VMware Signs Agreement with Intel to Expand Reach of VMware vSphere™ 4 to SMB Customers

Intel to Distribute VMware vSphere™ 4 to its Reseller Channel, Further Accelerating Adoption of Industry-Leading Virtualization Platform to SMBs

SAN FRANCISCO, Calif., August 31, 2009 — Today at VMworld 2009, VMware, Inc. (NYSE: VMW), the global leader in virtualization solutions from the desktop through the datacenter and to the cloud, announced an agreement with Intel® to sell VMware vSphere™ 4 with Intel board and system products starting in the fourth quarter of 2009. The agreement will enable Intel to provide VMware vSphere 4 through its worldwide distributor network to resellers and system integrators that service small and midsized businesses (SMBs). This enhanced relationship expands on the Intel Enabled Server Acceleration Alliance (ESAA) certification agreement previously signed by the companies and strengthens the companies’ longstanding strategic relationship.

“SMBs are looking for a means of administering ‘Always On IT’ through a robust, continuously available IT infrastructure with minimal overhead and high investment return,” said Carl Eschenbach, executive vice president of worldwide field operations, VMware. “Combining VMware vSphere™ 4 with Intel server products through Intel’s channel will help reseller and system integrator partners deliver virtualization solutions faster and at a lower cost, while extending the critical business benefits of virtualization to an even larger number of customers.”

“We are pleased to be able to deliver VMware software benefits in conjunction with our server boards and system building blocks to our worldwide reseller channel,” said Lisa Graff, general manager of Intel’s Enterprise Platforms and Services Division. “Our ongoing technology collaboration has resulted in excellent performance of VMware vSphere™ 4 running on Intel® Xeon® processor-based platforms. This agreement will enable the channel to meet the growing demand by SMBs for the improved efficiency, greater control and increased flexibility that virtualization offers.”

SMB Customers Rely on the Virtualization Industry Leader, VMware
Led by a desire to control IT costs and deliver improved business continuity, SMB customers are increasingly turning to VMware as the proven virtualization industry leader who addresses their critical IT needs by delivering the most reliable, best-performing and easiest to manage virtualization solutions. VMware is the preferred brand by 64 percent of surveyed SMBs and preferred by three times as many surveyed SMBs as the next closest competitor, according to a blind market virtualization study published in April 2009 of 416 IT professionals in North America and Europe conducted by research firm Management Insight Technologies.

The VMware vSphere 4 packages for SMBs deliver differentiated functionality and considerably lower the entry point for customers new to virtualization. Companies with less than 20 physical servers can deploy a server consolidation and management solution for only $166 per processor with VMware vSphere 4 Essentials, and they can get higher application uptime with VMware vSphere 4 Essentials Plus (only $499 per processor) — these are features that are otherwise out of reach for most small companies. VMware vSphere 4 Essentials Plus is the only virtualization solution that provides high availability and data protection at this price point. VMware vSphere 4 Advanced delivers an even more robust and scalable business continuity solution and includes VMware Fault Tolerance, VMware VMotion™ and VMware vShield Zones.

Read more about VMware vSphere 4 solutions and pricing and packaging for SMB customers.

Intel Resellers Deliver Leading-edge Technology to End Customers around the World
The Intel global reseller community of more than 50,000 Premier and Associate members will benefit from the new agreement by being able to resell the industry-leading virtualization platform to their SMB customers. The agreement supports Intel’s strategy to proliferate virtualization technology on the recently announced Intel® Xeon® Processor 5500 series into SMB markets and it provides resellers with low-cost high availability solutions, including the three new VMware vSphere 4 product editions for SMBs that enable Always On IT. The Intel® ESAA program also provides resellers with pre-certified Intel server platforms for VMware vSphere 4 with the ability to have their products listed on the VMware Hardware Compatibility List (HCL) at no additional charge. This reduces deployment costs and speeds time to market for resellers to address new opportunities.

"VMware and Intel working together to provide an easy method of sourcing, reselling and supporting VMware vSphere™ 4 is a big win for Seneca Data as an Intel Premier-level partner," said Chuck Orcutt, Nexlink server product manager at Seneca Data. "We will be able to deliver complete virtualization solutions as a one-stop shop for customers.”

About VMworld 2009
Now in its sixth year, VMworld 2009, with more than 10,000 attendees and over 200 sponsors and exhibitors, is the must-attend event for IT professionals looking for actionable ideas, innovative products and best practices for virtualizing their business – from the desktop to the datacenter to the cloud.  Under the theme "Hello Freedom,” VMware and virtualization are changing the world of IT – no longer is IT tethered to complicated, expensive and inefficient systems. Say goodbye to the limitations of the traditional ways of computing and hello to the power to innovate. See how virtualization frees the lives of those that embrace it. Super Sessions are being given by Platinum Sponsors Cisco, Dell, EMC, HP, IBM, Intel, NetApp, Symantec, Wyse and VMware.  VMworld features more than 300 breakout sessions and hands-on labs, led by VMware and industry professionals, and is being held August 31- September 3 at Moscone Center in San Francisco.

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.

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VMware 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, customer adoption and deployment of virtualization products and architecture, including our products, levels of demand for our products, and expectations for the release and delivery of our 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 the report on Form 10-Q for the quarter ended June 30, 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.