The materials presented during this event are Confidential and

not intended for circulation or distribution outside this event.

We ask that you do not tweet or post via social media any
photographs of or quotes representing the content presented
throughout this event.
Thank you.

Confidential │ ©2019 VMware, Inc.

Sanjay Uppal

VP & GM
VeloCloud Business Unit

Confidential │ ©2019 VMware, Inc.

SD-WAN
Delivering Top Line Results and Customer
Value

Confidential │ ©2019 VMware, Inc.

Thank You for an Awesome FY 2019….

Confidential │ ©2019 VMware, Inc.

….Welcome to another year of
innovation and growth!

Confidential │ ©2019 VMware, Inc.

“VMware Named as a Leader in the Gartner
Magic Quadrant for WAN Edge.” - Gartner

Positioned
Furthest on
Completeness of
Vision
Leader in the
Ability to Execute
This graphic was published by Gartner, Inc. as part of a
larger research document and should be evaluated in the
context of the entire document. The Gartner document is
available upon request from VMware.
Gartner does not endorse any vendor, product or service
depicted in its research publications, and does not advise
technology users to select only those vendors with the
highest ratings or other designation. Gartner research
publications consist of the opinions of Gartner's research
organization and should not be construed as statements of
fact. Gartner disclaims all warranties, expressed or implied,
with respect to this research, including any warranties of
merchantability or fitness for a particular purpose.
Confidential │ ©2019 VMware, Inc. 6
Magic Quadrant for WAN Edge Infrastructure (2018, October 18). Gartner
VMware SD-WAN by VeloCloud Leads
Gartner Critical Capabilities Report for WAN
Edge

Source: Critical Capabilities for WAN Edge Infrastructure (2018, December 3). Gartner.
“The information and opinions presented in the analyst reports, including, without limitation, estimates of market size, positioning and sales of VMware
products and services and products and services of other firms, represent the opinions of their authors and do not represent the views of VMware. Statistics
regarding VMware sales performance presented in such reports have been independently prepared by the analyst firms based upon such firms’ individual Confidential │ ©2019 VMware, Inc. 7
methodologies and do not represent VMware’s actual performance. Actual sales performance of VMware products and services may differ from those
presented in such reports.”
“VMware has emerged as the clear leader in
the global SD-WAN technology market.” -
Quadrant Solution

“Organizations
are increasingly
replacing their
traditional
hardware
models.”

“The information and opinions presented in the analyst

reports, including, without limitation, estimates of market
size, positioning and sales of VMware products and
services and products and services of other firms,
represent the opinions of their authors and do not
represent the views of VMware. Statistics regarding
VMware sales performance presented in such reports
have been independently prepared by the analyst firms
based upon such firms’ individual methodologies and do
not represent VMware’s actual performance. Actual
sales performance of VMware products and services may
differ from those presented in such reports.”

Confidential │ ©2019 VMware, Inc. 8

Source: Market Outlook: Software-Defined WAN (SD-WAN), 2019-2024, Worldwide. (2019, March). Quadrant Knowledge Solutions.
Global SD-WAN is Expanding
4,000
$3,789

3,500

3,000
$2,668

2,500

2,000

1,500
$1,827 49%
3x CAGR
Growth
1,000
2019-2023
$802

500
$271 “The information and opinions presented in the analyst
reports, including, without limitation, estimates of market
size, positioning and sales of VMware products and
services and products and services of other firms,
represent the opinions of their authors and do not
0 represent the views of VMware. Statistics regarding
VMware sales performance presented in such reports
2019 2020 2021 2022 2023 have been independently prepared by the analyst firms
based upon such firms’ individual methodologies and do
$M not represent VMware’s actual performance. Actual
sales performance of VMware products and services may
differ from those presented in such reports.”

Confidential │ ©2019 VMware, Inc. 9

Source: Frost & Sullivan, Global Mid Year 2018 Forecast, Aug 2018
SD-WAN is Hot
VMware is in the Lead
You are perfectly positioned to take advantage of
growth and leadership!

Confidential │ ©2019 VMware, Inc.

 Factors driving adoption of SD-WAN
Click to edit optional subtitle

Cloud Next Gen Tech Automation ROI

Companies are Organizations are Enterprises look for Companies seek
increasingly using abandoning operational agility to cost-savings from
cloud resources traditional support digital private & public
- Gartner1 hardware-centric transformation networks
models - Gartner3 - Frost & Sullivan4
- Quadrant Solutions2

1,3 - Magic Quadrant for WAN Edge Infrastructure (2018, October 18). Gartner
2 - Market Outlook: Software-Defined WAN (SD-WAN), 2019-2024, Worldwide. (2019, March). Quadrant Knowledge Solutions.
4 - Global SD-WAN Vendor Market Mid-Year Forecasts, 2018. (2018, August). Frost & Sullivan. Confidential │ ©2019 VMware, Inc.
Enabling a quality user experience is more difficult than ever before
Traditional networking approaches are inefficient and costly in a cloud-based landscape

Intensive CLI provisioning No unified management or visibility

SaaS Construction site

CLI Branch offices 4G

CLI CLI

No visibility
Internet

HUB Legacy
datacenter

Modern HQ
MPLS datacenter

Backhauled traffic across expensive MPLS links

Confidential │ ©2019 VMware, Inc.

Together the components provide a robust solution across your WAN

Provision sites in minutes Gain visibility across any link

Construction site

Branch offices SaaS

4G

Internet

HUB Legacy
datacenter

Modern HQ
MPLS datacenter

Reduce the burden on MPLS

Confidential │ ©2018 VMware, Inc. Confidential │ ©2019 VMware, Inc.

Adding a software overlay enables dramatic results

VMware SD-WAN by VeloCloud

Real-Time App Simplicity & Optimized Cloud

Performance Automation Access

Confidential │ ©2019 VMware, Inc.

What’s in it for the Partner?
Proven paths to revenue

New Opportunity Predictable Revenue

el
od
$4

tio y”
M
ip ck
n
B

cr Sti
*

bs “
Su
“We deliver successful “Kovarus is proud to work with
outcomes for our clients.” VMware, a leader in SD-WAN.”
- Ciaran Roche, CTO, Coevolve - Mathew Shuster, EVP of Solutions, Kovarus

Pr
ov
y

en lea
l
nd

te de
ie

ch r
- fr

no
SP

lo
M

Managed Services Industry Leadership

yg
Confidential │ ©2019 VMware, Inc.
* Global SD-WAN Vendor Market Mid-Year Forecasts, 2018. (2018, August). Frost & Sullivan.
Historical cohort analysis
shows a 6-10x increase in
partners’ SD-WAN 6-10x
business with VeloCloud
Quarterly cohort analysis performed on 136 partners signed between
Q12016 and Q42018.

Confidential │ ©2019 VMware, Inc.

Based on the internal cohort ROI analysis, 2019, March. Details available upon request.
Compelling ROI
Example: 50 Site Retail Enterprise, 3-Year Contract

~2x ~2.5x ~2x

Cut Link Costs Cut Hardware Costs Cut Management Costs

Augment MPLS with Reduce Hardware Footprint at Lower Network
Broadband to Increase the Branch Deploy-and-Operate
Throughput Expenses

100% ROI
In under a year
Based on the internal ROI analysis, 2019, March. Details available upon request. Confidential │ ©2019 VMware, Inc.
 Sustainable & Predictable Subscription Model
Land – Expand - Renew

Example TERM 1 $5,000

THOUSANDS
Land Sale: $270,000 $4,500
Expand Sales: $730,000
$4,000
TOTAL TERM 1 1: $1,000,000
$3,500

TERM 2 $3,000

Start with: $1,000,000 $2,500

Net-New + Expand Sales: $1,000,000
$2,000
TOTAL TERM 2: $2,000,000
$1,500

TERM 3 $1,000
Start with: $2,000,000
~10x h $500
Net New + Expand Sales: $700,000 Gro
wt
TOTAL TERM 3: $2,700,000 $0
Y1 Y2 Y3 Y4 Y5 Y6 Y7
ARR Expand

Based on the internal ROI analysis, 2019, March. Details available upon request. Confidential │ ©2019 VMware, Inc.
Leverage flexible operating models
1 2
VeloCloud Operated
Over the Top
O P E R A T E D
• VeloCloud operates cloud service on
behalf of VARs, MSPs, CSPs, and SPs
• VeloCloud operates & manages the
cloud infrastructure
• Edge CPE are drop-shipped to end-
customer or can be stocked
• Flexible billing
Telco & VeloCloud Operated
Hybrid
P O W E R E D
• Service provider/Telco purchases edge
CPE & software license for gateways &
management
• Service provider operates & manages
the cloud infrastructure
• Edge CPE logistics are handled by Telco
• Annual or monthly billing for software
licenses
3
Telco Operated
Full Integration
P R O V I D E D
• Telco purchases edge CPE, hub, &
software license management & control
• Telco operates & manages the on-
premise networking solution
• Edge CPE logistics are handled by Telco
• Annual or monthly billing for software
licenses
Optional
Confidential │ ©2019 VMware, Inc.
Our Vision
Click to edit optional subtitle

Confidential │ ©2019 VMware, Inc.

VeloCloud SD-WAN Today

Branch Public Cloud

Edge
Orchestrator

Gateways

SaaS

OTT NB
Service Service Edge

Data Center

MPLS + Broadband + LTE

Confidential │ ©2019 VMware, Inc.

VeloCloud Next steps in SD-WAN growth

Users and Branch 4. SD-WAN as a Platform Public Cloud

things
Edge
Orchestrator

1. Edge Compute Gateways

(Container & VM) SaaS
5. Hybrid Cloud
Integration
IoT 3. Gateway
OTT Federation NB
Service Service

Data Center

2. 5G Underlay Intelligence

Confidential │ ©2019 VMware, Inc.

VMware Edge

DEVICE EDGE

Optimized for Things Optimized for People

COMPUTE EDGE

PROJECT DIMENSION
VMWARE CLOUD FOUNDATION

NETWORK EDGE

VMWARE SD-WAN
VMware SD-WAN by VeloCloud Expands Technology Ecosystem

Expanded ecosystem and integrations

provide full visibility and performance
across the network.

• New partnerships include: ADVA

Optical Networking, RingCentral,
Plixer, SevOne and Telco Systems
• Integration with VMware Smart
Assurance

Confidential │ ©2019 VMware, Inc.

Partner Spotlight Panel Discussion

Rupesh Chokshi Tim Sullivan

AVP, Intelligent Edge Co-Founder & CEO
AT&T Coevolve

Confidential │ ©2019 VMware, Inc.

Thank You

Confidential │ ©2019 VMware, Inc.