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Journey to IT Transformation

Journey to IT Transformation. Agenda. VMware at a Glance What We Do ? Why You Should Care ? The Journey to IT Transformation Q/A. VMware – The Proven Market Leader. Company Overview ~$1.9 B in 2008 revenue Over $2B in cash 20%+ operating margins ~7,000 employees worldwide

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Journey to IT Transformation

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  1. Journey to IT Transformation

  2. Agenda • VMware at a Glance • What We Do ? • Why You Should Care ? • The Journey to IT Transformation • Q/A

  3. VMware – The Proven Market Leader Company Overview • ~$1.9 B in 2008 revenue • Over $2B in cash • 20%+ operating margins • ~7,000 employees worldwide • 200+ employees in Canada Proven in the Trenches • 140,000+ VMware Customers • 100% of Fortune 100 • 100% of Fortune Global 100 • 96% of Fortune 1000 • 95% of Fortune Global 500

  4. VMware – The Proven Market Leader Company Overview • ~$1.9 B in 2008 revenue • Over $2B in cash • 20%+ operating margins • ~7,000 employees worldwide • 200+ employees in Canada Proven in the Trenches • 140,000+ VMware Customers • 100% of Fortune 100 • 100% of Fortune Global 100 • 96% of Fortune 1000 • 95% of Fortune Global 500 89% of all virtualized applications in the world run on VMware. Gartner, December 2008

  5. What We Do ?

  6. Aggregation and Coordination of All Underlying Resources Dramatic Performance and Scale Integrated Availability and Reliability Integrated Policy and Compliance Extensible Management Self-Service Datacenter Manage at Service Level Pioneering Wide-Scale Use of Virtualization… The Client Hypervisor The Server Hypervisor The Virtual Datacenter OS VMware vSphere™Foundation for Internal and External Clouds Cooperating Hypervisors and Management 1999 2000 2003 2009+

  7. VMware Product / Service Lines • Extend • Supplement • Choose vCloud Offerings Extend the Datacenter • Manage • Control • Automate vCenter Automate Virtual Processes • Liberate • Centralize • Secure View Desktop Independence vSphere Market Leading Virtualization Platform • Consolidate • Simplify • Fortify

  8. VMware Delivers Business Outcomes Reduction in Datacenter Capital Expense Reduction in Datacenter Operating Expense Reduction in Risk $14,235 2.0-3.0 $30 MM $5,694 0.3 – 1.0 $4 MM Business Loss Due to Datacenter Outage** Infrastructure Cost per App Sys Admin per 100 Apps* *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.

  9. VMware Delivers Business Outcomes Desktop Mobility Solutions Application Availability Disaster Recovery Server Consolidation Mobility, Thin Client, Anywhere Access Data Center Business Continuity Reduce CapEx / OpEx Power / Cooling Security & Compliance Mergers/Acquisitions Desktop Accessibility Disaster or Pandemic Secuirty & Compliance FDA – CFR Part 11 Speed Integration Reduce Costs & Risk Access Desktops Remotely in case of disaster

  10. Automated Resource Assurance Increased Availability On Demand Capacity Non-disruptive Scaling Flexible, Reconfigurable Automated Across Applications Dynamic Balancing Continuous Optimization Always On, On Demand Data Center As virtualization matures and becomes default, the "next big thing" will be automation. + + X

  11. Cloud Provider App App Availability On PremiseData Center Security QoS Lowest TCO Infrastructure What Customers Have Been Waiting For Availability Security Performance

  12. Cloud Provider Windows Linux Other? App App On PremiseData Center What Customers Have Been Waiting For

  13. The Goal • Just like….. ITas a Service • Inexpensive, pay as you go, pay for what you use • Ubiquitously available • Reliable • Choice of providers

  14. Why You Should Care?

  15. The Problem – Complex, Inefficient, Inflexible • Cause • Overwhelming complexity • Reliance on brittle infrastructure • Effect • >70% of IT budgets just “maintaining” status quo • <30% of IT budgets goes to innovation and competitive advantage Where the IT Budget Goes 5%Infrastructure Investment 23%Application Investment 42%Infrastructure Maintenance 30%Application Maintenance Business Agility Depends on IT Agility Your Business Can Change Only as Fast as Your IT Can Source: VMware Fortune 100 Customers

  16. All Recent CIO Surveys Agree: The Current Environment Has Moved Virtualization to the Top of CIO Priorities “The current environment has moved virtualization toward the top of the priority list for CIOs.” “Total cost of ownership (TCO) reductions will be a key driver of the acceleration in server virtualization deployments as CIOs are forced to cut capital spending and reign in management, administrative and power/ cooling costs.” Source: Merrill Lynch CIO Survey, Oct 28th, 2008 Source: Goldman Sachs IT Spending Survey, Nov 2nd, 2008

  17. Top Ten Drivers for Virtualization • Reasons to Virtualize – survey data from Enterprise Management Associates • Server Utilization 69% • Reduce down time 62% • Reduce H/W Costs 62% • Enable BC/DR 60% • Increase Agility 59% • Lower Mgt Costs 53% • Meet SLA’s 44% • Improve Security 41% • Regain Floor Space 38% • Reduce S/W Costs 37% 72% of CIOs plan to fund initiatives focused on reducing operating expenses including personnel costs in 2009. Goldman Sachs Global Investment Research , January 11, 2009

  18. The Journey To IT Transformation

  19. Strategic Business Benefits: Agile, Flexible, Always-on OpEx Savings CapEx Savings The Customer Journey: Benefits Start with immediate needs…Scale for enterprise-wide benefits • Automate IT processes • Create resource pools • Capacity on-demand • Infrastructure-wide management • Build the “Internal Cloud” • Virtualize production servers • High Availability • Disaster Recovery • Balance workloads • Partition • Consolidate servers > 500 VMs < 100 VMs 100 – 500 VMs Expand (Manage) Explore (Consolidate) Standardize (Automate)

  20. The Path to VMware Maturity Service Level Mgt Availability Mgt Change Mgt 5 Automate Optimized 4 >70% Total Cost Savings Managed 50-60% Total Cost Savings All Apps under DR Plan Problem/ Incident Mgt Resource Mgt Configuration Mgt Virtual Maturity and Business Value Manage 3 Operational Capability >50% Apps under DR Plan >90% Apps have >99.9% availability Defined BCDR Planning Improve response times by > 60% Most processes Stan- dardized / Automated 30-50% Total Cost Savings 2 Recovery time down to mins Chargeback Repeatable Consolidate Capacity Mgt 20-30% Total Cost Savings* 1 Initial Initial Adoption Cross-Dept. Expansion Enterprise Standardization Scope of Deployment

  21. Critical Integration for IT Transformation Organizational Expertise Performance Configuration Security and integration Systems monitoring Deployment tools Center of Excellence (CoE) Training Cross-organization control Executive sponsorship People Technology Virtualization Transformation Process Governance Service Delivery Business requirements Services catalog Service levels redefined LOB utilization control Compliance Operational change ITIL process deployment Process documentation

  22. Thank You.

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