vmware and ibm ibm total solution business partner event

VMware and IBM

IBM Total Solution Business Partner EventAtlanta, GA

Jesse CrespoCorporate Account Manager

June 2007

Agenda

VMware overview

Pricing and processes

IBM VMware Business Relationship

IBM/VMware Differentiators

Did you know?

Field Engagement

VMware: Powerful Momentum in 2006

VMware Infrastructure Emerged as De Facto Industry Standard 83% revenue growth over 2005

Fifth consecutive quarter of accelerating growth

Customer Adoption Accelerating

Approx. 20,000 new customers in 2006

Customer Profile: 100% of Fortune 100

87% of Fortune 500

Total Employees: ~3,000

Operating Structure: Independent subsidiary of EMC

IPO portion of VMware in 2007

VMware Revenue ($MM)

$218

2001 2002 2003 2004 2006

$387

<$100

2005

$709

VMware overview

Virtualization: More Responsive IT at a Lower Cost

VMware Infrastructure delivers Key Customer Solutions

Business Continuity – Disaster Recovery and High Availability

Server Consolidation and Server Containment

Development and Test Environments

Enterprise Desktops

Value to IBM partners

VMware solutions are highly relevant to your customers and complement IBM technologies

VMware drives high end systems, storage, software and services

Addresses critical customer issues with space, power, and cooling

VMware is….Beyond Partitioning

Revolutionizing the way IT runs a Datacenter

Capacity On Demand (i.e. rapid provisioning)

Always On (i.e. HA, Disaster Recovery, Planned downtime)

Policy Driven Automation (i.e. DRS)

Resource Pooling

Top Reasons to Virtualize (Gartner and VMworld survey)

Improve Server utilization 65%

Server Reduction 62%

Improve DR/BC 55%

Lower Datacenter Operation Cost 42%

…Delivering Real ROI for Real Customers

Customer Scenario: Need to replace 92 Windows servers

Option 1: Physical Hardware Refresh

Number Price Total

Hardware Costs

92 7,372* 678,224

Total $678,224

Physical Refresh: $678,224

Virtualization Refresh: $286,435

Cost Savings: $391,789

*Physical Refresh• X366 Express (2 x 2.80 GHz)• 8GB RAM, 2 80GB DrivesVirtualized Refresh• X366 Express (4x3.66 GHz)• 20GB RAM (2) 36GB Drives• 2 Fiber HBA’s

Option 2: Virtual Infrastructure

7,372 7,372 1 VirtualCenter

Server

185,430 30,905 6 ESX Host Server

Hardware Costs:

TotalPriceNumber

VMware Software:

48,984 8,164 6 ESX Server VIN

34,6625,777 6 3-Yr RTS

7,098 7,098 1 VirtualCenter

2,8892,889 1 3-Yr VC RTS

$286,435 Total

76% of VMware Infrastructure customers report extensive use of VMware products

74% of VMware Infrastructure customers stated it’s ready to run mission-critical

applications

43% of VMware customers are standardizing on VMware Infrastructure

Just Scratching The Surface

20042004 20082008 2010201020052005

% ofServers

Virtualized

% ofServers

Virtualized

20072007

1% ~2%

15% 40%

~6%

Agenda

VMware overview

Pricing and processesIBM VMware Business Relationship


Did you know?

Field Engagement

VMware Infrastructure 3 Packaging

Starter Standard EnterpriseConsolidated Backup

HA

DRS

VMotion

Virtual SMP

VMFS Cluster File System

Virtual Center Agent

ESX Server 3

Target Remote office / Retail office

Department /datacenter

Self-optimizing datacenter

Price (per 2-processor, North America)

$999 $3,749 $5,749

Packaging and Pricing Info

Capacity pricing per two sockets

Subscription now a separate SKU no longer bundled with license

Full and Limited Subscription options

Part number conversion document

VMware Infrastructure 3 A-La-Carte Offerings

Name Approximate Price

VMware VirtualCenter Management Server $4,999

VMware VMotion $1,399

VMware HA $1,999

VMware DRS $ 1,999

VMware Consolidated Backup $499

Per Server

Per 2 sockets

VMware/IBM Infrastructure 3 Subscription OptionsLS - Limited Subscription

LS Includes Minor Upgrades Only

Customers choosing LS cannot upgrade to Full Subscription (before the next major release)

FS - Full Subscription

FS includes Minor and Major Upgrades

Major vs. Minor Release - Example

ESX Server 2.5.3Major release

Minor release

License Fulfillment

Customers receive an Activation Code (one per order)

Activation Code is entered on vmware.com Web-based License Activation portal

Customer chooses product version

Same fulfillment process for upgrades and new orders

New Customer Places Order for

N Licenses

Customer Visits

VMware Website

to RedeemActivation

CodesExisting Customer

Entitled to Upgradesfor N Licenses

VMware / partner Emails

“Activation Code”

Valid for N Licenses

Customer ChoosesProductVersion

VMwareInfrastructure

3

ESX 2.x /VC 1.x

Centralized Licensing

Centralized license server - FlexNet

Installed and configured on the same system as VirtualCenter 2

All licenses in a single license file

Centrally managed licenses can be tracked, and dynamically allocated/re-allocated to servers in 2-socket increments

Once configured, VirtualCenter and ESX Servers remain fully functional during periods of license server unavailability

ESX Servers

License server(a Windows binary)

VirtualCenter MS 2.0

Licensefile

Agenda

VMware overview


IBM VMware Business RelationshipIBM/VMware Differentiators

Did you know?

Field Engagement


IBM SKU’s for VMware products

System x part number (recognized as System x option)

IBM and VMware dedicated full time resources

IBM revenue in 2007 will be approximately $75M in North America

IBM sells bundled solutions and strategic volume sales

VMware ESX is “IBM Server Proven”

IBM is single contact for VMware support issues: SupportLine and Remote Telephone Support

VMware Solutions are “IBM System Storage Proven”


Strategic Team:

WW Senior Director

Alliances Manager for System x, Storage, SWG, IGS

Dedicated technical resources for each brand

Dedicated partner engineering resources

Dedicated World-Wide Marketing team

NA Sales and SE Team:

5 Dedicated Sales Professionals

3 Dedicated System Engineers

Agenda

VMware overview



IBM/VMware DifferentiatorsDid you know?

Field Engagement


X3 Chipset

Faster than any other for Intel CPU’s. Up to 32 socket scalability

Makes overall system faster to get more workload or more VMs on a single server

IBM Virtualization Manager

Free plug-in to IBM Director

Lets you manage VM’s like you would manage a native server, plus system management actions unique to a VM

Tivoli Usage and Accounting Manager

Support Line

NO competitor can compete with Support Line cost

One stop customer support agreement (IBM Server, VMware, VI3, IBM applications, OS, and middleware)

VMware/IBM Joint Technology Initiatives

Embedded VMware: High probability VMware will be pre-installed on System x Servers

Enterprise Workload Manager: Dynamically monitors and manages distributed heterogeneous workloads in an On Demand Environment. Statistics can show how well business goals are being met as well as isolate performance problems.

Capacity Planner: Capacity planner tool to be integrated with CDAT

Power Executive: Senses and responds to real-time changes in the environment, calibrating cooling and system processing to optimize power usage.

VDI/VCS: Integration of Enterprise Desktop Solution

Large Memory: VMware supports 64GB on a server. Teams are testing 128GB and 256GB

Agenda

VMware overview




Did you know?Field Engagement

DID YOU KNOW? VMware-IBM Alliance Info

VMware Enterprise License Agreements (ELA’s) can be executed by an IBM partner

VMware Acct Managers get credit for sales through IBM

VMware is sold “Unbundled” with IBM/VMware RD approval

88% of VMware ships from IBM within 3 days of order receipt by IBM

IBM is shipping a FREE VMware Evaluation license with every 2 way system and above through the end of 2007

DID YOU KNOW? VMware-IBM Alliance Info

Customers buying VMware for IBM x460’s can receive 8CPU licenses for the price of 4CPU machines

Special Bid required

Downloaded evaluations allow unbundled purchases for those servers

CDAT Studies (80% Close Rate)

Free 2-day ESX Jumpstart

IBM offering up to 8.5% through a combination of three IBM promotions (Brian Kielty)

MDF Funds are available to all Partners Selling VMware

Agenda

VMware overview



IBM/VMware DifferentiatorsDid you know?

Field Engagement

VMware Resources for IBM and Partners

Dick Franchi, WW Alliance Manager

919-791-9488 or [email protected]

Neil Tantingco, West, Texas & Louisiana


Jon Gilbert, Southeast/Mid-Atlantic/LATAM


Laura Duplisea, Northeast, Federal, Canada


John Hoppa, North Central & South Central


Peter Escue, Global Staff Systems Engineer


Eric Hardcastle, Sr. Systems Engineer (East)


David Jiang, Sr. Systems Engineer (West)


SALES TECHNICAL

vmware and ibm ibm total solution business partner event

Technology

vmware revenue

vmware infrastructure

agenda vmware overview

revenue growth

total employees

customer profile

operating structure

industry standard