virtualization EnvironmentQ8: Please rate the significance of the following as challenges when managing your companys server virtualization environment. Base: Global 299 U.S. 100; EMEA 100; APAC 99 (Among those with server virtualization plans) 26. Importance Assigned to Managementof the Virtual Server EnvironmentQ9a: As an IT priority, what level of importance does your company assign to management of its virtual server environment? Base: Global 299 U.S. 100; EMEA 100; APAC 99 (Among those with server virtualization plans) 27. Overall Effectiveness in Managing the Virtual Server Environment Q9b: Overall, how would you rate your companys effectiveness in managing its virtual server environment? Base: Global 299 U.S. 100; EMEA 100; APAC 99 (Among those with server virtualization plans) 28. Importance of Capabilities When Managing the Virtual Server EnvironmentQ10a: Please rate the importance of the following capabilities when managing your companys virtual server environments. Base: Global 299 U.S. 100; EMEA 100; APAC 99 (Among those with server virtualization plans) 29. Effectiveness of Server VirtualizationManagement Packages Q10b: Please rate the effectiveness of existing virtualization management packages in each of the following areas. Base: Global 299 U.S. 100; EMEA 100; APAC 99 (Among those with server virtualization plans) 30. Mean Score Differential: Average Effectiveness of Virtualization Solutionsvs. Average Importance of Capabilities When Managing Server Virtualization Q10a: Please rate the importance of the following capabilities when managing your companys virtual server environments. Q10b: Please rate the effectiveness of existing virtualization management packages in each of the following areas. Base: Global 299 U.S. 100; EMEA 100; APAC 99 (Among those with server virtualization plans) Effectiveness scale: 5=Extremely effective; 1= Not at all effective Importance scale: 5=Critical; 1= Not at all important Mean Score Differential = Average Effectiveness of Existing Packages - Average Importance -0.14 -0.19 -0.42 -0.25 Discovery/ visualization 6 2 3 1 4 5 Worldwide Importance Rank -0.21 -0.29 -0.30 -0.56 -0.53 Mean Score Differential EMEA -0.40 -0.74 -0.56 Provisioning -0.08 -0.37 -0.24 Automation -0.06 -0.63 -0.34 Performance and utilization 0.05 -0.41 -0.20 Security -0.39 -0.70 -0.55 Storage Mean Score Differential APAC Mean Score Differential U.S. Mean Score Differential GLOBAL 31. Current Standardization on One Vendorfor Server Virtualization ManagementQ13a: Is your company currently standardized on one vendor for server virtualization management or are multiple vendors/platforms in use? Base: Global 299 U.S. 100; EMEA 100; APAC 99 (Among those with server virtualization plans) 32. Planned Standardization on One Vendorfor Server Virtualization ManagementQ13c: Eighteen months from now do you expect your company will be standardized on one vendor for server virtualization management or do you expect that multiple vendors/platforms will be in use? Base: Global 299 U.S. 100; EMEA 100; APAC 99 (Among those with server virtualization plans) 33. Importance of Centralizing the Management ofMulti-Platform Virtualized and Physical Environments Q13b: How important is the ability to centralize the management of multi-platform virtualized and physical environments? Base: Global 299 U.S. 100; EMEA 100; APAC 99 (Among those with server virtualization plans) 34. Whether Methods are in Placeto Measure the ROI of Virtualization Solutions Q14: Does your company currently have a method in place to measure the ROI of its virtualization solution(s)? Base: Global 299 U.S. 100; EMEA 100; APAC 99 (Among those with server virtualization plans) 35. Utilization Rates for Virtual ServersQ15a: On average, what utilization rate do you expect to see for VIRTUAL servers at your company? Q16a: Are your companys VIRTUAL servers attaining the target utilization rate? Base: Global 299 U.S. 100; EMEA 100; APAC 99 (Among those with server virtualization plans) The average utilization rate expected for VIRTUAL servers is 57% worldwide (60% in the U.S., 55% in EMEA and 55% in APAC). 36. Utilization Rates for Physical ServersQ15b: On average, what utilization rate do you expect to see for PHYSICAL servers at your company? Q16b: Are your companys PHYSICAL servers attaining the target utilization rate? Base: Global 299 U.S. 100; EMEA 100; APAC 99 (Among those with server virtualization plans) The average utilization rate expected for PHYSICAL servers is 53% worldwide(56% in the U.S., 52% in EMEA and 51% in APAC). 37. Confidence that Company is MaximizingReturn on Virtualization Investments Q17: How confident are you that you are maximizing the return on your virtualization investments? Base: Global 300; U.S. 100; EMEA 100; APAC - 100 38. Highlighted Findings

Respondents in EMEA and APAC are significantly more likely to be in the planning stages with regards to virtualization versus respondents in the U.S.

EMEA and APAC respondents are significantly more likely than those in the U.S. to agree that clustering can be thought of as a type of server virtualization.

Worldwide, servers and storage are rated as the most important areas to virtualize at respondents companies. Respondents in APAC rate data center virtualization and virtualization of application grids almost equally as important as servers and storage. APAC respondents are also more likely than those in other regions to rate I/O or network, files and desktop virtualization as important.

Respondents worldwide report the most success in virtualizing servers. Respondents in APAC are more likely than those in other regions to highly rate their success in virtualizing the entire enterprise/datacenter and the I/O or network, and respondents in both EMEA and APAC are twice as likely as those in the U.S. to highly rate their success with virtualizing application grids.

U.S. respondents report the largest gaps between success in virtualizing each of the top three areas of servers, storage and applications versus importance of virtualizing each of these areas.

For the most part, investment plans reflect the importance of virtualizing each area. The largest gaps between importance and investment plans occur in APAC where importance exceeds the likelihood of investing by a significant margin in the areas of application grids, files and the I/O or network.

Worldwide, companies are most likely to be using virtualizationwithin an application development environment . U.S. respondents are more likely than those in other regions to be using virtualizationin production to support non-mission criticalas well asmission-critical applications . U.S. respondents are also more likely to be using virtualizationto support business continuity and disaster recovery efforts.

Over the next 18 months, the percent of respondents in each region using virtualizationin production to support non-mission criticalandmission-critical applications , as well as the percent using virtualizationto support business continuity/disaster recovery , is expected to grow.

39. Highlighted Findings (continued)

Worldwide, over one-half of all respondents highly rate the importance of SOA and Web-based services in building effective virtual environments.

The top driver for server virtualization worldwide iseasier hardware provisioning and software deployment . U.S. respondents are significantly more likely than those in other regions to indicate this as a driver as well aslower TCO , and that virtualization is aresult of server consolidation initiatives .

Easier hardware provisioning and software developmentis also the top benefit derived from server virtualization to-date worldwide, although respondents in the U.S. are significantly more likely than those in other regions to indicate theyve experienced this benefit. U.S. respondents are also significantly more likely to indicate theyve experiencedlower TCOas well asmore flexible development and testing environmentsas a result of server virtualization.

Respondents worldwide are most likely to ratesecurityas a challenge when managing server virtualization initiatives.Software licensing issuesare more likely to be rated as a significant challenge in the U.S. versus other regions, while respondents in EMEA and APAC are more likely than those in the U.S. to ratesystem reliability issuesas a challenge.

54% of respondents worldwide rate management of the virtual server environment as a critical or high IT priority, and 45% would rate their companies effectiveness in this area as a 4 or 5 (where 5 is extremely effective).

Worldwide, the most important capabilities when managing the server virtualization environment areperformance and utilizationandsecurity . A comparison of average importance ratings versus average effectiveness ratings of current virtualization management packages for each capability reveals that the largest gaps between importance and effectiveness for each of these areas occur in the U.S.

40. Highlighted Findings (continued)

Worldwide, 56% of respondents indicate their companies are using multiple platforms/vendors for server virtualization management, while 35% are standardized on one platform. This is not expected to change significantly over the next 18 months, however 68% of respondents worldwide rate the importance of centralizing the management of multi-platform virtualized or physical environments as critical or very important.

Just 28% of respondents worldwide have a method in place to measure the ROI on virtualization solutions, yet over one-half (51%) indicate they are extremely confident or confident that their companies are maximizing the return on virtualization investments.

The average utilization rate for virtual servers is 57% worldwide (53% for physical servers), with over two-thirds of all respondents indicating their companies are meeting these target utilization rates at least some of the time.

41. Appendix 42. Definitions Included in the Survey Server Virtualization : refers to uncoupling server operating systems from hardware hosts, allowing multiple isolated operating system environments to share the same physical server. Desktop Virtualization:refers to uncoupling a client operating system environment from underlying hardware, allowing end user workspaces to be hosted on servers and accessed remotely, or for corporate workspaces to be isolated from personal workspaces on client machines. Storage Virtualization : refers to an abstraction layer between hosts and physical storage that provides a single management point for multiple block-level storage devices in a SAN and presents a set of virtual storage volumes for hosts to use. Application virtualization : refers to the uncoupling of applications from host operating systems, dramatically easing deployment and allowing the virtualized application to run in its own isolated sandbox. File Virtualization:creates an abstraction layer between end users or applications and physical file servers, creating a single namespace across multiple filers or NAS devices, providing a single view of their directories and files, and giving administrators a single control point for managing their data. Application grids : refers to the dynamic provisioning of application execution environments throughout a network of host systems.I/O Virtualization:refers to an abstraction of the links between physical servers and network storage, allowing applications to be provisioned and re-provisioned without requiring changes to the servers or SAN fabric. Enterprise/data center virtualizationrefers to the use of virtualization technologies and integrated management tools to enable more flexible, automated, even dynamic matching of hardware resources to variable application workloads and changing business requirements.