What s New at VMware? The Software-Defined Data Center and Network Virtualization
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1 What s New at VMware? The Software-Defined Data Center and Network Virtualization December 5, VMware Inc. All rights reserved.
2 Speakers Anthony Luscri VMware Senior Manager, IR Martin Casado VMware SVP & GM, NSBU Guido Appenzeller VMware CTSO, NSBU Phil Winslow Credit Suisee Equity Research Analyst Laurence Vandeyar TradeStation Sr. Systems Engineer Michael Mossal JOIN Experience CIO Jason Radford Illini Cloud Cloud Operations Trever Jackson Synergent Infrastructure Architect 2
3 Martin Casado SVP & GM, Networking & Security Business Unit Guido Appenzeller CTSO, Networking & Security 3
4 $60B+ Overall TAM for VMware in 2017 EUC $10B+ Hybrid Cloud $17B+ $60B+ TAM SDDC $33B+ Source: Analyst Data and VMware Internal Analysis, 1H2014 4
5 VMware s Expanded SDDC Opportunity Network & Security Increasingly large contributor Wedge for SDDC Key drivers Speed & Agility Improved Economics Security $33B+ SDDC Network and Security $8B+ Source: Analyst Data and VMware Internal Analysis, 1H2014 5
6 The transition to software is accelerating entering era of the Software Defined Data Center (SDDC) Software Hardware Intelligence in Software Operational Model of VM for Data Center Automated Configuration & Management Data Center Virtualization Layer Compute, Network and Storage Capacity Pooled, Vendor Independent, Best Price/Performance Infrastructure Simplified Configuration & Management 6
7 The most agile & efficient data centers are based on SDDC approach Google / Facebook / Amazon Data Centers Custom Application Software / Hardware Abstraction Custom Platform Software / Hardware Abstraction Any x86 Any Storage Any IP network 7
8 Vertical Integration The Choice for New IT SDDC or HDDC Software Defined Data Center (SDDC) Any Application SDDC Platform Data Center Virtualization Google / Facebook / Amazon Data Centers Custom Application Software / Hardware Abstraction Custom Platform Software / Hardware Abstraction Hardware Defined Data Center (HDDC) Any Application HDDC Platform Any x86 Any x86 Integrated x86 Any Storage Any Storage Integrated Storage Any IP network Any IP network Vendor Specific Network 8
9 New IT is built on the SDDC most cost effective, flexible and only hybrid approach Software Defined Data Center (SDDC) Inter- Data Center Hybrid- Data Center Any Application Any Application Any Application SDDC Platform Data Center Virtualization Any x86 Any x86 Any x86 Any Storage Any Storage Any Storage Any IP network Any IP network Any IP network 9
10 The Hypervisor is the Strategic High Ground Software Defined Data Center (SDDC) Network & Security Services Now in the Hypervisor Any Application SDDC Platform Data Center Virtualization Firewalling/ACLs Load Balancing Any x86 L2 Switching L3 Routing Any Storage Any IP network 10
11 VMware NSX Momentum: Within first year, over 250 paying customers top investment banks enterprises & service providers 11
12 Three Reasons Companies Virtualize Their Network 1 Speed On Demand Apps and Services 2 Economics Opex Efficiency & Capex Cost Savings 3 Security Re-Architect Datacenter Security 12
13 Emerging killer use-case for VMware NSX: Micro-segmentation Today, data center security relies on perimeter defense Micro-segmentation enables security that follows the VM Security can be applied per-workload, not just the perimeter Lower cost Operationally practical 1 Isolation and segmentation Internet 2 Unit-level trust / least privilege 3 Ubiquity and centralized control 13
14 VMware NSX is the Platform Extensive 3 rd Party Integrations 14 NSX technology partners with GA products as of Q3 2014, 50+ in pipeline 14
15 VMware NSX Enabling GTM Scale 800+ External professionals completed NSX ICM training, 250+ more Internal (SEs, PSO, GSS), 500+ VMware enterprise sales people trained to discuss and sell 25 percent of global VCDX professionals are now network virtualization certified 25 global half-day seminars 2,500 prospects 80 Explorer Days for customers 1,600 trained 2 nd year in a row most popular HOL at VMworlds, by double 5,000 active virtualizeyournetwork.com community members Over 100 channel partners trained ICM = Install, Configure, Manage HOL = Hands-on-lab 15
16 In Summary Transition to software is accelerating network virtualization is transformative Huge progress in first year in market with VMware NSX Customer adoption is ramping Turning on channel/core to stoke repeatable growth 16
17 VMware NSX Customer Stories Jason Radford, IlliniCloud Michael Mossal, JOIN Experience Laurence Vandeyar, TradeStation Trever Jackson, Synergent Moderated by Phil Winslow, Credit Suisse 17
18 IlliniCloud Jason Radford Company Business Overview IlliniCloud is an organization providing state of the art computing resources to K-12 Education IT/Business Objectives Solve many problems related to K12 Technology with an SDDC approach including: Economies of scale - provide state of the art computing storage and network resources Enable districts with the ability to provide existing resources more efficiently VMware NSX Value Proposition Massive scale while simplifying network design and operations Multi-tenancy and micro-segmentation Seamless implementation on existing HW infrastructure Reduced HW costs for networking, firewalls and load balancers Deployments Status Implementation time: less than 4 weeks NSX is live and beginning to deploy production workloads 18
19 JOIN Experience Michael Mossal Company Business Overview Third-generation EMEA telecom operator IT/Business Objectives Use SDDC approach to deliver world-class 4G services and cloud infrastructure to customers Deliver new value added services across continent VMware NSX Value Proposition Improved time to value for customers through fully automated provisioning of new services Overcame limitations of hardware-defined networking Micro-segmentation capabilities to deliver value-added security services Broad ecosystem of technology partners Deployment Status Implementation time: 2 months NSX running in production network environment 19
20 TradeStation Laurence Vandeyar Company Business Overview Award-winning trading platform, trading software and online financial brokerage services IT/Business Objectives Create new self-service private cloud to complement developer use of public cloud Support developers to quickly deliver new applications Leverage global data center footprint in a new, more strategic way VMware NSX Value Proposition VMware provided best enterprise-class capabilities for OpenStack cloud VMware NSX supports true three-tier Web application development environment The combination of OpenStack, vsphere, and NSX delivers the most value Deployment Status Implementation time: 4 weeks NSX running in production DevOps private cloud 20
21 Synergent Trever Jackson Company Business Overview IT services bureau for the credit union industry IT/Business Objectives Security for financial services applications Support for legacy applications in a multi-tenant cloud environment VMware NSX Value Proposition Micro-segmentation with policy-based distributed firewalling and L3 routing Remote provisioning, management, orchestration and control of applications Deploy applications without requiring additional physical infrastructure at a customer site Deployment Status Implementation time: 3-4 weeks NSX running in production data center 21
22 Q&A 22
23 Forward Looking Statements This presentation contains forward-looking statements including, among other things, statements regarding expected trends and developments in information technology, such as the shift to SDDC; expectations for VMware s total addressable market in 2017, the benefits of SDDC and NSX products; acceleration of SDDC and virtual networking adoptions and their benefits to customers; product pipeline for NSX compatible product offerings by ecosystem partners; plans to scale up go-to-market capabilities and expectations for accelerating use and a next wave of adoption for network virtualization. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 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, government and information technology spending; (iii) competitive factors, including but not limited to pricing pressures, industry consolidation, entry of new competitors into the virtualization software and cloud, SDDC and networking industries, and new product and marketing initiatives by our competitors; (iv) our customers ability to transition to, new products and computing strategies such as cloud computing, desktop virtualization and the software defined data center; (v) the uncertainty of customer acceptance of emerging technology; (vii) rapid technological changes in the virtualization software and networking, cloud, end user and mobile computing industries; (viii) changes to product and service development timelines; (ix) VMware s relationship with EMC Corporation and EMC s ability to control matters requiring stockholder approval, including the election of VMware s board members; (x) our ability to protect our proprietary technology; (xi) our ability to attract and retain highly qualified employees; and (xii) the successful integration of acquired companies and assets into VMware. 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-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 presentation. 23
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