VMware Initiatives Will Help Customers Embrace Cloud Computing

Virtual Datacenter and VMware vCloud Initiatives Help Customers Build Private Clouds to Deliver IT and Applications – Both Existing and New Scale-Out Apps as a Service Spanning Internal and External Clouds

CANNES, France, February 24, 2009 — Today at VMworld Europe 2009, Paul Maritz, president and chief executive officer of VMware, Inc. (NYSE: VMW), outlined a comprehensive strategy and technology roadmap that will help enable companies to achieve the benefits of cloud computing internally, and bridge to external clouds through a private cloud.  This strategy is aimed at a more modern approach to delivering IT as a service, achieving the maximum efficiency and flexibility for businesses.  Building on announcements from VMworld Las Vegas 2008, today at the second-annual VMworld Europe 2009 in Cannes, Maritz discussed and demonstrated three key enabling components for building a private cloud: the complete virtualization of the datacenter through a Virtual Datacenter Operating System (VDC-OS), the extensions of the VDC-OS and the management layer to enable service providers to deliver external clouds and federate with internal clouds, and the evolving technologies for desktop virtualization to tie all elements of IT as a service together.

“VMware’s focus is on enabling our customers to run their datacenters as internal clouds and operate in a far more flexible and cost-efficient way,” said Paul Maritz, president and chief executive officer, VMware. “Our customers want the plumbing to disappear – in the datacenter, on the desktop and in the cloud – so they can focus their staff time and IT budget on delivering business value. They want cloud-like services so they can act as hosting providers to their internal customers. Our Virtual Datacenter Operating System Initiative will accelerate customers down the virtualization path so that they can run their IT as an internal cloud service.  The VMware vSphere generation of products, which are currently in development, will be a new class of software that delivers on this strategy. And, as customers become cloud-enabled, they will have the flexibility to securely and efficiently expand their internal clouds to tap the resources offered by external service providers through our VMware vCloud Initiative. I am excited to share the progress we’ve made on our initiatives at VMworld Europe.”

The Private Cloud
A private cloud is a secure computing environment that allows computing capacity from both internal and external clouds to interoperate and be delivered much like a utility.  A private cloud brings unprecedented levels of flexibility, control, efficiency, resiliency, and manageability to datacenters and allows any application – legacy, server-based, desktop or those built on new application frameworks – to be delivered as a service. 

The private cloud brings the benefits of cloud computing under the control of corporate IT, such as:

  • Improved efficiencies through maximum resource utilization of all server, storage and network resources
  • Better resiliency through capacity or fail-over capabilities that are dynamic or on-demand
  • Improved accountability by leveraging a usage-based, pay-as-you-go service model
  • Better quality through standardized auditable and automatically ensured service levels
  • More flexibility through a future-proof platform that supports existing and future applications that require no re-writes or modification to run in the cloud

“VMware is helping make the promise of a self-service datacenter a reality through the VDC-OS and VMware vCloud Initiatives,” said Mark Bowker, analyst, Enterprise Strategy Group. “VMware, as a leader in the industry, has the ability to provide the building blocks, create standards, and shape the future of cloud computing. VMware is in a unique position, with its depth and breadth of mature solutions, to help customers build their first iterations of central compute clusters and lead the federation between internal and external computing resources. VMware has demonstrated success with a rich ecosystem of partners that are now anxious to work with the company to build and deliver cloud computing solutions.” 
 
Customers Moving To Private Clouds Today
VMware’s enterprise customers are anxious to achieve the benefits of cloud computing, and are taking the first step by evolving their datacenters to internal clouds.  bmi, the second-largest airline at London Heathrow, operates services in the UK, Europe, the Middle East, Central Asia, and Africa.  The airline has aggressive targets to move approximately 90 percent of its infrastructure onto a VMware-based private cloud delivered by Attenda, one of EMEA’s premier service providers.

“Moving to a cloud computing model will play a key role in our ongoing drive towards reducing the TCO of our IT infrastructure and increasing our operational agility,” said Peter Federico, group IT director for bmi.  “Through cloud computing provided by Attenda, VMware’s technology gives us the ability to scale our computing capacity on demand to meet spikes in activity during peak hours or when we’re running promotions.  We now use the cloud to support our key websites and also a key ground operations system.  Clearly, cloud computing is core to our day-to-day operations.”

VDC-OS:  The Foundation for the Cloud
The move to a private cloud is catalyzed by the increasing power and attractive economics of industry-standard x86 hardware, the maturing of virtualization technologies, increasing choice in new application architectures, and the availability of vast new clouds of cheap and readily accessible computing power. The first step is to evolve the datacenter from components of complex infrastructure to a more dynamic, manageable internal cloud. Internal clouds have, at their foundation, a new substrate layer that pools all internal compute capacity – servers, storage, and networking capacity into an internal cloud.  VMware announced its focus on creating this new layer as its VDC-OS Initiative and the company is expected to ship the first instantiation of it in 2009.

The VMware vCloud Initiative Enables Federation between External and Internal Clouds to Create a Highly Elastic Private Cloud
The VMware vCloud Initiative, first announced at VMworld Las Vegas 2008, enables federation between external and internal clouds to provide the elasticity for the private cloud.  VMware vCloud™ technologies equip service providers to become cloud computing providers and offer a range of IT services that companies can tap for increased flexibility, efficiency, resiliency, and manageability of their private cloud.  VMware is working in concert with major service providers to achieve this goal, including industry leaders, such as Savvis, SunGard, Melbourne IT and Terremark. These service providers are either offering or plan to offer vCloud services with the security, service levels, and application compatibility required for enterprises to confidently incorporate them into their private clouds. 

As a proof point of its progress, tomorrow at VMworld, VMware will demonstrate an integration of the VMware Infrastructure Client with external cloud resources at VMware vCloud™ service providers.  This new capability will enable the deployment and management of workloads with VMware vCloud service providers with just a few mouse clicks, in the same management interface as customers use to manage their internal clouds.

Support for New and Existing Applications in the Private Cloud
Private Clouds have the unique capability to run both existing applications and new scale-out applications without rewriting or rearchitecting the applications. The vCloud Initiative allows enterprises to seamlessly take the same existing applications that they are currently running in VMware environments and run them in internal or external clouds with the high availability, manageability, and security that customers have grown to rely on from VMware.  The VMware vCloud Initiative also enables new application frameworks to leverage internal and external clouds and inherit the same availability, manageability, and security benefits. 

VMware vCloud API to Enable Interoperability Across Clouds
A core enabler of the VMware vCloud Initiative’s broad application and service provider interoperability is the VMware vCloud API, which allows programmatic access to private cloud resources and support the delivery of services and applications that leverage and extend private clouds.  The VMware vCloud API is in private release and under co-development with partners.  At VMworld Europe 2009, software companies such as Engine Yard and IT Structures will demonstrate new services built on top of the VMware vCloud API which further enable scalable, elastic, portable infrastructure for Web 2.0 and enterprise application stacks.
 
"As a leading Ruby on Rails platform for the cloud, we're excited to be working with VMware to support its vCloud API," said Tom Mornini, CTO Engine Yard. “The vCloud API is exciting because it will allow our enterprise customers to choose between internal and external cloud resources more easily, and is backed by VMware, a trusted vendor.”

VMware is committed to open interoperability between cloud services, and is working with many industry partners to advance standards for cloud computing.  As one of the original authors of the Open Virtualization Format (OVF) standard now released from the Distributed Management Task Force (DMTF), VMware will build upon that work by submitting a draft of its VMware vCloud API to enable consistent mobility, provisioning, management, and service assurance of applications running in internal and external clouds.

To listen to a replay of the VMworld Europe 2009 General Session keynotes, please visit:
http://www.vmworldeurope.com/agenda/keynotes/

About VMware
VMware (NYSE: VMW) is the global leader in virtualization solutions from the desktop to the datacenter.  Customers of all sizes rely on VMware to reduce capital and operating expenses, ensure business continuity, strengthen security and go green.  With 2008 revenues of <span id="RC:/templatedata/content/reusable/data/global_variables/var_br_revenues">$1.9 billion</span>, more than 130,000 customers and more than 22,000 partners, VMware is one of the fastest growing public software companies. Headquartered in Palo Alto, California, VMware is majority owned by EMC Corporation (NYSE: EMC).  For more information, visit www.vmware.com.

# # #
 
VMware, VMworld and VMware vCloud are registered trademarks and/or trademarks of VMware, Inc. in the United States and/or other jurisdictions. All other marks and names mentioned herein may be trademarks of their respective companies.

Forward-Looking Statements
All information in this disclosure regarding future directions and intent are subject to change or withdrawal without notice and should not be relied on in making a purchasing decision of VMware's products. The information in this disclosure is not a legal obligation for VMware to deliver any material, code, or functionality. The release and timing of VMware's products remains at VMware's sole discretion.

Statements made in this press release which are not statements of historical fact are forward-looking statements and are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate, but are not limited, to ongoing development and delivery of innovative new products and continuing customer adoption and deployment of virtualization technologies and our products, including levels of demand for our products, priorities in customer spending, future prospects for our new strategic initiatives and customer perceptions of competing 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) current uncertainty in global economic conditions that pose a risk to the overall economy as consumers and businesses may defer purchases in response to tighter credit and negative financial news, which could negatively affect product demand; (ii) further adverse changes in general economic or market conditions; (iii) delays or reductions in consumer or information technology spending; (iv) competitive factors, including but not limited to pricing pressures, industry consolidation, entry of new competitors into the virtualization market, and new product and marketing initiatives by our competitors; (v) our customers’ ability to develop, and to transition to, new products, (vi) the uncertainty of customer acceptance of emerging technology; (vii) rapid technological and market changes in virtualization software; (viii) changes to product development timelines; (ix) our ability to protect our proprietary technology; (x) our ability to attract and retain highly qualified employees; and (xi) fluctuating currency exchange rates.  These forward looking statements are based on current expectations and are subject to uncertainties and changes in condition, significance, value and effect as well as other risks detailed in documents filed with the Securities and Exchange Commission, including the report on Form 10-Q for the quarter ended September 30, 2008, which could cause actual results to vary from expectations. VMware disclaims any obligation to update any such forward-looking statements after the date of this release.