Disclaimer

• This presentation may contain product features that are currently under development.
• This overview of new technology represents no commitment from VMware to deliver these
features in any generally available product.
• Features are subject to change, and must not be included in contracts, purchase orders, or
sales agreements of any kind.
• Technical feasibility and market demand will affect final delivery.
• Pricing and packaging for any new technologies or features discussed or presented have not
been determined.

CONFIDENTIAL 2
Speaker Introduction

Who
• David Zolnier (Sr. Product Marketing Manager,
Integrated Systems BU, Cincinnati)

• Eric Horschman (Product Marketing Director,

Integrated Systems BU, Palo Alto)

Why
Learn how to apply the VMware technical,
strategic, business and total cost advantages
to win every deal in 2016 and beyond!

CONFIDENTIAL 3
Session Agenda

1 VMware Technical Advantages

2 VMware Business Advantages

3 VMware Strategic Advantages

4 VMware Cost Advantages

CONFIDENTIAL 4
VMware Technical Advantages
500,000+ customers worldwide can’t be wrong!
Focus on
the needs Compute
Storage Policies &
Automation

of the VM! Security

Network

Business Accessibility
Continuity

Control of the Cloud Cloud Management

begins with addressing Optimization

the needs of the the VM!

CONFIDENTIAL 6
The Single BIGGEST Advantage of a Hypervisor-Converged SDDC

No Operating System Required!

Just one small ~160MB hypervisor!

Compute – vSphere
vSphere Storage – VSAN
Networking & Security – NSX

CONFIDENTIAL 7
Many of the things that Windows Server
2016 and Azure Stack promise are
already available from VMware today!

Microsoft still cannot guarantee key resources

like Compute and Memory on-prem —
something VMware has been able to do with
vSphere for over a decade!

Seems like VMware provides more of a true

“cloud inspired infrastructure” for customers!

CONFIDENTIAL 8
CONFIDENTIAL 9
 This is the REAL reason
why VMware has better VM
densities than Microsoft!

CONFIDENTIAL 10
 Dynamic Memory, Microsoft’s ONE approach to VM memory
management is manual and not reliable for production workloads,
forcing customers to fully reserve the RAM assigned to each VM.

By not being able to overcommit and efficiently “share”

memory across VMs, Hyper-V customers simply cannot
fit as many VMs on a host when compared to VMware.

CONFIDENTIAL 11
CONFIDENTIAL 12
One Way to Easily Justify the Cost of vSphere
vSphere
18% Hyper-V
VM Density Advantage is all VM
VM

that is needed to offset the VM

cost of vSphere VM
VM 6 + 1 = 7 VM’s
Or think about it like this… VM or
Hyper-V 6 vSphere
VM
If a Hyper-V Host is running Host VM’s
Host 18% Better
6 VM’s all we would need to VM
VM
VM to Host
do is add 1 more VM to that Density
VM
Host to justify the price of VM
vSphere
VM
VM

CONFIDENTIAL 13
Everything Else Is Icing on the Cake…
• VM-Host Densities
– vSphere on average has 20-50% better VM to Host
density ratios than Hyper-V. (Anything over 18% is icing)

• Don’t forget about OpEx

– 3rd Party Studies have confirmed a 53-81% OpEx
Advantage for a VMware hybrid cloud deployment vs
Microsoft
– Hyper-V + System Center is notoriously problematic and
difficult to manage – especially at scale

• All those VMware intangibles

– Stability + Reliability
– Flexibility + Choice
– More vSphere experts than Hyper-V
– The VMware SDDC provides a real path
to a Hybrid Multi-Cloud future
CONFIDENTIAL 14
vSphere Has Superior VM to Host Density Ratios
18% is Easy for vSphere! “Proven VM density for
In some cases we can be Hyper-V remains less than
vSphere, typically requiring
50% or greater!!! more hardware.”

“more complex to manage…

Why? multiple management tools
• Hyper-V – “Dynamic Memory” Physical Memory Waste and complex HA setups…
• vSphere has superior, more mature Physical Resource too complex for most users.”
Management (CPU, RAM, Storage, Networking)

• Fewer servers needed for a Full HA Event Gartner, Mar 2015

• Less complex management

CONFIDENTIAL 15
 Configuring Dynamic Memory in Just 7 Steps (*for each and every VM!)
1. Install Integration Services
3. Configure Startup RAM

With vSphere there is one step

2. Power off VM and enable Dynamic Memory

4. Configure Minimum RAM

• Like vSphere memory reservation
5. Configure Maximum RAM
• memory limit; MS defaults to 1 TB)

6. Configure Memory Buffer

• Extra RAM to reserve “just in case” Hyper-V cannot
allocate more RAM fast enough to meet demand
• While a VM is powered on you cannot
‒ raise the minimum RAM
7. Configure Memory Weight
‒ decrease the maximum RAM • Like vSphere “Shares”…except only applies to a single
‒ change startup RAM host
‒ Change priority/weight through
SCVMM

CONFIDENTIAL 16
Think you can fit the same amount of VM’s on Hyper-V as you do
on vSphere… THINK AGAIN
Due to Inferior Memory & Cluster resource management technologies, associated with application
performance issues and operational complexities, Hyper-V environments are typically 20-50% Less Dense
than vSphere

vSphere Hyper-V
VM VM VM VM VM VM VM VM

20%
VM VM VM VM VM VM VM VM
vSphere Hyper-V
Host VM VM VM VM Host VM VM VM VM
256GB 256GB
Memory Memory
VM VM VM VM VM VM VM VM 50%
VM VM VM VM VM VM VM VM

CONFIDENTIAL 17
 Less VM’s per Host means more Hosts are needed to run the
same amount of VM’s
vSphere - 150 VM’s – 14 Hosts Hyper-V - 150VM’s – 14 Hosts - 17-21 Hosts (20-50% MORE)

vSphere Host vSphere Host Hyper-V Host Hyper-V Host Hyper-V Host

vSphere Host vSphere Host Hyper-V Host Hyper-V Host Hyper-V Host

vSphere Host vSphere Host Hyper-V Host Hyper-V Host Hyper-V Host

vSphere Host vSphere Host Hyper-V Host Hyper-V Host Hyper-V Host

vSphere Host vSphere Host Hyper-V Host Hyper-V Host Hyper-V Host

vSphere Host vSphere Host Hyper-V Host Hyper-V Host Hyper-V Host

vSphere Host vSphere Host Hyper-V Host Hyper-V Host Hyper-V Host

CONFIDENTIAL 18
CAUTION: Microsoft LOVES to talk about futures, even if there is no firm release date!
Azure Stack Timeline

Technical RTM
Technical Latest Estimated
Technical Technical Preview 3
Preview 2 Release Date:
Preview 1 Release Date:
Preview 1 Release Date: 2H 2017?
Intended
Actual Release Date:
??? ???
January 29, 2016 (Still 6+ months late, at best)
Release Date:
(6+ Months Late!)
Summer 2015

CONFIDENTIAL 19
 Azure Stack Has a Heavy Focus on Developers,
Mostly at the Expense of Admins...

Azure Stack was not designed with Azure System

Stack Center
admins in mind and actually adds extra + +
management burden and complexity Azure Hyper-V

due to multiple interfaces.

Azure Stack will still require the use of

System Center to manage customers’
existing infrastructures.
Admins will still have to use their traditional
Hyper-V / System Center management tools to
Must be deployed on a new, completely troubleshoot and maintain their existing
separate, large-scale hyper-converged infrastructure in addition to Azure Stack.
hardware platform.

CONFIDENTIAL 20
Truly a Hybrid Cloud?
Amazon Web
OpenStack Services (AWS)

Microsoft
Azure

Microsoft
Azure Stack Google Cloud
(MAS) Platform (GCP)

CONFIDENTIAL 21
Azure does NOT offer availability for single-instance VMs
CONFIDENTIAL 22
 1>8
What happens when Microsoft OMS and Azure Stack are “officially” released?

CONFIDENTIAL 23
Microsoft System Center Integration Points
• Legacy products
retrofitted to
support virtual
workloads

• Many points of
integration and
interfaces to
configure and
manage

• SCOM and
SCCM require
dedicated
administrators
or teams of
administrators

CONFIDENTIAL 24
Hyper-V REQUIRES The Installation of Windows Server!
Consider the risk and exposure to Operating System security issues!
Thin, legacy-free, Legacy operating system
purpose-built hypervisor architecture!

Windows or
Linux
Management
OS

VMware vSphere Windows Hyper-V / KVM / Xen

x86 x86

vSphere 6: ~160MB Hyper-V: 5GB-13GB

CONFIDENTIAL 25
Nano Server

• Roughly ~570 MB (Hyper-V)

• Not ESXi but ESXi in size

• No Ecosystem

• No management GUI

• No option to deploy from media

CONFIDENTIAL 26
OS-Dependent Hypervisors Require More Unrelated Patching
• Reboots were required every month for the past year for Hyper-V
• Only 3 Patch Tuesdays over the past 12 months contained updates for the hypervisor
components, however it doesn’t matter because Hyper-V is reliant on the Windows operating
system
No Intrinsic Business Benefit: Patch… Stabilize… Test… Repeat…
July Aug Sept Oct Nov Dec Jan Feb Mar April May June
2015 2015 2015 2015 2015 2015 2016 2016 2016 2016 2016 2016

“Important” and
“Critical” Server Core 9 7 5 2 6 5 3 7 6 6 6 8
Patches*

# of Patches Related
1 0 1 0 0 0 0 0 0 1 0 0
to Virtualization

Reboot Required? Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

* All Hyper-V deployments require these patches Source: Microsoft Security Bulletin, July 2016

Total number of important or critical Hyper-V = 70

security patches in last 12 months**:
vSphere = 9
** Counts patches for latest shipping version. We only count patches for Windows Server Core, but the reality is almost all customers use the full install of Windows
Server 2012 R2 which has required an additional 19 patches this year so far.

Do you want to reboot your data center every “update” Tuesday? 27

#VMs supported by one systems administrator:

60%
More with
vSOM
VM
CONFIDENTIAL 28
Source: VMware Internal Customer Survey
KEY VMWARE ADVANTAGE:
One-Stop Technical Support for All VMware Products
1-877-4-VMWARE

Technical Support Professional Services

• 24/7/365 access • Optional consulting services for
• Unlimited requests accelerating adoption of vCloud Air
• Web/email/phone • Onsite assessments
• Enterprise-class support policies • Comprehensive deliverables at end
of engagement
• Severity-based escalation procedures

CONFIDENTIAL 29
VMware Business Advantages
Better products, better pricing, better partner opportunities
Hyper-V to Be Less “Free” in 2016
• Microsoft changing to per-core
pricing for Windows Server 2016 &
System Center 2016
• Effective with Windows Server 2016
release
– Expected September 2016

• Impacts any server with >16 cores

total
• Price increase: 25% for 10-core
procs, 250% for 28-core procs!
“the move to cores is a revenue
issue, because it certainly does
nothing for customers.”
Computerworld, Dec 2015

CONFIDENTIAL 31
Impact of Microsoft’s “Core Tax”
Win2012 Win2012 Win2016 Win2016 %
Server Configuration
Licenses Cost 2-Core Packs Cost Increase
1 proc x 10
1 $6,155 8 (min req’d) $6,155 0%
cores

2 procs x 8
1 $6,155 8 $6,155 0%
cores

2 procs x 10
1 $6,155 10 $7,694 25%
cores

2 procs x 18
1 $6,155 18 $13,849 125%
cores

4 procs x 22
2 $12,310 44 $33,853 175%
cores

CONFIDENTIAL 32
 Cores

16
20
24
28

12
32

0
4
8
Pentium II Xeon

1998
Pentium III Xeon

2000
Xeon

2002
2004
Xeon 70xx

Xeon 53xx

2006
Xeon 72xx

Xeon 74xx
2008

Xeon 75xx
2010

Xeon E7
2012
Intel Server Processor Core Count Trend

Xeon E5-26xx v2

Xeon E5-26xx v3
2014

Xeon E7-88xx v3
Core counts keep increasing – up to 24 cores in 2016!

2016

Xeon E7-26xx v4
Xeon E7-88xx v4
CONFIDENTIAL

Xeon "Purley"
2018
33
 Cores

16
20
24
28

12
32

0
4
8
Pentium II Xeon

1998
Pentium III Xeon

2000
Xeon

2002
2004
Xeon 70xx

Xeon 53xx

2006
Xeon 72xx

Xeon 74xx
2008

Xeon 75xx
2010

Xeon E7
2012
CORE TAX
Intel Server Processor Core Count Trend

Xeon E5-26xx v2

Xeon E5-26xx v3
2014

Xeon E7-88xx v3
2016

Xeon E7-26xx v4
Xeon E7-88xx v4
CONFIDENTIAL

Xeon "Purley"
The “Core Tax” impacts systems shipped way back in 2010

2018
34
Are VMware Customers Impacted by Microsoft’s “Core Tax”?
It depends…
• vSphere hosts need to be licensed with Windows Server to
run Windows VMs
– Same licensing rules apply to vSphere or Hyper-V

• VMware users pay the “Core Tax” when they renew

Microsoft Software Assurance or if they purchase new
Windows Server 2016 licenses
• VMware users don’t need System Center – also to cost
more with the “Core Tax”

vSphere licensing is remaining processor-based!

CONFIDENTIAL 35
Microsoft’s Rationale for the New Windows “Core Tax”
Translation: “We want on-
“Core based licensing provides a
more consistent licensing metric
premises VMs to be just as
regardless of where the solution is expensive as Azure VMs”
deployed on premises or in a cloud.”

The real story…

“Microsoft wants
• Microsoft is pushing customers to Azure – stronger lock-in
customers to stop running
• Microsoft is trying to recoup revenues lost due to their own IT.”
increasing server capacity and virtualization
The Register
• Increasing processor core counts are a threat to Microsoft
What Intel giveth, Microsoft taketh away

CONFIDENTIAL 36
Microsoft to Partners: “Change Your Business Model – or Else”
Old enterprise sales model:
1. Sell on-premises Windows Server and System
Center licenses
2. Revisit customers every two years to renew
Software Assurance
3. Profit!!!
New enterprise sales model:
1. Sell Azure subscriptions for one year of revenue
2. Figure out how to build an IT service business on
Azure
3. Survive ???

CONFIDENTIAL 37
VMware Strategic Advantages
CONFIDENTIAL 39
Microsoft is
forcing changes
in customers’
buying behavior

CONFIDENTIAL 40
 We live in a multi-cloud world, where
customers need solutions that enable
more choice and flexibility than ever but...

CONFIDENTIAL 41
With Microsoft, All Roads Lead to Azure!

Azure

VMware Microsoft

CONFIDENTIAL 42
CONFIDENTIAL 43
CONFIDENTIAL 44
 FOCUS
on the
Needs of
the Business!

CONFIDENTIAL 45
VMware Provides the Most Flexible Hybrid, Multi-Cloud Future!

82%
of customers indicate a multi-cloud strategy for their future.*
Customers who choose a single Cloud provider only choose
Azure 6% of the time. Azure Stack only supports Azure — which
will lock customers into the Azure platform and severely limit their
flexibility and choice of multiple cloud and IaaS providers.

95%
of audience members surveyed at Gartner’s recent IOM
Conference state that they will have a hybrid cloud (on-prem
+ public) requirement in 2018 and beyond. Most of these
attendees indicated the business need for multiple public
cloud options in their future.

CONFIDENTIAL 46
*RightScale 2015 State of the Cloud Report
CONFIDENTIAL 47
“Talent has now been recognized
globally as the single biggest
issue standing in the way of CIOs
achieving their objectives.”

CONFIDENTIAL 48
“VMware lets you build upon
your existing knowledge!”

CONFIDENTIAL 49
 500,000+ VMware Customers Worldwide!

Hybrid Multi-Cloud
Software Defined Data Center (SDDC)
Operations vRealize Workspace
VSAN NSX Management Suite ONE
ROBO

vSphere
CONFIDENTIAL 50
Software-Defined Data Center:
The Foundation for Unified Hybrid Cloud

Fully Virtualized Infrastructure

1 • Compute (vSphere)
• Networking & Security (NSX)
• Storage (VSAN)

Governed by a Comprehensive Cloud Management Platform

2 • vRealize Automation
• vRealize Operations
• vRealize Log Insight
• vRealize Business

3 Delivered on a Flexible Mix

of Private and Hybrid Clouds

CONFIDENTIAL 51
Dave’s Advice:

SDDC is one of the best

pre-Cloud conversations
that you can have with
your customers!

CONFIDENTIAL 52
VMware Cost Advantages
Show how VMware TCO is lower than Microsoft
 When to Use the VMware TCO Comparison Calculator
Block Microsoft’s plays meant to delay/reduce ELA renewals
Microsoft claims… Calculator shows…

Hyper-V is “free” Expensive to adopt/migrate to Hyper-V

It’s the “Windows you know” vSphere is far more efficient to operate

Hyper-V is at parity with VMware Costly 3rd-party gap-fillers required

Preserve opportunities
to sell NSX, VSAN, Arm your VMware Champion to defend choice of VMware
Horizon, AirWatch For the CFO: For the CIO: For the Purchasing Mgr:

TCO comparison summary Detailed TCO report SW/HW/Support BoM

CONFIDENTIAL 54
Independent Testing Shows 57-91% VMware OpEx Savings
• Third-party operational task testing studies
– 2015: 57% lower OpEx for vCloud Suite 5.8 vs.
Hyper-V/System Center 2012 R2*
– 2013: 88% lower OpEx for vCloud Suite 5.1 vs.
Hyper-V/System Center 2012*
– 2012: 91% lower OpEx for vSphere 5.1 vs.
Hyper-V 2008 SP1 – Public (vmware.com link)
• Measured time taken by system
administrators to complete everyday cloud
infrastructure tasks

*2015 and 2013 studies available upon request

CONFIDENTIAL 55
Example Scenario Test: Create & Deploy Multi-VM App Template

• Minimal steps to complete task

defined for VMware & Microsoft
• Time required for each
scenario measured
• Calculated scenario cost =
measured task time * task
frequency over n-year period *
US avg. sysadmin labor rates

CONFIDENTIAL 56
 www.vmware.com/go/tcocalculator
Updated
VMware TCO Comparison Calculator for Q3
Choose from two scenarios 2016!
“Greenfield” server consolidation to VMware infrastructure upgrade to private
virtual infrastructure cloud

vs.
vs.

• Consolidate using vSphere Essentials • Upgrade vSphere infrastructure to vCloud

to vCloud Suite Enterprise Suite
vs. vs.
• Use Microsoft Windows Server • Migrate VMs to Microsoft Windows Server
Hyper-V & System Center Hyper-V & System Center
CONFIDENTIAL 57
Calculator Inputs
Currency
Number of VMs
Current vSphere host CPUs
Baseline VM density
VMware VM density advantage
Current VMware product
Final VMware product
Server type
Storage type
Electricity cost
Data center space cost
Timeframe
Greenfield Consolidation Private Cloud Upgrade
USD, AUD, EUR, GBP, JPY USD, AUD, EUR, GBP, JPY
5-5,000 5-5,000
n/a 1-1,500
4-20 VMs/CPU Calculated
1-10 VMs/CPU 18% of calculated density
n/a vSphere Ess – vSOM Ent+
vSphere Essentials – vCloud Suite vCloud Suite Std. – vCloud Suite
Enterprise Enterprise
Small/Medium/Large Small/Medium/Large
FC/iSCSI/NAS n/a
VSAN (VMware-only)
Low/Medium/High Low/Medium/High
Low/Medium/High Low/Medium/High
3-6 years 3-6 years

CONFIDENTIAL 58
 Greenfield
SMB: Far Lower TCO with vSphere Enterprise Plus Server
Consolidation
• 100 VMs
• 3-year TCO
• vSphere Enterprise Plus
• VMs per processor: VMware - 7, Microsoft - 6
• Servers required: VMware - 8, Microsoft - 11
• Storage: VMware - NAS, Microsoft - NAS

CONFIDENTIAL 59
 Greenfield
Large Private Cloud: Lower TCO with vCloud Suite Ent. Private
Cloud
• 5,000 VMs
• 5-year TCO
• vCloud Suite Enterprise
• VMs per processor: VMware - 7, Microsoft - 6
• Servers required: VMware - 358, Microsoft - 420
• Storage: VMware - VSAN, Microsoft - iSCSI

CONFIDENTIAL 60
Wrapping It All Up…
To Summarize…
• VMware’s superior memory management = superior
VM density vs Hyper-V. Any VM density over 18% is
icing on the cake vs Microsoft!

• Microsoft is making it harder for partners to succeed

• Most customers want the option for true hybrid cloud

in their future and the VMware SDDC is the best
foundation for any cloud strategy

• VMware TCO is LOWER than Microsoft

CONFIDENTIAL 62
Make us one promise…

Attend at least one

Competitive vmLIVE session
before the end of 2016!
http://VMware.com/go/PartnerCompete 63
Resources To Help You Compete and Sell
 VMware TCO Comparison Calculator www.vmware.com/go/tcocalculator

 Partner Central Competitive Selling page www.vmware.com/go/partnercompete

CONFIDENTIAL 64
Questions?

CONFIDENTIAL 65
We value your feedback.
Please take the brief survey…

66
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CONFIDENTIAL 69
VMware vRealize Training
VMware vRealize Courses More Training Options
• VMware vRealize Automation: Install, • On Demand Courses
Configure, Manage [V7.0] – Self-paced learning that meets certification
– Classroom, Live Online and Onsite requirements

• VMware vRealize Operations Manager: Install, • VMware Learning Zone

Configure, Manage [V6.2] – Cloud-based learning that supplements
– Classroom, Live Online and Onsite traditional training

Cloud Management and Automation

Certifications
Learn the requirements and more

Partial list of courses. View complete options and descriptions:

www.vmware.com/education CONFIDENTIAL 70