VMware Lowers Operational Cost with Most Advanced Virtualization and Management Solutions

Independent Research Confirms VMware Customers Reduce Annual Management Costs by up to $1,000 per Server and Deploy Applications Faster

PALO ALTO, Calif., December 21, 2009— VMware, Inc. (NYSE: VMW), the global leader in virtualization solutions from the desktop through the datacenter and to the cloud, today announced independent research convincingly proves that VMware customers are drastically lowering operational expenditures (OpEx) with VMware solutions. VMware vSphere™ and the VMware vCenter™ Product Family lower the day-to-day costs of running IT, enabling IT resources and budgets to be shifted from tactical maintenance to strategic projects that can better create value for the business. “Reducing OpEx with Virtualization and Virtual Systems Management,” a whitepaper prepared by ENTERPRISE MANAGEMENT ASSOCIATES® (EMA™) for VMware, quantifies how customers have been able to reduce service failures, improve staff efficiency, speed up service deployment and reduce facility operation costs using VMware solutions.

The whitepaper, which includes EMA research and VMware customer case studies, documents how VMware virtualization enables:

  • Reduction of Service Failures – fixing problems up to 24 times faster, eliminating up to 43 hours of downtime a year, improving uptime to as high as 99.999 percent, to reduce the impact, frequency, duration, and cost of service issues, troubleshooting, out-of-hours support, and productivity loss
  • Improved Staff Efficiency – increasing administrator efficiency by an average of 10 percent, and as much as 270 percent, by allowing a single administrator to manage up to 1,800 servers, reducing annual management costs by up to $1,000 per server
  • Faster Service Deployment – allowing new systems to be deployed up to 240 times faster, and new applications up to 96 times faster, saving almost $2,000 in wage costs alone per deployment, while reducing downtime, and improving time-to-market for new products and services
  • Reduced Facility Operation Costs – allowing approximately half of all organizations studied to reduce both floor space/rent costs, and power consumption, the latter by an average of 16 percent, or around $700,000 per year for a 5 megawatt datacenter

“VMware’s ability to help customers dramatically reduce CapEx in the datacenter is well understood, and has been leveraged by hundreds of thousands of customers,” said Bogomil Balkansky, vice president, product marketing, Server Business Unit, VMware. “It is OpEx cost reductions that have been the unsung heroes of virtualization. This new research finds that customers are increasingly adopting VMware precisely for OpEx cost reductions derived from superior high availability, disaster recovery and operations management.”

“OpEx savings remains one of the most strategic opportunities for customers because it offers the potential to rebalance the cost structure of IT, shifting budgets from ongoing maintenance to innovation and business value,” said Andi Mann, vice president, research, Enterprise Management Associates, Inc.
“VMware vSphere™ enables customers to drive OpEx down through its sophisticated platform, enabling high performance and increased virtual machine densities and advanced features enabling availability and enhanced management. In developing a model for identifying, capturing and measuring OpEx improvements, we hope to provide customers with a valuable tool in achieving this critical business improvement.”

The EMA whitepaper also highlights how VMware virtualization and management enable Tucson Electric Power, Attachmate and George Washington University to reduce OpEx cost and do more with existing staff.

“We are growing at a net of 40 servers per year over the last five years and 100 percent storage growth year over year, yet we have been able to accommodate that growth, to triple our workload, without adding a single resource in five years,” said Chris Rima, supervisor of IT infrastructure systems, UniSource Energy Corporation and its subsidiary Tucson Electric Power (TEP). “The main hours you save from virtualization are on operational and disaster recovery tasks.”

“We’ve been able to do more with the same staff, and it has really increased productivity,” said Raoul Gabiam, IT operations and engineering manager, George Washington University. EMA estimates that virtualization with VMware has reduced or avoided operational costs at around $400,000 each year for George Washington University. “But it is not about us. It is about the customers, the university, their needs – we have been able to meet their needs, add programs before school starts, even in a window that might be unrealistic on physical hosts.”

The whitepaper is available as a free download at http://www.vmware.com/virtualization/cost-savings/operating-cost-savings.html

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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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, expectations of benefits that customers may achieve from the adoption of virtualization and management 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) our customers' ability to transition to and implement new technologies, and (ii) the uncertainty of customer acceptance of emerging technology initiatives; and  (iii) rapid technological and market changes in virtualization software.  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.