Forward-Looking Statements
This presentation contains forward-looking statements including, among other things, statements regarding the total addressable market for VMware in 2017; the momentum of its solutions for the software-defined data center, including the benefits for its customers; VMware’s future go-to-market strategy; VMware’s future integrations with EMC ViPR and partner Virtual Volumes solutions; and NSX momentum. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including but not limited to: (i) adverse changes in general
economic or market conditions; (ii) delays or reductions in consumer or information technology spending; (iii) competitive factors, including but not limited to pricing pressures, industry consolidation, entry of new competitors into the virtualization and cloud computing markets, and new product and marketing initiatives by our competitors; (iv) our customers’ ability to develop, and to transition to, new products and computing strategies such as cloud computing, network virtualization and the software defined data center; (v) the uncertainty of customer acceptance of emerging technology; (vi) rapid technological and market changes in virtualization software and platforms for cloud and end user computing and networking; (vii) our ability to attract and retain highly qualified employees; and (viii) geopolitical events and stability. These forward-looking statements are based on current expectations and are subject to uncertainties and changes in condition, significance, value and effect as well as other risks detailed in documents filed with the Securities and Exchange Commission, including our most recent reports on Form 10-K and Form 10-Q and current reports on Form 8-10-K that we may file from time to time, which could cause actual results to vary from expectations. VMware assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release.
© 2014 VMware Inc. All rights reserved.
Financial Analyst Day 2014
Raghu Raghuram
Executive Vice President, Software-Defined Data Center
VMware
Software-Defined Data Center Overview
SDDC IT Outcomes – Dramatic Economic Benefits
SDDC Product Updates
New Model of IT based on Choice and Open Standards
Momentum and Customer Adoption
Continued Strong Software-Defined Data Center
Customer Momentum
vCloud Suite
(Compute + Management)
Continued Strong Software-Defined Data Center
Customer Momentum
VMware NSX
(Network)
VMware Virtual SAN
(Storage)
Software-Defined Data Center Overview
Momentum and Customer Adoption
SDDC Product Updates
New Model of IT based on Choice and Open Standards
SDDC IT Outcomes – Dramatic Economic Benefits
SOFTWARE-Defined Approach
EXISTING
HARDWARE
SOFTWARE
LAYER
IntelligenceAutomated Operations
HARDWARE-Defined ApproachTwo Different Paths Forward:
Hardware-Defined or Software-Defined Architecture?
PROPRIETARY
HARDWARE
IntelligenceSOFTWARE LAYER
Manual Operations
IT Struggles to Keep Up
IT Moves at the Speed of the Business
Benefits of a Software-Defined Architecture
App and Infrastructure Delivery Automation Improved Security to Effort Ratio Higher Availability Improved Service Delivery TimeIT Outcomes & Impact Delivered by Software-Defined Data Center
High Availability and Resilient Infrastructure Security Controls Native to Infrastructure Streamlined and Automated Data Center Operations CapEx Reduction OpEx Reduction Data Center Virtualization and Standardization Software-Defined
Data Center enables new levels of CapEx and OpEx efficiency
CapEx Reduction
OpEx Reduction
VMware Software-Defined Data Center: Faster Time to Value,
49% Lower CapEx
$1.9M $4.4M $2.9M $2.5M$10.6M
CapEx Comparison for Greenfield Deployment of 2,500 VMs
49% $2.9M $8.7M 32%
$7.2M
$5.4M
Comparison for
Brownfield
Deployment
CapEx savings for Software-Defined Data
Center vs. HDDC
CapEx savings for Software-Defined Data
Center w/*COTS HW 42%
58%
HDDC Software-Defined Data Center
w/*COTS HW Software-Defined
Data Center
Compute, Storage and Network hardware Virtualization Software
*Commercial off-the-shelf. Source: Taneja Group white paper “For Lowest Cost and Highest Agility, Choose Software-Defined Architectures” - Study commissioned by VMware
More Efficient IT Operations…
SDDC Increases Velocity of IT Service Delivery
Faster provisioning of
Applications
(compute, networking, and storage)
Faster time to market
70%+
Reduction in HW Support costs
~50%
Reduction in Power & Cooling
30%+
Reduction in DC Floor Space
OpEx Savings
50%+
Reduction in IT Admin hours
…shift from IT
maintenance to
transformation
Sources: VMW estimates for average cost and savings to operate a 2,500 VM environment. Taneja Group - Technology Brief, August 2014.- Study commissioned by VMware.
49%
Savings in CapExCapEx Savings
Software-Defined Data Center Overview
Momentum and Customer Adoption
SDDC IT Outcomes – Dramatic Economic Benefits
New Model of IT based on Choice and Open Standards
SDDC Product Updates
SDDC Product Updates
Compute
Storage
Management
Network
Building Towards the Software-Defined Data Center
for Customer Value
Customer Adoption of VMware Software-Defined Data Center Products
Time Network Virtualization Software- Defined Storage Compute Virtualization Disaster Recovery Automation Cloud Operations Management Cloud Automation C us tomer A do pti on Early / Innovators Early Majority Late majority Mainstream vCloud Suite vSphere-Based Private Cloud vSphere with Operations Management
VMware vCloud Suite 5.8
vSphere-based private cloud, components engineered to work together
• Self-service, policy-based provisioning of DR tiers • Increased scalability of
protection and recovery capabilities
• Big Data Extensions support Hadoop 2
• Customizable
provisioning of NSX firewall and routing services
• Support Assistant identifies issues before problems occur Improved business continuity and disaster recovery Enhanced next-generation applications Improved interoperability with NSX New proactive support
SDDC Product Updates
Compute
Storage
Network
Management
VMware: The Leader in Cloud Management Market
Data Center Automation
Market Shares
2Cloud Systems Management
Market Shares
11 – IDC, Worldwide Cloud Systems Management Software 2013 Vendor Shares, June 2014, Mary Johnston Turner, #249131 2 – IDC, Worldwide Datacenter Automation Software 2013 Vendor Shares, May 2014, Mary Johnston Turner, #248783
VMware Cloud Management
Business Momentum:
• >30% YoY license bookings growth - Q2 14
• Last 12 months:
• 110% increase in customers • ~150% growth in trained partners • Strategic GTM with Global SIs
and OEMs 9.6% 10.2% 16.8% 20.7% 9.0% #1: VMware 2nd 3rd 4th 5th … #1: VMware 2nd 3rd 4th 5th … 10.9% 12.2% 13.8% 24.1% 7.3
vRealize Suite
On-Premise As-a-Service
Cloud Automation Cloud Operations Cloud Business
Virtual Cloud Physical
Traditional
Applications
Cloud-Native
Applications
vRealize Suite – Comprehensive Capabilities,
Delivered On-prem and As a Service
Cloud Management Platform
vRealize Suite
• Comprehensive management capabilities • Run as software, or delivered as a service
Functional Offerings
• Covering automation, operations or IT Business management
Products
CapacityIQ Hyperic DynamicOps Config Mgr AppDirector ITBM VC Ops Mgr Orchestrator • Individual offerings Automation IT Business Operations App Blueprints Permission model App SLA Infra ProfilesInventory Remediation Reporting Messaging
Services Platform Portals Capacity visualization Bursting Costing Monitoring Reclamation Compliance Auditing
Automation Operations IT Business
On Premises (Private)
All Other Platforms
GTM Strategy: Land on vSphere Environments,
Expand to Heterogeneous Environments
88%
VMware Cloud Management Penetration on Virtual Workloads
Off Premises (Public)
VMware vSphere
Installed Base
12%
Managed by VMware Management Products
Management
SDDC Product Updates
Compute
Network
Storage
The Hypervisor Opens Up a New Approach to Storage
vSphere
Cloud Storage
SAN / NAS
Virtualize the data plane
• VM-centric abstraction of external storage • New hot-edge for vSphere:
Hypervisor-converged storage tier on x-86
New application centric control plane
• Common consumption model across all storage tiers
• Dynamic composition of storage services • Granular control of service levels
Enabling New Storage Tiers With Common Control Plane
Cloud Storage Virtual SAN
SAN / NAS SAN / NAS
Virtual SAN
Shared Datastore
Virtual Datastore
Storage Policy Based Mgmt.
Virtual Volumes (Beta) vCloud Air
Virtual Volumes Will Soon Be Available
29 Virtual
Volumes
Partners
Partners
Announcing
GA
Virtual
Volumes in
Beta
…and many more
VMware Virtual SAN
Radically simple hypervisor-converged storage
•
Embedded in vSphere: Runs on standard
x86 servers
•
Elastically scalable: Pools HDD/flash into
a shared distributed datastore
•
Highly resilient: Protects against data loss
through hardware failures
•
High performance through flash cache
acceleration
•
Delivers policy-based management
for storage
The Basics
vSphere + Virtual SAN
Virtual SAN
Shared Datastore
Virtual SAN: Unprecedented Customer Interest
“Best of Interop and
Audience Choice Award”
“Virtual SAN takes VMware a big step closer to the software-defined datacenter...”
—Charles Babcock
“It’s really a no-brainer when the hypervisor you want to use also includes this virtualized storage.”
—Ryan Hoenle
IT Director of The Doe Fund
“Best of TechEd
Virtualization Winner”
300+
Customers in the
first 3 months
Tier 2
Production
Disaster Recovery
Target
Staging &
Test/Dev
Virtual Desktop
(VDI)
Virtual SAN: Common Use-Cases For Early Deployments
Site A Site B
• Tier 2 Workloads
that do not need
advanced data
services
• Lower cost DR
target for
secondary sites
• Mid-Market and
Departmental VDI
• Rapid and easy
provisioning of
dev/test farms
Integration with ViPR
SAN / NAS SAN / NAS
ViPR Controller vSphere
Storage Policy Based Mgmt. Virtual Volumes
Virtual Datastore
•
Common management layer across
heterogeneous arrays
– vSphere, physical, non-vSphere
•
Integrates into policy-driven control plane
•
Simplifies and automates storage
administration
•
Resold by VMware
ViPR Controller
vSphere ViPR Controller
Multi
Hypervisor
VASA Hypervisor-Converged Storage SAN / NAS VNX Isilon XtremIO 3rd Party VMAX ViPR Data Services CommodityVirtual SAN Shared Datastore
Virtual SAN Virtual Volumes
Storage Policy Based Mgmt.
Physical
HDD
SSD SSD HDD SSD HDD
VMware + EMC: Common Vision For Software-Defined Storage
Management
SDDC Product Updates
Compute
Storage
Network
Customer Momentum for VMware NSX: Over 150 Customers
top investment banks
enterprises & service providers
Introducing: VMware NSX 6.1
• Advanced Network Micro-Segmentation Capabilities
• Hybrid Cloud Connectivity
• Equal Cost Multi-Path (ECMP) for high-bandwidth uplink to physical networks
• vCloud Automation Center 6.1 Integration
VMware NSX 6.1
General Purpose Networking
Hardware
Network Hypervisor Requirement: IP Transport Virtual Network Virtual Network Virtual NetworkApp App App
L2, L3, L4-7 Network Services
NSX
Industry Momentum for NSX
•
VMware named “Visionary” in Gartner Data Center Networking Magic Quadrant –
VMware is the only software pure play vendor
•
Leading technology firms shipping integrated products
Gartner, M. Fabbi, T. Zimmerman, A. Lerner, Magic Quadrant for Data Center Networking, April 24, 2014.
Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
Management
SDDC Product Updates
Storage
Network
Compute
vSphere 6 Beta : Continued Innovation
This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from VMware, Inc.
Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
Gartner “Magic Quadrant for x86 Server Virtualization Infrastructure” by Thomas J. Bittman, Mark A. Margevicius, Philip Dawson, July 2, 2014.
vSphere Platform Growth Continues to be Strong
Accelerating Market Leadership in Compute VirtualizationScale-up & Scale-out
Break-through Availability
Automation
• Performance and Scale
• In-Memory Database
• Container support
• vMotion Enhancements
• Multi-Processor Fault Tolerance
• Policy Based Management
• Virtual Data Center
Today
~50M VMs
500K
Customers
Broad Installed Base Positions VMware to Deliver Additional Value
with Software-Defined Data Center Offerings
Software-Defined Data Center Overview
Momentum and Customer Adoption
SDDC IT Outcomes – Dramatic Economic Benefits
SDDC Product Updates
New Model of IT based on Choice and Open Standards
VMware Integrated OpenStack
Software-Defined Data Center
Delivering Choice Without Disruption
VMware API Apps Apps
OpenStack API Apps Apps
vRealize Suite
Virtual SAN / vVol NSX vSphere
One Platform for Any App
Software-Defined Data Center
vRealize Suite
Virtual SAN / vVol NSX vSphere Cloud Foundry API
Apps Apps VMware API
Apps Apps
OpenStack API Apps Apps
One Platform for Any App
Open Container API Apps Apps
Software-Defined Data Center
vRealize Suite
Virtual SAN / vVol NSX vSphere Cloud Foundry API
Apps Apps VMware API Apps Apps OpenStack API Apps Apps Containers
Customer Choice for Cloud Infrastructure
Software-Defined Data Center
“Build Your Own”
Converged
Infrastructure
Hyper-Converged
Infrastructure
Customer Choice for Cloud Infrastructure
Software-Defined Data Center
“Build Your Own”
Converged
Infrastructure
Hyper-Converged
Infrastructure
Hyper-Converged
Infrastructure
EVO:RAIL
Go-to-market through OEM partners
Qualified EVO OEM Partner Hardware
Software
Integration & Testing EVO Sold & Supported by Qualified Partners
Customer gets up and running quickly
