This document discusses how virtualization with VMware can help SMBs cut costs and save time. It notes that over 70% of IT budgets are spent just keeping systems running, leaving less than 30% for innovation. VMware aims to make IT infrastructure more efficient and flexible. Virtualization can increase server utilization from a typical 8% to 80%, allowing organizations to consolidate servers and reduce hardware, power and cooling costs. It also improves availability, flexibility, and productivity. The document promotes VMware virtualization solutions like vSphere Essentials and vSphere Advanced Acceleration Kits that provide these benefits affordably for SMBs.

1. © 2009 VMware Inc. All rightsreserved
How to Cut Costs and Save Time
with Virtualization for SMBs

2. The Problem
Overwhelming complexity
>70% of IT budgets just to keep
the lights on
<30% of IT budgets goes to
innovation and competitive
advantage

3. VMware Mission – “Make the Plumbing Disappear!”
“Make the plumbing
disappear – in the
Datacenter, in the Cloud,
on the Desktop…
and for the SMB”
“How can I extend my server and storageinvestment?”
“How can I deploy new services faster and with lesseffort/training?”
“How can I make my applications, esp. email, moreavailable?”
“How can my backups be faster and more predictable?”
“How can I stop worrying about daily IT operations and plan for thefuture?”

4. The Goal
IT
as a
Service
(Internally or
Externally
Provisioned)
Efficiency
Control
Choice

5. © 2009 VMware Inc. All rightsreserved
The Case for Virtualization

6. Why Virtualize with VMware and Dell?
1. VMware virtualization will get you
10x productivity on your servers
2. VMware virtualization delivers
affordable business continuity,
enabling “Always On IT”
3. VMware vSphere and Intel®
Xeon® processorsdeliver:
 Greater flexibility and agility
 Cost-effective availability and continuity
 Higher VM density
 Increased energy efficiency
With packages starting as low as
$330 per server, VMware
virtualization is a must-have for
every IT environment
• Increase power of every server
• Increase application availability
• Protect your data

7. Hardw
are
Physical World Virtualized World
How Do I Get 10x Productivity On My Servers?
Traditional x86 Architecture
• Legacy rule: Run only one application
per server because single application
crashes result in OS or server failure
• Typical hardware utilization under 8%
Virtualization:
• New rule: Run multiple applications per
server because OS/applications are
isolated from one another
• Typical hardware utilization 80%

8. Impact on Small and Midsized Businesses
2 Increase Staff Productivity
3 Increase Application Availability
Reduce Physical Infrastructure Cost
1
Increase Data Protection
4
3-Yr Cost Savings
Opportunity*
20 Servers 50 Servers
$290k $774k
1 month
Payback
3 month
Payback
* VMware ROI Calculator

9. Servers 10
Utilization 8%
Annual Support
Costs
$5,000
Annual Power and
Cooling Costs
$8,334
Servers 3
Utilization 80%
Annual Support
Costs
$1,500
Annual Power and
Cooling Costs
$2,499
Before VMware
More applications per machine
= less machines
After VMware
Reduce Physical Infrastructure Cost
1
Over $9,000 per year in savings!!!
Immediate Savings on Hardware

10. Get More Done with Existing Staff
% of Time Spent on
Maintenance
72%
Before VMware After VMware
24%
Source: IDC and VMware TAM program
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
Increase Staff Productivity
2

11. Keep Your Business Running
Zero down-time failover of failed servers
Increase ApplicationAvailability
3 Average Downtime
Costs*
Typical downtime
per failure
4 hours
Lost revenue per
hour
$2,416
Lost staff
productivity per hour
$50/hour
Average failures per
year
2
* Average company with 25 employees, 10 servers and $25m a year insales
$29,328 per year!
ESX
APP APP APP
OS OS OS
ESX
OS OS OS
APP APP APP
Failed OS or server
Detects server failures and migrates the VM to
a different physical server without human
intervention
Two levels of Application Protection
Fault Tolerance Zero-downtime failover; VM’s migrate off of failed servers Included in Acceleration kits
High Availability Automated reboot of VMs in the event of physical server failure Included in Acceleration kits & Essentials Plus

12. OS
APP
Ensures Data is Protected
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
De-duplicated
Storage
ESX
OS
APP
OS
APP
Increase Data Protection
4
Agent-less snapshot
technology
Built in data protection
saves time and money
• Simplifies administration
• Faster recover times
• Less downtime = higher
staff productivity

13. Business Continuity: The Big Picture
Business Continuity = Minimizing Downtime
Availability expectations
continue to increase
• RTO’s decreasing from
>24 hours to <12 hours
Cost of downtime continues to
rise
• Increasing dependence on x86
infrastructure
40% of small businesses never reopen following a disaster. Of the
remaining companies, at least 25% will close within 2 years.
-- U.S. Department of Labor
How much does down
time cost your business?
Average Downtime Costs*
Typical downtime per
failure
4 hours
Lost revenue per hour $14k*
Lost staffproductivity
per hour
$50/hour
Average failures per
year
2
Savings per Year $120k
* Assumes company with 150 employees, 20 servers and $37.5m a year in sales (lost revenue is 10% of affected server time)

14. © 2009 VMware Inc. All rightsreserved
Why Refresh your Hardware

15. ~76% of the server install
base is still up for refresh
Estimated 34% single-core
and 42% dual-core1
Server Refresh Opportunities in 2011
Source: Gartner pressrelease
Maintaining Aging Servers Limits Innovation & Growth
Now is the Time to Refresh!
If you delayed
refresh in 2009, then
you’re not alone
Source: Intel. Intel® Xeon® shipments, 2005-2009.
return to economic growth.
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16. © 2009 VMware Inc. All rightsreserved
VMware vSphere™ Editions for SMBs

17. vSphere Essentials
Cost-effective
server
consolidation
and mgmt for
small offices
• Update Manager
• Virtual Center Foundation
(management console)
• 3 dual CPU licenses
• Includes 1-year of support
$995
vSphere 4.1 SMB Product Line
vSphere Advanced
Acceleration Kit
Full-featured
virtualization
solution for
all size
environments
• Fault Tolerance
• vMotion
• vShield Zones
• Hot Add
• High Availability
• Data Recovery
• Update Manager
• Virtual Center Foundation
(management console)
• 30 Training Credits (optional)
• For 3 hosts
$10,495
**All Prices USD RRP**
Only $330 per server
vSphere Essentials Plus
Cost-effective
availability
and data
protection for
small offices
• High Availability
• Data Recovery
• Update Manager
• Virtual Center Foundation
(management console)
• 3 dual CPU licenses
$3995
$2995 (25% off - limited timeonly)
Under $1,000 per server

18. vSphere Acceleration Kits – 2011 Lineup
vSphere Advanced Acceleration Kit – 36% off list
• One of the most popular kits in 2009,
VMware has extended the Advanced Kit
into 2010
• 6-CPUs of vSphere Advanced, features includes
• VMotion
• Fault Tolerance
• Data Recovery
• HighAvailability
• vCenter Server Foundation
Kit list price: $10,495
Component list: $16,470
Savings: $5,975 (36%)
Part #: VS4-AD-AK

19. vSphere Acceleration Kits – 2011 Lineup
Introducing the new vSphere Midsize Acceleration Kit – 25% offlist
• We’ve listened to partners and customers who have
requested a bundle package with vSphere Enterprise
and vCenter Standard
• 6-CPU license of vSphere Enterprise, features include:
• DRS/DPM
• Storage Vmotion
• Vmotion
• High Availability
• Fault Tolerance
• Data Recovery
• vCenter Server Standard
Kit list price: $17,795
Component list: $23,750
Savings: $5,955 (25%)
Part #: VS4-MS-AK

20. VMware
Essentials
VMware
Ess Plus
Other
Solutions
2-way server (4GB RAM) $6,000 $6,000 $6,000
Cost: Guest Windows licenses1
$5,998 $5,998 $5,998
Cost: Virtualization license* $330 $999 $0*
Subtotal $12,328 $12,997 $11,998
Total VMs2 (512MB each)** 12 12 10
Cost per VM $1,027 $1,083 $1,199
Plus:
VMware software is more reliable, has more features and better performance
than any other virtualization product on the market
VMware beats the competition even if their products are “free”
*single server cost when purchased in 3-server bundle
**average VMs per physical machine
VMware Offers The Lowest Cost Per Application (VM)

21. Resources and Next Steps
• VMware solutions for Small and Midsized businesses:
http://www.vmware.com/solutions/smb/
• Intel’s IT center – solutions to address your IT needs from client to server
http://www.intel.com/itcenter
• Learn more about the Intel | VMware solution:
http://www/vmware.com/go/intel
• Find a VMware Partner:
http://www.vmware.com/partnerlocator
• Find an Intel Distributor:
http://www.intel.com/buy/index.htm
• Download ESXi for Free:
http://www.vmware.com/go/get-free-esxi/
• Evaluate VMware vSphere free for 60 days:
http://www.vmware.com/go/EvaluatevSphere
• VMware Go™ — the Quick and Easy On-ramp to Virtualization
http://www.vmware.com/products/esxi/go.html

22. © 2009 VMware Inc. All rightsreserved
Thank you!

23. Appendix slides

24. Product Feature Comparison
Product Feature Enterprise Plus
Acceleration Kit
($20,895)
Advanced
Acceleration Kit
($10,495)
Essentials Plus
($2,995)
Essentials
($995)
Max
functionality
DRS, DPM, Storage VMotion,
Host Profiles, Distributed Switch
Fault
Tolerance
Zero down-time failover
Max
scalability
Can scale beyond 3 physical
servers
VMotion
Moves running VMs between
physical servers
vShield
Zones
Integrated security
High
Availability
Automated restart offailed
physical machines
Data
Recovery
Agent-less, deduplicated
backups
Update
Manager
Updates all VMs simultaneously
Includes 3 dual-CPU licenses

25. VMware vSphere = Lowest Cost Per Application
$21,850
Server HW
Management*
$4,388
vSphere Essentials Plus +
SnS
$26,991
Windows Server
DataCenter Ed.
$13,504
Network, Power,
Space
$4,500
Storage
$72,731
(with 2 yrs s
$
u
1
p
,
4
p
9
o
9
r
t
)
$26,991
Windows Server
DataCenter Ed.
$8,954
Management*
$26,450
Server HW
$14,337
Network, Power,
Space
$4,500
Storage
$81,232
(with 2 yrs SA)
Essentials Plus costs 10% less even at equal
consolidation ratios
6:1 average
consolidation ratio
6:1 average
consolidation ratio**
Cost to deploy 15 VMs
VMware vSphere 4
Essentials Plus
$4,849 perApp
Windows Server 2008
with Hyper-V
$5,415 perApp
Use the VMware Cost-per-
Application Calculator to figure
out your cost-per-application
* includes cost of servers and software (management, OS, SQL) required by the virtualization solution. vSphere Essentials is bundled with one license of VMware vCenter
Server Foundation. Microsoft management software includes System Center Virtual Machine Manager Workgroup Edition, System Center Essentials
** Assumes 1.5 VMs per core in a 2 socket dual core server, 16 GB RAM ($5,000 estimated unit cost), iSCSI storage