vsphere 4 packaging, pricing, and licensing overview march 2009 confidential information....

vSphere 4 Packaging, Pricing, and Licensing Overview

March 2009 CONFIDENTIAL INFORMATION.

“Confidential Information” means any information disclosed by one party to the other pursuant to this Agreement that is marked “Confidential,” “Proprietary,” or in some similar manner. Each party shall treat as confidential all Confidential Information of the other party and shall not use such Confidential Information except to exercise its rights or perform its obligations under this Agreement. Each party shall not disclose such Confidential Information to any third party during the term of this Agreement and for a protection period of three (3) years beyond such term. The terms and conditions of this Agreement shall be Confidential Information subject to the provisions of this Section 6, whether or not marked confidential. This paragraph will not apply to any Confidential Information that: (a) was rightfully in possession of either party prior to receipt of such Confidential Information from the other party; (b) is or becomes a matter of public knowledge through no fault of the party receiving such Confidential Information hereunder; (c) is rightfully received from a third party without a duty of confidentiality; (d) is independently developed by the other party without breach of any confidentiality obligations; or (e) is disclosed by either party with the other party’s written approval; or (f) the recipient is required to disclose by applicable law or court order. The parties acknowledge that breach of this Section 6 will cause irreparable damage to the disclosing party for which monetary damages will be an inadequate remedy. Accordingly, either party will be entitled to seek and obtain injunctive and any other relief (legal or equitable) to restrain any breach or anticipated breach of this Sec

Non-Disclosure Agreement for VMware Partners.The VMware vSphere Product, Pricing, Packaging and Licensing information that is

being provided to you, our partner, is under a Non-Disclosure Agreement which is in effect until April 21, 2009. No part of this information should be shared with any other third party

unless permission is obtained from VMware in writing.

Non-Disclosure Agreement for VMware Partners.The VMware vSphere Product, Pricing, Packaging and Licensing information that is

being provided to you, our partner, is under a Non-Disclosure Agreement which is in effect until April 21, 2009. No part of this information should be shared with any other third party

unless permission is obtained from VMware in writing.

VMware Confidential Information VMware Confidential Information

2

Agenda

VMware vSphere Pricing and Packaging

Entitlement Paths and Upgrade Options

Acceleration Kits

New Licensing Mechanism

Selling vSphere


3

VMware vSphere 4 Launch

What is VMware vSphere?First cloud operating system

Transforms datacenters into simplified environments for flexible, reliable IT services

Delivers unparalleled efficiency, control and choice

Launch HighlightsApril 21 marketing launch

May 21 price list takes effect – Date might be different for OEMs. Please check with VMware counterpart

VI 3.x SKUs are replaced with vSphere 4.x SKUs overnight

All customer orders are placed for vSphere 4

We will honor existing quotes placed with the VI3 SKUs

vSphere 4.x licenses can always be downgraded to VI 3.x licenses


4

Pricing and Packaging: Summary of Changes

Change the name from “VMware Infrastructure” to “VMware vSphere”

Update the software versions and add new features

Introduce new editions and new price points:

vSphere Essentials editions for small and remote offices

vSphere Standard at a new, lower price point

vSphere Advanced for high availability at a mid-range price point

vSphere Enterprise Plus at a new top price point

End-of-Availability for old editions:

Foundation immediate end-of-availability

Enterprise availability continues during a transition period

Eliminate most a-la-carte offerings

Switch to one processor pricing


5

vSphere Components

vSphere is a distributed software system with features enabled by a management server and hypervisor working together

VMware vCenter Server is the management server and cluster coordinator (1 instance required)

VMware ESX / ESXi is the hypervisor software running on each host (1 instance per server required)

VMware ESX / ESXi VMware ESX / ESXi VMware ESX / ESXi

vSphere editions are the licensed features enabled by vCenter Server working with ESX / ESXi


6

vSphere 4 Software Changes

Move to up-to-date versions of the software:

VMware ESX 3.5 VMware ESX 4.0

VMware ESXi 3.5 VMware ESXi 4.0

vCenter Server 2.5 vCenter Server 4.0

Improvements in existing vSphere licensed features:

VMware High Availability (HA), VMware VMotion, VMware Storage VMotion, VMware Update Manager, VMware Distributed Resource Scheduler (DRS)

Addition of new vSphere licensed features:

VMware Fault Tolerance (FT), VMware Data Recovery, VMware vShield Zones, VMware vNetwork Distributed Switch (VDS), VMware Host Profiles

Training on new features and functions available separately


7

vSphere One Processor Licensing

VMware Infrastructure 3 (VI3)

6 x 2 Proc VI3 Enterprise

X $5750 / 2 Proc license

$34,500

VMware vSphere 4

12 x 1 Proc vSphere 4 Enterprise

X $2875 / 1 Proc license

$34,500

vSphere moves to a one processor pricing model

Example: Customer buys Enterprise licenses for 3 four-socket servers, 12 processors total

Note: A “processor” consists of one or more processing cores. Multi-core licensing is discussed later in this presentation

This is a “pricing example”


8

New Editions and Prices: VMware Objectives

Develop feature and price combinations to increase adoption in the Small and Medium Business segment

Add additional features and products to increase the overall value of the platform

Continually provide additional value at every price point

Important points :

• Prices given in these presentation are End User MSRP (Manufacturer Suggested Retail Price) in USD• EMEA pricing still TBD• OEM specifics will be mentioned when appropriate

Important points :

• Prices given in these presentation are End User MSRP (Manufacturer Suggested Retail Price) in USD• EMEA pricing still TBD• OEM specifics will be mentioned when appropriate


9

New vSphere 4 Editions: Overview

STANDARD($795 / CPU)

Simple Consolidation

ENTERPRISE PLUS

($3495 / CPU)

Simplified Operations

ADVANCED($2245 / CPU)

Availability

ESSENTIALS PLUSIntegrated availability

solution for Small Businesses

($2995 All-in-One for 3 Servers)

ESSENTIALSBasic management of

free ESXi($995 All-in-One for 3

Servers)

Scale limited,Low initial price,

Small office- oriented features

Scale unlimited,Value price, Low TCO

Full featured

Basic management for:•Simple consolidation•Remote offices•Test labs

High availability for:•Production infrastructure•Mission critical applications

Large scale management and integration for:•Internal cloud•Tier 1 applications

VMware vSphere

Note: US list pricing in USD – International pricing may vary

ENTERPRISE($2875 / CPU)

Automated Resource

Management

Automated resource management for:•Production infrastructure•Mission critical applications


10

Comparing Editions: VI3 to vSphere 4 Positioning

STANDARD$1495/CPU

ENTERPRISE$2875/CPU

FOUNDATION$495/CPU

STANDARD$795/CPU

ENTERPRISE PLUS$3495/CPU

ADVANCED$2245/CPU

VMware Infrastructure 3 VMware vSphere 4

ESSENTIALS / ESSENTIALS PLUS

Starting at $156/CPU

Lower cost entry point for management and availability

Lower license cost and lower Support and Subscription cost

VMotion, Fault Tolerance, and availability features at new lower entry point

Large scale management and enterprise integration

Lice

nse

Pric

e

Note: US list pricing in USD – International pricing may varyNote: These are NOT entitlement paths


Comparing Editions: Enterprise Transition

STANDARD$1495/CPU

ENTERPRISE$2875/CPU

FOUNDATION$495/CPU

STANDARD$795/CPU

ENTERPRISE PLUS$3495/CPU

ADVANCED$2245/CPU

VMware Infrastructure 3 VMware vSphere 4

ESSENTIALS / ESSENTIALS PLUS

Starting at $156/CPU

Enterprise availability will continue through 12/15 targeted at existing VI3 Enterprise customers

VA

LUE

ENTERPRISE$2875/CPU



12




ENTERPRISE PLUS

($3495 / CPU)



Availability






Servers)




Full featured




VMware vSphere



Automated Resource

Management



13

vSphere 4 Editions: Essentials Packaging

All inclusive packages:

Licenses for 3 physical servers (up to 2 processors each)

License for central management server

Packages cannot be decoupled or combined; components cannot be used with other vSphere editions

ESSENTIALS($995)

VMware ESXi OR VMware ESX

4-way vSMP

vCenter Server for Essentials(up to 3 servers)

ESSENTIALS PLUS($2,995)


4-way vSMP

vCenter Server for Essentials(up to 3 servers)

VC Agent VC Agent

Update Manager

High Availability

Data Recovery

6 CPUS x

6 CPUS x

6 CPUS x

1 x

x 6 CPUS

x 6 CPUS

x 6 CPUS

x 1

x 6 CPUS

x 6 CPUS

x 6 CPUS

Update Manager 6 CPUS x

vCenter Serverfor Essentials


14

vSphere 4 Editions: Essentials Pricing


vSphere Essentials ($995 all-in-one)License $879

Subscription (annual)

Minimum one year required

$116

Support (optional) $299 per incident

vSphere Essentials PlusLicense $2,995

Support and Subscription (annual)

Minimum one year required

$629 for Gold

$749 for Platinum

vSphere Essentials introduces a new support model targeted to small environments. Similar to ESXi support options

vSphere Essentials Plus uses the traditional vSphere Support and Subscription model

OEM support part numbers and pricing are specific to each OEM


16




ENTERPRISE PLUS

($3495 / CPU)



Availability






Servers)




Full featured




VMware vSphere



Automated Resource

Management



17

vSphere 4 Editions: Core Platform

High Availability

STANDARD ENTERPRISE PLUS

License (1 CPU)SnS (Gold/Plat)

$795$273 / 323

$2,245$471 / 561


4-way vSMP

VC Agent

6 Physical Cores / CPU256 GB Physical Memory

VMotion™

High Availability


4-way vSMP

VC Agent


ADVANCED

Fault Tolerance

Data Recovery

vShield Zones

VMotion™

High Availability


8-way vSMP

VC Agent

12 Physical Cores / CPUNo License Memory Limit

Fault Tolerance

Data Recovery

vShield Zones

Distributed Switch

DRS / DPM

Storage VMotion

Host Profiles

$3,495$734 / $874

Note: Most features require one (1) instance of vCenter ServerNote: At least 1 year of SnS is mandatory

High availability products for

protecting critical production

applications

Basic consolidation

of a lab or small

environment

Large scale management of critical production

applicationsNew

$2,875$604 / 719

VMotion™

High Availability


4-way vSMP

VC Agent


ENTERPRISE

Fault Tolerance

Data Recovery

vShield Zones

DRS / DPM

Storage VMotion

Update Manager Update Manager Update Manager Update Manager


Thin Provisioning Thin Provisioning Thin ProvisioningThin Provisioning

VCB / vStorage APIs VCB / vStorage APIs VCB / vStorage APIs VCB / vStorage APIs

Hot Add Hot AddHot Add



18

1

1 0

1 0 0

1 0 0 0

1 9 9 0 1 9 9 5 2 0 0 0 2 0 0 5 2 0 1 0 2 0 1 5

Num

ber o

f Cor

es us

ed

Y e a r

O r a c l e

S Q L s e r v e r

E x c h a n g e

A v e r a g e C u s t o m e r A p p l i c a t i o n

A v g 4 s o c k e t

W e b S e r v e r s

ESX

4.0

ESX

Futu

re

VMware vSphere and Multi-core

VMware vSphere uniquely enables customers to fully leverage the power of multi-core

Current products provide support for up to 6 physical cores

vSphere Advanced and Enterprise Plus will provide support for up to 12 physical cores

Entitlement expressed as “licensed cores per processor”

Entitlement summary:

Essentials / Essential Plus = 6

Standard = 6

Advanced = 12

Enterprise = 6

Enterprise Plus = 12

VMWare ESX Scaling:Keeping up with core counts

Most applications don’t scale beyond 4/8 way


19

vCenter Server

VI Management

$4,995

$1,495vCenter Server Foundation

vCenter ServerStandard

License SnS (Gold/Plat)

$1,049/1,249

$545/645

Per Instance (USD)

vCenter Server Standard and vCenter Server Foundation are management servers

vCenter Server Foundation is limited to 3 nodes of any size / suite

One (1) instance is required for most vSphere Standard, Advanced, or Enterprise Plus features

-No host limit-Includes Linked Mode-Includes Orchestrator

-3 ESX host limit

vCenter Server is required for most vSphere features

$9,995vCenter Heartbeat

$2,099/2,499




20

A la Carte Pricing

Most features are no longer available a la carte (e.g. VMotion)

Data Recovery is available for standalone sale on top of vSphere Standard only

ESXi is still available for free as “ESXi Single Server”

Excellent solution for virtualizing one or two servers

Does not include a vCenter management agent

$695

FREE

License

$146/174

$495/595(optional)

VI Add-ons

Per Processors (USD)

SnS (Gold/Plat)

Data Recovery

ESXi Single Server

-Per incident support available at $299/incident

-Only available for sale with vSphere Standard




21

Agenda



Acceleration Kits


Selling vSphere


22

Entitlement Path Overview

Customers with valid subscription contracts receive vSphere 4 licenses for every VI3 license

Each VI3 license edition maps directly to a vSphere 4 license edition (as depicted in the following slides)

Licenses are fulfilled directly into the customer’s license portal on vmware.com and a notification email is sent

Each VI3 2 CPU license maps to 2 x 1 CPU vSphere licenses

Enterprise License Agreements (ELAs) are fulfilled in the same manner

Customers with expired subscription contracts will not receive new vSphere 4 licenses:

If a customer does not renew support prior to the licenses expiring, they will be subject to a 20% reinstatement fee. To reinstate maintenance support and subscription for a license, maintenance must be back dated to the original date of expiration, renewed for a 12 month period from the current date and a 20% reinstatement fee added.

Policy: https://www.vmware.com/files/pdf/support/support_terms_conditions.pdf

Quote form: http://www.vmware.com/support/form/contract_renewal.html

https://www.vmware.com/files/pdf/support/support_terms_conditions.pdf

http://www.vmware.com/support/form/contract_renewal.html

http://www.vmware.com/support/form/contract_renewal.html


23

VI3 Enterprise License Mapping

ENTERPRISE$2875/CPU

6 cores(Including: VMotion, SVMotion,

DRS+DPM)

ENTERPRISE PLUS$3495/CPU+12 Cores

(+Host Profiles + Distributed Virtual Switch)

ENTERPRISE$2875/CPU

6 cores(+ VMotion, SVMotion, DRS+DPM)

(FT + vShield + Data Recovery)

Add FT, vShield, Data Recovery

UpgradePromo:

$295 / CPUEnding 12/15• Enterprise customers fulfilled

additional products

• Promotional period upgrade to Enterprise Plus

• Enterprise is phased out during transitional period ending 12/15

Your VI3 License: Your vSphere 4 License:

Note: See Appendix B for information on a new process for selling SnS with Upgrades

Specific OEM processes may apply for entitlement upgradesSpecific OEM processes may apply for entitlement upgrades


24

VI3 Standard License Mapping

STANDARD$1495/CPU

6 Cores+

(VC Agent + VUM + HA)

STANDARD$795/CPU

6 Cores+

(VC Agent + VUM + HA)(+Thin Provisioning)

ADVANCED$2245/CPU+12 Cores

(HA + VMotion)(FT + vShield + Data Recovery)

UpgradePromo:

$745 / CPUEnding 12/15

• Standard customers fulfilled an additional product: Thin Provisioning

• Lower price point and decrease in ongoing Support and Subscription

• Limited time promotion to Advanced

• Standard plus feature add-on paths available in the Appendix


Add Thin Provisioning

Note: See Appendix B for information on a new process for selling SnS with Upgrades



25

VI3 Foundation License Mapping

Foundation$495/CPU

6 Cores+

(VC Agent + VUM)

STANDARD$795/CPU

6 Cores+

(VC Agent + VUM + HA)(+Thin Provisioning)

• Foundation customers fulfilled an additional products: High Availability (HA), Thin Provisioning

• Support and Subscription price remains exactly the same as today

• Foundation plus feature add-on paths available in the Appendix


Add HAThin Provisioning



26

VirtualCenter Server License Mapping

VirtualCenter Foundation$1495/Instance

(3 servers)

vCenter Server Foundation$1495/Instance

(3 servers)

• VirtualCenter Server is renamed vCenter Server

• VirtualCenter 2.x licenses translate into equivalent vCenter 4.0 licenses


VirtualCenter Server$4995/Instance

vCenter Server Standard $4995/Instance

(+Orchestrator + Linked Mode)Add Orchestrator, Linked Mode



27

Acceleration Kits

Acceleration Kits are fulfilled at the component level

VI3 Acceleration Kit vSphere 4 LicensesFoundation Acceleration Kit:

VI3 Foundation

vCenter Foundation

vSphere 4 Standard

vCenter Server Foundation

Standard HA Acceleration Kit:

VI3 Standard

vCenter Foundation

vSphere 4 Standard


Mid-size Acceleration Kit:

VI3 Enterprise

vCenter Foundation

vSphere 4 Enterprise


Enterprise Acceleration Kit:

VI3 Enterprise

vCenter Server

vSphere 4 Enterprise

vCenter Server Standard


28

Version Downgrade Rights

vSphere 4 licenses can always be downgraded to VI3 licenses to run ESX 3.x and VC 2.x

vSphere 4 License(ESX/ESXi 4.0 & vCenter 4.0)

VI3 License(ESX/ESXi 3.x & vCenter 2.x)

vSphere 4 Enterprise Plus VI3 Enterprise

vSphere 4 Enterprise VI3 Enterprise

vSphere 4 Advanced VI3 Standard

vSphere 4 Standard VI3 Standard

Downgrade is enabled by a simple ‘point and click’ in the vmware.com license portal

NOTE: Downgrades are not available for either Essentials package


29

Examples

Customer Situation Result (Available in Customer’s License Portal)Customer has 4 VI3 Enterprise licenses

8 CPU vSphere 4 Enterprise licenses

4 x 2 CPU = 8 x 1 CPU

VI3 Enterprise maps to vSphere 4 Enterprise

Customer has a mid-size acceleration kit

(3 x 2 CPU VI3 Enterprise +

vCenter Foundation)

6 CPU vSphere 4 Enterprise licenses and 1 vCenter Server Foundation license

3 x 2 CPU = 6 x 1 CPU

VI3 Enterprise maps to vSphere 4 Enterprise

vCenter Foundation maps to vCenter Server Foundation

Customer has 2 VI3 Standard and one VMotion feature license

2 CPU vSphere 4 Standard licenses

2 CPU vSphere 4 Standard plus VMotion plus Storage VMotion licenses

Customer buys vSphere 4 Standard but wants to run ESXi 3.5

Customer uses the license portal to generate a VI3 Standard license


30

Agenda



Acceleration Kits


Selling vSphere


vSphere Acceleration Kits for New Customers

Solution bundles targeted at new customers in Medium to Commercial segments

Bundles vSphere Editions together with vCenter management

VMware vSphere

Advanced Acceleration Kit

VMware vSphere

Advanced Acceleration KitWith Training (NA ONLY)

VMware vSphere

Enterprise Plus Acceleration KitFor 6 Processors

VMware vSphere

Enterprise Plus Acceleration KitFor 8 Processors

20-30% Savings(Promotion through 12/15/2009)

20-30% Savings(Promotion through 12/15/2009)

Note: Acceleration kits will also be available via OEM’s with the exception of the Acceleration Kit that includes trainingNote: Acceleration kits will also be available via OEM’s with the exception of the Acceleration Kit that includes training



VMware vSphere Advanced Acceleration Kit

Includes: vSphere Advanced for 6 processorsvCenter Foundation

VMware vSphere Advanced Acceleration KitWith Training (NA ONLY)

Includes: vSphere Advanced for 6 processorsvCenter Foundation30 PSO credits (Install & Configure Class)

List: $10,495* – 30% discount List: $13,195 – 27% discount

Target:• Small to Medium segment (20-50 physical servers)• Interested in a complete availability solution• May be interested to add training (Install & Configure class)

Delivers superior application availability and data protection together with centralized management for mid-sized businesses at 27-30% off for a limited time.

*EMEA local price TBD*EMEA local price TBD



VMware vSphere Enterprise Plus Acceleration Kit for 6 Processors

Includes: vSphere Enterprise Plus for 6 processorsvCenter Server

List: $20,895* – 20% discount

Target:• Medium to Commercial businesses (> 50 servers)

• Need scalability of vCenter Server

• Interested in full VDC-OS solution

VMware vSphere Enterprise Plus Acceleration Kit for 8 Processors

Includes: vSphere Enterprise Plus for 8 processorsvCenter Server

List: $26,395* – 20% discount

Includes the full range of vSphere features together with scalable central management for transforming datacenters into dramatically simplified environments for the next generation of flexible, reliable IT services.

*EMEA local prices TBD*EMEA local prices TBD


vSphere Acceleration Kits - Detail

Accel Kit Components Component List Price

Discount RegularBundle List

Promo through 12/15/09

vSphere Advanced Acceleration Kit

6 CPU vSphere Advanced

vCenter Foundation

$14,965 10%

$1,470

off

$13,495 $10,495

30%

$4,470 off

vSphere Advanced Acceleration Kit With Training

(NORTH AMERICA ONLY)

6 CPU vSphere Advanced

vCenter Foundation

30 PSO Credits

$17,965 10%

$1,770

off

$16,195 $13,195

27%

$4,770 off

vSphere Enterprise Plus

Acceleration Kit for 6 Processors

6 CPU vSphere Enterprise Plus vCenter Std

$25,965 15%

$3,870

off

$22,095 $20,895

20%

$5,070 off


Acceleration Kit for 8 Processors

8 CPU vSphere Enterprise Plus vCenter Std

$32,955 15%

$4,960

off

$27,995 $26,395

20%

$6,560 off

VI3 SRM Acceleration Kit 6 CPU VI Enterprise (VI3)**

6 CPU SRM

VC Std

$32,745 15%

$4,950

$27,795

** SRM will only be compatible with VI3 at time of vSphere launch

Additional Details:•Available through all channels (inc OEM)•Limitation of 1 per customer•Mandatory SnS calc’d at 21/25% of bundle license (not including PSO for #2 – same SnS price and SKUs as for #1)

EMEA local prices TBDEMEA local prices TBD


Acceleration Kit Upgrades

From To (VI4) Components Delta Components Delta Price (List)

Regular

UG Price (+10% dest lic)

Promo price

VI3 Foundation Acceleration Kit


Upgrade to 6 CPU vSphere Advanced

$8,700

(assumes Std fulfillment)

$9,550 $4,500

53% savings

VI3 Standard Acceleration Kit


Upgrade to 6 CPU vSphere Advanced

$8,700 $10,850 $4,500

59%

VI3 Mid-Size Acceleration Kit

vSphere Enterprise Plus AK

Upgrade to 8 CPU vSphere Enterprise Plus

+ VC Std upgrade

$14,210 $15,650 $12,400

21%

VI3 Enterprise Acceleration Kit

vSphere Enterprise Plus AK

Upgrade to 8 CPU vSphere Enterprise Plus

+ VC Std upgrade

$4,960 $5,450 $2,400

56%

Objective: Drive existing Acceleration Kit customers up to a higher-end vSphere bundles.

Promo pricing logic built on 50% off a la carte promos good through 12/15/09

Note: Acceleration kits upgrades will also be available via OEM’sNote: Acceleration kits upgrades will also be available via OEM’s


36

Agenda



Acceleration Kits


Selling vSphere


Simplified License Management in vSphere 4

Flex licensing is replaced by simple license keys

Each vSphere host is assigned only 1 single license key for the entire “bundle” (e.g., Enterprise) rather than a separate license for each feature

Same license key can be shared by many vSphere hosts, subject to the key’s maximum CPU count

New centralized license key administration in vCenter

No separate license server to manage or monitor – license administration is a native vCenter feature

vCenter can be used to assignlicense keys to vSphere hostsvia a simple UI

Centralized vCenter report onall hosts and license keys ininventory enables easymonitoring of license state andcompliance

New license portal provides more accurate view of entitlement

License keys linked to purchase history, including upgrades and license recombinations (i.e., division/combination of license quantities into more/fewer keys)

Contract administration self-service allows addition and removal of license admins and support admins with access to specific licenses


Improved Activation Process

VI3 License Activation Is Failure-prone

Too many steps and “context changes” Customers have many opportunities to get confused or take “wrong turns”

License files are the result of a long, multi-step portal transaction

Complexity illustrated: 40 pages in VI3 admin/install guide devoted to licensing

A Dramatically Simpler Process In vSphere 4.0

A short and easy activation process was the single most important design requirement

License keys are sent in email and can be copied directly into the product – no portal activation step required

No separate license server means no additional installation, configuration or monitoring is required

10109876543210Receive

activation code in email

Go to license portal

Generate new license file

Select license qualities to

activate

Install license server if needed

Re-read license file to server

Product activated

Choose server or

host-based file

Download or email

license fileUpload

license file

Configure licensing in VC/ESX UI

33210

Receive license keys in email Enter license key into VC UI Assign license key to ESX hosts Product activated


Potential Transition Issues

Licenses are not backwards or forwards compatible!

How does a customer upgrade from VI3 to vSphere 4.0?

All VI3 customers with active SnS will automatically get vSphere 4.0 licenses at GA

VI3 licenses are not “traded in” or deactivated – customers will retain licenses for both versions, but must not deploy licenses in excess of their entitlement

New vSphere 4.0 licenses are automatically added to customers’ online accounts, i.e. to their license portal Email notifications will go out, but will not contain any license keys or activation codes (as in

VI3 fulfillment) Important: Automatic fulfillment of vSphere 4.0 licenses assumes that existing order and

contract data is correct. If account data needs to be modified, it is better to do so prior to vSphere 4.0 GA. Customer can do this using self-service tools on the account portal.

Previously purchased “a la carte” features (e.g., Vmotion) will be fulfilled as “fixed” add-ons in the vSphere 4.0 model (e.g., Standard+Vmotion)

How can a customer continue to obtain new VI3 licenses after vSphere 4.0 GA?

After vSphere 4.0 GA, only vSphere 4.0 SKUs will be on the price list

Customers who purchase vSphere 4.0 but wish to deploy VI3 can “downgrade” license keys on the license portal

Downgrade will add additional VI3 license quantities to the customer’s VI3 portal - as in the upgrade case, they will have access to both versions simultaneously and must manage compliance accordingly

Licenses can only be upgraded or downgraded once


40

Agenda



Acceleration Kits


Selling vSphere


From the smallest environments…

Available, reliable platform for small and medium businesses

Simple solution for remote and branch offices

…to the largest datacenters

Efficiency to meet the performance demands of critical applications

Control of service levels with leading management and automation capabilities

Choice that enables customers to integrate with their choice of datacenter management tools and processes

vSphere 4 Enables “Virtualization Everywhere”


Explore

Simple consolidation of nonproduction environments

Expand

Increased adoption of virtualization for capital and

operational savings

Driving Virtualization Adoption

Performance?

Manageability?

Security?

Interoperability?

Availability?

vSphere 4 accelerates adoption of virtualization

Deg

ree

of

Vir

tual

izat

ion

Standardize

Broad adoption of virtualization to create

computing cloud


Key Selling Motions for the Datacenter

1. Sell value of the platform

Drive adoption of VMware vSphere by new and existing customers

2. Sell business continuity

Leverage virtualization to meet the availability and disaster recovery demands of important applications

3. Sell virtualization management

Lab Manager, Stage Manager, Lifecycle Manager expand value of virtualization to customers

43


Drive virtualization adoption by SMB customers

Compelling solution for meeting the availability, data protection, and affordability requirements for SMBs

Drive deeper and broader adoption of virtualization in the datacenter

• Simplify remote and branch office deployment

• Virtualize tier 1 applications

• Upgrade and upsell

Sales Opportunities with vSphere 4


IT Challenges for SMBs

Environment• Small number of servers

• Limited IT staff with limited specialization

• Availability and recoverability are critical to survival

Challenges•Budget constraints

•Complexity overwhelms IT staff

•Options for increasing availability are impractical

•Backup and restore are painful and unreliable


vSphere for SMB

Affordable ITAffordable IT• New! Expanded pricing and packaging options

• Industry’s lowest cost per workload

Simplified Management

Simplified Management

• Easy deployment with embedded ESXi

• Integrated management for provisioning, availability, backup

Increased AvailabilityIncreased

Availability

• VMware HA protection across server environment

• New! Continuous availability for critical workloads with VMware Fault Tolerance

• Practical disaster recovery

Integrated Data Protection

Integrated Data Protection

• Simplified backup and reliable restore

• Support from all major backup vendors

• New! Efficient, integrated backup with VMware Data Recovery

• New! Integrated firewall for virtual machines


vSphere Options for SMB

Size of deployment

Ava

ilab

ility

Req

uir

emen

ts vSphere Advanced

vSphere Standard

• Larger scale (> 3 servers)• Integrated continuous availability

and data protection• Live migration (VMotion)• Integrated firewall (vShield Zones)

• Larger scale (> 3 servers)• Continuous availability• Live migration (VMotion)• Integrated firewall (vShield Zones)

• Larger scale (> 3 servers)• Automated failover (HA)

• Integrated data protection and automated failover

vSphere Essentials

vSphere Essentials

Plus

<3 virtualized hosts<3 virtualized hosts >3 virtualized hosts>3 virtualized hosts


Remote and Branch Office ChallengesTypical Remote Office:

Supported by central IT staff located in the data center

Typically ~5-10 servers:File/Print/E-Mail/Web/Network

Manual tape backup

Examples:Retail store, bank branch, regional office, warehouse, medical clinic, manufacturing plant, call center

Challenges in Remote & Branch Offices: Limited space, budget, and onsite IT staff in the remote offices Slow provisioning process Unreliable and insecure data protection and recovery processes High costs resulting from duplicating entire remote office environments for disaster

recovery


vSphere for Remote and Branch Offices

Simplify IT Management

Standardize deployments

Remotely and centrally manage from the datacenter

Accelerate provisioning

Ensure Availability and Recoverability

Increase availability without the cost and complexity

Integrated backup and restore

Reduce Hardware and Operational Costs

Minimize costly setup and support trips

Reduce operational costs

Deploy new applications without adding hardware


vSphere Options for ROBO Deployments

vSphere Essentials

vSphere Essentials

Plus

vSphere Standard

vSphere Enterprise

Plus

Data Recovery

• Limited scale (<= 3 servers)

• Many vCenter Servers

• Limited requirements for availability

• 3rd-party backup solution in place

Size of remote/branch office

• Limited scale (<= 3 servers)

• Many vCenter Servers

• Want basic failover protection

• Looking for integrated backup solution

• Scale to >3 servers

• Integrated patch mgmt

• (Data Recovery) Looking for integrated backup solution

• Large, standardized deployments

• Manageability and scalability requirements similar to large datacenters

$873 / 3 servers

$2995 / 3 servers

$795 (+ $695) / CPU

$3495 / CPU


vSphere Meets the Needs of Tier 1 Applications

Maximized application throughput

Up to 8000 DB transactions per second per virtual machine

Over 200,000 IOPS per ESX host

Increased MS SQL Server throughput efficiency by 20%

Increased Citrix XenApp throughput by 30%

Up to 86% network throughput increases in consolidated environments

Up to 10 times more iSCSI throughput to storage

Record number of MS Exchange mailboxes per host

Increased availability, security and scalability• Continuous availability for critical applications with Fault Tolerance• Non-disruptive scale-up of virtual machine CPUs, memory and disks • 8 way vCPU , 255 GB of RAM and 120 TB


% o

f A

pplic

atio

ns

Application Performance Requirements

95% of applications

< 100 at peak

< 2.4Mbits/s

< 4 GB at peak

1 to 2 CPUs

1. Source: VMware Capacity Planner assessments

ESX 3.5

100,000

9 Gb/s

64 GB per VM

4 VCPUs

ESX 4.0

200,000+

40 Gb/s

255 GB per VM

8 VCPUs

vSphere 4 Delivers Performance for Demanding Applications


iSCSI Maximums

.9.9

9.19.1

ESX 3.5ESX 3.5 ESX 4.0ESX 4.01VM1VM

23%23%

86%86%

Network Transmit Potential Gains

4VM4VM 8VM8VM 16VM16VM

14%14%

59%59%

iSCSI Max GbpsiSCSI Max GbpsPerformance increase in ESX 4.0 over ESX 3.5Performance increase in ESX 4.0 over ESX 3.5

I/O Throughput Optimizations for Business Critical Applications


Relative Scaling Ratio

51.0851.08

1 vCPU1 vCPU 2 vCPU2 vCPU 4 vCPU4 vCPU

45.2245.22

94.0494.04

79.8879.88

147.24147.24

133.12133.12

VMVM

NativeNative

ESX 4.0 Performance with SQL Server 2008

ESX achieves 90% of native performance on 4.0 vCPU VM

Workload transaction latency unchanged between ESX 4.0 and Native


0

1

2

3

4

5

6

7

8

9

1-way 2-way 4-way 8-way

VM

Native

Single VM Performance: Database OLTP Workload†

† A fair-use implementation of the TPC-C workload; results are not TPC-C compliant

• < 15% overhead for 8 vCPU VM

• 8,900 total DB transactions per second

• Near-linear scalability from 1 to 8 vCPUs

• 60,000 I/O operations/second

Tra

nsa

ctio

n R

ate

(Rat

io t

o 1

-way

VM

)

Next Generation Intel® Xeon® based 8-pCPU server

RHEL 5.1

Oracle 11gR1

In-house ESX Server


Har

dw

are

Fai

lure

To

lera

nce

Application Coverage

Meeting the Availability Needs of Critical Applications

VMware FT

Unprotected

AutomatedRestart

Continuous

0% 10% 100%

with VMware HA


vSphere Options for the Datacenter

Availability

Security

Scalability

vSphere Enterprise PlusvSphere Enterprise Plus


applications


applicationsIntegrated high availability for


applications

Integrated high availability for


applications

vSphere AdvancedvSphere Advanced

Basic consolidation of a lab or small

environment

Basic consolidation of a lab or small

environment

vSphere StandardvSphere Standard

Basic availability and management

Continuous availability, live migration,

integrated security

Large-scale manageability, dynamic optimization, integration with

network and storage ecosystem


Advanced network management

Third-party distributed virtual switch (e.g. Cisco Nexus 1000v)

Advanced storage management

Third-party multipathing plug-ins (e.g. EMC PowerPath)

Enhanced security

• Security virtual appliances

• Third-party security products leveraging VMsafe interfaces

Upsell Opportunities from VMware Ecosystem


From VI3 to vSphere 4: Why Upgrade

Solution and services opportunities for partners in helping customers understand and execute upgrades

Cost savings from enhanced efficiency

Increased operational control

Deeper integration with existing infrastructure


Upgrade Opportunities: Upsell to New Packages

vSphere Enterprise


vSphere Standard

vSphere Advanced


Benefits:•Greater scalability:12 cores / processor, 8-way SMP

•Integration with third-party distributed virtual switches

•Easier host management with Host Profiles

• Greater scalability:12 cores / processor, 8-way SMP

• Dynamic optimization (DRS, DPM, Storage VMotion)

• Integrated continuous availability, security, data protection for production applications

• Live migration (VMotion)

Ent → Ent+ Promotion:

$295 / CPU until December 15, 2009

Std → Adv Upgrade Promotion: $745 / CPU until December 15, 2009 Promotions also apply to OEMPromotions also apply to OEM

Appendix A: Additional Entitlement Mappings


62

APPENDIX: More Details on Entitlements

For previous releases, VMware sold ‘a la carte’ features, such as VMotion and DRS

For vSphere 4, VMware is eliminating most a la carte features for new sales

However, some customers still have unusual combinations of VI3 licenses combined with feature licenses

The following slides show the entitlement paths for the various potential combinations

Licenses such as ‘Standard + VMotion + Storage VMotion’ are fulfilled as a single serial number enabling these features


63

VI3 Standard and Feature License Mapping

STANDARD$1495/CPU

6 Cores+


STANDARD$795/CPU

6 Cores+


STANDARD + VMotion6 Cores

+(+VMotion + Storage VMotion)



STANDARD + VMotion + DRS6 Cores

+(+DRS)

Add FT, vShield Zones, Data Recovery

ENTERPRISE6 cores

+(+ SVMotion + DRS+DPM)


Your VI3 License: Your vSphere License:


64

VI3 Foundation and Feature License Mapping

Foundation$495/CPU

6 Cores+

(VC Agent + VUM)

STANDARD$795/CPU

6 Cores+


FOUNDATION + VMotion6 Cores




FOUNDATION + VMotion + DRS6 Cores

+(+DRS)

Add FT, vShield Zones, Data Recovery

ENTERPRISE$2875/CPU

6 cores(+ SVMotion + DRS+DPM)


Add HA

Add HA

Your VI3 License: Your vSphere License:

Appendix B: SnS Extensions


66

SnS Extension Feature Summary

Product Upgrades (STD to ADV, ENT PL etc) are a key component of VMware’s strategy of delivering significant value to our customers

The current process to execute upgrades results in a lengthy upgrade cycle and creates both internal and external customer & partner confusion.

Using this functionality, VMware will be able to offer customers credit for any un-used SnS on their Original License. This credit will in the form of “days of SnS” that will be tagged on to the new 12-month SnS contract. Key benefits include

Eliminate all SnS Upgrade SKUs both for VMware and Partners

Reduction in the number of price-points managed thereby reducing complexity

Customers and Partners have to send fewer quotes and Pos

Upgrades are executed in a single step without any follow-on Renewals on the Original License

The “credit” process is automatic and NO ACTION is REQUIRED from the CUSTOMER or partner

Above SnS Rules also apply to OEMsAbove SnS Rules also apply to OEMs


67

New Upgrade Process – SnS Extension

PROCESS Pre-VS4 Launch (example: VI-STD to VI-ENT Upgrade)

Customer sends PO for VI-STD License and VI-STD SnS

Customer decides to upgrade and sends PO for VI-STD-ENT-UG License and VI-STD-ENT-UG SnS

Customer is then co-termed for SnS on STD and the Upgrade

Customer Renews on VI-ENT

PROCESS POST VS4 Launch (Example: VS4-STD to VS4-ENT-PL upgrade)

Customer sends PO for VS4-STD License and VS4-STD SnS

Customer decides to upgrade and sends PO for VS4-STD-ENT-PL-UG License and VI-ENT-PL SnS

SnS duration is adjusted to add on extra days to account for unused SnS on VS4-STD (no action required from customer or partner)

Customer Renews on VI-ENT-PL

A credit estimator will be available on Partner Central and on the Product Page / S3P portal

Customers will be able to go to the S3P portal to see the exact extension on their SnS

vsphere 4 packaging, pricing, and licensing overview march 2009 confidential information....

Documents

licensing information

vmware vsphere product

disclosing party

party b

vsphere slide

agenda vmware vsphere

vmware partners

vmware infrastructure