vSphere 4 Packaging, Pricing, and Licensing Overview

1
vSphere 4 Packaging, Pricing, and Licensing
Overview
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• March 2009

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2
Agenda

• VMware vSphere Pricing and Packaging
• Entitlement Paths and Upgrade Options
• Acceleration Kits
• New Licensing Mechanism
• Selling vSphere

3
VMware vSphere 4 Launch

• What is VMware vSphere?
• First cloud operating system
• Transforms datacenters into simplified
  environments for flexible, reliable IT services
• Delivers unparalleled efficiency, control and
  choice
• Launch Highlights
• April 21 marketing launch
• May 21 price list takes effect Date might be
  different for OEMs. Please check with VMware
  counterpart
• VI 3.x SKUs are replaced with vSphere 4.x SKUs
  overnight
• All customer orders are placed for vSphere 4
• We will honor existing quotes placed with the VI3
  SKUs
• vSphere 4.x licenses can always be downgraded to
  VI 3.x licenses

4
Pricing and Packaging Summary of Changes

• Change the name from VMware Infrastructure to
  VMware vSphere
• Update the software versions and add new features
• Introduce new editions and new price points
• vSphere Essentials editions for small and remote
  offices
• vSphere Standard at a new, lower price point
• vSphere Advanced for high availability at a
  mid-range price point
• vSphere Enterprise Plus at a new top price point
• End-of-Availability for old editions
• Foundation immediate end-of-availability
• Enterprise availability continues during a
  transition period
• Eliminate most a-la-carte offerings
• Switch to one processor pricing

5
vSphere Components

• vSphere is a distributed software system with
  features enabled by a management server and
  hypervisor working together
• VMware vCenter Server is the management server
  and cluster coordinator (1 instance required)
• VMware ESX / ESXi is the hypervisor software
  running on each host (1 instance per server
  required)

VMware ESX / ESXi
VMware ESX / ESXi
VMware ESX / ESXi
vSphere editions are the licensed features
enabled by vCenter Server working with ESX / ESXi
6
vSphere 4 Software Changes

• Move to up-to-date versions of the software
• VMware ESX 3.5 VMware ESX 4.0
• VMware ESXi 3.5 VMware ESXi 4.0
• vCenter Server 2.5 vCenter Server 4.0
• Improvements in existing vSphere licensed
  features
• VMware High Availability (HA), VMware VMotion,
  VMware Storage VMotion, VMware Update Manager,
  VMware Distributed Resource Scheduler (DRS)
• Addition of new vSphere licensed features
• VMware Fault Tolerance (FT), VMware Data
  Recovery, VMware vShield Zones, VMware vNetwork
  Distributed Switch (VDS), VMware Host Profiles

Training on new features and functions available
separately
7
vSphere One Processor Licensing
vSphere moves to a one processor pricing model
Example Customer buys Enterprise licenses for 3
four-socket servers, 12 processors total

• VMware Infrastructure 3 (VI3)
• 6 x 2 Proc VI3 Enterprise
• X 5750 / 2 Proc license
• 34,500

• VMware vSphere 4
• 12 x 1 Proc vSphere 4 Enterprise
• X 2875 / 1 Proc license
• 34,500

This is a pricing example
Note A processor consists of one or more
processing cores. Multi-core licensing is
discussed later in this presentation
8
New Editions and Prices VMware Objectives

• Develop feature and price combinations to
  increase adoption in the Small and Medium
  Business segment
• Add additional features and products to increase
  the overall value of the platform
• Continually provide additional value at every
  price point

• Important points
• Prices given in these presentation are End User
  MSRP (Manufacturer Suggested Retail Price) in USD
• EMEA pricing still TBD
• OEM specifics will be mentioned when appropriate

9
New vSphere 4 Editions Overview
VMware vSphere
STANDARD (795 / CPU) Simple Consolidation
ENTERPRISE PLUS (3495 / CPU) Simplified
Operations
ADVANCED (2245 / CPU) Availability
ENTERPRISE (2875 / CPU) Automated Resource
Management
ESSENTIALS PLUS Integrated availability solution
for Small Businesses (2995 All-in-One for 3
Servers)

• Basic management for
• Simple consolidation
• Remote offices
• Test labs

• High availability for
• Production infrastructure
• Mission critical applications

• Large scale management and integration for
• Internal cloud
• Tier 1 applications

• Automated resource management for
• Production infrastructure
• Mission critical applications

ESSENTIALS Basic management of free ESXi (995
All-in-One for 3 Servers)
Scale limited, Low initial price, Small office-
oriented features
Scale unlimited, Value price, Low TCO Full
featured
Note US list pricing in USD International
pricing may vary
8
10
Comparing Editions VI3 to vSphere 4 Positioning
VMware Infrastructure 3
VMware vSphere 4
ENTERPRISE PLUS 3495/CPU
Large scale management and enterprise integration
ENTERPRISE 2875/CPU
VMotion, Fault Tolerance, and availability
features at new lower entry point
ADVANCED 2245/CPU
License Price
STANDARD 1495/CPU
Lower license cost and lower Support and
Subscription cost
STANDARD 795/CPU
FOUNDATION 495/CPU
Lower cost entry point for management and
availability
ESSENTIALS / ESSENTIALS PLUS Starting at 156/CPU
Note US list pricing in USD International
pricing may vary Note These are NOT entitlement
paths
11
Comparing Editions Enterprise Transition
VMware Infrastructure 3
VMware vSphere 4
ENTERPRISE PLUS 3495/CPU
Enterprise availability will continue through
12/15 targeted at existing VI3 Enterprise
customers
ENTERPRISE 2875/CPU
ENTERPRISE 2875/CPU
ADVANCED 2245/CPU
STANDARD 795/CPU
VALUE
STANDARD 1495/CPU
ESSENTIALS / ESSENTIALS PLUS Starting at 156/CPU
FOUNDATION 495/CPU
Note US list pricing in USD International
pricing may vary
12
New vSphere 4 Editions Overview
VMware vSphere
STANDARD (795 / CPU) Simple Consolidation
ENTERPRISE PLUS (3495 / CPU) Simplified
Operations
ADVANCED (2245 / CPU) Availability
ENTERPRISE (2875 / CPU) Automated Resource
Management
ESSENTIALS PLUS Integrated availability solution
for Small Businesses (2995 All-in-One for 3
Servers)

• Basic management for
• Simple consolidation
• Remote offices
• Test labs

• High availability for
• Production infrastructure
• Mission critical applications

• Large scale management and integration for
• Internal cloud
• Tier 1 applications

• Automated resource management for
• Production infrastructure
• Mission critical applications

ESSENTIALS Basic management of free ESXi (995
All-in-One for 3 Servers)
Scale limited, Low initial price, Small office-
oriented features
Scale unlimited, Value price, Low TCO Full
featured
Note US list pricing in USD International
pricing may vary
11
13
vSphere 4 Editions Essentials Packaging

• All inclusive packages
• Licenses for 3 physical servers (up to 2
  processors each)
• License for central management server
• Packages cannot be decoupled or combined
  components cannot be used with other vSphere
  editions

Data Recovery
x 6 CPUS
x 6 CPUS
High Availability
6 CPUS x
x 6 CPUS
Update Manager
Update Manager
6 CPUS x
VC Agent
VC Agent
x 6 CPUS
4-way vSMP
4-way vSMP
6 CPUS x
x 6 CPUS
VMware ESXi OR VMware ESX
VMware ESXi OR VMware ESX
6 CPUS x
x 6 CPUS
vCenter Server for Essentials (up to 3 servers)
vCenter Server for Essentials (up to 3 servers)
1 x
x 1
ESSENTIALS (995)
ESSENTIALS PLUS (2,995)
vCenter Server for Essentials
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vSphere 4 Editions Essentials Pricing

• vSphere Essentials introduces a new support model
  targeted to small environments. Similar to ESXi
  support options
• vSphere Essentials Plus uses the traditional
  vSphere Support and Subscription model

OEM support part numbers and pricing are specific
to each OEM
Note US list pricing in USD International
pricing may vary
15
New Small Business/ROBO Packaging
vSphere Essentials

• Objectives
• Lower entry point solution to Small Biz (lt 20
  servers) ROBOs to drive adoption and market
  share
• Upgrade path from ESXi/VMware Server VI 3.5
  packages too large a leap
• Competitive parity at low end of market
• Market feedback has been very positive
• Right value prop 1) First let me manage ESXi
  cost-effectively, 2) Give me availability and
  data protection at the right price point
• Scaling limitation is good Small customers
  dont want to pay for more scale than they need
  and limits cannibalization from larger customers
• Channel can now address low-end volume oppty
  easier up-sell from free and more competitive
  parity

Essentials PLUS (2,995 3 hosts)
Availability and Data Protection Solution for
SMBs (vCenter Server Update Mgr Data Recovery
HA) Up to 3 hosts / 2P 6 cores
Essentials (995 3 hosts) Central Management
and Server Consolidation Up to 3 hosts / 2P 6
cores
Small SMB / ROBO
16
New vSphere 4 Editions Overview
VMware vSphere
STANDARD (795 / CPU) Simple Consolidation
ENTERPRISE PLUS (3495 / CPU) Simplified
Operations
ADVANCED (2245 / CPU) Availability
ENTERPRISE (2875 / CPU) Automated Resource
Management
ESSENTIALS PLUS Integrated availability solution
for Small Businesses (2995 All-in-One for 3
Servers)

• Basic management for
• Simple consolidation
• Remote offices
• Test labs

• High availability for
• Production infrastructure
• Mission critical applications

• Large scale management and integration for
• Internal cloud
• Tier 1 applications

• Automated resource management for
• Production infrastructure
• Mission critical applications

ESSENTIALS Basic management of free ESXi (995
All-in-One for 3 Servers)
Scale limited, Low initial price, Small office-
oriented features
Scale unlimited, Value price, Low TCO Full
featured
Note US list pricing in USD International
pricing may vary
15
17
vSphere 4 Editions Core Platform
Large scale management of critical production
applications
Host Profiles
New
Distributed Switch
DRS / DPM
DRS / DPM
Storage VMotion
Storage VMotion
High availability products for protecting
critical production applications
vShield Zones
vShield Zones
vShield Zones
Data Recovery
Data Recovery
Data Recovery
Fault Tolerance
Fault Tolerance
Fault Tolerance
Hot Add
Hot Add
Hot Add
VMotion
VMotion
VMotion
Thin Provisioning
Thin Provisioning
Thin Provisioning
Thin Provisioning
High Availability
High Availability
High Availability
High Availability
Update Manager
Update Manager
Update Manager
Update Manager
Basic consolidation of a lab or small environment
VCB / vStorage APIs
VCB / vStorage APIs
VCB / vStorage APIs
VCB / vStorage APIs
VC Agent
VC Agent
VC Agent
VC Agent
4-way vSMP
8-way vSMP
4-way vSMP
4-way vSMP
VMware ESXi OR VMware ESX
VMware ESXi OR VMware ESX
VMware ESXi OR VMware ESX
VMware ESXi OR VMware ESX
6 Physical Cores / CPU 256 GB Physical Memory
12 Physical Cores / CPU No License Memory Limit
12 Physical Cores / CPU 256 GB Physical Memory
6 Physical Cores / CPU 256 GB Physical Memory
ENTERPRISE PLUS
STANDARD
ADVANCED
ENTERPRISE
License (1 CPU) SnS (Gold/Plat)
795 273 / 323
2,245 471 / 561
3,495 734 / 874
2,875 604 / 719
Note US list pricing in USD International
pricing may vary
Note Most features require one (1) instance of
vCenter Server Note At least 1 year of SnS is
mandatory
OEM support part numbers and pricing are specific
to each OEM
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VMware vSphere and Multi-core
VMWare ESX Scaling Keeping up with core counts

• VMware vSphere uniquely enables customers to
  fully leverage the power of multi-core
• Current products provide support for up to 6
  physical cores
• vSphere Advanced and Enterprise Plus will provide
  support for up to 12 physical cores
• Entitlement expressed as licensed cores per
  processor
• Entitlement summary
• Essentials / Essential Plus 6
• Standard 6
• Advanced 12
• Enterprise 6
• Enterprise Plus 12

ESX Future
ESX 4.0
Most applications dont scale beyond 4/8 way
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vCenter Server
vCenter Server is required for most vSphere
features

• vCenter Server Standard and vCenter Server
  Foundation are management servers
• vCenter Server Foundation is limited to 3 nodes
  of any size / suite
• One (1) instance is required for most vSphere
  Standard, Advanced, or Enterprise Plus features

License
SnS (Gold/Plat)
VI Management
vCenter Server Standard
1,049/1,249
4,995

• No host limit
• Includes Linked Mode
• Includes Orchestrator

vCenter Server Foundation
545/645
1,495

• 3 ESX host limit

vCenter Heartbeat
2,099/2,499
9,995
Per Instance (USD)
OEM support part numbers and pricing are specific
to each OEM
Note US list pricing in USD International
pricing may vary
20
A la Carte Pricing

• Most features are no longer available a la carte
  (e.g. VMotion)
• Data Recovery is available for standalone sale on
  top of vSphere Standard only
• ESXi is still available for free as ESXi Single
  Server
• Excellent solution for virtualizing one or two
  servers
• Does not include a vCenter management agent

License
VI Add-ons
SnS (Gold/Plat)
ESXi Single Server
FREE
495/595 (optional)

• Per incident support available at 299/incident

Data Recovery
695
146/174

• Only available for sale with vSphere Standard

Per Processors (USD)
OEM support part numbers and pricing are specific
to each OEM
Note US list pricing in USD International
pricing may vary
21
Agenda

• VMware vSphere Pricing and Packaging
• Entitlement Paths and Upgrade Options
• Acceleration Kits
• New Licensing Mechanism
• Selling vSphere

22
Entitlement Path Overview

• Customers with valid subscription contracts
  receive vSphere 4 licenses for every VI3 license
• Each VI3 license edition maps directly to a
  vSphere 4 license edition (as depicted in the
  following slides)
• Licenses are fulfilled directly into the
  customers license portal on vmware.com and a
  notification email is sent
• Each VI3 2 CPU license maps to 2 x 1 CPU vSphere
  licenses
• Enterprise License Agreements (ELAs) are
  fulfilled in the same manner
• Customers with expired subscription contracts
  will not receive new vSphere 4 licenses
• If a customer does not renew support prior to the
  licenses expiring, they will be subject to a 20
  reinstatement fee. To reinstate maintenance
  support and subscription for a license,
  maintenance must be back dated to the original
  date of expiration, renewed for a 12 month period
  from the current date and a 20 reinstatement fee
  added.
• Policy https//www.vmware.com/files/pdf/support/s
  upport_terms_conditions.pdf
• Quote form http//www.vmware.com/support/form/con
  tract_renewal.html

23
VI3 Enterprise License Mapping
Your VI3 License
Your vSphere 4 License
ENTERPRISE 2875/CPU 6 cores (Including VMotion,
SVMotion, DRSDPM)
ENTERPRISE 2875/CPU 6 cores ( VMotion,
SVMotion, DRSDPM) (FT vShield Data Recovery)
Add FT, vShield, Data Recovery
Upgrade Promo 295 / CPU Ending 12/15

• Enterprise customers fulfilled additional
  products
• Promotional period upgrade to Enterprise Plus
• Enterprise is phased out during transitional
  period ending 12/15

ENTERPRISE PLUS 3495/CPU 12 Cores (Host
Profiles Distributed Virtual Switch)
Specific OEM processes may apply for entitlement
upgrades
Note See Appendix B for information on a new
process for selling SnS with Upgrades
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VI3 Standard License Mapping
Your VI3 License
Your vSphere 4 License
STANDARD 795/CPU 6 Cores (VC Agent VUM
HA) (Thin Provisioning)
STANDARD 1495/CPU 6 Cores (VC Agent VUM HA)
Add Thin Provisioning
Upgrade Promo 745 / CPU Ending 12/15

• Standard customers fulfilled an additional
  product Thin Provisioning
• Lower price point and decrease in ongoing Support
  and Subscription
• Limited time promotion to Advanced
• Standard plus feature add-on paths available in
  the Appendix

ADVANCED 2245/CPU 12 Cores (HA VMotion) (FT
vShield Data Recovery)
Specific OEM processes may apply for entitlement
upgrades
Note See Appendix B for information on a new
process for selling SnS with Upgrades
25
VI3 Foundation License Mapping
Your VI3 License
Your vSphere 4 License
STANDARD 795/CPU 6 Cores (VC Agent VUM
HA) (Thin Provisioning)
Foundation 495/CPU 6 Cores (VC Agent VUM)
Add HA Thin Provisioning

• Foundation customers fulfilled an additional
  products High Availability (HA), Thin
  Provisioning
• Support and Subscription price remains exactly
  the same as today
• Foundation plus feature add-on paths available in
  the Appendix

Specific OEM processes may apply for entitlement
upgrades
26
VirtualCenter Server License Mapping
Your VI3 License
Your vSphere 4 License
vCenter Server Foundation 1495/Instance (3
servers)
VirtualCenter Foundation 1495/Instance (3
servers)
VirtualCenter Server 4995/Instance
vCenter Server Standard 4995/Instance (Orchestra
tor Linked Mode)
Add Orchestrator, Linked Mode

• VirtualCenter Server is renamed vCenter Server
• VirtualCenter 2.x licenses translate into
  equivalent vCenter 4.0 licenses

Specific OEM processes may apply for entitlement
upgrades
27
Acceleration Kits
Acceleration Kits are fulfilled at the component
level
28
Version Downgrade Rights
vSphere 4 licenses can always be downgraded to
VI3 licenses to run ESX 3.x and VC 2.x
Downgrade is enabled by a simple point and
click in the vmware.com license portal
NOTE Downgrades are not available for either
Essentials package
29
Examples
30
Agenda

• VMware vSphere Pricing and Packaging
• Entitlement Paths and Upgrade Options
• Acceleration Kits
• New Licensing Mechanism
• Selling vSphere

31
vSphere Acceleration Kits for New Customers

• Solution bundles targeted at new customers in
  Medium to Commercial segments
• Bundles vSphere Editions together with vCenter
  management

VMware vSphere Advanced Acceleration Kit
VMware vSphere Advanced Acceleration Kit With
Training (NA ONLY)
VMware vSphere Enterprise Plus Acceleration
Kit For 6 Processors
VMware vSphere Enterprise Plus Acceleration
Kit For 8 Processors
20-30 Savings (Promotion through 12/15/2009)
Note Acceleration kits will also be available
via OEMs with the exception of the Acceleration
Kit that includes training
32
vSphere Acceleration Kits for New Customers
Delivers superior application availability and
data protection together with centralized
management for mid-sized businesses at 27-30 off
for a limited time.
VMware vSphere Advanced Acceleration Kit With
Training (NA ONLY) Includes vSphere Advanced
for 6 processors vCenter Foundation 30 PSO
credits (Install Configure Class)
VMware vSphere Advanced Acceleration
Kit Includes vSphere Advanced for 6
processors vCenter Foundation
List 13,195 27 discount
List 10,495 30 discount

• Target
• Small to Medium segment (20-50 physical servers)
• Interested in a complete availability solution
• May be interested to add training (Install
  Configure class)

EMEA local price TBD
33
vSphere Acceleration Kits for New Customers
Includes the full range of vSphere features
together with scalable central management for
transforming datacenters into dramatically
simplified environments for the next generation
of flexible, reliable IT services.
VMware vSphere Enterprise Plus Acceleration Kit
for 6 Processors Includes vSphere Enterprise
Plus for 6 processors vCenter Server
VMware vSphere Enterprise Plus Acceleration Kit
for 8 Processors Includes vSphere Enterprise
Plus for 8 processors vCenter Server
List 20,895 20 discount
List 26,395 20 discount

• Target
• Medium to Commercial businesses (gt 50 servers)
• Need scalability of vCenter Server
• Interested in full VDC-OS solution

EMEA local prices TBD
34
vSphere Acceleration Kits - Detail

• Additional Details
• Available through all channels (inc OEM)
• Limitation of 1 per customer
• Mandatory SnS calcd at 21/25 of bundle license
  (not including PSO for 2 same SnS price and
  SKUs as for 1)

SRM will only be compatible with VI3 at time
of vSphere launch
EMEA local prices TBD
35
Acceleration Kit Upgrades

• Objective Drive existing Acceleration Kit
  customers up to a higher-end vSphere bundles.
• Promo pricing logic built on 50 off a la carte
  promos good through 12/15/09

Note Acceleration kits upgrades will also be
available via OEMs
36
Agenda

• VMware vSphere Pricing and Packaging
• Entitlement Paths and Upgrade Options
• Acceleration Kits
• New Licensing Mechanism
• Selling vSphere

37
Simplified License Management in vSphere 4

• Flex licensing is replaced by simple license keys
• Each vSphere host is assigned only 1 single
  license key for the entire bundle (e.g.,
  Enterprise) rather than a separate license for
  each feature
• Same license key can be shared by many vSphere
  hosts, subject to the keys maximum CPU count
• New centralized license key administration in
  vCenter
• No separate license server to manage or monitor
  license administration is a native vCenter
  feature
• vCenter can be used to assignlicense keys to
  vSphere hostsvia a simple UI
• Centralized vCenter report onall hosts and
  license keys ininventory enables easymonitoring
  of license state andcompliance
• New license portal provides more accurate view of
  entitlement
• License keys linked to purchase history,
  including upgrades and license recombinations
  (i.e., division/combination of license quantities
  into more/fewer keys)
• Contract administration self-service allows
  addition and removal of license admins and
  support admins with access to specific licenses

38
Improved Activation Process

• VI3 License Activation Is Failure-prone
• Too many steps and context changes Customers
  have many opportunities to get confused or take
  wrong turns
• License files are the result of a long,
  multi-step portal transaction
• Complexity illustrated 40 pages in VI3
  admin/install guide devoted to licensing

Go to license portal
Choose server or host-based file
Download or email license file
Configure licensing in VC/ESX UI
Upload license file
10
9
8
7
6
5
4
3
2
1
0
Receive activation code in email
Generate new license file
Select license qualities to activate
Install license server if needed
Re-read license file to server
Product activated

• A Dramatically Simpler Process In vSphere 4.0
• A short and easy activation process was the
  single most important design requirement
• License keys are sent in email and can be copied
  directly into the product no portal activation
  step required
• No separate license server means no additional
  installation, configuration or monitoring is
  required

Receive license keys in email
Enter license key into VC UI
Assign license key to ESX hosts
Product activated
3
2
1
0
39
Potential Transition Issues

• Licenses are not backwards or forwards
  compatible!
• How does a customer upgrade from VI3 to vSphere
  4.0?
• All VI3 customers with active SnS will
  automatically get vSphere 4.0 licenses at GA
• VI3 licenses are not traded in or deactivated
  customers will retain licenses for both versions,
  but must not deploy licenses in excess of their
  entitlement
• New vSphere 4.0 licenses are automatically added
  to customers online accounts, i.e. to their
  license portal
• Email notifications will go out, but will not
  contain any license keys or activation codes (as
  in VI3 fulfillment)
• Important Automatic fulfillment of vSphere 4.0
  licenses assumes that existing order and contract
  data is correct. If account data needs to be
  modified, it is better to do so prior to vSphere
  4.0 GA. Customer can do this using self-service
  tools on the account portal.
• Previously purchased a la carte features (e.g.,
  Vmotion) will be fulfilled as fixed add-ons in
  the vSphere 4.0 model (e.g., StandardVmotion)
• How can a customer continue to obtain new VI3
  licenses after vSphere 4.0 GA?
• After vSphere 4.0 GA, only vSphere 4.0 SKUs will
  be on the price list
• Customers who purchase vSphere 4.0 but wish to
  deploy VI3 can downgrade license keys on the
  license portal
• Downgrade will add additional VI3 license
  quantities to the customers VI3 portal - as in
  the upgrade case, they will have access to both
  versions simultaneously and must manage
  compliance accordingly
• Licenses can only be upgraded or downgraded once

40
Agenda

• VMware vSphere Pricing and Packaging
• Entitlement Paths and Upgrade Options
• Acceleration Kits
• New Licensing Mechanism
• Selling vSphere

41
vSphere 4 Enables Virtualization Everywhere

• From the smallest environments
• Available, reliable platform for small and medium
  businesses
• Simple solution for remote and branch offices
• to the largest datacenters
• Efficiency to meet the performance demands of
  critical applications
• Control of service levels with leading management
  and automation capabilities
• Choice that enables customers to integrate with
  their choice of datacenter management tools and
  processes

42
Driving Virtualization Adoption
Expand Increased adoption of virtualization for
capital and operational savings
Explore Simple consolidation of nonproduction
environments
Standardize Broad adoption of virtualization to
create computing cloud
vSphere 4 accelerates adoption of virtualization
Degree of Virtualization
Security?
Manageability?
Availability?
Performance?
Interoperability?
43
Key Selling Motions for the Datacenter

• Sell value of the platform
• Drive adoption of VMware vSphere by new and
  existing customers
• Sell business continuity
• Leverage virtualization to meet the availability
  and disaster recovery demands of important
  applications
• Sell virtualization management
• Lab Manager, Stage Manager, Lifecycle Manager
  expand value of virtualization to customers

42
44
Sales Opportunities with vSphere 4

• Drive virtualization adoption by SMB customers
• Compelling solution for meeting the availability,
  data protection, and affordability requirements
  for SMBs
• Drive deeper and broader adoption of
  virtualization in the datacenter
• Simplify remote and branch office deployment
• Virtualize tier 1 applications
• Upgrade and upsell

45
IT Challenges for SMBs

• Environment
• Small number of servers
• Limited IT staff with limited specialization
• Availability and recoverability are critical to
  survival

• Challenges
• Budget constraints
• Complexity overwhelms IT staff
• Options for increasing availability are
  impractical
• Backup and restore are painful and unreliable

46
vSphere for SMB
Integrated Data Protection

• Simplified backup and reliable restore
• Support from all major backup vendors
• New! Efficient, integrated backup with VMware
  Data Recovery
• New! Integrated firewall for virtual machines

Increased Availability

• VMware HA protection across server environment
• New! Continuous availability for critical
  workloads with VMware Fault Tolerance
• Practical disaster recovery

Simplified Management

• Easy deployment with embedded ESXi
• Integrated management for provisioning,
  availability, backup

Affordable IT

• New! Expanded pricing and packaging options
• Industrys lowest cost per workload

47
vSphere Options for SMB

• Larger scale (gt 3 servers)
• Continuous availability
• Live migration (VMotion)
• Integrated firewall (vShield Zones)

vSphere Advanced
vSphere Essentials Plus

• Integrated data protection and automated failover

• Larger scale (gt 3 servers)
• Integrated continuous availability and data
  protection
• Live migration (VMotion)
• Integrated firewall (vShield Zones)

Availability Requirements
vSphere Standard
vSphere Essentials

• Larger scale (gt 3 servers)
• Automated failover (HA)

lt3 virtualized hosts
gt3 virtualized hosts
Size of deployment
48
Remote and Branch Office Challenges

• Typical Remote Office
• Supported by central IT staff located in the data
  center
• Typically 5-10 serversFile/Print/E-Mail/Web/Net
  work
• Manual tape backup
• Examples
• Retail store, bank branch, regional office,
  warehouse, medical clinic, manufacturing plant,
  call center

• Challenges in Remote Branch Offices
• Limited space, budget, and onsite IT staff in the
  remote offices
• Slow provisioning process
• Unreliable and insecure data protection and
  recovery processes
• High costs resulting from duplicating entire
  remote office environments for disaster recovery

49
vSphere for Remote and Branch Offices

• Simplify IT Management
• Standardize deployments
• Remotely and centrally manage from the datacenter
• Accelerate provisioning

• Ensure Availability and Recoverability
• Increase availability without the cost and
  complexity
• Integrated backup and restore

• Reduce Hardware and Operational Costs
• Minimize costly setup and support trips
• Reduce operational costs
• Deploy new applications without adding hardware

50
vSphere Options for ROBO Deployments
Data Recovery
vSphere Essentials
vSphere Essentials Plus
vSphere Standard
vSphere Enterprise Plus
873 / 3 servers
2995 / 3 servers
795 ( 695) / CPU
3495 / CPU

• Limited scale (lt 3 servers)
• Many vCenter Servers
• Limited requirements for availability
• 3rd-party backup solution in place

• Limited scale (lt 3 servers)
• Many vCenter Servers
• Want basic failover protection
• Looking for integrated backup solution

• Scale to gt3 servers
• Integrated patch mgmt
• (Data Recovery) Looking for integrated backup
  solution

• Large, standardized deployments
• Manageability and scalability requirements
  similar to large datacenters

Size of remote/branch office
51
vSphere Meets the Needs of Tier 1 Applications

• Maximized application throughput
• Up to 8000 DB transactions per second per virtual
  machine
• Over 200,000 IOPS per ESX host
• Increased MS SQL Server throughput efficiency by
  20
• Increased Citrix XenApp throughput by 30
• Up to 86 network throughput increases in
  consolidated environments
• Up to 10 times more iSCSI throughput to storage
• Record number of MS Exchange mailboxes per host
• Increased availability, security and scalability
• Continuous availability for critical applications
  with Fault Tolerance
• Non-disruptive scale-up of virtual machine CPUs,
  memory and disks
• 8 way vCPU , 255 GB of RAM and 120 TB

52
vSphere 4 Delivers Performance for Demanding
Applications
95 of applications
1 to 2 CPUs
lt 4 GB at peak
lt 2.4Mbits/s
of Applications
lt 100 at peak
Application Performance Requirements
1. Source VMware Capacity Planner assessments
53
I/O Throughput Optimizations for Business
Critical Applications
Network Transmit Potential Gains
iSCSI Maximums
Performance increase in ESX 4.0 over ESX 3.5
iSCSI Max Gbps
9.1
86
59
23
14
.9
1VM
4VM
8VM
16VM
ESX 3.5
ESX 4.0
54
ESX 4.0 Performance with SQL Server 2008
Relative Scaling Ratio

• ESX achieves 90 of native performance on 4.0
  vCPU VM
• Workload transaction latency unchanged between
  ESX 4.0 and Native

VM
147.24
Native
133.12
94.04
79.88
51.08
45.22
1 vCPU
2 vCPU
4 vCPU
55
Single VM Performance Database OLTP Workload
Next Generation Intel Xeon based 8-pCPU
server RHEL 5.1 Oracle 11gR1 In-house ESX Server

• lt 15 overhead for 8 vCPU VM
• 8,900 total DB transactions per second
• Near-linear scalability from 1 to 8 vCPUs
• 60,000 I/O operations/second

Transaction Rate (Ratio to 1-way VM)
A fair-use implementation of the TPC-C
workload results are not TPC-C compliant
56
Meeting the Availability Needs of Critical
Applications
Hardware Failure Tolerance
Continuous
Automated Restart
with VMware HA
Unprotected
100
10
0
Application Coverage
57
vSphere Options for the Datacenter
Continuous availability, live migration,
integrated security
Large-scale manageability, dynamic optimization,
integration with network and storage ecosystem
Basic availability and management
Availability
Security
Scalability
58
Upsell Opportunities from VMware Ecosystem

• Advanced network management
• Third-party distributed virtual switch (e.g.
  Cisco Nexus 1000v)
• Advanced storage management
• Third-party multipathing plug-ins (e.g. EMC
  PowerPath)
• Enhanced security
• Security virtual appliances
• Third-party security products leveraging VMsafe
  interfaces

59
From VI3 to vSphere 4 Why Upgrade
Cost savings from enhanced efficiency
Increased operational control
Deeper integration with existing infrastructure
Solution and services opportunities for partners
in helping customers understand and execute
upgrades
60
Upgrade Opportunities Upsell to New Packages
Ent ? Ent Promotion 295 / CPU until December
15, 2009

• Benefits
• Greater scalability12 cores / processor, 8-way
  SMP
• Integration with third-party distributed virtual
  switches
• Easier host management with Host Profiles

vSphere Enterprise Plus
vSphere Enterprise
vSphere Enterprise Plus

• Greater scalability12 cores / processor, 8-way
  SMP
• Dynamic optimization (DRS, DPM, Storage VMotion)

vSphere Standard
vSphere Advanced

• Integrated continuous availability, security,
  data protection for production applications
• Live migration (VMotion)

Std ? Adv Upgrade Promotion 745 / CPU until
December 15, 2009
Promotions also apply to OEM
61
Appendix A Additional Entitlement Mappings
62
APPENDIX More Details on Entitlements

• For previous releases, VMware sold a la carte
  features, such as VMotion and DRS
• For vSphere 4, VMware is eliminating most a la
  carte features for new sales
• However, some customers still have unusual
  combinations of VI3 licenses combined with
  feature licenses
• The following slides show the entitlement paths
  for the various potential combinations
• Licenses such as Standard VMotion Storage
  VMotion are fulfilled as a single serial number
  enabling these features

63
VI3 Standard and Feature License Mapping
Your VI3 License
Your vSphere License
STANDARD 795/CPU 6 Cores (VC Agent VUM HA)
STANDARD 1495/CPU 6 Cores (VC Agent VUM HA)
STANDARD VMotion 6 Cores (VMotion Storage
VMotion)
STANDARD VMotion 6 Cores (VMotion Storage
VMotion)
ENTERPRISE 6 cores ( SVMotion DRSDPM) (FT
vShield Data Recovery)
STANDARD VMotion DRS 6 Cores (DRS)
Add FT, vShield Zones, Data Recovery
64
VI3 Foundation and Feature License Mapping
Your VI3 License
Your vSphere License
STANDARD 795/CPU 6 Cores (VC Agent VUM HA)
Foundation 495/CPU 6 Cores (VC Agent VUM)
Add HA
STANDARD VMotion 6 Cores (VMotion Storage
VMotion)
FOUNDATION VMotion 6 Cores (VMotion
Storage VMotion)
Add HA
ENTERPRISE 2875/CPU 6 cores ( SVMotion
DRSDPM) (FT vShield Data Recovery)
FOUNDATION VMotion DRS 6 Cores (DRS)
Add FT, vShield Zones, Data Recovery
65
Appendix B SnS Extensions
66
SnS Extension Feature Summary

• Product Upgrades (STD to ADV, ENT PL etc) are a
  key component of VMwares strategy of delivering
  significant value to our customers
• The current process to execute upgrades results
  in a lengthy upgrade cycle and creates both
  internal and external customer partner
  confusion.
• Using this functionality, VMware will be able to
  offer customers credit for any un-used SnS on
  their Original License. This credit will in the
  form of days of SnS that will be tagged on to
  the new 12-month SnS contract. Key benefits
  include
• Eliminate all SnS Upgrade SKUs both for VMware
  and Partners
• Reduction in the number of price-points managed
  thereby reducing complexity
• Customers and Partners have to send fewer quotes
  and Pos
• Upgrades are executed in a single step without
  any follow-on Renewals on the Original License
• The credit process is automatic and NO ACTION
  is REQUIRED from the CUSTOMER or partner

Above SnS Rules also apply to OEMs
67
New Upgrade Process SnS Extension

• PROCESS Pre-VS4 Launch (example VI-STD to VI-ENT
  Upgrade)
• Customer sends PO for VI-STD License and VI-STD
  SnS
• Customer decides to upgrade and sends PO for
  VI-STD-ENT-UG License and VI-STD-ENT-UG SnS
• Customer is then co-termed for SnS on STD and the
  Upgrade
• Customer Renews on VI-ENT

• PROCESS POST VS4 Launch (Example VS4-STD to
  VS4-ENT-PL upgrade)
• Customer sends PO for VS4-STD License and VS4-STD
  SnS
• Customer decides to upgrade and sends PO for
  VS4-STD-ENT-PL-UG License and VI-ENT-PL SnS
• SnS duration is adjusted to add on extra days to
  account for unused SnS on VS4-STD (no action
  required from customer or partner)
• Customer Renews on VI-ENT-PL
• A credit estimator will be available on Partner
  Central and on the Product Page / S3P portal
• Customers will be able to go to the S3P portal to
  see the exact extension on their SnS