VMware Announces More than 21,000 New Customers in the First Half of 2009 and Strong Customer Traction with VMware vSphere™

VMware vSphere™ 4 Reaches an Important Milestone with More than 350,000 Downloads in First 12 Weeks of General Availability

PALO ALTO, Calif. – August 26, 2009–VMware, Inc. (NYSE: VMW), the global leader in virtualization solutions from the desktop through the datacenter and to the cloud, announced strong customer traction for VMware’s industry-leading virtualization platform.  In the first half of 2009, more than 21,000 new customers have purchased VMware solutions—equivalent to an average of 121 new customers per day.  In addition, VMware vSphere™ 4 has reached more than 350,000 downloads in the first 12 weeks of general availability— at an average rate of 140 downloads per hour. According to a recent poll on www.vmware.com, approximately 75 percent of customers that responded are upgrading or plan to upgrade to VMware vSphere™ 4 within the next six months. 

VMware vSphere™ 4 delivers customers the following critical benefits: offers unmatched cost savings; delivers the efficiency and performance required to run business critical applications; provides uncompromised control over application service levels, and preserves customer choice of hardware, OS, application architecture and on-premise vs. off-premise application hosting.

Unmatched Cost Savings Even Compared to So-Called “Free” Offerings

VMware vSphere™ 4 helps customers reduce capital expenses by up to 60 percent and operational expenses by an average of 33 percent. By allowing companies to make more efficient use of today’s powerful servers, VMware vSphere™ 4 also enables unmatched cost savings even when compared to so-called “free” offerings.

“As a result of upgrading to VMware vSphere 4, the museum has saved $200,000 AUD on hardware procurement costs since migrating from VMware Infrastructure 3. We’ve also reduced our power requirements by 33 percent and have achieved a server consolidation ratio of 12:1,” said Dan Collins, manager of information technology at Powerhouse Museum. “VMware vSphere 4 has also dramatically improved our infrastructure responsiveness and flexibility, and most importantly enhanced our recoverability of systems and information.”

Boosted Performance and Improved Service Levels for Business Critical Applications

With VMware vSphere 4, customers are extending the benefits of virtualization to business critical applications such e-mail, database, ERP, CRM systems and others.  Customers are reporting significant increases in application performance, reliability and scalability after deploying VMware vSphere™ 4.

“After seeing the benefits of virtualizing our infrastructure applications, we wanted to move our SQL database into the virtualized environment,” said Roy K. Turner, server systems engineer, Frederick Memorial Hospital.  “The improved performance and enhanced reliability in VMware vSphere 4 have been invaluable in exceeding our SLAs and preventing revenue loss from our mission-critical applications.  VMware Fault Tolerance further improves uptime for our most critical applications by providing zero-downtime recovery from hardware failures, while VMware Data Recovery helps us easily back up and protect our critical data.”

"With VMware, we've found that we can roll out new services much faster, as well as increase the reliability of existing services, while cutting the costs of doing both,” said Bob Plankers, technical architect, University of Wisconsin – Madison. “With VMware vSphere 4, our infrastructure management becomes much simpler through the use of new VMware vNetwork Distributed Switch and Host Profiles. VMware vSphere 4 also increased the amount of I/O, memory, and CPU available, meaning we can virtualize nearly every workload we have."

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 150,000 customers and more than 22,000 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).  For more information, visit 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.

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, 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.