VMware Infrastructure 3 Gains Rapid Customer Adoption as Industry’s Most Robust Virtualization Software Suite

Customers Experience the Benefits of Infrastructure Virtualization That Reach Beyond Server Consolidation

LOS ANGELES, November 7, 2006 — VMware, Inc., the global leader in software for industry-standard virtualized desktops and servers, today at VMworld 2006 announced that VMware Infrastructure 3 is gaining rapid adoption among its customers, with more than one-third of customers having upgraded to VMware Infrastructure 3 in the three months after it started shipping in June 2006. Using the integrated suite of products that comprise VMware Infrastructure 3, these customers have achieved benefits that extend beyond server consolidation with increased systems availability across the board, first-rate disaster recovery, enterprise-class data center management and additional cost savings achieved through reduced power consumption.

A recent survey completed by more than 1,800 VMware customers indicates that VMware Infrastructure products continue to be deployed pervasively as integral components of IT infrastructure strategies:

  • 43 percent are currently standardizing on VMware Infrastructure
  • 61 percent expect to virtualize more than half of their x86 servers within three years
  • 32 percent have already upgraded to VMware Infrastructure 3, and another 45 percent stated that they plan to upgrade by June 2007

“VMware customers who have used VMware products to consolidate server farms are now seeing how their businesses can experience more comprehensive benefits from virtualization,” said Raghu Raghuram, vice president of product marketing at VMware. “VMware Infrastructure 3 offers customers a complete playbook at their disposal designed to ensure business-critical services are protected and run on demand without disruption. It extends the relevance of virtualization beyond the data center, touching all business units. Building on VMware’s award-winning products, VMware Infrastructure 3 is changing how we think about and manage both hardware and software.”

VMware Infrastructure 3 builds upon VMware ESX Server, offering groundbreaking products that deliver new capabilities for entire farms of servers and storage, independent of application and operating system workloads and of the underlying hardware.

Among its new features, VMware infrastructure 3 offers VMware Distributed Resource Scheduler, which uses VMotion technology to dynamically aggregate hardware resources and optimally reallocate them, allowing virtual machines to be redistributed when they experience increased loads; VMware High Availability, which is designed to cost-effectively eliminate single points of hardware failure by automatically relocating and restarting virtual machines, providing high availability without the cost and complexity of failover solutions tied to either operating systems or specific applications; and VMware Consolidated Backup, which simplifies data protection by offloading backup to a centralized server, allowing customers to perform backup at any time.

“We are extending virtualization across our enterprise with VMware Infrastructure 3 because it has the increased scalability and performance for our larger applications, making our data center more responsive and self-optimizing,” said Bruce McMillan, manager of emerging technologies at Solvay Pharmaceuticals. “With VMware ESX Server 3 we can virtualize messaging servers and database applications with the ability to assign up to four virtual processors and 16 GB of memory to virtual machines. The new offering’s VMware Distributed Resource Scheduler, VMware High Availability and VMware Consolidated Backup deliver quantifiable results by simplifying server management, optimizing workloads and increasing availability of all virtualized applications.”

“I'm especially excited about the automatic failover features in VMware Infrastructure 3,” said Philip Cramer, windows team supervisor for Johnson Controls Inc. “Rather than having to redefine virtual machines if hardware fails, the system will anticipate any sort of resource instability, and move machines before the failure happens.”

Powerful Savings

In addition to realizing the business-critical benefits offered by the new features in VMware Infrastructure 3, VMware Infrastructure products are expected to contribute to substantial power savings at a time when energy prices continue to rise. VMware estimates that for every workload moved from a physical environment to a virtual one, customers can save about $560 in electricity per year—$250 in power, $310 in cooling—with each virtualized workload, representing 7,000 kilowatt hours of electricity saved. With more than 1 million workloads currently running in VMware virtual machines, estimated annual energy savings across VMware’s customer base add up to more than $560 million, or 7 billion kilowatt hours—about what New England residents spend each year on heating, ventilation and cooling power.

About VMware, Inc.

VMware, an EMC company (NYSE: EMC), is the global leader in virtual infrastructure software for industry-standard systems. The world's largest companies use VMware solutions to simplify their IT, fully leverage their existing computing investments and respond faster to changing business demands. VMware is based in Palo Alto, California. For more information, visit www.vmware.com or call 650-475-5000.

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This release contains “forward-looking statements” as defined under the Federal Securities Laws. 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) adverse changes in general economic or market conditions; (ii) delays or reductions in information technology spending; (iii) risks associated with acquisitions and investments, including the challenges and costs of integration, restructuring and achieving anticipated synergies; (iv) competitive factors, including but not limited to pricing pressures and new product introductions; (v) the relative and varying rates of product price and component cost declines and the volume and mixture of product and services revenues; (vi) component and product quality and availability; (vii) the transition to new products, the uncertainty of customer acceptance of new product offerings and rapid technological and market change; (viii) insufficient, excess or obsolete inventory; (ix) war or acts of terrorism; (x) the ability to attract and retain highly qualified employees; (xi) fluctuating currency exchange rates; and (xii) other one-time events and other important factors disclosed previously and from time to time in EMC’s filings with the U.S. Securities and Exchange Commission. EMC and VMware disclaim any obligation to update any such forward-looking statements after the date of this release.