VMware Announces Agreements to Embed VMware ESX 3i Hypervisor Across Broad Lines of Servers from Dell, Fujitsu-Siemens, HP and IBM

Systems Providers Will Ship Servers Embedded with VMware in the Next 60 Days

CANNES, France, February 26, 2008 — VMware, Inc., the global leader in virtualization solutions from the desktop to the datacenter, today announced agreements to embed the VMware ESX 3i hypervisor in servers from Dell, Fujitsu Siemens Computers, HP and IBM.  Partners are expected to begin shipping servers embedded with the VMware ESX 3i hypervisor within the next 60 days. 

“We are very excited to be partnering with Dell, Fujitsu-Siemens, HP and IBM to proliferate virtualization and fast-track customers on the path to running a self-managing virtual datacenter,” said Diane Greene, president and chief executive officer of VMware. “Customers can now get VMware pre-integrated and pre-configured for the hardware platform of their choice for immediate standalone server consolidation.  As customers want to expand their adoption and get more value from virtualization, they can upgrade from the ESX 3i hypervisor to VMware’s complete datacenter virtualization and management suite, VMware Infrastructure 3 (VI3).”

“VI3 provides automatic load balancing, business continuity, power management and the ability to move a virtual machine across physical machines with no service interruption.  In addition, customers who are already using VI3 can plug-and-play virtualization-enabled servers into their datacenters to dynamically and automatically expand the pool of resources (CPU, memory, and networking) available to meet their changing business requirements.”

Greene and other VMware executives highlighted the new VMware ESX 3i agreements with representatives from Dell, HP and IBM during today’s VMworld Europe general session keynote presentations. The presentations will be available via a recorded web cast ( http://www.vmware.com/go/europe-webcast) by 3:00 p.m. Central European Time and 9:00 a.m. Eastern Standard Time today. A replay will be available for approximately one month.

Dell, Fujitsu Siemens Computers, HP and IBM servers with the VMware ESX 3i hypervisor embedded will also include easy access to an evaluation of the VI3 suite, which delivers a fully managed virtual datacenter. VMware’s complete solution for virtualizing servers, storage, networks, applications and desktops helps ensure IT services are delivered  when and where needed, and optimized for cost and energy efficiency.  VMware and its hardware partners will promote the evaluation, purchase and deployment of VI3 through collaborative sales, marketing and training programs. 

The VMware ESX 3i hypervisor is based on core VMware virtualization technology in use by more than 100,000 customers. It is the industry’s smallest hypervisor (32MB), enabling high levels of security and reliability, and it is the only OS-independent virtualization platform.  VMware ESX 3i delivers single-server consolidation with fast and easy deployment—the first virtual machine can operate within minutes of booting a server with pre-configured and optimized hardware configurations.

Customers can upgrade from VMware ESX 3i hypervisor to VMware's datacenter virtualization and management suite, VMware Infrastructure 3 (VI3). VI3 provides the capability for automatic load balancing, business continuity and power management and the ability to move a virtual machine across physical machines to minimize service interruption. VI3 is also compatible with VMware's desktop virtualization and management solutions.

About VMware

VMware (NYSE: VMW) is the global leader in virtualization solutions from the desktop to the data center. Customers of all sizes rely on VMware to reduce capital and operating expenses, ensure business continuity, strengthen security and go green. With 2007 revenues of $1.3 billion, more than 100,000 customers and more than 10,000 partners, VMware is one of the fastest growing public software companies.  VMware is headquartered in Palo Alto, California and on the web at www.vmware.com.

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This release contains "forward-looking statements" as defined under the Federal Securities Laws. Such forward-looking statements relate, but are not limited to, the availability and the extent of end user adoption and deployment of VMware's ESX 3i Hypervisor and Infrastructure 3 products. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including but not limited to: (i) adverse changes in general economic or market conditions; (ii) delays or reductions in consumer or information technology spending; (iii) competitive factors, including but not limited to pricing pressures and new product introductions; (iv) the transition to new products, the uncertainty of customer acceptance of new product offerings and rapid technological and market change;; (v) changes to production and shipping schedules, and (vi) other one-time events and other important factors disclosed previously and from time to time in VMware's filings with the U.S. Securities and Exchange Commission. VMware disclaims any obligation to update any such forward-looking statements after the date of this release.