We are uniquely qualified to support customers’ journey to the new era of IT, given our clear leadership in virtualization – the foundation for cloud computing architectures. Through innovation, and by challenging the status quo, VMware has elevated the customer experience to olympian heights. VMW continues to be the platform of choice with a dominant market share. The importance of innovation in a technology market is evolving at a break-neck speed.
This is why VMware continues to lead the market in both technology and marketshare, as cited by Gartner, the most respected analyst firm in the IT industry.
And I believe that where we are going is influenced by an enormous set of forces that are working through our industry, a set of forces that go beyond any of the buzzwords that we normally like to associate with, cloud mobilization, social, et cetera, et cetera. I believe that whatís really happening is we are coming to the mature stages of a very successful 50-year journey to automate most of the paper-based processes in the world. If you think about it in enterprises today, weíve gone through general ledger, accounting,customer relations, catalog sales, messaging, all of that has been successfully turned into computer-based processes. And I said itís been an incredibly successful journey to the point now what businesses are absolutely dependent upon these capabilities and they are not going to go away. However, this is -- at this point, they are just table stakes. Every business in the world is expected to be able to do this. Whatís happening now is the imperative to deliver fundamentally new experiences to both end-users and end-customers. People want toexperience information in fundamentally different ways. If you are a bank, simply being able to present a monthly statement as a webpage instead of sending as a piece of paper, that is no longer innovative. We need to look at new ways of providing access to information in real-time. And above all in the context of what people are doing. And this has profound implications on what happens underneath because a lot of these new experiences canít be directly delivered on todayís IT infrastructure. There's going to have to be fundamental innovation and change to allow people to bring together, different streams of information to be able to reason over those streams of information real-time and present a much more relevant experience to users in the context of who they are, where they are and what they are doing. And itís these forces that I think are really going to have a big impact on our industry over the next four years. First and foremost is going to mean because we are going to have to get much more efficient about existing IT precisely in order to free up the time, the energy and the focus to go after these new experiences. So the first order of business is how do we take our existing IT, make it fundamentally more efficient, more agile, thereby creating the possibility of really reaching forward to whatís going to be important from a competitive point of view in the future. So we are going to see an equal transition in IT over the next four years than weíve seen over the past four years.
And youíll know that we at VMworld like to think of this transformation in three broad categories. Firstly, itís the transformation of the underlying infrastructure, whatís happening in the data centers and we see ourselves going there from a physical world to a virtualized world to a cloud world. And thatís fundamentally a journey about integration and automation. [click] On top of that, we see a transformation in applications and data, because a lot of these new experiences canít be built with the traditional data fabrics. If you're going to do things in real-time at a scale, we need new ways of doing things. [click]And lastly, there is going to be a transformation in terms of how the results of these experiences are actually made available to end-users. There is going to be a transformation in how end-users access and interact with information. Broadly speaking, going from a PC-dominated world, to a mobile, multi-device world. And we at VMware are speaking to the transformation that we think needs to happen that everyone these layers. And most of this conference is going to be drilling into these layers to understand what needs to happen and what technologies and capabilities we can make available to start this journey right here, right now.
If we have one platform for any and all applications, then we are going to continue to see an explosion of workloads running in that environment. From enterprise applications, to mobile applications, to virtual desktops, and more. This type of diversity and scale has never been supported by any other platform prior to vSphere. But this explosion of workloads also means we need to rethink how we manage the environment. The old ways of IT service management just can’t keep up in this new world. We will need to depend on Automation more and more. But not yesterday’s view of automation.
As Paul pointed out earlier, we have made tremendous progress in the market since 2008. But when it comes to deploying new services for the business, I believe we still have work to do. After all, if we are moving rapidly to a self-service world, then things need to happen quick. Nobody waits “hours” for self-service. <click>We need to get to minutes, if not seconds.As Paul noted, we made great progress in the workloads that we've virtualized. But I like to set up a very audaciousgoal for us a group that we would get to 90-plus percent over the next three or four years running as virtualized workloads where the rare exception would be a workload that isnít running on a virtualized x86 environment. Sort of like some of the leftovers that you stick in the back of the closet you hope you never have to look at again. Some of those leftover workloads are the only thing left that we havenít done.
The impact to IT can be characterized in 3 categories of resource savings – financial, human, and the earth’s. The first category, Financial Resources, is what attracts most people to virtualization in the beginning – server consolidation. For example, VMware customers have seen on average a 50 to 60 percent cost reduction in server hardware when leveraging VMware technology. Of even bigger impact for some is the ability to delay costly datacenter expansion, because of the reclaimed floor space, power and cooling as a result of these consolidation efforts. The second category is Human Resources, or staff labor. This is all about shifting their focus away from managing hardware, to spending time on business needs. A study of our highly virtualized customer base showed that on average these customers were spending one-third less time on routine administrative tasks in IT operations due to virtualization and the automation achieved with it. That’s a third of your day, everyday, in return capacity. And finally, the Earth’s Resources, which contributes literally to green initiatives. Virtualization in the datacenter has shown the ability to save up to 80% in energy costs. The result of all of these savings can now be applied to the business. And with advances in automation and self-service enablement, IT can dramatically increase its responsiveness to the business.
A lot of dialog on cloud, and many vendors purport a self-serving definition. <click> There are public cloud infrastructure services, as represented by some of these companies.<click>There are public cloud platform services for the development of rich, cloud enabled applications, as represented by some of these companies including our partnerships with Salesforce and Google.<click>There are also SaaS offerings, which have suddenly become “cloud”.And of course there is a growing number of private clouds, that are being constructed and operated within the datacenters of businesses, because after all…<click>Cloud is not a destination, it’s an approach. In fact, our belief is that the new era in IT will combine all of these into a secure, cohesive whole which will enable IT as a Service. That, is how VMware defines and is executing on its cloud computing strategy.<add this click>Not just any cloud, but “Your Cloud”. The only cloud that really matters.
VMware has been at the forefront of the hybrid cloud movement, helping customer leverage their existing investment in vSphere. On the private cloud slide, existing vSphere customers can easily set up vCloud Director to realize the benefits of a private cloud such as self service. On the public cloud side, customers can tap into a rapidly growing ecosystem of vCloud Service Providers. And to tie it all together to create a hybrid cloud environment where customers can combine the best of private & public clouds and have the freedom to move workloads anywhere, they can use vCloud Connector.<Mouse click>vCloud Connector provides cloud users with a single pane of glass to consume hybrid cloud resources across vSphere, private cloud and public cloudIts main use case is helping customers onboard to public cloud providers by moving VMs/templates from their private cloud. Once you deploy vCloud Connector, you could use it to see, use & copy VM/templates across clouds. <Mouse click> With vCloud Connector, hybrid cloud is no longer a dream. It’s a reality.
Better cost.More complete, fully automated – More responsiveReliable and proven – More resilient
2 ConfidentialVMware is the Customer Proven Market Leader Company Overview• $3.77 billion in 2011 revenues• >$4.5 billion in cash and equivalents• 30%+ operating margins• ~11,000 employees worldwide• 5th largest infrastructure softwarecompany in the world Proven in the Trenches• 300,000+ VMware customers• 100% of Fortune 100• 100% of Fortune Global 100• 99% of Fortune 1000• 97% of Fortune Global 500
3 ConfidentialVMware is the Customer Proven Market Leader Company Overview• $3.77 billion in 2011 revenues• >$4.5 billion in cash and equivalents• 30%+ operating margins• ~11,000 employees worldwide• 5th largest infrastructure softwarecompany in the world Proven in the Trenches• 300,000+ VMware customers• 100% of Fortune 100• 100% of Fortune Global 100• 99% of Fortune 1000• 97% of Fortune Global 500As of mid-2011, about 81%of installed VMs are VMware-basedGartner, June 2011Source: From Virtualization to Cloud Computing, Gartner IT Infrastructure, Operations and Management Summit, June 2011, Thomas Bittman
4 Confidential2,200+ Technology andConsulting PartnersDeep Expertise…70+ vCloudService ProvidersEconomics of Choice…25,000+Channel PartnersLeverage ExistingRelationships…59,000+ VMwareCertified ProfessionalsAvailable Resources…VMware and Our Partner Network…Collectively committed to achieving transformative businessoutcomes through continuous innovation and superior technology.Together we have the complementary skills and shared commitmentto bring the best expertise and business solutions to each uniquecustomer environment.
5 ConfidentialVMware in the Government/Public SectorGovernment ofMaharashtraGovernment of Punjab
6CUSTOMEREXPERIENCEPaper & web pagesNarrow, specific information flowsNarrow contextEMPLOYEEEXPERIENCEDesktop-centricDocument andEmail-centricCUSTOMEREXPERIENCEReal-timeBroad information flowsintelligently combinedMobile and socialEMPLOYEEEXPERIENCEStream-centricSocial and mobileWherever,Whenever,In ContextTOMORROW’S ITTODAY’S ITThe Drivers of Change…
7Top to Bottom TransformationAPPLICATIONSMobileUsersNew Apps& Big DataCloudsACCESSINFRASTRUCTUREExistingAppsServersPCs
802040608096 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13Physical Server Installed Base (Millions)Logical Server Installed Base (Millions)Millions Installed ServersVMsdecouplingfrom HWWW Installed Physical and Logical ServersAn Explosion of VMs Requires New ApproachSource: IDC, Game Changing Virtual Technology : The Evolution of Virtualization and the Cloud, 2011
10Drive IT Agility to Increase Business ValueCore Benefits1. Reducethe Complexityto simplify operationsand maintenance2. DramaticallyLower Coststo redirect investment intovalue-add opportunities3. Enable Flexible, AgileIT Service Deliveryto meet and anticipate theneeds of the business
11Capital costsreduced by50% - 60%Delayed datacenter expansionOperational costsreduced by 25%+Up to 80%reduction indatacenterenergy costsThe Results are Transformational“Strategically, virtualization leadsinexorably down a path toward agility,flexible sourcing and cloud computing.”Tom Bittman, GartnerAverage of 33%reduction in routineadmin timeE.g. provisiona server in minutesFinancial Resources Human Resources Earth’s ResourcesSource: Gartner; 29 July 2010 Q&A: Six Misconceptions About Server Virtualization, Tom Bittman.
12 ConfidentialSo What is This Cloud Thing?SaaSPublic CloudIaaS PaaSPrivate CloudIT as a ServiceCloud Computing is an approach to computing that leverages the efficient poolingof on-demand, self-managed virtual infrastructure, consumed as a service.Your Cloud
13 Confidential. The information on the roadmap is intended to outline our general product direction and it should notbe relied on in making a purchasing decision. It is for informational purposes only and may not be incorporated intoany contract.Hybrid Clouds – No longer a dreamPrivateCloudPublicCloudPublicCloudPublicCloudvCloudConnectorHybridCloudSee, Use & Copy VMs/templates across cloudsvCC provides a single pane of glass to consume private & public cloud resources