© 2015 VMware Inc. All rights reserved.

Financial Analyst Meeting 2015Business Momentum and GTM Evolution

Carl EschenbachPresident

Chief Operating Officer

Forward-Looking Statements

This presentation contains forward-looking statements including, among other things, statements regarding VMware’s prospects for future growth based on current and future products and investments, including those in the Software-defined Data Center, Hybrid Cloud and End-User Computing; expectations for ongoing product innovation and growth, and related impact on and transformation of the industry; expectations for business momentum and evolving go-to-market strategy; prioritization of investments; ability to scale and disrupt through innovation; and expanding Business Mobility footprint. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. 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 consumer, government or information technology spending; (iii) competitive factors, including but not limited to pricing pressures, industry consolidation, entry of new competitors into the virtualization and cloud, end user and mobile computing markets, and new product and marketing initiatives by our competitors; (iv) our customers’ ability to transition to, new products and computing strategies such as cloud computing, desktop virtualization and the software-defined data center; (v) the uncertainty of customeracceptance of emerging technology; (vi) changes in the willingness of customers to enter into longer term licensing and support arrangements; (vii) rapid technological changes in virtualization software and cloud, end user and mobile computing industries; (viii) changes to product and service development timelines; (ix) our relationship with EMC Corporation; (x) our ability to protect our proprietary technology; (xi) our ability to attract and retain highly qualified employees; and (xii) our successful integration of companies and assets we acquire. These forward-looking statements are based on current expectations and are subject to uncertainties and changes in condition, significance, value and effect as well as other risks detailed in documents filed with the Securities and Exchange Commission, including our most recent reports on Form 10-K and Form 10-Q and current reports on Form 8-K that we may file from time to time, which could cause actual results to vary from expectations. VMware assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release.

© 2015 VMware Inc. All rights reserved. 2

Top 5 CIO Priorities to Transform to a “Digital Enterprise”

1

2

3

4

5

Bridge the Physical and Virtual Worlds

Be Software-Defined

Agile Cloud Platform, Traditional and Cloud-Native Applications

Embrace Business Mobility

Unlock Intelligence from Virtualized Data

3

AnyApplication

Traditional Applications

Cloud-Native Applications

AnyDevice

BUSINESS MOBILITYApplications | Devices | Content

OneCloud

Cloud Management

Virtualized Compute, Network, Storage

SOFTWARE-DEFINED DATA CENTER

HYBRID CLOUD

PUBLIC

vCloud Air

MANAGED

vCloud Air Network

PRIVATE

Data Center

Build-Your-Own Converged Infrastructure Hyper-Converged Infrastructure

4

Evolving VMware GTM Motions… 2014 Recap

GTM Evolution

Solution

Selling

Perpetual,

Subscription

Models

Generalists

and

Specialists

Multi-

Channel

Multi-

Product

5

End-User Computing

Hybrid Cloud

Software-Defined Data Center

6

End-User Computing

Hybrid Cloud

Software-Defined Data Center

7

Business Momentum

• Cloud Native traction:

VIO: In market less than 2 quarters; seeing large scale deployments

Open-Source Ecosystem and Containers support

Future Bets

• 700+ paying NSX customers; most deployments of any SDN solution

• Gartner 2015 Magic Quadrant for Data Center Networking:

A Visionary in Data Center Networking4

• NSX: Strong momentum in customer deployments

• 2000+ Virtual SAN customers

Emerging

Foundational • Gartner 2015 Magic Quadrant for x86 Server Virtualization Infrastructure:

A Leader in x86 Server Virtualization for six years in a row1

• vSphere 6.0 is one of the most rapidly adopted vSphere release ever

• IDC: #1 Cloud Systems Management Software Vendor2 (2014 market share)

• IDC: #1 WW Data Center Automation Software Vendor3 (2014 market share)

Sources: 1Gartner Magic Quadrant for x86 Server Virtualization Infrastructure (July 2015) | 2IDC, “WW Cloud Systems Management Software Market Shares, 2014:

Year of Hybrid Cloud”, June 2015 | 3IDC, “WW Data Center Automation Software 2014: Year of Cloud and DevOps”, June 2015 | 4Gartner: Magic Quadrant for Data

Center Networking (May 2015) | VMware Internal Analysis

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.

Software-Defined Data Center

8

Software-Defined Data Center Referenceable Deployments

Customer Success

Software-Defined Data Center

SDDC Deployment: Minimum of 3 out of 4 (vSphere, vRealize, NSX, vSAN and NSX/vSAN) 9

Software-Defined Data Center

End-User Computing

Hybrid Cloud

10

Business Momentum

Hybrid Cloud

• Rapid growth in usage in past 12 months

• Gartner 2015 Magic Quadrant for Cloud Infrastructure as-a-Service,

Worldwide: A Visionary in IaaS, Worldwide1

• 11 data center locations around the World

• New Service locations: Germany, Australia

• Launched vCloud® Air™ Government Service

Cloud

Services

• Google Platform Services

• AT&T: Netbond (network services)

• SAP IaaS Certification

• Continued momentum in vCloud® Air™ Network partner growth

• vCloud® Air™ Network Managed Service Provider launch

• Virtustream: Complementary services/technologies

for mission-critical workloads

Partnerships

Sources: 1Gartner Magic Quadrant for Cloud Infrastructure as a Service, Worldwide, Gartner (May 2015) | VMware Internal Analysis

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.

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Worldwide ISO 27001:2013, CSA

InternationalAICPA / SOC Type 1/2/3,

UK G-Cloud 6, HIPAA

and HITECH, FISC

U.S. GovernmentFedRAMP P-ATO

Customer Success

Hybrid Cloud

CERTIFICATIONS

12

Eliminating the Distinction

Between On-Premises

vs. Off-Premises IT

13

Software-Defined Data Center

Hybrid Cloud

End-User Computing

14

Business Momentum

End-User Computing• License bookings growth over 15% YoY (Q2: Constant Currency)

• Gaining share from the competition

• A leader in IDC MarketScape – Worldwide Virtual Client Computing Software4

• Strategic Partnerships: F5, Google, NVIDIA

• Visionary Leader5 – Frost & Sullivan; Most complete suite in the industry

Desktop

Mobile

(AirWatch)

• License bookings growth over 60% YoY (Q2: Constant Currency)

• A leader in 2015 Gartner Magic Quadrant for Enterprise Mobility Management

Suites for five years in a row1

• A leader in IDC MarketScape2; #1 in Worldwide EMM Market3 (2014 market share)

• Launched industry-first Identity-as-a-Service with EMM

• Strategic Partnerships: Apple, Google, Samsung

• ACE Program: Open standard for native integration between EMM

vendors and mobile apps; 25 partners

Sources: 1Gartner Magic Quadrant for Enterprise Mobility Management Suites (June 2015) | 2IDC MarketScape: WW EMM Software 2014 Vendor Assessment (IDC

Doc#251379) | 3IDC WW EMM Software Market Shares, 2014: Fragmentation Continues, But the Dust is Starting to Settle, June 2015, Doc #256627 | 4IDC MarketScape Virtual

Client Computing Software Market, IDC, 2015 | 5Frost & Sullivan 2015 North American End User Computing Visionary Innovation Leadership Award | VMware Internal Analysis

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.

15

Customer Success

End-User Computing

16

Evolving VMware’s GTM

for Scale and Customer Intimacy

17

Portfolio Approach for Prioritizing Investments

30+

Q3 Releases

Multiple Product Groups

All Want Tier 1

Products

Platforms

Field, Channel, Functions

vSphere

vRealize Automation

vCloud Suite

vSOM

Virtual SAN

NSXvCloud® Air™

Horizon SuiteAirWatch

vRealize OperationsSRM

Log InsightHorizon DaaS

Mirage

EVOPortfolioPrioritization

18

Scaling Coverage Through Standardization

Globally Coordinated

Coverage | Exec. Sponsorship | Federation

Virtual Touch

Marketing Enabled | Cost-effective Delivery

Partner-Led

Scalable | Program based | Differentiated

Solutions-Driven

Outcome-based | Biz Transformation | Services

19

Global Accounts: Next-Gen Client Relationship

Global Accounts

Program

Business FirstIndustry vertical focus, share of wallet

Customer-Centric ExecutionJoint planning, prescriptive solutions, executive engagement, customer advocacy

Consistent Global Operating ModelAccount planning, execution alignment, accountability, talent development

Life

Sciences

Financial

Services

Manufacturing/

Internet of Things

Telco/

NFV

Key Verticals

20

CoordinatedCommon view and

Coordinated response

to Global customers

AlignedShared Vision

and Priorities

Client Director

Architect

Pursuit Teams

GAM

Global Account Teams

21

Strategic Selling…Anatomy of a NSX Sale and Deployment

Selling

Security

Network

Virtualization

Cloud

Use Cases

• Security

• Full IT Automation

• Application Continuity (DR)

Core and specialists engaged

Buyers

Evaluation / Sale

Education / Training

• Over 3500 NV Certified

• #2 All-time Hands-On Lab

POC Discipline

• High-touch, Selective

ROI

• Security

• OpEx

• CapEx

Production Deployment

Learnings

• Adoption Journey (micro-

segmentation automation)

• Operational Support Critical

Initial Production

Business Critical

Full Adoption

Stages

22

Target: 15,000+ client devices

(AirWatch Horizon 6, User EnvironmentManager, Application Volumes)

Multi-billion Dollar Nationwide

Department Store Chain

Target: 10,000 to 30,000 users

(Horizon 6 Workspace Suite with AirWatch)

Multi-billion Dollar Global

Commercial Real Estate Company

Solutions-Driven: Expanding Business Mobility Footprint

23

Target: 15,000+ client devices

(AirWatch Horizon 6, User EnvironmentManager, Application Volumes)

Multi-billion Dollar Nationwide

Department Store Chain

Target: 10,000 to 30,000 users

(Horizon 6 Workspace Suite with AirWatch)

Multi-billion Dollar Global

Commercial Real Estate Company

Solutions-Driven: Expanding Business Mobility Footprint

24

Bridging the On-Premises / Off-Premises Licensing Requirement

Flexibility

Deploy On-Premises

and Off-Premises

Investment Protection

Consumption

Adoption and Usage

Duration of EA Term

Hybrid Purchase Program

Growth

EA (Direct and Channel)

License, SnS and Services

Customer Satisfaction

Licensing and Pricing Simplification

Choice

25

Partner-Led: Differentiated Programs and Rewards for Better Channel Leverage

• New Competencies: Network Virtualization, Mobility, Software-defined

Storage, Management Automation, Cloud Provider,

Hybrid Cloud

• Breadth and Depth of Expertise

• Pay for Performance

• CSAT with Partners

• Recruitment and Dev. Of New

Partner Types (SI/SO, ISV, SP)

• MDF Investments

Differentiated Rewards

by Sales Objectives

Focus on Growing Business

Differentiated Programs

by Partner Type

Value

Channel 2.0

26

Virtual Touch: Web-Based Assessments for Pipeline Generation

• Easy, powerful and free reports to help

customers optimize their infrastructure

• Web-based pipeline and deal generation

• Partner-enabled

www.vmware.com/assessment/voa

27

VMware Outperforming the Industry Average NPS

Consulting Delivery

Technical Account Manager (TAM)

Mission-critical / Business-critical Support

Satmetrix Global Benchmark

Industry Avg.

VMware NPS

13 9

39 39

Global Software

Global High Tech

Great Products

Sources: VMware 2015 customer NPS scores | Satmetrix 2014 Industry NPS scores 28

Key Takeaways

Strong Business Momentum and Customer Traction for Emerging Products

Aligning GTM Investments Through Focus and Prioritization

Evolving GTM Motions for Scale and Customer Intimacy

Customer Experience: VMware Continues to Outperform the Industry Average

29

Josh WarsopSenior Director, Global SDDC DevOps,

Virtualization and Business Value Realization

30

AND

31

Acronyms

32

• GTM: Go-to-Market

• EMM: Enterprise Mobility Management

• GAM: Global Account Manager

• NV: Network Virtualization

• POC: Proof-of-Concept

• ROI: Return on Investment

• DR: Disaster Recovery

• EA: Enterprise Agreement

• SnS: Service and Support

• MDF: Management Development Funds

• ISV: Independent Software Vendor

• SI/SO: System Integrator/System Outsourcer

• SP: Service Provider

• CSAT: Customer Satisfaction

• NPS: Net Promoter Score

Growth in Constant Currency

A majority of our sales are denominated in the U.S. dollar; however, we also invoice and collect in the euro, the British pound,the Japanese yen, the Australian dollar and the Chinese renminbi in their respective regions. The U.S. dollar is the functional currency for all of our legal entities. At the time a non-U.S. dollar transaction is recorded, the value of the transaction is converted into U.S. dollars at the exchange rate in effect for the month in which each order is booked.

As a result, the amount of license and total revenues and unearned revenues derived from these transactions will be impacted by foreign exchange fluctuations. In order to provide a comparable framework for assessing how our business performed adjusted for the impact of foreign currency fluctuations, management analyzes year-over-year license and total revenue growth on a constant currency basis.

Revenue Growth in Constant Currency and Sequential Change in Unearned Revenues

License and total revenues recognized during the current period derived from non-U.S. dollar based transactions were converted into U.S. dollars using the exchange rates that were effective in the comparable prior year period. The calculated current period license and total revenues, adjusted for foreign currency fluctuations, is compared to the license and total revenues of the comparable prior year period, as reported, in calculating license and total revenue growth in constant currency.

Unearned license revenues and unearned total revenues at the end of the period, derived from non-U.S. dollar transactions recorded during the current period, were adjusted for foreign currency fluctuations using the exchange rates that were effectivein the comparable prior year period. Unearned license revenues and unearned total revenues, adjusted for foreign currency fluctuations at the end of the period, are compared to unearned license revenues and unearned total revenues at the beginningof the period, as reported, in determining the sequential change in unearned revenues.

© 2015 VMware Inc. All rights reserved. 33