Successfully Selling Virtualization To SMBs

1. Successfully Selling Virtualization To SMBs Jerron Evans Central Territory iPBM

2. Agenda • Market Overview • Identifying Opportunities • Customer Presentation • vSphere with Operations Management • End-User Computing • Licensing, Packaging and Pricing • Handling Objections • Examples • Q & A

3. Business and Market Pressures Weigh Heavy on SMBs • Growing revenues and customers • Improving cash flow and managing budget constraints • Maintaining profitability and staying in business • Reacting quickly to changing market conditions and threats Sources: Zoomerang 2011 Study: SMB Business Perspectives, Forrsights Budgets And Priorities Tracker Survey, Q4 2011

4. VMware Evolution… “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.” Charles Darwin

5. Primary SMB Objectives • Protect the business • Business continuity • Security • Keep IT simple • SMBs need IT that just works • Do more with less • With limited resources, and tight budgets IT generalists are often tasked with addressing all of these challenges

6. SMB Customer Presentation

7. Significant Market Opportunity ~80% of SMBs* are potential net new VMware Customers *(VMware SMB is <1000 employees) Virtualization: Top IT initiative for SMBs - 3 out of 4 planning SMB projects • Over 60% plan to implement, expand, or upgrade server virtualization • 80% of Medium Business (MB 500-999) • 69% of Small Business (SB 100-499) • 46% of Very Small Business (VSB 1-99) • Over 30% stated implementing/expanding desktop virtualization, thin client and app streaming as a critical or high priority • Strong leadership foundation: 7 of 10 SMBs chose VMware *Forrester, TechTarget *Source: Forrsights Hardware Survey, Q3 2011 (NA & EMEA), Forrester Research

8. Which Customers are a Fit? • Size of environment: 2+ physical servers • Larger environments will benefit from consolidation ratios • All size environments will benefit from business continuity • Target Customers • Any customer buying a server • Any customer that has experience challenges with application availability or data recovery • High-potential prospects • Quickly realize that maximizing their server utilization rates will have an immediate ROI • Will be interested in an affordable business continuity solution Windows NT App Server Microsoft Exchange Server Active Directory Server Microsoft SQL Server Microsoft IIS Web Server

9. SMB Benefits / Sales Approach • Consolidation Approach - One-time event that moves existing applications onto a fewer number of servers • Containment Approach - An ongoing effort to virtualize new applications and manage growth of existing ones • Availability Approach – Introducing virtualization to increase application availability and data recoverability • Ideal for customers looking for robust, affordable business continuity solutions New

10. How does Virtualization Solve My Problems? Physical World Virtual World Many :1 1 :1 • 1:1 relationship between applications and hardware • Relevant cost metric = cost per server • Many:1 relationship between applications and hardware • Relevant cost metric = cost per application • Traditional x86 Architecture • Legacy rule: Run only one application per server because single application crashes resulting in OS or server failure • Typical hardware utilization below 8% • Virtualization: • New rule: Run multiple applications per server because OS/applications are isolated from one another • Typical hardware utilization 80%

11. Key Customer Talking Points 1 Make Better use of existing or new infrastructure How it pays for itself 2 Save time in managing infrastructure 3 Improve application availability Why they need it 4 Protect business data with Data Recovery

12. Make Better Use of Existing Infrastructure VMware VMware VMware 1 Make Better Use of Existing Infrastructure After VMware Before VMware More applications per machine = less machines Over $28,000 in cost avoidance Source: IT Business Edge, “The Business Value of Server Virtualization” – cost for average a 2 X CPU server in three-year amortized hardware purchase, and annual support and maintenance contract costs 9/07

13. 2 Save Time Managing Infrastructure • Do more work with the same number of people = operating cost savings • Drivers of productivity improvements include • Zero downtime maintenance • Built-in high availability • Dynamic patching • Instant provisioning • Automated disaster recovery % of Time Spent on Maintenance 72% 24% Before VMware After VMware Source: IDC and VMware TAM program

14. Power on VM 2 Save Time During Disaster Recovery Physical Install backup agent Configure hardware Install OS Configure OS Start “Single-step automatic recovery” Virtual 40+ hrs Restore VM < 4 hrs • Eliminate recovery steps • No operating system re-install or bare-metal recovery • No time spent reconfiguring hardware • Standardize recovery process • Consistent process independent of operating system and hardware

15. 3 High Availability keeps SMB’s running Automatic detection and restart of failed servers How much does down time cost for your business? Detects server failures and initiates the new virtual machine restart on a different physical server without human intervention Note: Assumes company with 200 employees, and ~$20M in annual sales, or $10,000 sales per hour during business periods

16. 4 Protect business data with vSphere Data Protection • Agent-less, disk-based backup and recovery of your VMs • VM or file level restore • Incremental backups and data de-dupe to save disk space • Based on EMC Avamar technology. • Built in data protection saves time and money • Simplifies administration • Recover more or all of your data • Less downtime = higher staff productivity APP APP APP OS OS OS Agent-less snapshot technology ESXi De-duplicated Storage

17. vSphere vSphere VMotion™ Description Enables the live migration of virtual machines from one host to another with continuous service availability Benefits • Moves virtual machines with server resource pools to align the allocation of resources to business priorities • Meets service level and performance goals • Improves availability by conducting maintenance without disrupting business • Much faster and more reliable than Hyper-V (Principled Technologies Oct 2011)

18. Seamless Storage Integration Local Storage APP APP APP APP APP APP Virtual machine data can be stored on local disks OS OS OS OS OS OS Shared Storage (NAS, iSCSI or SAN) ESX ESX Storage can be shared between multiple virtual machines NFS or VMFS NAS, iSCSI or SAN Storage

19. Introducing VSA: Business Continuity for SMBs VMware vSphere Storage Appliance VSA runs as a virtual machine, with your application workloads Traditional IT Environment VSA uses server internal disk VSA clusters storage across server nodes Shared storage hardware provides centralized arrays of storage over a high-speed network VSA delivers high availability - without shared storage hardware Shared storage hardware delivers high availability

20. vCenter Operations Management Optimizes Infrastructure Performance; Lowers Cost Immediate Problems Future Problems Opportunities to Optimize • Proactively manage performance and improve availability for vSphere environments • Understand performance trends across VMs, clusters, and farms • Optimize capacity by reclaiming and rightsizing VMs • Reduce false alerts through patented analytics

21. vSOM– Pain Point Resolution How can I respond to business needs faster? How can I greatly reduce firefighting? How do I solve problems before they happen? How can I plan and manage capacity more effectively? How do I optimize my Virtual Infrastructure? How do I improve the Efficiency and cost of IT operations? How do I cut costs without cutting service levels? Health Badge – Immediate Problems – Identifies problems and immediate actions needed. Self-learning Architecture leads to proactive smart alerts which streamline the alerting and problem resolution process. Risk Badge – Future Problems – Provides insight into the stress levels of your environment all while providing measurable statistics on both time and capacity remaining. Efficiency Badge – Opportunities to Optimize – Find opportunities to reclaim wasted resources that are spent on over-provisioned VMs. Gain insight into VM density while receiving information on how to optimize your environment.

22. Partner Incentives for vSphere with Operations Management (vSOM) and vSphere Data Protection (vDP) Partners have more ways to earn accelerated margins on vSOM and vDP Solution Rewards Enhancements April 1 – Sept 30, 2013 10% New +10% New Customer Bonus NEW +5% vSOM and vDP Accelerator (1) (1) vSphereData Protection starting on May 1, 2013 Terms & Conditions apply, rewards per competency cannot be combined, see Partner Central for complete details

23. Get 86% More Margin with the Management Competency vSphere Enterprise Opportunity vSphere with Operations Management Management Competency Partners * Solution Reward offer valid March 14 – September 30, 2013, Advantage Plus Accelerator valid March 14 – September 15, 2013. Both valid with eligible vSphere with Operations Management products.

24. VMware’s End-User Computing Vision • Make Mobile Workers Productive From Any Device, Anywhere. • Allow IT to Maintain Security and Compliance Standards. • Reduce CapEx and OpEx While Increasing Service Levels. • VMware Allows for End-User Freedom and IT Control Simultaneously. • VMware Decouples Apps and Data From Their Underlying OS. • Apps and Data as Deliverables to End-User Devices .

25. Which Customers are a Fit?

26. Horizon View: Manage & Execute Centrally Manage centralized virtual desktops Highly efficient remote protocol Users remotely access from various devices

27. Horizon Mirage: Manage Centrally, Execute Locally Manage a single image Highly efficient de-duplication & synchronization (even over WAN) Business as usual for users

28. Horizon Workspace: Manage Users, Not Devices Single-Sign-On Portal. Manage and Secure the Apps and Data Your Users Need and Want. IT Control without End-User Constraints. Separate and Secure Personal and Corporate Data. Seamless File Sharing and Collaboration

29. VMware vSphere™ Packaging / Pricing

30. How VMware vSphere is packaged for SMBs • For customers new to virtualization • Essentials Kits for small businesses • For smaller environments that want to consolidate 5~50 physical servers • Virtualization for up to three physical server hosts (up to 2 processors each, 6 total) • Acceleration Kits for midsize businesses • Can be scaled to any sized environment vSphere Kits • Includes vSphere virtualization • & centralized vCenter management • Limit of one purchase per customer site • A la carte licenses for scaling out your virtualized environment • Editions vary in features and pricing vSphere Editions • Note: Support and Subscription (SnS) required for at least one year; Only per-incident support available with Essentials

31. vSphere 5.5 Kits as of 9/19/13 vCenter Operations Management Standard $27,995 Legend: Host Profiles/Auto Deploy = Changes to Kit = Existing Feature Distributed Switch = New Feature for vSphere 5.5 Multipathing / vAAI Flash Read Cache $22,995 • Notes: • vSMP/vCPUlimits for all Editions have been removed with 5.5 • Free Hypervisor, not listed here, no longer has a 32GB physical limit. SR-IOV I/O Controls vCenter Operations Management Standard Storage Profiling & DRS Multipathing / vAAI DRS / DPM DRS / DPM vSPC $9,995 vSPC Big Data Extensions Big Data Extensions Reliable Memory vCenter Operations Management Standard Reliable Memory App High Availability Hot Add Hot Add Hot Add $4,495 vSphere Replication vSphere Replication vSphere Replication w/VSA (+$500) vShield Endpoint vShield Endpoint vShield Endpoint vSphere Replication Fault Tolerance Fault Tolerance Fault Tolerance vShield Endpoint Data Protection Adv. Data Protection* Adv. Data Protection* High Availability High Availability Data Protection High Availability High Availability Storage vMotion Storage vMotion Storage vMotion $495 vMotion™ vMotion™ vMotion™ vMotion™ vSphere HypervisorThin ProvisioningvStorage APIUpdate Manager vSphere HypervisorThin ProvisioningvStorage APIUpdate Manager vSphere HypervisorThin ProvisioningvStorage APIUpdate Manager vSphere HypervisorThin ProvisioningvStorage APIUpdate Manager vSphere HypervisorThin ProvisioningvStorage APIUpdate Manager 6 CPU / 2 per Host / vCenterEss 6 CPU / 2 per Host / vCenterEss • 6 CPUs / vCenterStd • 6 CPUs / vCenterStd • 6 CPUs / vCenterStd ESSENTIALS ESSENTIALS PLUS STANDARD w/OM ENTERPRISE w/OM ENTERPRISE + w/OM • Essentials and Acceleration Kits • (Essentials Kits: http://www.vmware.com/products/vsphere/compare.html, • Acceleration Kits: http://www.vmware.com/products/vsphere-operations-management/compare.html) * VDPA is part of vSOM Acceleration Kits only. All prices listed above are license only, SnS is required List Pricing is for reference purposes only and is subject to change without notice.  Pricing reflected in this document is suggested retail price in USD, for sales in the US. Regional prices may vary.

32. w/Operations Management Per CPU vSphere 5.5 EditionsPer CPU $3,495 Legend: Host Profiles/Auto Deploy = Changes to Kit $4,245 $1,745 $3,625 Distributed Switch = Existing Feature = New Feature for vSphere 5.5 Multipathing / vAAI vCenter Operations Management Standard vCenter Operations Management Standard vCenter Operations Management Standard Flash Read Cache SR-IOV ENTERPRISE + STD w/MANAGEMENT ENTERPRISE I/O Controls $2,875 vCloud Suite 5.5 Editions Storage Profiling & DRS Multipathing / vAAI DRS / DPM Legend: $11,495 DRS / DPM vSPC = Changes to Kit vSPC Big Data Extensions = Existing Feature vCloud Automation Center = New Feature Big Data Extensions Reliable Memory $995 Reliable Memory App High Availability vFabric Application Director Hot Add Hot Add Hot Add $7,495 $4,995 vSphere Replication vSphere Replication vSphere Replication Site Recovery Manager vShield Endpoint vShield Endpoint vShield Endpoint vCenter OperationsAdvanced vCenter OperationsStandard vCenter OperationsEnterprise Fault Tolerance Fault Tolerance Fault Tolerance Data Protection* Data Protection Data Protection* vCloud Net. & Sec. vCloud Net. & Sec. vCloud Net. & Sec. High Availability High Availability High Availability vCloud Director vCloud Director vCloud Director Storage vMotion Storage vMotion Storage vMotion vCloud Connector Advanced vCloud Connector Advanced vCloud Connector Advanced vMotion™ vMotion™ vMotion™ vSphere HypervisorThin ProvisioningvStorage APIUpdate Manager vSphere HypervisorThin ProvisioningvStorage APIUpdate Manager vSphere HypervisorThin ProvisioningvStorage APIUpdate Manager vCloud Networkingand Security Standard vCloud Networking and Security Advanced vCloud Networking and Security Advanced STANDARD ENTERPRISE ENTERPRISE + vSPHERE ENTERPRISE+ is part of all vCloud Suite Editions • vSphere Editions (Per CPU) • (http://www.vmware.com/products/vsphere/compare) • vCloud Suite Editions (Per CPU) • (http://www.vmware.com/products/vcloud-suite/compare.html) * VDPA is part of vSOM Acceleration Kits only. All prices listed above are license only, SnS is required List Pricing is for reference purposes only and is subject to change without notice.  Pricing reflected in this document is suggested retail price in USD, for sales in the US. Regional prices may vary.

33. End-User Computing Packaging / Pricing

34. VMware Horizon View 5.2 • All products available in commercial, academic and federal SKUs • Horizon View is previously known as View Premier • Customers cannot mix Bundles and Add-ons in the same environment • vShield Endpoint functionality is now included in vSphere Desktop

35. VMware Horizon Mirage 4.2 • All products available in Commercial, Academic and Federal SKUs • Available in 10 and 100 packs

36. VMware Horizon Workspace 1.0 • All products available in commercial, academic and federal SKUs • Available in 10 and 100 packs

37. Partner Opportunity.. Every $1 in server virtualization software sales generates additional $$ in complementary products & services $20K VMware License Sale $15 of incremental Revenue for every $1 of VMware Software = $300KSolution Sale for Partner Source: Global Touch Data Center Survey, May 2010

38. Handling Objections

39. Handling Objections Customer Objection • Adding management istoo costly • Already have a different management solution • Already use vCenter now for management • Takes too long to get value from management • Adding management will make things worse, not better for us Response • Management Foundation lets you start at No Cost • Designed for cloud and virtual environments with patented analytics and integrated capacity and configuration management • vCenter Operations Management shows you more and does more • 78% of customers see ROI in < 3 months • Frees internal IT up to be proactive, not reactive

40. Common Questions • You seem to recommend VMware. What puts them ahead of competitors like Microsoft? • It seems risky loading up so many apps on one server. What if the server fails or one of the apps? • I’m already using the free vSphere Hypervisor, why should I buy the product? • Why should I consider VMware over the free products on the market?

41. What puts them ahead of competitors like Microsoft? • Reliable and Scalable Foundation - VMware delivers a mature, production-proven hypervisor with unparalleled performance, scalability, and reliability. The Hypervisor is not a commodity. • Complete Virtualization Platform – VMware vSphere has the industry’s most complete set of virtualization platform features. • Comprehensive Virtualization Management - Only VMware provides a complete virtualization management solution for all virtual infrastructure over the full lifecycle of a VM. • Support for Complete IT Infrastructure - VMware provides unsurpassed flexibility, offering the broadest application, operating system and hardware support. • Proven, Trusted Solution - VMware is the proven choice 100% of the Fortune 100, 100% of Fortune Global 100, 97% of the Fortune 1000

42. I’m Already Using the free vSphere Hypervisor, Why Buy? • Essentials Plus and up have business continuity functionality • High Availability • Data Protection • vMotion • Replication • Centralized management of virtual machines • Save significant administration time • Update and patch all servers simultaneously

43. Why should I consider VMware vs. other free products? An accurate metric for virtual environments Hardware VM Guest OS Virtualization Software Management Support Management • Servers • Networking • Storage • Electricity • Datacenter space • Licenses for Virtual machines operating system • Licenses for virtualization software • Management software • Management servers and other infrastructure cost • Databases software and servers • Subscription services and technical support Divide the Significant Acquisition Costs by the Number of Virtualized Applications = Cost per application

44. Plus: VMware software is more reliable, has more features and better performance than any other virtualization product on the market – even if they’re “free” VMware is Lowest TCO Per VM VMware's TCO/ROI calculator: http://roitco.vmware.com/vmw *single server cost when purchased in 3-server bundle **per-incident support packs and management software additional ***average VMs per physical machine ****Per Server Cost of System Center Essentials w/ SQL

45. Customer Example

46. Customer Example – Physical Environment Bank in the Northeast with 120 employees. 25 physical servers (12 Mission-Critical) Customer Goals and Concerns: • Phase 1 • Half the servers need to be refreshed. • MC Apps must be down as little as possible. • Lower TCO of the environment. • Phase 2 (Next Budget Cycle) • Site-level disaster recovery. • Concerns about additional staff needed. Site A DR Site Enabling MSCS will double all your MS licensing costs!! MSCS 3rd-party Replication iSCSI SAN iSCSI SAN (DR)

47. Bank in the Northeast with 120 employees. 25 physical servers (12 Mission-Critical) Customer Goals and Concerns: • Phase 1 • Half the servers need to be refreshed. • MC Apps must be down as little as possible. • Lower TCO of the environment. • Phase 2 (Next Budget Cycle) • Site-level disaster recovery. • Concerns about additional staff needed. Site A DR site vSphere Replication VMware saves the customer over $331K in hardware/licensing costs alone! * when bundled with Essentials Plus

48. Next steps to grow your VMware business • Visit vmware.com/go/partnercentral/smb for additional assets, on-demand training, & product information • Download Sales Bytes at vmware.com/go/salesbytes for your prospecting to acquire new customers & upsell to existing accounts. Bytes include: • Enablement recording & presentation for training • Value Prompter & prospecting guide to use during calls • Customer emails & presentation to send to prospects • Run a co-branded marketing campaign at vmwaregrid.com • Leverage content offers and co-brandable emails & landing pages • Find event-in-a-box and other campaign resources at vmware.com/go/peoplelikeyou_partners • Get more information / VMware resources • Download the Promo App at vmware.com/go/promoapp • Visit blogs.vmware.com/virtualreality & follow us on twitter.com/vmwarearmy

49. OH AK • Inside Partner Business Managers WA ME VT ND MT MN NH OR NY WI RI SD ID MA MI WY CT PA N CA IA NE NJ NV IN IL DE UT WV CO MD VA MO KS KY Canada S CA NC TN Dustin Bennett (Central Canada) dbennett@vmware.com 801-786-5800 Dan Nickolaisen (East/West Canada, dnickolaisen@vmware.com 801-786-5832 OK SC AZ AR NM GA AL MS TX LA FL Central Jeff Shumway (NE, KS) jshumway@vmware.com 801-786-5841 Nate Conger (TX ,OK, AR ,LA) nconger@vmware.com 801-786-5787 Jared Johnson (IL, WI) johnsonj@vmware.com 801-786-5833 Scott Smith (ND, SD, MN, IA, MO) scotts@vmware.com 801-786-5808 Cole Abbott (MI, North OH) cabbott@vmware.com 801-786-5834 Jerron Evans (IN, KY, WV, South OH) jerrone@vmware.com 801-786-5837 West Mitchell Stott (South CA, HI) mstott@vmware.com 801-786-5814 Tony Rogers (OR, WA, AK) trogers@vmware.com 801-786-5784 Brett Shaw (North CA) bshaw@vmware.com 801-786-5794 Shezerae Hatton (MT, ID, UT, WY, AZ, NV) shatton@vmware.com 801-786-5813 Jeff Shumway (NM, CO) jshumway@vmware.com 801-786-5841 East Brandt Stewart (VT, NH, MA, RI, ME) bstewart@vmware.com 801-786-5835 Rhett Burton (W. NY, CT, NJ) burtonr@vmware.com 801-786-5810 Brent Wilson (NYC, Long Island) brentwilson@vmware.com 801-786-5823 Cole Hartmann (East PA, DE, SC, NC) chartmann@vmware.com 801-786-5811 Kim Broschinsky (FL) broschinskyk@vmware.com 801-786-5831 Jordan Watson (VA, MD, WV, DC) jwatson@vmware.com 801-786-5829 Dalton Musgrave (GA, AL, MS, TN) dmusgrave@vmware.com 801-786-5785

50. Q&A – Thank You!Look for an email invitation to participate in our next training “Solution Selling to SMB’s” Learn more about: SMB Go-To-Market Strategy, Segment Priorities and the Solution Portfolio