Rapid Growth of VMware Service Provider Program Illustrates Increased Demand for VMware-based Cloud Solutions

With More than 700 Service Providers Worldwide, the VMware Service Provider Program Offers Industry-leading Products and Program Benefits and a Flexible Licensing Model, Enabling Partners to Easily Provide Cloud-based IT Solutions to Customers

PALO ALTO, Calif., June 29, 2009 — VMware, Inc. (NYSE: VMW), the global leader in virtualization solutions from the desktop through the datacenter and to the cloud, today announced expansion and continued momentum of the VMware Service Provider Program (VSPP). The VSPP is designed to enable IT service provider partners—solution providers that offer cloud-based IT services to customers outside their traditional datacenters—to leverage the VMware platform, including VMware vSphere™ 4, to offer external IT infrastructures for customers so they can increase or reduce compute capacity based on business demands. Since its launch in 2008, more than 700 service provider partners have joined the VSPP, and the program has expanded to offer benefits to partners in the EMEA region. Service providers in 32 countries are current VSPP members.

VSPP members have access to a flexible VMware licensing model that enables them to pay for as many or few VMware licenses as they require to provide customized IT services. Service providers pay for monthly access to the industry-leading VMware platform on a per-virtual machine basis. In turn, service providers can offer customers services based on this model—as customer demand fluctuates, service providers can increase or reduce their licensing requirements as needed. This model allows service providers to quickly start and grow a VMware-based services business without the time and money needed to procure the necessary physical resources.

“We’re excited about the traction the VSPP has gained in such a short time, as it further validates the value proposition for customers to use cloud computing services based on the VMware platform,” said Scott Aronson, vice president, global accounts and VMware vCloud™ market development, VMware. “With more than 700 service providers participating in the program, customers of all sizes have numerous unique options for accessing these services. The VSPP also offers service provider partners an easy onramp to participate in the VMware vCloud initiative, which helps partners leverage our industry-leading virtualization platform to enable secure, robust and highly reliable internal and external clouds.”

Launched in 2008, the VSPP is part of the award-winning VMware Partner Network and provides numerous program benefits to help service providers grow their VMware-based services with the lowest possible overhead. To facilitate the program experience for service providers, the VSPP has established a network of global “aggregators” experienced in working with service providers and the requirements around subscription-based licensing models. Aggregators provide tailored tools and processes to help service providers centralize and streamline the monthly reporting, billing and collection cycles associated with subscription-based service models. VSPP partners also have access to the other benefits of the VMware Partner Network, including free demo and evaluation products, marketing tools, training and competency programs, and access to Partner Central, VMware’s online partner portal that provides everything partners need to maintain their virtualization practices.

Service provider partners and aggregators currently participating in the VSPP have experienced increased demand for cloud-based IT services that leverage the VMware vSphere™ 4 platform.

“The VSPP enables us to offer solutions that provide cost-effective, cloud-based virtualized infrastructure that meets the specific needs of clients of all sizes through a simplified, easily accessible service model,” said Simon Hansford, vice president, Service Strategy, Attenda. “We get all the benefits of the VMware vSphere™ 4 platform—reduced capital and operating expenses, increased IT flexibility and a smaller carbon footprint—with a convenient ‘pay as you go’ model that scales easily according to customer demand.”

“VMware vSphere™ 4 is at the forefront of cloud computing, providing significant cost savings, resource efficiencies and IT flexibility—so it’s no surprise that combining this platform with a world-class partner program just for service providers would gain significant momentum,” said David A. Casillo, senior vice president, Strategic Partnerships and Marketing, Insight. “We’re excited to be working with VMware to help service provider partners increase their services potential while making virtualized infrastructure available to a greater number of customers in a simplified way.”

For more information on the VMware Service Provider Program, please visit www.vmware.com/partners/programs/service-provider/.

About VMware

VMware (NYSE: VMW) is the global leader in virtualization solutions from the desktop to the datacenter—bringing cloud computing to businesses of all sizes. Customers rely on VMware to reduce capital and operating expenses, ensure business continuity, strengthen security and go green. With 2008 revenues of $1.9 billion  , more than 130,000 customers and more than 24,000 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).

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VMware, VMware vCloud and VMware vSphere 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. The use of the word “partner” or “partnership” does not imply a legal partnership relationship between VMware and any other company.

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, continuing customer adoption and deployment of VMware virtualization products and levels of demand for VMware 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) the duration and deepening of 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; (vii) changes to product development timelines; and (viii) our ability  to attract and retain highly qualified employees.  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 quarterly report on Form 10-Q for the quarter ended March 31, 2009, 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.