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Presentation By: Bradley Atherton, Leslie Lainez, Mark Balingit, Roy Sanchez, Tony Vuong, Kyle Schuler 1

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First to the market to provide a virtualization solution for x86 based format and dominated the market Founded By: Edourad Bugnion Scott Devine Diane Greene Mendel Rosenblum Edward Wang 2

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Separates the physical hardware resources of a computer from its OS and software resources. Significantly improved flexibility by improving Availability Disaster recovery Serviceability Testing & development Staging Provisioning Security 3

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HOSTED VIRTUAL MACHINEHYPERVISOR Virtualization software is installed on top of existing (Host) OS like an application A guest OS is installed on top of the Virtualization software Applications are then installed on top of the guest OS Virtualization software (Hypervisor) is installed on directly onto bare metal hardware Each VM resides on top of the Hypervisor layer 4

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Partitioning Partitioning hardware resources (allowing server consolidation) Isolation increases security Improved productivity of software testing Encapsulation Increase mobility/ transport Increased software compatibility Decreased likelihood of downtime 5

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6 Performance penalty. Reduce performance 20% to 40% in a hosted machine. What is Vmwares solution? What is Vmwares solution? What is Hypervisor architecture? What is Hypervisor architecture? Virtual Machine Manager Virtual Machine Manager With hypervisor architecture it only reduces performance by 10%. With hypervisor architecture it only reduces performance by 10%.

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Increase complexity Increase security risk Why? 7 Because software has direct access to hardware. Because software has direct access to hardware. Vmware argues that virtualization simplifies through isolating application interfaces. Vmware argues that virtualization simplifies through isolating application interfaces.

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Enterprise Pricing & Licensing. Increase cost because some vendors charge more if you use more processors. CPU core (processor per unit) vs. single instance 8 Vmware answer is to encourage vendors to adjust their pricing and licensing on virtual machine environment and use instance pricing. Vmware answer is to encourage vendors to adjust their pricing and licensing on virtual machine environment and use instance pricing.

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9 After the dot-com crash companies seek to reduce IT budget by consolidating servers. After the dot-com crash companies seek to reduce IT budget by consolidating servers. VMware ESX Server helps consolidate servers demand went up help increase revenue. VMware ESX Server helps consolidate servers demand went up help increase revenue. VMware price ESX server near the price of a physical server rather than an operating system. VMware price ESX server near the price of a physical server rather than an operating system. Server capacity continue to expand and improve. Server capacity continue to expand and improve.

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Competition from other software vendors such as operating system makers. 10 Vista Server, Windows 2008 virtualization technology embedded in the operating system. Linux Xen virtualization included

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Major Competitors Microsoft Citrix Other Competitors Oracle Parallel Red Hat 11

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Develop in-house applications optimized for VM Ware Build a stronger business around service and support Focus solely on being a proprietary platform provide Give portions of the platform away for free (Foot in the door) Provide superior service and Support 12

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Acquisitions of different companies that bring their own specialization to the VMware platform. SpringSource Tungsten Graphics Zimbra Akimbi Systems B-Hive network Shavlik Technologies 13

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VMwares revenue comes from service such as maintenance, upgrades, and training. Education services, Certification, and Consulting Technical Account Manager Program (TAMs) 14

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30% of revenue from service and support in 2008, percent is now around 50/50 licensing/service Maintenance, upgrades, professional services and training License revenue 2011 - $1.84 billion Service revenue 2011 - $1.93 billion 15

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Developed strong partnerships with leaders of networking processing industries Intel and Cisco. Partnered with over four thousand individual companies which a majority of sales are derived from. 16

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VMware provided VMware Server for free in early 2006 beating Microsoft's release by 2 months. This allowed companies to test out the product before purchasing a full featured version such as VMware ESX 18

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19 2007 Market Share Because it has more features than any other vendors.

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VMware is a global company with around 50% of revenues coming from different countries 2008 U.S revenue $988 million 2008 International revenue $893 million 2011 U.S. revenue $1.82 billion 2011 International revenue $1.94 billion 20

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Principle engineer Currently still with VMware 22

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Left 2004 Became co-founder of Nuova systems as CTO (later acquired by Cisco) Part of their server access and virtualization tech group 23

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Removed by force July 2008 (replaced by Microsoft veteran CEO Paul Martiz) Invested in Nicira became a board member of Nimbula Part of the Board of Directors of Google since January 2012 24

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Father of VMwares vision Left two months after his wife Greene Currently a professor of Computer Science at Stanford. 25

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Left VMware 2009 Principal engineer of VMwares technology staff that was in charge of design and implementation of various portions of their main product 26

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How many companies plan to change virtualization platform38% Cost as the biggest factor58.9% Features as the biggest factor47.4% licensing models46.8% increased maturity of competitors41.6% 29

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PROSCONS 200 + new features Ensure edge over competitors More management capabilities Cloud Foundry Easier for developers to build, test, deploy and scale any applications Change in licensing Charged based on CPU core Limit on vRAM Management add-on software price based on amount of virtual machine rather than physical hardware 31

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32 Any Questions?

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"Acquisitions." VMware Company and Technology. Web. 16 Apr. 2012..http://www.vmware.com/company/acquisitions/ "Become a VMware Partner." : Virtualization Solutions and Programs. Web. 22 Apr. 2012..http://www.vmware.com/partners/programs/ "Big Vendors Look to Challenge VMware with Open Source." Computerworld. Web. 22 Apr. 2012..http://www.computerworld.com/s/article/9216874/Big_vendors_look_to_challenge_VMware_with_o pen_source Bullard, W., Raj, N., Vaidyanathan, S., Yoffie D. VMware, Inc. (A). Harvard Business School. 24 Sept. 2007.12 Feb. 2012. Marshall, David. "VMware 2011: The Good, the Bad, and the Cloudy." InfoWorld. 21 Dec. 2011. Web. 16 Apr. 2012..http://www.infoworld.com/d/virtualization/vmware-2011-the-good-the-bad-and-the- cloudy-182328 Marshall, David. "Where Are VMware's 'virtualization Fab Five' Now?" InfoWorld. 06 July 2010. Web. 16 Apr. 2012..http://www.infoworld.com/d/virtualization/where-are-vmwares-virtualization-fab-five- now-296 "VMware Inc. (VMW)." Stock:. Web. 22 Apr. 2012..http://www.wikinvest.com/stock/VMware_Inc._(VMW) "VMware vs. Microsoft vs. Citrix." Network World. Web. 22 Apr. 2012.. http://www.networkworld.com/news/2010/060710-tech-argument-citrix-vmware-microsoft.html "V-Index." V-index: Quarterly Updates on Virtualization Industry. Web. 16 Apr. 2012..http://www.v- index.com/ 33