VMware Announces that VMware vSphere 4™ Surpasses 500,000 Downloads

Momentum of Award-Winning Platform Driven by Demand for a Pragmatic Path to Cloud Computing

PALO ALTO, Calif. – October 22, 2009– VMware, Inc. (NYSE: VMW), the global leader in virtualization solutions from the desktop through the datacenter and to the cloud, today announced accelerated  momentum for VMware vSphereTM 4, with more than 500,000 customer downloads since being made generally available on May 21, 2009. This pace has rapidly increased to an average rate of more than 3,660 downloads per day. VMware vSphere is the world’s leading virtualization platform, delivering customers unmatched business agility, cost savings; and efficiencyrequired to run business critical applications; along with uncompromised control over application service levels. The award winning VMware vSphere platform is broadly recognized as the foundation for a pragmatic path to Cloud Computing.

“As customers continue to leverage virtualization for business critical applications, what becomes paramount is not just virtualizing server resources but also improving availability, security and scalability for applications,” said Raghu Raghuram, VP and general manager of VMware's server business unit. “VMware vSphere is a proven platform that has  consistently delivered optimal performance, security and cost savings to businesses of all sizes.”

Unmatched Customer Benefit Through VMware vSphere

Proven customer results in efficiency, control and flexibility are driving the momentum behind VMware vSphere. VMware customers consistently report significant cost savings, including reduction in capital expenditures (CapEx) by up to 60 percent and average reduction in operating costs (OpEx) of 33 percent when comparing their VMware environment to a physical environment.  With industry-leading performance and scalability, VMware vSphere extends these benefits to 100 percent of applications while delivering twice the consolidation ratio of competitive offerings.

Only VMware vSphere delivers these results through a comprehensive set of capabilities for virtualizing, pooling and dynamic load balancing of servers, storage, and networks.   VMware vMotion™ was the starting point, enabling seamless virtual machine migration with zero downtime.  With 70 percent of VMware customers indicating production deployment of vMotion™,  VMware estimates that vMotion™ has driven nearly 350 million live migrations from its introduction through 2008, providing an estimated $459 million in IT administration savings.

VMware vSphere has built upon the VMware vMotion success, adding capabilities to provide higher service levels to applications at lower cost and administrative overhead, enabling customers to more fully embrace virtualization for business critical applications such e-mail, database, ERP, and CRM systems. VMware Storage vMotion and VMware vNetwork Distributed Switch enable customers to extend mobility to their storage and network while VMware Distributed Resource Scheduler and VMware Distributed Power Management simplify management and layering on policy driven automation.  These automation tools have delivered for some customers a 47 percent improvement in application performance and a 20 percent reduction in power consumption.  VMware High Availability and VMware Fault Tolerance bring unmatched resiliency for service level guarantees, while VMware vShield Zones adds the ability to manage logical security policies that are tied to applications and not devices. Customers deploying VMware vSphere 4 will be able to quickly take advantage of these capabilities and more, enabling the delivery of efficient, flexible and reliable IT as a service.

About VMware

VMware delivers solutions for business infrastructure virtualization that enable IT organizations to energize businesses of all sizes.  With the industry leading virtualization platform – VMware vSphere™ – customers rely on VMware to reduce capital and operating expenses, improve agility, ensure business continuity, strengthen security and go green. With 2008 revenues of $1.9 billion, more than 150,000 customers and 22,000 partners, VMware is the leader in virtualization which consistently ranks as a top priority among CIOs. VMware is headquartered in Silicon Valley with offices throughout the world and can be found online at www.vmware.com

VMware, VMware vSphere, VMware vCenter and vMotion 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.

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Forward-Looking Statements

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, the rate and extent of continuing customer adoption and deployment of VMware products and architecture, customer perceptions of our products and product features, including the benefits they provide, expected growth in customer adoption of cloud computing and the superiority of our platform.  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) the duration and timing of recovery from negative economic or market conditions; (ii) delays or reductions in consumer or information technology spending; (iii) 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;(iv) our customers’ ability to develop, and to transition to, new products, (v) the uncertainty of customer acceptance of emerging technology initiatives; (vi) rapid technological and market changes in virtualization software; and (vii) our ability to protect our proprietary technology.  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 our most recent reports on Form 10-Q and Form 10-K and current reports on Form 8-K that we may file from time to time.  VMware disclaims any obligation to update any such forward-looking statements after the date of this release.