This document summarizes the benefits of server virtualization using VMware software. It discusses how VMware allows organizations to [1] reduce IT costs through server consolidation and increased efficiency, [2] improve control over infrastructure through features like live migration and high availability, and [3] choose flexible deployment options both on-premises and in the cloud. Customer case studies are provided showing typical cost savings of over 50% through virtualization. VMware is presented as the proven leader in virtualization providing the highest ROI and strategic investment in a tough economic environment.

1. Server Virtualization – The Right
Investment
Phares Kariuki,
Westcon Africa

2. Agenda
Economic Environment in 2010
Why VMware is a Strategic Investment
Evolution of Virtualization
Proven Customer Success

3. The Rough Road Ahead….
A global economic recession is
forecasted for 2009
US -0.7% GDP growth
EMEA -0.5% GDP growth
The economic environment is a
leading indicator of tech
spending
71% of CIOs anticipate flat or
decreasing IT spending budgets
IT budgets in developed
countries set to decline by 5%
Total IT spending is the
“lowest in the history of
the survey”.
Goldman Sachs IT Spending
Survey
Source: Goldman Sachs IT Spending Survey, Nov 2nd 2008
Source: IMF World Economic Outlook Report, Nov 6th 2008

4. The IT Dilemma
I am supposed to
still do the same job,
but with less budget
and headcount?!?

5. The Problem
Where the IT Budget Goes
5% Overwhelming complexity
Infrastructure
Investment >70% of IT budgets just to
keep the lights on
23% <30% of IT budgets goes to
Application 42%
Innovation Infrastructure innovation and competitive
Maintenance advantage
30%
Application
Maintenance Your Business Can
Change Only as Fast
as Your IT Can

6. The Goal
IT Efficiency
as a
Service
(Internally or
Control
Externally
Choice
Provisioned)

7. VMware Solutions Delivers
Efficiency Control Choice
…and remaining
independent
Cut capital
of hardware,
and operational …while automating
operating system,
costs by over 50%. quality of service…
application stack,
for all applications..
and service
providers

8. Agenda
Economic Environment in 2010
Why VMware is a Strategic Investment
Evolution of Virtualization
Proven Customer Success

9. Top 3 Reasons Why VMware is the Right IT
Investment in a Tough Economic Environment
1 Reduce Physical Infrastructure Cost
Reduce Datacenter Operating Cost
2
(e.g. Power & Cooling)
Increase Productivity, Operational
3 Flexibility and Responsiveness

10. Reduce Server Spend Through Consolidation
Typical
VMware… Consolidation: 10:1
Decouples software from
hardware
Encapsulates Operating
Systems and applications into
“Virtual Machines”
Typical Excess
A Server or Desktop Hardware Capacity: 3
Virtual Machine Years!
10

11. The Always On, Optimized, Energy Efficient Datacenter
Shared pools of resources
Self-protecting
Self-optimizing
Automated
Fault tolerant
X
VMware Infrastructure

12. VI Transforms Critical Infrastructure Services…
Resource Business Application
Management Continuity Availability
Service Level
Security
Management
Consolidation & Containment
VMware Infrastructure

13. Rolling Out a New Business Service
Availability
Availability
Security
Internal
APP Cloud
Security
Performance
Performance
Lowest TCO
Becomes a Matter of Specifying Required SLAs

14. On the Internal or External Cloud
Internal Cloud External Cloud
APP APP
Management
Management
Cloud OS Cloud OS
Internal External
Cloud Clouds
Unlock new market based economies of scale, service
and innovation beyond what currently exists today

15. IT Leaders Can Say “Yes!”
We can deliver new business services…
On time Within Budget With Assured QoS
56
$14,235 $30 MM
$5,694
$4 MM
2
Before After Before After Before After
Days to Provision Infrastructure Cost Business Loss Due to
a New App Per App Datacenter Outage
* The above data comes from specific VMware customer case studies

16. Reduce Energy Consumption
Highest consolidation rates on most secure and
reliable virtualization platform
Safely improve utilization rates
80% energy reduction
Dynamic server and storage migration
Power off unneeded servers in real-time
Migrate storage dynamically
25% energy reduction
Host desktop PCs in the datacenter
Use thin clients, double refresh cycle
Reduce storage for similar desktop images
70% energy reduction
Copyright © 2005 VMware, Inc. All rights reserved.

17. vCompute vStorage vNetwork
Green IT with VMware vSphere™ Power Optimization features
DPM consolidates workloads
onto fewer servers when the
cluster needs fewer resources
Places unneeded servers in
standby mode
Brings servers back online
as workload needs increase
APP APP APP APP APP APP APP APP APP
OS OS OS OS OS OS OS OS OS
ESX supports Intel Speed
VMware vSphere™ Step/AMD Power now for
individual host power
optimization
DPM brings
DPM powers Minimizes power consumption
servers back
off server while guaranteeing service
online when
when levels
load increases
requirements No disruption or downtime
are lower
to virtual machines

18. Additional 20% Reduction in Power Costs with DPM…
DPM Savings calculated for a datacenter
with 100 physical servers
$80,300
Before DPM
After DPM $63,093
16,800
13,200
Hours per Week Dollars per Year
Assumptions: 50 out of 100 servers can be powered down for 8 hrs/day on weekdays and 16 hrs/day on weekends.
Total power consumption per server ( operating power + cooling power) = 1130.625 watts/hr
Cost of energy = $ 0.0813 per kWH (source: Energy Information Administration)

19. vCompute vStorage vNetwork
vStorage Thin Provisioning
Virtual machine disks
APP APP APP
consume only the amount
of physical space in use
OS OS OS
ESX
Virtual machine sees
full logical disk size
at all times
Thick Thin Thin
20GB 40GB 100GB
Virtual
Full reporting and
20GB
Disks
alerting on allocation
20GB
and consumption
40GB
100GB
Significantly improve
Datastore storage utilization
Eliminate need to over-
provision virtual disks
60GB
20GB
Reduce storage costs by
up to 50%

20. vCompute vStorage vNetwork
vNetwork Distributed Switch
Aggregated datacenter
level virtual networking
Simplified setup and
APP APP APP APP APP APP APP APP APP
OS OS OS OS OS OS OS OS OS
vSwitch vSwitch
vNetwork Distributed Switch
Cisco Nexus 1000V
vSwitch change
VMware vSphere™ Easy troubleshooting,
monitoring and debugging
Enables transparent third
party management of
virtual environments

21. Total Savings per Workload
VMware consolidates servers, storage and networking
infrastructure to safely achieve higher utilization
BEFORE AFTER SAVINGS
Servers 1000 80 $5,816
Physical
1
Infrastructure Network 84 10 $296
Switches
Power (kWh) 407 52 $759
Operating
2 Cooling (kWh) 509 64 $949
Cost
Real Estate (Sq ft) 2053 257 $431
Savings $8,251*
per Workload
(Over 3 years)
• Actual customer savings per application; represents typical savings
• Includes estimated cost of VMware licenses, Support and Subscription

22. Decreasing Operating Costs
Productivity, Do more work with the same
3 Flexibility & number of people = operating cost
Responsiveness
savings
90–225 Drivers of productivity
improvements:
Instant provisioning
Dynamic patching
30–75 Zero downtime maintenance
Built-in high availability
Before VMware After VMware Automated disaster recovery
Workloads per Admin
Source: IDC and VMware TAM program

23. Cost of Ownership?
Obvious Costs/Savings Forgotten Costs/Savings
Physical Servers Labor Reassignment
Virtualization License Costs Efficiencies
Installation Labor Shared Storage Power
Maintenance Labor OS License Costs
SAN Infrastructure SnS Costs
Networking Infrastructure Uptime Savings
Power/Cooling
Datacenter Space

24. Cost per VM is a CRITICAL Metric
Cost per VM is better metric over Cost of License
Cost of license is negligible compared to infrastructure costs
(servers, network/SAN ports, power, cooling)
Due to overcommitment, we can run the same amount of
VMs in half the physical infrastructure
Advanced Solutions mean true savings and cost
avoidance
DPM can equate to real $
DRS avoids SLA misses, saves $
HA and SRM lessens downtime
Lab Manager saves money and avoids Management costs

25. VMware is Lowest TCO Per VM
VMware’s cost-per-VM beats even “free” products…
VMware VI3 VMware VI3 Other
Foundation Enterprise Solutions
2-way server (16GB RAM) $7,000 $7,000 $7,000
Cost: Guest Windows licenses1 $5,998 $5,998 $5,998
Cost: Virtualization license $995 $5,750 $0
Subtotal $13,993 $18,748 $12,998
Total VMs2 (2GB each) 15* 15* 7
Cost per VM $933 $1,250 $1,857
plus …
VI3 Enterprise includes advanced functionality such as live
server and storage migration, dynamic workload balancing,
built in high availability, data protection, and power
management which competitors don’t have.
1 List price for 2-socket Windows 2003 Server Datacenter Edition
2 Assumes a 2:1 memory overcommit ratio based on VMware advanced memory mgmt technologies
* Assumes 1GB of memory used by “host virtualization SW” for all vendors

26. Agenda
Economic Environment in 2010
Why VMware is a Strategic Investment
Evolution of Virtualization
Proven Customer Success

27. The Virtualisation Journey
Separate Consolidate Aggregate Automate Liberate
5
4
CapEx OpEx Business
Savings Savings Agility
3
Automation
Virtual Virtual
Infrastructure Infrastructure
2
Management Management Management
Hypervisor Hypervisor Hypervisor Hypervisor
1
Test and Server Capacity Self-Managing Computing
Development Consolidation On Demand Datacenter Clouds Enterprise
Maturity Level

28. The Evolution of VMware Infrastructure
.Net SaaS Windows Linux J2EE Desktop
App App App
Application Application Availability Security Scalability
Management vServices
OS OS OS
vCenter VMware Infrastructure -> Virtual
ESX
Datacenter OS
Infrastructur Infrastructure
vCompute vStorage vNetwork vCloud
e vServices
Management
Off-premise
Cloud

29. Agenda
Economic Environment in 2010
Why VMware is a Strategic Investment
Evolution of Virtualization
Proven Customer Success

30. Customer Testimonials
Reduce Costs
“Using VMware software has brought a huge cost benefit to IT - avoiding costs by $1.1
million is fantastic. For every production virtual machine, we estimate a $7,500 cost
avoidance per server. We multiply 150 applications by $7,500 and estimate a $1.1
million cost avoidance.
Barry Naber, Technology Manager at International Truck and Engine Corporation
Simplify Management
The net impact of utility computing with VMware Infrastructure 3 for the business is higher
service levels, for IT - it is simplified and easier to manage infrastructure.
Fazil Habibulla, Vice President and System Architect, NATIXIS Capital Markets
Meet Service Levels Efficiently
Using VMware virtual infrastructure, we can offer the same levels of service and
more flexibility for up to 40 percent lower server and operating costs.”
Rob Jones, Director of Technology, ALSTOM
30

31. VMware is the Proven Leader and Provides the
Highest ROI
“VMware’s incumbent position at the
top of the rankings demonstrates that
server virtualization momentum
remains alive and well with a strong
ROI case for a declining budget
environment.”
-- Goldman Sachs
11/2/2008
Which software providers are gaining
share of your IT spending dollars?
Source: Goldman Sachs IT Spending Survey, Nov 2nd, 2008

32. VMware Continues to be the #1 Software
Investment for CIOs in a Tough Economy
#
VMware
Gaining
1. VMware
2. Cisco Software
3. Red Hat
4. Oracle
5. Informatica
12 Quarters
6. salesforce.com
7. Microsoft
8. EMC Software
9. Symantec
10. Citrix
Which software providers are gaining
share of your IT spending dollars?
Source: Goldman Sachs IT Spending Survey, Nov 2nd, 2008

33. Available Resources
Online ROI/ TCO Calculator:
Robust and customizable
analysis of virtualization’s impact
on your IT budget and datacenter
costs
www.vmware.com/calculator
Why Choose VMware:
Vendor selection checklist to
ensure a Complete, Robust,
Proven Virtual Infrastructure
www.vmware.com/technology/why
vmware/

34. KIITOS DANKE SCHÖN
THANK YOU
MERCI GRACIAS
DANKE GRAZIE HVALA
TAVTAPUCH BARKAL REKHMET
KÖSZÖNÖM GIITTUS TACK

35. Appendix

36. Efficiency
VMware vSphere: Most Efficient
64 logical cores 24 logical cores 32 logical cores
Hardware Scale Out 512 GB RAM ~ 1 TB RAM x 128 GB RAM
CPU HW-assist or BT Requires HW-assist Req. HW-assist for Win
CPU Efficiency Virt-specific scheduler x Reuse gen-OS schdler x Reuse gen-OS schdler
Memory HW-assist Memory HW-assist Memory HW-assist
Memory Efficiency Overcommit / sharing x No overcommitment x No overcommitment
8-way vCPU 4-way on Win08 only 8-way vCPU
Virtual Hardware (VM) Scale Out 255 GB vRAM x 64 GB vRAM ~ 32 GB vRAM
Add: vCPU, vMem None No hot-add CPU, mem
Hot-add/remove Virtual Resources Add: virtual disk x x Add: virtual disk
DPM: Cluster-level No Cluster-level Mgmt No Cluster-level Mgmt
Power Efficiency power management x x
Thin provisioning Thin disks, but no Only via 3rd party
Storage Usage Efficiency Monitoring tools x monitoring tools x storage vendor
Distributed switch None None
Network Management Efficiency 3rd party virtual switch x x
Transparent host patch Host patching causes Host patching, but no
Automated Patching Efficiency Auto guest patching x VM downtime x auto guest patching
New capability in VMware vSphere
Note: Many improvements were also made to existing VI3
capabilities

37. Control
VMware vSphere: Uncompromised Control
VMware vMotion (w/ Quick Migration XenMotion
Control for Server Maintenance Enh Compatibility) x causes downtime
VMware Enhanced Nothing comparable Nothing comparable
Control for Storage Maintenance Storage vMotion x x
VMware DRS Pro Tips has downtime 3rd party for DRS
Control of Resource Allocation Logical Resource Pool x No logical pools x No logical pools
VMware Fault No VM-level protection Promised feature
Fault Tolerance for VMs Tolerance x x hasn’t shipped yet
Integrated NIC teaming Relies on network Supported, but may
Control during NIC Failure x vendor to provide ~ require CLI to configure
VMware HA Only for host failure Only for host failure
Control during Host or VM Failure Up to 32 nodes x 1-VM-per-LUN issue ~ Up to 16 nodes
VMware Site Recovery Geo-clustering has no Nothing comparable
Control during Entire Site Failure Manager x workflow, testing, audit x
Thin Hypervisor to Reduce Attack VMware ESXi Hyper-V w/ Server Core XenServer
Surface 70-100MB disk footprint x >2GB disk footprint x 1.8GB disk footprint
VMware VMSafe API Nothing comparable Nothing comparable
Better Security than Physical 3rd party support x x
New capability in VMware vSphere
Note: Many improvements were also made to existing VI3
capabilities

38. Choice
VMware vSphere: Maximum Choice
>30 OSs supported 11 OSs supported 20 OSs supported
Choice thru Guest OS Support More Windows than MS x Windows biased x
Large HCL: >450 HBAs, Using Windows drivers Very limited HCL
Choice thru Hardware Support >160 NICs,>450 Servers ~ Potential driver issues x ~100 Servers
Leader category Leader category Next-tier category
Choice thru Application Support
(per leading analyst firm) (per leading analyst firm) ~ (per leading analyst firm)
Dozens of integrations Can integrate, but SC Citrix Essentials API
Integrating with Existing Mgmt Tools vCenter API via SDK ~ competes w/ existing x not readily available
VMReady program for Building a MS-hosted No clear cloud
Choice in “Cloud” Service Provider cloud providers x offering x strategy
Interoperability between Internal & VMReady ensures Apps in MS cloud No clear cloud
External Cloud interoperability x don’t come back out x strategy
Choice in Using Existing Apps in Run existing apps w/o Apps need to be No clear cloud
the Cloud rewriting code x rewritten for MS cloud x strategy
New capability in VMware vSphere
Note: Many improvements were also made to existing VI3
capabilities