Virtualization:Beyond Server Consolidation

Agenda

VMware, Product & Solutions

Adoption Trends

Road Ahead

VMware By the Numbers

Founded 19982006 Revenue $709 MNumber of Employees 3,000+Number of VMware Infrastructure Customers 20,000+Number of Users 4+ millionNumber of Channel Partners 3,000+Number of VMware Certified Professionals 10,000+

What is Virtualization?VMware provides hardware virtualization that presents a complete x86 platform to the virtual machine

Allows multiple applications to run in isolation within virtual machines on the same physical machine

Virtualization provides direct access to the hardware resources to give you much greater performance than software emulation

With VirtualizationWithout Virtualization

Three Key Properties of Virtualization

Partitioning• Run multiple operating systems

on one physical machine

• Fully utilize server resources

• Support high availability by clustering virtual machines

Encapsulation• Encapsulate the entire state

of the virtual machine in hardware-independent files

• Save the virtual machine state as a snapshot in time

• Re-use or transfer whole virtual machines with a simple file copy

Isolation• Isolate faults and security at the

virtual-machine level

• Dynamically control CPU, memory, disk and network resources per virtual machine

• Guarantee service levels

1st Generation

2nd Generation

3rd Generation

The Virtualization Market is Evolving Rapidly

2002 - 2005 2006 +1998 - 2001

Server Partitioning

Server Consolidation

Virtual Infrastructure

Virtual Infrastructure

Hypervisor

Œ • Partition a single server reliably and securely into multiple virtual machines

Virtual Infrastructure

Hypervisor

Œ

Distributed Virtualization

• Partition a single server reliably and securely into multiple virtual machines

• Aggregate entire farms of systems, storage and network into a shared IT service

Virtual Infrastructure

Hypervisor

Œ

Distributed Virtualization

Management & Automation

• Partition a single server reliably and securely into multiple virtual machines

• Aggregate entire farms of systems, storage and network into a shared IT service

• Automate end-to-end IT processes

The Virtual Infrastructure Stack TodayInfrastructure Optimization

SW Lifecycle

Resource Mgt Availability Mobility

Hypervisor

Œ

Distributed Virtualization

Management & Automation

Desktop

ManagementBusiness Continuity

The Virtual Infrastructure Stack Today

Hypervisor

Œ

Virtual Infrastructure

VI Management

Infrastructure Optimization

SW Lifecycle

Resource Mgt Availability Mobility

Desktop Management

Business Continuity

> 87% of customers have deployed in production

> 43% of customers are standardizing on VMware Infrastructure

49% use DRS

> 48% use HA

> 52% use VCB

56% useVMotion

66% use Virtual Center

55% use VI3 for BC/DR

Evals at 40% of

VMworld attendees

>10K evals

1st and 2nd Generation Drove Consolidation

Servers 1000 80 $5,816 M

HBAs 500 160 $290 M

SAN Switches 22 8 na

Network Switches 84 10 $296 M

Power (kW) 407 52 $759 M

Cooling (kW) 509 64 $949 M

Real Estate (Sq ft) 2053 257 $431 M

Total Savings(per workload over 3 years)

$8,541*

* Note: Savings include estimated cost of VMware licenses, Support and Subscription* Note: Savings include estimated cost of VMware licenses, Support and Subscription

Example: Utility CompanyExample: Utility Company

BEFORE VMware AFTER VMware SAVINGS

…With Significant CAPEX & OPEX Gains…

Increased server utilization to nearly 80% percent

Consolidated servers by a 12:1 ratio

Reduced datacenter space by a 20:1 ratio

Virtualized 60% of x86 environment

Infrastructure / workloads doubled but staffing has not increased in 2.5 years

Deployed new servers in hours rather than weeks

Standardizing their infrastructure on VMware

SAN

Production VMs

BackupServer

DR - Site

BackupServer

Storage Reserve

DEV/TEST

Production

Virtualization brings significant power and space savings

BEFORE AFTER

Type Qty Power Rating

1 CPU 300 475 W

2 CPU 500 550 W

4 CPU 200 950 W

8 CPU -- 1600 W

200 racks or 4,700 sq ft approx

$289,878 / year in power

$362,348 / year in cooling

Type Qty Power Rating

1 CPU -- 550 W

2 CPU 38 675 W

4 CPU 38 1150 W

8 CPU 4 1900 W

10 racks or 235 sq ft approx

$36,718 / year in power

$45,897 / year in cooling

IT budgets are increasingly consumed by data center power and cooling costs

Power supplies are constrained in some geographies

Heat causes servers to fail and results in service interruption

Data centers are full and new projects cannot start due to lack of space

For every 1 server that is removed from the datacenter, approximately 11.4 tons of CO2 emissions are saved

The Virtual Mainframe

Capacity On-demand

Always on

Policy Based Automation

The Value Proposition Has Broadened

Mainframe-class infrastructure on commodity hardware

OS and hardware agnostic, Infrastructure-wide

Aggregate and Virtualize

Not just about server virtualization but

about virtualization as an architecture

X

Automated Resource Assurance

Dynamic BalancingContinuous Optimization

Increased Availability

AutomatedAcross Applications

On Demand Capacity

Non-disruptive Scaling Flexible, Reconfigurable++

…Delivering The Always On, On Demand Data Center

> Data protected with low RPO by storage replication

> System protected with tape – 24 hour RPO

> Recovery has high RTO due to tape restore

> Unreliable recovery – system disk is tied to the source HW

> System state is protected like data – low RPO

> Recovery is a simple VM boot – low RTO

> 100% reliable recovery – system state is tied to unchanging virtual HW

X XDR Before and After VMware Infrastructure (VI)

DR at PraetorianPrimary Data Center Recovery Site

30 miles

Replication

• RPO of 15 minutes and RTO of <4 hours • Reduced TCO by 50%• Saw ROI of 600% in 4 months

FC SAN

Virtual Infrastructure

FC SAN

Virtual Infrastructure

Agenda

VMware, Product & Solutions

Adoption Trends

Road Ahead

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

2005 2006 2007 2008 2009 2010

Source: IDC, Virtualization and Multicore Innovations Disrupt the WW Server Market, March 2007

Server Virtualization Forecast: 2005 - 2010

1.4M VMs 7.9M VMsCAGR = 40.6%

Virtualized Physical Servers

Logical Servers

The Virtual Infrastructure Stack: What Matters

Hypervisor

Œ

Distributed Virtualization

Management & Automation

3rd generation; more than 20,000 production customers

Selection Criteria VMware

Deployments with thousands of virtual machines

65% of VMware customers run multiple OS on the same server

Only virtual infrastructure suite with distributed virtualization, management & automation

2/3 of VMware customers run databases and enterprise applications in virtual machines

0% 5% 10% 15% 20% 25% 30%

HeterogeneousOS Suppport

Scalability

Management &Automation

Performance

Maturity

Percentage of Users, N=151

Widely used in Production Environments

>20,000 virtual Infrastructure customers

87% in production

65% running different OS on the same server

63% plan to virtualize more than 50% of their x86 infrastructure in 3 years

43% standardizing on virtual infrastructure

Percentage of customers deploying following Windows workloads in virtual machines

63%

72%

81%

82%Infrastructure Workloads

Infrastructure Workloads

Application Servers

Application Servers

DatabasesDatabases

Enterprise Applications

Enterprise Applications

Source: Comprehensive survey of VMware customers conducted in September 2006. N=2256 respondents

VMware Category Leadership

Copyright © 2004 VMware, Inc. All rights reserved.

VMware Customers Deploying VI as Standard

Customer Commitment to VMware

26% 59%

VMware exclusivelyVMware favored

85% of customers will exclusively or strongly favor VMware for future

purchases

23%

20%

31%

13%

8%0%4% 1%

Default Server Policy

Most Production

ServersSome Production

Servers

Non -critical Apps Only

Test/ Dev Only

Source: Comprehensive survey of VMware customers conducted in September 2006. Sample size 1846 respondent

Agenda

VMware, Product & Solutions

Adoption Trends

Road Ahead

The Virtualized Data Center - TomorrowMassive Compute Supply Mandates Virtualization

High core countLarge memoryHigh speed converged I/O fabric

Future Hardware Minimizes Virtualization overhead3rd generation hardware assistVirtualization-aware ecosystem

X86 Continues Upstream70 - 80% business compute needsCompute nodes realized

Acceptance Across the Technology Stack

I/O Subsystem

CPU

Operating System

Networking

Storage

Management

Applications

Virtualization Economy: $B+ Value Creation

Global OEMs

Global ISV & Technology

100+ Emerging Technology

4,000+ Distributors, Resellers, Consulting Partners

Global System Integrators

400+ Virtual Appliance Vendors

Summary

Virtualization is mainstream today and the VMware Infrastructure transforms the IT landscape

VMware Customers are achieving transformative benefits, increased by the greater innovation brought by strong ecosystem partners

VMware is the undisputed market leader, the only safe, proven choice

Thanks!!!

Matteo Uva

Channel Manager Italy and Greece

June 12th 2007