This document summarizes the key changes to VMware vSphere 5 licensing announced on August 10th, 2011. It outlines the consolidation of product editions, new definitions of vRAM entitlements based on average usage rather than peaks, and increased vRAM allowances. It also clarifies that vSphere 4 will continue to be supported for two versions, and customers have downgrade rights to move to vSphere 4 if needed. Contact information is provided for Softchoice, a top VMware reseller, to help customers understand and apply the new licensing changes.

1. August 10th, 2011 You voiced your concerns. VMware listened.Major Adjustments to vSphere 5 licensing

3. More than 100 pre-sales resources

4. Traded on TSX Symbol: SO

5. US$884 million in revenues (2010)*

6. Top 4 VMware Reseller

7. 45 Branch offices

8. 15,000 North American Customers*Total Imputed Revenue of US$1. 874 billion **Computer Dealer News Magazine

9. Agenda Understanding the Key Driver for Licensing Change vSphere 5: Licensing Changes Edition Consolidation and Upgrade Rights vRAM Definition and Entitlements New Announcements on August 2nd vSphere 4: Staying Put Downgrade Rights VMware Support Model Questions and Answers Please include any questions in the chat window to the presenter and host

10. vSphere 5: License ChangesEdition Consolidation vSphere 4.x vSphere 5.0 Enterprise Plus Enterprise Plus Enterprise Enterprise Advanced Standard Standard Essentials Plus Essentials Plus Essentials Essentials

11. Understanding the Key Driver for Licensing Change Moore’s Law states the number of transistors will double every two years RAM moving forward will be a better indicator of the number of VMs running on a host Customers can now leverage advanced CPU capacity

12. vSphere 5 licensing announced July 12th !

13. What is vRAM? Assigning a certain amount of vRAM is a required step in the creation of a virtual machine vRAM ≠ physical RAM

14. vSphere 5: License ChangesvRAM Pool Definition Atransferable, virtualization-based entitlement of RAM When a VM is powered on the vRAM configured for that virtual machine counts against the total vRAM vSphere 5.0-CPU license editions provide a certain vRAMcapacity vRAM Pool 32GB 32GB 32GB 32GB VMware vCenter Server vSphere Ent vSphere Ent 1 1 1 1 CPU CPU CPU CPU Host A Host B vRAM ≠ physical RAM

15. vRAM Entitlements on July 12th

16. Summary of Customer and Partner Feedback Feedback VMware Response Customers were concerned about their future-looking business cases that have been based on future hardware capabilities and the previous vSphere 4 licensing model. Substantially raise the vRAM entitlements for each vSphere edition Creates additional hesitation for virtualizing business critical apps Cap the amount of vRAM consumed per VM at 96GB* Penalizes short lived usage “spikes” in test / development & transient VMs Calculate a 12 month average of consumed vRAM rather than a high water mark Makes vSphere for VDI expensive Already addressed with vSphere Desktop edition licensed per user

17. Previously Announced vs New vRAM entitlements This limit is GB of physical RAM per physical server

18. Calculate vRAM based on12 month average vs high water mark High water mark Average

20. Maximum memory allocated to the VMs is limited

21. To see more vRAM than allowed in processor licenses:

22. Add more processor licenses

23. Upgrade Versions64GB vRAM 64GB vRAM 64GB vRAM 64GB vRAM

24. vSphere 4: Staying PutDowngrade Rights and Support Model Only the vSphere 5 SKU will be available on the Q3 2011 release vSphere 5 licenses include the right to downgrade one version VMware supports two versions back so vSphere 4 support will be available

25. In Summary Get an understanding of the amount of RAM you have allocated to VMs Leverage the free 60-day evaluation of vCenter Operations Manager to help gather the information

27. VMware Authorized Consultant

28. Softchoice on VMware Technical Advisory Board

29. Certified in All VMware Solutions

30. Licensing Expertise

31. Dedicated Pre-Sales Expertise

32. Assessment ServicesEmail vmware@softchoice.com