VMware vCloud IaaS Sales Guide

VMware vCloud IaaS extends the virtualization strategies for over 400,000 VMware virtualization customers by bridging on-premise IT solutions with those available from providers of vCloud services, improving agility and lowering operational cost. Customers can use trusted partners to reduce the cost and perceived risk in introducing Cloud services.

VMware vCloud® IaaS Sales Guide

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How do we compare with the competition? �Click here to refer to “Positioning to Win”

The customer wants

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Proven platform 5 S E F F

Choice 4 S F F F ✔

Expertise 5 S F F F ✔

Relevant references 4 S L F F

Geographic reach 5 S F F F ✔

Cost 3 N E E E

Score: 1-2 = Weakness (W), 3 = Neutral (N) & 4-5 = Strength (S).

Competitive key: L = Leads, E = Equals, F = Follows.

When all competitors follow, you deliver unique value, this is a Unique Selling Point (USP).

Why is it worth my time?IaaS is a hot topic; it’s part of a world-wide Cloud adoption phenomenon that is happening now, a global activity the analyst community reports being worth over $50Bn a year. VMware customers want to know how IaaS will enable their business, improve IT team productivity, help retire legacy systems or improve the Return on Investment from existing infrastructure. VMware virtualization customers have the building blocks to adopt a hybrid deployment of on-premise and Cloud computing and VMware partners are uniquely positioned to make them successful.

Why is it worth my customer’s time? �Click here to refer to “Opportunity Drivers”

Cloud services are widely understood and proven, and many businesses are now evaluating Infrastructure as a Service. In today’s economy companies need to balance business agility with reduced spending power. Customers want to understand how IaaS can complement their existing virtualization strategies, by delivering cost savings, productivity gains and operational control. VMware virtualization is a key enabler for businesses that want to exploit the business benefits of a Cloud strategy:

n Using vCloud IaaS, customers can rapidly deploy compute capacity and related services, billed per use on short or long-term contracts

n VMware virtualization customers have the foundations for a hybrid Cloud deployment

n Our world-wide partner network delivers the technology, application and vertical market expertise they need

n Customers retain control across on-premise and Service Provider Clouds

The opportunity in briefApplication areasn IaaS for Public, Private and Hybrid deploymentsn vCloud Service Provider partners offer options for, resilience, DR

and back-upn Solution Partners offer a broad portfolio of related technical,

application and vertical market services

Target Markets and Customers400,000 VMware enabled customers, within which are medium businesses and autonomous departments of large Enterprises

Sizing guidance Companies with more than 150 employees, those with less than 100 employees are less likely to realize a compelling ROI for IaaS

ServicesVMware Solution and Service Provider partners offer a broad range of related vertical market and application services.

BusinessvCloud IaaS is a proven way to make IT more agile and productive. Many service providers have a free or specially-priced evaluation service. VMware vCloud partners provide SLAs, support plans and vertical market coverage, which satisfy certification and compliance mandates.

FinancialvCloud IaaS is a cost effective way to rapidly deploy compute capacity. Partners offer a variety of consumption models and payment plans; from ‘by the minute’ to fixed-term contracts and options for committed or on-demand capacity. IaaS is typically an operational expense (OpEx), freeing up capital for investment in other areas.

OperationalVMware vCloud Director gives customers control over workload provisioning, administration, reporting and management. VMware vShield ensures that workloads move securely between on-premise and Cloud infrastructure. Remember, as a provider of vCloud services, you may also offer high availability, resilience and disaster recovery options.

TechnicalvCloud IaaS is a proven and recognized IT enabler. VMware is recognized by the analyst community as the market leader in virtualization for IaaS. Customers can be assured of total portability between on-premise and certified vCloud Service Provider Clouds.

Solution / Offer summary �Click here to refer to “Solution Overview”

Value of typical sale

Example top line deal values

$240-$300 per VM per month (Total cost of supply, includes Compute, Storage, Networking, VMs and Connections)

Time to close

Typical 3 to 6 month sales cycle. Time to revenue typically no more than 90 days

Add-on opportunity

Capacity upgrades: Compute, Storage, Networking and VMs.Professional Services

Example cross-sell/up-sell

For Solution Vendors: professional services, managed services, extended solution selling opportunities, e.g. disaster recovery, load balancing, application development and testFor Service Providers: network connectivity, hosted IT services, SaaS, Hosted PBX/Contact Center, MPLS

ManagementVMware vSphere

Private Clouds Public Clouds

HybridCloud

AppLoads

Bridge

ManagementVMware vSphere

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How to winOur Unique Selling Points (USPs) n Choicen Expertise

n Geographic reach

Our Strengthn Proven platform

Winning indicatorsWe win when wen Illustrate the simplicity of VMware to VMware hybrid Cloud

mobility as a simple extension to on-premise infrastructuren Engage around the ‘Cloud’ as a business enabler but focus on IaaS n Lead with a consultative approach and ask the customer to present

their vision for IaaSn Sell at Director-level or above – use your contacts to get the

introductionn Communicate the benefits of the VMware partner eco-systemn Sell to our existing customers – we have 350,000 existing

virtualization customersn Align the customer’s IT needs with how VMware can be used in

hybrid deployments of on-premise and Cloud infrastructure

We lose when wen Arrive late to an RFx and are just making the numbersn Don’t extend our relationship with the decision-makers for a

company-wide IaaS initiativen Fail to uncover the business drivers that will justify investmentn Fail to uncover existing customer relationships with other IaaS

vendors early in the salen Don’t address the competitive situation – explaining our key

advantages of vSphere compatibility, choice and expertisen Overlook relevant references – Contact the VMware Cloud team

via [email protected] Position on cost rather than value, or let the customer think IaaS is

a commodity purchase

Can we align their needs with our key attributes?Key attributes

✔ Proven and recognized business enabler

✔ World-wide availability of compatible Cloud services

✔ Broad and deep skills base accessible through partner eco-system

✔ Proven and certified IaaS providers and data centers

✔ 400,000 invested customers

✔ Simple consistent way to define, dimension and fulfill service needs

Establishing a vision for action based on needs �Click here to refer to the “Directed Discovery Questions”

n Enabling our business to be responsive and effectiven Managing the cost of IT as a percentage of turnovern Understanding the cost of doing business

Can I create the financial argument? �Click here to refer to the “Financial Illustration Overview”

�Click here to access the “Financial Illustration Spreadsheet”

Work with your customer to build the financial argument that is specific to their situation

Be sure to deal with the objections �Click here to refer to “Dealing with Objections”

Many objections can be forseen and therefore your answers can be prepared in advance

Demonstrating success �Click here to refer to the “Success Stories”

An Electronic Point of Sale solutions company was challenged with IT resource issues. Its staff was distracted from revenue generating work because of the need to support infrastructure split between the office and a managed hosting provider. Initially the company was reluctant to consider IaaS, but they trusted a VMware partner to prove the case by running a pilot. By consolidating the infrastructure in the partner’s IaaS data center, the company saved $75K/year over the previous arrangement. The customer has full control over the IaaS instance using a self-care portal, and their recovered IT resources have been used to accelerate delivery of other customer facing projects.

An Architectural Advisory Services company was transforming its paper-based content to an on-line format in order to ensure its subscription services remained competitive. The company was concerned about the upstream financial impact of inaccurate sizing and the support overheads for its new IT infrastructure. Using a pilot, a VMware partner was able to accurately size the capacity needed for the new on-line service. This activity proved a financial case for IaaS with a nine month ROI, compared with eighteen months for an in-house alternative. The partner also demonstrated how immediate access to further capacity provided a safe way to meet unpredictable growth.

Sales best practiceDo I have an opportunity?

�Click here to go to the “Targeting Chart” page

How do I manage the sales cycle?

�Click here to open the “Sales Map”

How do I plan my sales campaign?

�Click here to go to the “Deal Planner” page

Who do I talk to and what do they need �Click here to refer to the “Critical Business Issues”

Business n Line of Business Head n Business Owner e.g. Managing Director n CTO n Head of Application Development n IT Manager or Director

Operational n Operations Director n IT Manager or Director n CTO

Financial n Finance Director or CFO n Line of Business Headn Business Owner e.g. Managing Directorn CTO

Technicaln Head of Application

Development n CTOn IT Manager or Director


VMware vCloud IaaS



Sales Map


VMware vCloud IaaS

Planning your sale with VMware vCloud IaaSThe sales guide is structured to guide you through the key facts about the VMware vCloud IaaS proposition that drive sales success. This sales map serves as a useful ‘aide memoir’ when planning your sale – here’s a reminder of how to apply the contents of this sales guide to your opportunity.

Get buy-inUse the Solution Description and Directed Discovery questions, emphasize how we change the game for Cloud adoption through the use of VMware virtualization. Align these attributes to the customer’s drivers for success.

What’s going to make the customer buy?Using the Solution Description, think about the questions you need to ask to understand what will drive decision – what are the issues that will drive a decision? Remember you may need to create the link for the customer.

Identify and qualify new opportunities• Contact existing customers

for up-sell opportunities • Execute a co-branded

campaign (e.g. VMware ‘Real World Advantage’ mid-market campaign) and qualify leads for follow up

• Stimulate customer interest in vCloud IaaS with a meeting or webcast event (e.g. using the VMware “event in a box” kit)

Who or what else is in the game?Are you competing with another IaaS vendor? Does the customer already have a Cloud partner?

Manage the commercialsEngage with the purchasing and legal decision-makers early in the game, if you can offer a POC or trial, ensure the POC contains exit criteria that convert into a contracted sale.

Playing to your strengthsIdentify a clear opportunity for the Key Attributes, these are:• Proven and recognized business enabler• World-wide availability of compatible

Cloud services• Broad and deep skills base accessible

through partner eco-system• Proven and certified IaaS providers and

data centers• 400,000 invested customers• Simple consistent way to define,

dimension and fulfill service needsUse the TARGETING CHART to prepare your first call

How do you change the game?Compete on our agenda, use the CBI’s and the Positioning to Win section as examples of the customer’s success criteria. Have they accepted the unique value of VMware vCloud services?

Manage the financial debateHelp the customer realize the cost savings through a well-managed proof of concept

Preparing for closeUse ‘Handling Objections’ to deal with those awkward questions. Summarize their needs and align our combined capabilities and financial impacts

Closing the dealUse the DEAL PLANNER to understand when you can press for the close. Obtain verbal agreement that VMware vCloud answers the need and provides a compelling business case. Commit the buying team to receive your proposal and deliver the order

DISCOVER THE

DRIVERS

UNCOVER AGENDAS

vCloud IaaS

VALUE

SELLING THE vCloud IaaS

ADVANTAGE

COMMERCIALS

MAKING THE CASE

UNIFY DECISION MAKERS

CLOSE

ESTABLISH FIT

IDENTIFY THE OPPORTUNITY

400,0O0 VMware enabled customers, within which are:

n Medium businesses and ‘small within large’ departmental needs in large Enterprises

Sizing guidance: IaaS opportunities with 150+ employees, opportunities with less than 100 employees are less likely to realize a compelling ROI for IaaS

A reminder of what my business prospects care about.

�Click here to refer to the “Critical Business Issues”

Business n The ability to sustain peaks in

tradingn Time to market for new

initiativesn Customer experience/

satisfactionn The ability to win share or

competitive advantage

Operational n Speed of execution for new

projectsn The cost of supportn Energy efficiencyn Service, infrastructure and

application availability

Financial n Cost reductionn Cost of IT as a percentage of

the businessn Optimization of CapEx and

OpExn Idle assets across the

business

Technicaln Data securityn Supporting mobility in the

businessn Migration strategyn Knowing the technology is

‘ready’ or fit for purpose


The more questions answered with a YES the better the prospect. Yes No

1. Do I know a key decision maker or influencer?

2. Do they already use VMware virtualization?

3. Are we the preferred IT services partner today? (If there is an incumbent we may not be given the opportunity to supply).

4. Does the customer already consume Cloud-based or hosted services?

5. Do we supply managed services to this customer today?

6. Has the company made a business-wide decision to use Cloud?

7. Does the customer have seasonal or ‘bursty’ fluctuations in their business?

8.Do they have multiple instances of ad-hoc Cloud services? (This is often an indicator that a company is ready for a strategic Cloud initiative).

9.If they have to comply with data management or governance mandates, will we (or the preferred) Service Provider meet the need?

10.Will they be subject to specific geographic rules governing the location of data, will we (or the preferred) Service Provider meet the need?

11. Have they acquired or merged with another business – will they need to consolidate?

12. If they will buy using a RFx process (government etc) are we early enough to influence this?

Proactive use of the Targeting Chart and Deal Planner in this Sales Guide is the best way to secure help from the VMware sales team.

Target Markets – finding the right prospects


VMware vCloud IaaS

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Deal Planner (part 1) Check the box that most represents your understanding

Parameters

Low0 1 2 3 4

Parameters High

What’s our plan to improve our score? Action owner? Target date

Situation Section Score:

What's the Opportunity Assessment Score from the Targeting Chart? Minimum score above 50%

75% or more

Have we identified a compelling event driving the need for Cloud? Not identifiedTarget date for achieving

cost savings. New application go live date

Do they consume value-added or hosting services from you today? No Yes

What is your gut feeling? Negative Strong

Will we have to participate in a Rfx or Tender process with other vendors? RFx or Tender No/existing customer

Competition Section Score: Have we overcome competition for budget from other IT initiatives? No Yes

Does the prospect value the combination of vCloud IaaS and related services when compared with any other contenders for the budget?

NovCloud IaaS

vCloud IaaS plus adjacent products and services

If Amazon Web Services or other 'credit card' providers are being considered, is the customer actually looking for a strategic Cloud initiative?

Preference is for AWS or Credit Card

NeutralNeed IaaS as a strategic company wide initiative

Are we in a RFx process where we are making up the numbers? YesLeading and influencing

the process

Basis of the decision Section Score: Have we proven our capabilities with a proof of concept or trial and can we meet their key decision criteria (e.g. ability to deliver, company profile, business model, references, etc.)

No Yes

Have we understood their decision-making process? No Yes

Have we successfully used references and/or Exec meetings to demonstrate our collective strengths?

NoReference call planned

Reference call and/or Exec meeting completed

Have we created a close plan that has the support of our sponsor? No Yes

Timescale Section Score: Can we identify an immediate need that will drive a decsion now? No Yes

Have we conducted a POC with defined success criteria to accelerate their willingess to invest? NoPlanned Completed

or not required

Have we engaged purchasing and legal early in the game? No Yes

Have we proposed a project plan to which both the partner(s) and the customer agree? NoWork in progress

Agreed


VMware vCloud IaaS

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Check the box that most represents your understanding

Parameters

Low0 1 2 3 4

Parameters High

What’s our plan to improve our score?

Action owner? Target date

Solution Section Score: Are there any uncontrolled risks associated with the delivery, e.g. applications, timeline, Professional Service resources or SLA requirements?

Yes No

Have we enaged with VMware on a vision pitch ? No Yes or Not Applicable

Is the customer going to ask us to implement all or some of its Cloud related Professional Services? NoneSome

All

Will their adoption of vCloud IaaS add value to an existing contract? No Yes

Can we identify any contractual terms that will increase our chances of winning against a competitor? No Yes or Not Applicable

Money: should we bid – is it worth winning? Section Score:

Is the deal size worth chasing? Too lowOK with pull thru

Worth chasing

Can the customer get the budget to spend in our current sale year? Next sales year Current sales year

Can we evidence the financial benefits from IaaS using Test Drive and/or a POC? No Yes

Is there pull-through for other products and services? NoYes

Yes and part of this sale

Will this maximise quota or incentive plan objectives? NoPartly

Yes

Authority and relationships Section Score: Define our relationship with the Decision Maker or Team Weak Strong

Is there clarity over roles and responsibilities with any other Solution or Service Provider partners? NoOther partner leading

We are actively leading

Do we have a coach and are they effectively engaged to work with us? No Yes

Are we engaged with the key influencers - like the business users? No Yes

Need Section Score:

Is there a business case supported by the prospect's decision makers?Still being

disccovered

Payback is >1 yearPayback is < 1 year

Can we link tangible business issues to our proposed solution? (e.g. IT resource recovery, cost reduction, data center consolidation)

None identifiedIdentified Identified and customer

understands the linkage and value

Does the client agree vCloud IaaS will enable the business to increase opportunity and/or reduce cost? No

Opportunity up or cost down Opportunity up and

cost down

Will their IT team recover resources – people or capital? NoPeople or capital

People and capital

Deal Planner (part 2)


VMware vCloud IaaS

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Related information for this solution

Understanding the Solution

�Click here Solution Overview

�Click here Critical Business Issues

�Click here Dealing with Objections

�Click here Directed Discovery Questions

�Click here Financial illustration Overview

�Click here Financial illustration spreadsheet

Understanding the Market

�Click here Opportunity Drivers

Competitive and Other

�Click here Positioning to Win

�Click here Sales Success Stories

�Click here Security Advantage White Paper

Social media

Contact the VMware Cloud team via [email protected]

This document is confidential. All rights reserved. Copyright © RVWL Ltd 2013. No part of this may be reproduced, disclosed or used except as authorised by contract or other written permission. The copyright and the foregoing restrictions on reproduction and use extend to all media in which the information may be embodied. The information contained herein is confidential and the property of VMware. No liability is accepted for errors or omissions. The VMware logo is a trademark of VMware. The Sales Enablement Program logo is a trademark of RVWL Ltd. Other product names mentioned herein may be trademarks and/or registered trademarks of their respective companies. V1-1

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Confidential - Not for external distribution VMware vCloud IaaS Directed Discovery

Directed Discovery Questions

Business Issue Opening question The situation today Creating the vision Quantifying the vision Enabling our business to be responsive and effective

One of the issues for the IT organization is responding to the needs of the business quickly enough. Often the lead-time and cost of implementing new infrastructure is an inhibitor to business agility What challenges have you seen in this area?

IT Leaders also tell us that much of their staff-time is consumed with just ‘keeping the lights on’ with existing IT. Industry figures indicate 80% of IT resource is dedicated to operational maintenance and only 20% to staffing new initiatives. As a result they often don’t have time to explore how they can extend their IT strategy by using Cloud services to reduce operational cost and improve productivity How does the need to maintain infrastructure impact your team’s ability to deliver on new projects? Have you considered Cloud services as a way to do more with your current resources?

We can help you get the most from cloud computing and help you build the business case for investment. You’d be able to quantify the savings you could make from relieving staff from costly hardware maintenance tasks and assess the value of deploying them on high-value business enabling work. VMware offers an evaluation Cloud that can be accessed by credit card. This would allow you to validate vCloud IaaS and help illustrate the case for investment If you removed the operational cost from your next big IT initiative, how much would that save you over two years?

A retail software and IT services business faced a challenge with IT staff being distracted from working on new projects because of the need to support their own infrastructure, which was split between their own premises and a managed hosting provider. Initially the company was reluctant to consider the Cloud but they trusted a VMware partner to help prove how IaaS could help them by running a pilot. By consolidating their infrastructure in a Service Provider’s IaaS data center, they saved $75k per year over the previous arrangement. They have full control over their IaaS instance via a dedicated customer portal, and they have been able to free valuable resource to customer projects. If you could demonstrate similar benefits and savings, how would this improve your ability to meet the needs or your business and improve your reputation in the business?



Business Issue Opening question The situation today Creating the vision Quantifying the vision Managing the cost of IT as a Percentage of turnover

Most IT leaders agree that meeting the business’s IT needs is increasingly expensive and difficult to deliver How many IT initiatives are you being asked to fund and deliver this year?

More and more business is being transacted using the web or other channels that are highly reliant on applications software. This requires investment in capacity reserves and consumes headcount to meet peek demand. How do you plan for future capacity needs and what has been the impact of unforeseen demand?

The primary benefit of vCloud IaaS is that it provides rapid access to compute, networking and storage capacity. Economies of scale from serving multiple customers means that there is a relatively low cost pool of on-demand capacity with which to meet unforeseen or seasonal demands If you could reduce your capital expenditure and optimize existing platform usage would this help you meet your financial targets?

A company that specializes in casting resource for films and TV faced a challenge with their service. It was increasingly expensive to maintain and was not providing a quality of service that was acceptable to some of their important customers such as TV networks. A VMware partner worked with them to specify a vCloud instance that was proven as a more cost effective solution than an in-house technology refresh. The company benefitted from a technical discovery process that best matched their business needs to a specific service offer. As a result the company has been able to retain its important customer base and has avoided a significant CapEx investment. If we could demonstrate how you could lower your operational costs and help you to avoid a large upfront investment for your next major re-fresh how would that help to accelerate your next major project?



Business Issue Opening question The situation today Creating the vision Quantifying the vision Understanding the cost of doing business

With existing IT budgets being stretched and businesses demanding more and more, it’s difficult to get an accurate picture of the true cost of a new initiative How do you predict and manage the true IT cost of a new business initiative?

The problem is that IT managers cannot always determine exactly what the business may need because of unpredicted growth – or conversely they may run the risk of over specifying and wasting money. How have you suffered with this issue in the past?

Cloud services are predominantly accounted for as an operational expense, tied directly to the amount of capacity that is being consumed vCloud IaaS provides predictable pricing for additional capacity. Typically vendors provide a Pay as You Go model for ‘burst’ or unexpected capacity needs. Accurate reporting allows you to allocate expenses to specific projects and is flexible so that you can accurately manage capacity as the business need fluctuates. How might this level of control help you to manage budgets and avoid over-spend?

A architecture services company faced a challenge in sizing the infrastructure required to support a key service to their customer base. They were transforming a paper-based system but they needed to maintain an acceptable cost of subscription to the service. They were unable to comfortably predict the cost of building the infrastructure and were concerned about the upstream financial impact of getting this wrong. The choices they considered were building an in-house platform or using IaaS. Using a pilot the VMware partner was able to illustrate the capacity needed and provide a proof of concept for their new application. The customer was able to identify that the payback for IaaS was around 9 months, compared with 18months for the in-house alternative. Furthermore the immediate scalability of the solution gave them peace of mind that they could meet growth in demand What would a nine-month acceleration in ROI mean to you – what other initiatives could you afford to run with the saving?

Confidential - Not for external distribution VMware vCloud IaaS Dealing with objections

Dealing with objections Objection My applications are not suitable for virtualization and/or Cloud services Real concern We are going to lose control – we’re not handing over our crown jewels to a service provider Answer and explanation VMware’s vision is for cloud computing “you” control. Other models predict the end for in-house IT and often by-pass IT teams to reach users with demands only cloud services can cater for. VMware vCloud IaaS puts you in the driver’s seat, controlling applications and workloads that reside both on and off premise. And with vCloud IaaS you can move workloads seamlessly in and out of clouds without the need to re-platform or re-train.

Objection I’m nervous about security Real concern This won’t be secure and/or available, I’ve read the press stories concerning the security breaches at Amazon and Sony, they painted a poor picture Answer and explanation There have been security incidents with public IaaS; some vendors take the view that ‘one-size-fits-all’ and that good-enough security and service levels will suit everybody’s needs. These incidents clearly demonstrate that it is not the case, you should be able to choose the service and security levels that are right for you. There are customers that only want the lowest cost and are prepared to settle for a poorly featured service. VMware vCloud IaaS delivers choice, so low price services and fully featured enterprise-class services are available. VMware Service Provider Partner core values are service excellence and security, that’s how they differentiate between themselves and commodity IaaS vendors.

Objection We’re not ready to move the Cloud Real concern I’m not prepared to sponsor this with my manager or team because it means loss of control Answer and explanation With VMware you’re not ‘migrating’ to the Cloud, you simply benefit from the ability to extend your virtualization strategy and use the Cloud for some of your workloads. We call this concept a Hybrid Cloud deployment; it allows the business to make optimal use of their existing capacity with access to extra capacity as and when needed using tools that they are already familiar with. As a result IT resources can be recovered to use on other projects.

Confidential - Not for external distribution VMware vCloud IaaS Dealing with objections

Dealing with objections Objection I’ve just made a big investment in on-premise virtualization licenses Real concern I don’t want to buy the licenses again Answer and explanation The Hybrid Cloud concept is about making optimal use of what you already own. You benefit from IaaS when there is a requirement for extra capacity or it becomes more cost effective to de-commission on-premise servers. The business case for IaaS extends beyond the investment in virtualization licenses. vCloud IaaS includes, compute, storage, networking, connectivity and support, as well as the Cloud virtualization licenses. There are compelling TCO arguments for using IaaS whether you have invested in licenses from VMware or not. And remember, with VMware you can move workloads in and out of the cloud.

Objection I don’t want to be tied in to a long-term contract Real concern I’m nervous about committing without a proof of concept Answer and explanation With VMware vCloud IaaS, customers may consume services via long and short-term contracts depending on their specific needs. Capacity requirements change so with IaaS it’s business as usual to extend or retire Cloud capacity to meet fluctuations in business need. To help prove the flexibility of vCloud IaaS, VMware provides an evaluation service that allows you to trial vCloud IaaS for a small fee, paid for via a company credit card. This will demonstrate the simplicity and flexibility of VMware IaaS and help you illustrate the case for investment.

Objection You mentioned VMware, they are not a Cloud vendor Real concern We already know about VMware, they sell on-premise virtualization solutions Answer and explanation VMware is not a Cloud service provider; it is an enabler of compatible Cloud technologies that enable both on and off-premise services. VMware meets the needs of a worldwide customer base through an ecosystem of Cloud Service Providers that offer a standard, trusted set of technologies. Our Cloud Service Providers have core competencies in a broad range of vertical markets and applications, serving the specific needs of many different types of customers.

Confidential - Not for external distribution VMware vCloud IaaS Critical Business Issues

Who do I talk to and what are their concerns? What are the critical business issues (CBIs)? Who do they impact? Business • The ability to sustain peaks in trading • Time to market for new initiatives • Customer experience/satisfaction • The ability to win share or competitive advantage

• Line of Business Head • Business Owner e.g. Managing Director • CTO • Head of Application Development • IT Manager or Director

Financial • Cost reduction • Cost of IT as a percentage of the business • Optimization of CapEx and OpEx • Idle assets across the business

• Finance Director or CFO • Line of Business Head • Business Owner .e.g Managing Director • CTO

Operational • Speed of execution for new projects • The cost of support • Energy efficiency • Service, infrastructure and application availability

• Operations Director • IT Manager or Director • CTO

Technology • Data security • Supporting mobility in the business • Migration strategy • Knowing the technology is 'ready' or fit for purpose

• Head of Application Development • CTO • IT Manager or Director


Critical business issues The CBI How the CBI is measured How the CBI is addressed Business (Line of Business Head, Business Owner e.g. Managing Director, CTO, Head of Application Development, IT Manager or Director)

• The ability to sustain peaks in trading

• Time to market for new initiatives

• Customer experience/satisfaction

• The ability to win share or competitive advantage

• Service availability • Lost sales • Idle capacity that costs money • Time spent in procurement • Total elapsed time to go-live • Customer defections • Customer satisfaction surveys • Bad PR/Press coverage • System outage reports • The cost of customer acquisition • Third-party and industry reports • Revenue growth

• IaaS provides ‘elastic computing’ on demand with the ability to increase and retire capacity as needed, improving responsiveness and minimizing instances of idle infrastructure

• VMware vCloud partners are certified to a recognized and consistent standard

• VMware vCloud provides seamless compatibility between on-premise Cloud instances and public Clouds based on the VMware vCloud architecture

• vCloud service provider partners have built dependable and scalable ‘service provider quality’ infrastructure and offer a variety of service level agreements

• Service providers provide regular reporting for availability and consumption • Businesses have the ability to react to market opportunity quickly, existing

IaaS users can deploy in hours • New contracts can be serviced in days rather than months (Service Provider

dependent) Financial (Finance Director or CFO, Line of Business Head, Business Owner .e.g Managing Director, CTO)

• Cost reduction • Cost of IT as a percentage of

the business • Optimization of CapEx and

OpEx • Idle assets across the business

• Internal competition for limited capital funds • Capital invested in IT assets against which

depreciation is applied • Realization of the business case for each IT

initiative • The number of IT staff on the payroll • The number of maintenance contracts • The balance of CapEx to OpEx (expense reports) • Idle IT assets • Dashboards and usage statistics

• Customers can leverage their investment in existing VMware virtualization technology to optimize the use of existing IT infrastructure, bring up new capacity and retain control without having to re-train IT staff

• IaaS customers no longer need to commit to expensive support contracts or allocate IT staff to managing new hardware since the infrastructure is operated and maintained by the Service Provider

• The IaaS unit of cost is comprised of the compute, networking, storage, support and virtualization items; it can be treated as an operating expense, and vCloud certified partners offer a variety of ways to consume and pay

• Our pre-validated partner eco-system simplifies procurement and vendor management for VMware customers


Critical business issues cont. The CBI How the CBI is measured How the CBI is addressed Operational (Operations Director, IT Manager or Director, CTO)

• Speed of execution for new projects

• The cost of support • Energy efficiency • Service, infrastructure and

application availability • Control

• Time to complete an IT project • The number of maintenance contracts • Head count and pay-roll • Availability of business applications • Energy bills • The cost of compliance with green agendas • Time taken to add new capacity • Availability reports • IT systems management tools in use

• Existing VMware customers benefit from 100% compatibility and the freedom to move workloads between on-premise and Service Provider Clouds

• vCloud Connector enables a seamless experience for moving workloads from one Cloud instance to another via a simple 'right click' menu option

• IaaS provides ‘elastic computing’ on demand and many Service Providers provide ‘burst’ capacity to cater for demand peaks

• End-users need fewer people to deploy and sustain new services • IaaS support tasks are the responsibility of the Service Provider • Customers benefit from a holistic view of their entire infrastructure through

the vCloud management suite, enabling them to retain operational control • Virtualization reduces the number of physical machines, reducing financial

and support burdens and improving energy efficiency Technology (Head of Application Development, CTO, IT Manager or Director)

• Data security • Supporting mobility in the

business • Migration strategy • Knowing the technology is

'ready' or fit for purpose

• Evidence of security certifications • Project plans and budget reports for executing

technology migrations • Documented evidence of broad adoption of the

technology • Training impact for IT staff • Hiring cost • Number of specialist contractors on the payroll • Analyst reports and industry validation

• A key VMware feature is that 'migration' is not required. Customers simply extend their existing virtualization strategy so that workloads can be moved and managed across an extended Cloud architecture

• Analyst research indicates that 85% of all virtualized workloads are run on VMware

• VMware is recognized by analysts as the Cloud virtualization leader • VMware partners offer a range of SLAs and redundancy models so

customers can choose an availability model to match their needs

Confidential - Not for external distribution VMware vCloud IaaS Opportunity Drivers

vCloud IaaS – What am I selling? The vCloud Advantage Infrastructure as a Service (IaaS) is a cost effective and secure way to access hosted compute, storage and networking capacity. VMware’s vCloud Marketplace offers a range of partner capabilities that include public (multi-tenant) and hosted or managed private (dedicated) customer instances of IaaS. The key vCloud benefit for end-user customers is the seamless compatibility between private or on-premise ‘Clouds’ and Public or Hosted Clouds. This compatibility facilitates a simple extension of an existing VMware customer’s virtualization strategy by adding capacity-on-demand in one or more additional Clouds, across which workload portability can be achieved with a common and familiar suite of management tools. This inherent compatibility means customers need not embark on a ‘migration’ to the Cloud but simply extend their virtualization strategy in manageable stages, exploiting the speed and cost advantages of IaaS. Public, Private and Hybrid Cloud Customers have a choice in how they consume IaaS. There are three typical consumption models and a choice of network connectivity, depending on the customer’s chosen Service Provider and its capabilities:

• Public Cloud The customer has access to one or more virtual servers that may be resident on one or more hosts within a shared tenant public access platform. Storage is provided on a shared platform.

• Virtual Private Cloud* The customer has access to a unique, private access platform that is dedicated for their sole use. Storage is on a common or dedicated Storage Area Network (SAN)

• Hybrid Cloud deployments A key vCloud enabler means Public and Private instances can be combined in a Hybrid model, managed by a common suite of tools. Partners may also offer managed instances of Private clouds on the customer’s premises

Typically, service providers do not manage the customer’s workloads or applications – these are managed and maintained by the customer. *In some vertical markets industry regulation may dictate dedicated infrastructure, in which case there may be commercial impacts for storage and network access, requiring further qualification as to which Service Provider Partner is best suited to the customer’s situation. VMware vCloud services Contrary to initial perceptions about security, availability and compliance, vCloud services are more secure and available than many on-premise enterprise and mid-market deployments. For more information and customer examples refer to the “Security Advantage” white paper, this can be accessed at the end of this Sales Guide.


Self-provisioning and self-care Customers retain control via a self-care portal provided with VMware vCloud Director. It provides provisioning, reporting and management capabilities so new capacity can be accessed in seconds, allowing customers to swiftly respond to changes in their business requirements. Online Service Catalogs allow customers to create and deploy pre-defined virtual server configurations in a fraction of the time needed for traditional IT infrastructure. Furthermore customers can port workloads between on-premise and Service Provider Clouds with complete confidence because of the data-level security features of VMware® vCloud Networking and Security. Pilot or Trial Offerings Industry opinion has matured and IaaS is considered a mainstream and proven IT strategy. However many businesses want tangible proof that IaaS meets their needs, on the terms they dictate. To help customers understand the full potential of their investment in VMware virtualization, some vCloud service providers offer a free or specially-priced proof of concept (POC) or trial. Check for any such offerings your company provides and consider using that approach to get customers started with the vCloud service. VMware vCloud Marketplace For many smaller companies, IaaS will likely be a new venture. VMware wants to make Cloud adoption easy and painless, with zero business risk. The VMware vCloud Marketplace provides information about our certified partners and their vertical market, technical and application expertise. The global coverage of our vCloud certified Service Provider partners means they can offer local support and meet in-country mandates or regulatory requirements for data management. VMware partners also provide a range of consumption models and payment plans, offering ‘by the minute’ short-term capacity requirements through to long-term committed capacity agreements with custom service level agreements. No other vendor or community in the market can offer more accessible choice and freedom than the VMware vCloud Marketplace. Peace of mind Analysts agree that VMware leads the market in Cloud enablement; we are recognized as the market leading solution for virtualization. Our customer base of 350,000 businesses has proven the concept. Trial and proof of concept (POC)

services enable end users to make use of their existing and trusted IT partners to prove the case for investment and the find a proven fulfillment partner and increase their Return on Investment in VMware. Extending a proven virtualization strategy using IaaS capacity becomes a simple, safe and accessible initiative. Justifying the investment Customers may raise the issue of existing investment in VMware licenses as a reason not to invest in vCloud IaaS, or to negotiate discounts and refunds. Sales teams should remind customers that:

• VMware license cost is not the key driver for investment in Cloud services • vCloud IaaS has been proven to dramatically reduce the operational cost

associated with managing infrastructure and applications. Customers will benefit from substantial savings irrespective of any existing VMware licenses

• vCloud IaaS can be deployed in Hybrid Cloud deployments, which means customers can move workloads in AND out of public clouds. The key to a successful deployment is to calculate specific resource pool requirements and the optimum method of delivery for each application

• vCloud IaaS offers the fastest route to compute capacity. It provides flexibility to quickly access pools of resources on-demand, as business needs change

Key Attributes ✔ Proven and recognized business enabler ✔ World-wide ability to deliver compatible Cloud services ✔ Proven and certified IaaS providers ✔ 400,000 invested customers ✔ Simple consistent way to define, dimension and fulfill

service needs


Opportunity Drivers Expectations are changing Over the last few years Cloud services have become more prevalent:

• Software as a Service (SaaS) e.g. SalesForce.com has validated the Cloud model from a security perspective

• Hosting at an application level has become a mainstream strategy for many organizations

The concept of managed services for infrastructure is not new, but the premise that multiple companies share the same physical resources, as with Infrastructure as a Service (IaaS), is relatively new or unproven for many potential customers. Established consumption models, such as SaaS and Managed Services have created an opportunity to position IaaS as an enabler for initiatives such as:

• Business agility • Cost reduction • Realization of merger and acquisition strategies • Process and IT productivity improvement

The analyst community predicts high rates of growth over the next few years for Cloud-based services. A company-wide IaaS initiative is likely to be long-term and needs to be positioned as low risk. Business leaders will seek vendors that can uncover the business case, prove their ability to deploy and provide solid references. Continued growth in data consumption Continued dependency on IT increases data consumption and along with it, the need for greater capacity. The direct expense incurred on infrastructure to sustain these capacity demands can be crippling. For most companies, IT is an enabler and not their core business. At the board and senior management level, many are seeking ways to reduce investment in non-core areas. The business wants to deploy its staff on high-value core business initiatives, but the reality is that IT teams typically dedicate 80% of their time ‘keeping the lights on’. With the remaining 20% being devoted to

the applications that secure a company’s future, a balance that is frustrating both for IT teams and their internal customers.

Responsiveness and business agility Businesses compete for the attention of increasingly educated and demanding customers. As more and more business is conducted via the Internet, availability is a key concern that must be addressed. Planning capacity for transient campaigns can be tricky as demand can often outweigh capacity, frustrating customers and damaging brand value. IaaS provides a


scalable solution because Service Providers are better placed to cater for peak load by providing on-demand capacity, either from hosted Cloud or premise based infrastructure. Scarce skills and IT refresh programs IT refresh programs along with the inevitable churn of IT staff in a turbulent economy means companies may find it difficult to find the skills to sustain new IT-dependent initiatives. IaaS allows companies to divest the tasks of building and maintaining infrastructure and allows them to focus their efforts on ‘building the future’. Recovering IT resources to work at the application level, allows IT teams to engage more effectively with their business counterparts. Mergers and acquisitions As businesses consolidate through mergers and acquisitions, the return on investment (ROI) for such an event is often delayed while IT consolidation is completed. Infrastructure duplication and geographic separation delays or prevents the ROI from being obtained and it consumes cash resources that could be better used elsewhere in the newly combined business. With over 400,000 business customers using VMware virtualization, the building blocks for a Hybrid IaaS deployment are already in place. Any of these companies that are engaged in M&A activities can easily exploit vCloud IaaS to accelerate IT consolidation and the return on their business investment. Responding to new economic challenges Deploying new services, either internally or customer facing, is going to consume resources that are in limited or reduced supply: people, cash and time. IT staff are challenged to do more with less, making it a challenge to deliver on-time and on-budget. This makes them appear unresponsive to business leaders, who in turn may consider the new service too risky to deploy or that its costs be cut, often at the expense of important capability. Neither Business leaders nor IT teams want this to be the case. They will favor ways to deliver new business initiatives with available budgets, while retaining control of their computing workloads. vCloud IaaS reduces the impact of new initiatives. IaaS provides a predictable cost model, it is highly scalable and it can be accessed in a fraction of the time taken to deploy new physical servers and it complements the use of existing in-house capacity. Businesses can optimize usage or ‘manage the decline’ of their existing

capacity knowing capacity is easily obtained when required, making the business case for adding new capabilities and retiring legacy systems simpler to achieve. IaaS is typically an operational expense (OpEx) and financial commitment is governed by proven need. Paving the way to next generation applications IaaS provides an important foundation layer on which customers can develop applications that exploit trends such as mobility, remote working and customer facing applications like Electronic Point of Sale (EPOS). IaaS vendors are positioning to add Platform as a Service (PaaS) and SaaS capabilities to extend the value they deliver to customers that have decided on a strategic migration to the Cloud. IaaS is seen by many as the first critical step in preparing for the future of the Cloud-enabled business The VMware Service Provider Partner opportunity Partners within the VMware vCloud ecosystem of service providers have access to 400,000 businesses that have invested in VMware virtualization. These businesses have already made the decision to abstract from physical to virtual; they have proven the value of pooling physical resource and managing it as virtual resource. Virtualization is the first step to a Cloud strategy. The VMware community is a willing audience; some are already researching or have begun implementing, while others may still need convincing. We have an opportunity NOW to set the preference for VMware and together, exploit a tangible revenue opportunity in Cloud computing. Key Attributes ✔ Expectations are changing and end-users want to know HOW IaaS

can help them ✔ Cost reduction, tech refreshes and M&A activities are prime drivers

for the adoption of IaaS ✔ Economic pressure means customers will be more open minded to

solutions that provide agility and value ✔ IT leaders need to become more responsive with less resource ✔ 400,000 customers have made the decision to invest in VMware

virtualization and have the building blocks of a Cloud strategy

The more questions answered with a YES the better the prospect YES NO

1. Do I know a key decision maker or influencer?

2. Do they already use VMware virtualization?

3. Are we the preferred IT services partner today? (If there is an incumbent we may not be given the opportunity to supply).

4. Does the customer already consume Cloud-based or hosted services?

5. Do we supply managed services to this customer today?

6. Has the company made a business-wide decision to use Cloud?

7. Does the customer have seasonal or ‘bursty’ fluctuations in their business?

8. Do they have multiple instances of ad-hoc Cloud services? (This is often an indicator that a company is ready for a strategic Cloud initiative).

9. If they have to comply with data management or governance mandates, will we (or the preferred) Service Provider meet the need?

10. Will they be subject to specific geographic rules governing the location of data, will we (or the preferred) Service Provider meet the need?

11. Have they acquired or merged with another business – will they need to consolidate?

12. If they will buy using a RFx process (government etc) are we early enough to influence this?

Target Markets

Confidential – no external distribution – extracted from the vCloud IaaS Sales Guide

Prospect name Account Manager

Close

Score:

Clear table

VMware vCloud IaaS

400,0O0 VMware enabled customers, within which are:

n Medium businesses and ‘small within large’ departmental needs in large Enterprises

Sizing guidance: IaaS opportunities with 150+ employees, opportunities with less than 100 employees are less likely to realize a compelling ROI for IaaS

Confidential - Not for external distribution VMware vCloud IaaS Financial Illustration

Financial Illustration What it does and how to find it Included in this vCloud IaaS Sales Guide is a spreadsheet that will help you illustrate the case for investment for your customers. vCloud IaaS makes a compelling case for investment when compared with traditional ‘build and operate IT’. Experience shows that customers will always want to examine the case for investment so we’ve included this Financial Illustration to help you get started. The spreadsheet values are generic and averaged from public information released by eight vCloud IaaS Service Providers. To make your specific case, you’ll need to edit the sheet – or modify it – to best illustrate your customer’s case for investment. Remember, you may have the ability to offer a trial and/or a proof of concept (POC) this might help you prove the numbers! Customers seldom just accept ‘other people’s numbers’ and as such Financial Illustrations often invite objection. However this objection should be welcomed, as it gives you the opportunity to engage with the customer get them to share their financial objectives and the mechanism by which they expect to justify investment. The sooner you have that conversation the sooner you can make the case and avoid having your sale derailed late in the game! You can access this spread sheet from within the document container of this Sales Guide. Using Adobe Acrobat Reader 10, the document container can be accessed by clicking the paper clip symbol on the top left to ‘view file attachments’.

The illustrated scenario The Financial Illustration compares vCloud IaaS with a traditional ‘build and operate’ investment for server capacity to serve a new business project. The project is expected to have a one-year duration but the company wants the option to expand after that. Using the default numbers the illustration shows a TCO saving of 58% when vCloud is chosen in favor of traditional IT. Second and third year numbers are also shown and for simplicity assume that the server capacity requirements for both options are duplicated each year. The yellow boxes in the spreadsheet indicate where we inserted typical values; all other boxes are calculated from these inputs. We invite you to modify this spreadsheet as much as you would like to so that it works for your vCloud IaaS proposition and any other related products and services you may choose to include.

Confidential - Not for external distribution VMware vCloud IaaS Positioning to Win

Positioning to Win – how do we compare with the competition?

Strength & Weakness Guide Score 1 - 2 is a Weakness (W) Score 3 is Neutral (N) Score 4 - 5 is a Strength (S) Competitive Key: L = Leads E = Equal F = Follows When all competitors follow, you deliver unique value, this is a Unique Selling Point (USP)

The following pages explain these capabilities and how we defend our scores. We also offer some competitive tips that help you position against the other players in the market.

The customer wants We rate ourselves

Strength or Weakness?

Our Competitors

Leaders, Equal or Followers?

USP?

Requirement

Am

azon

Mic

roso

ft A

zure

Rac

kspa

ce

(Ope

n St

ack)

Proven platform 5 S E F F

Choice 4 S F F F USP

Expertise 5 S F F F USP

Relevant references 4 S L F F

Geographic reach 5 S F F F USP

Cost 3 N E E E


Positioning to Win Proven Platform Requirement explained Supporting facts and proof points

• Number of customer deployments • Tenure in market • Industry or third-party recognition • Availability of people and skills in market

• 400,000 customers around the world have deployed and validated VMware virtualization, our partners help extend proven VMware technology to the Cloud

• Customers can leverage existing skills and know-how to accelerate the Return on Investment in a VMware Cloud strategy

• Analyst research illustrates 50% of all workloads are virtualized, of which 85% are run on VMware • Analysts agree that VMware is the market leader in Cloud virtualization • 4500 service providers use VMware technology to power their clouds, of which 100+ have been certified for VMware

vCloud services. VMware continue to invest in certifying partners around the world, thereby increasing reach and availability of proven Cloud services

• VMware's service provider business more than doubled in 2011 • There are 59,000+ VMware Certified Professionals world-wide • There are 50,000 certified VMware Solution Partners plus 2200 VMware Technology Partners

Competitive tip: Amazon is recognized as a mature and proven provider, but it has extremely limited local presence and prefers that its customers fend for themselves. In contrast to VMware vCloud services, Amazon offers very limited scope for deviation from rigidly defined service packages.

Choice Requirement explained Supporting facts and proof points

• Variety of service level agreements (SLAs) • Choice of delivery partners • Geographic reach • Payment and consumption models • Variety of deployment models (e.g. on-

premise/off-premise, redundancy, availability, scalability, etc.)

• Ability to use incumbent IT partners

• VMware has certified 200+ vCloud Service Providers in 30+ countries around the world. • There are 50,000 certified VMware Solution Partners plus 2200 VMware Technology Partners, providing unparalleled

choice in Cloud solutions and services. vCloud service providers may partner with these companies to offer enhanced solutions to customers

Competitive tip: VMware's competitors may have the same vision for a partner eco-system but VMware leads in its readiness to deliver compatible cloud services around the world.


Positioning to Win Expertise Requirement explained Supporting facts and proof points

• Depth and breadth of partners that can deliver • How partners are certified and trained • Ability to deliver adjacent service offerings • Domain specialization (applications, vertical

markets etc.)

• VMware has over 50,000 certified partners that have access to 200+ vCloud Service Providers and 2200 Technology Partners with a host of technical, application and vertical market expertise

• VMware Service Providers invest in certification for VMware Professional and vCloud status. VMware invest heavily in ensuring high levels of competence are achieved in the partner community

• VMware’s ecosystem of vCloud partners offers a broad range of adjacent services and market specific skills. These can be found in the vcloud.vmware.com portal

Competitive tip: VMware’s partner program ensures that broad expertise in technology, services and vertical market know-how is accessible to customers around the world.

Relevant references Requirement explained Supporting facts and proof points

• Geographic and market sector references • Comparable sizes of deployment • Use cases • Reference calls and site visits

• Public references include Oxford University (UK), Sega (world-wide), and many others. • There are a large number of anonymous case studies, these can be found at VMware.com - look for 'Diary Entries'

at http://www.vmware.com/files/pdf/cloud/vmware_public_cloud_diaries.pdf • For reference calls and potential visits please call your VMware representative • Our Service Provider partners will also act as references and validate our ability as the leading Cloud enabling

vendor. Partners that can help include: Colt, CSC, Attenda (UK), OVH (France), Wusys (Germany), Bitbrains (Holland), iLand (USA), Bluelock (USA), SingTel (APAC) and MIT (Australia)

Competitive tip: Rackspace and Microsoft have yet to establish a track record in IaaS. Amazon has the longest tenure in the IaaS market. Bottom line: To win you need to use dependable references, if you need help contact your VMware representative.

Positioning to Win


Geographic reach Requirement explained Supporting facts and proof points

• Availability of services in-country • Ability to store data in-country • Ability to satisfy regulatory or compliance

mandates • Ability to support multi-national operations • Local intimacy and availability of help and

support • Global compatibility and connectivity

• VMware partners provide global reach, local language support and in-country professional and Cloud services • Customers can use the VMware vcloud.vmware.com portal to identify potential partners and qualify their locale,

vertical market and regulatory/compliance capabilities • Our partners with vCloud services are certified and use a consistent approach in delivering IaaS, with a range of

commercial terms and consumption models.

Competitive tip: Amazon can serve anywhere BUT the customer may not be able to store data in their home country. VMware's partner coverage gives customers greater control across 30+ geographies. We continue to certify in additional countries and customers can stay up to date by visiting the vcloud.vmware.com portal. Service providers across multiple geos can collaborate to meet customer needs.

Cost Requirement explained Supporting facts and proof points • Investment protection • Re-use of skills, knowledge and processes • Re-use of existing infrastructure • Choice of using CapEx or OpEx as business

dictates • Cost of entry to a Cloud strategy • Cost of energy for infrastructure • Cost of support for all aspects of an IT network • Cost of exit from a specific service or provider

• Our well-established eco-system and its best practice experience helps lower the cost of entry for customers that are taking the first steps into a Cloud strategy. In contrast to many of our competitors, customers benefit from a local hands-on approach

• 400,000 customers have invested in VMware; they already have the foundations in place to build a Cloud strategy that delivers compatibility across on-premise and cloud infrastructure services

• Only VMware service providers support the seamless ability to port workloads in and out of public clouds with a consistent management and reporting interface, thereby reducing demands on in-house IT staff time

• Public Clouds are built on highly optimized, reliable multi-tenant platforms, they offer a significant energy saving over the equivalent number of separate on-premise instances

• Customers enjoy a lower cost of support since public IaaS is the responsibility of the service provider

Competitive tip: Basic ‘no-frills’ IaaS has reached market maturity; differentiation is achieved on value and by addressing the specific needs of individual customers, for example with custom SLAs, commercial terms, redundancy, scalability and availability, along with market and application domain expertise. ‘Cost’ for Cloud services is a very subjective issue as no two customers’ requirements are the same. For this reason it is difficult to position one vendor over another and we've indicated this with a 'middle ground' score. VMware and its Service Provider partners expect services will be built and priced around individual customer requirements; in this situation price is only one aspect of the total value proposition.


Opportunity name Opportunity owner

Title

Sub total:

Clear table

VMware vCloud IaaSClose


Parameters

Low 0 1 2 3 4 Parameters High What’s our plan to improve our score? Action owner? Target date

Situation Section Score:

What's the Opportunity Assessment Score from the Targeting Chart? Minimum score above 50%

75% or more

Have we identified a compelling event driving the need for Cloud? Not identifiedTarget date for achieving

cost savings. New application go live date

Do they consume value-added or hosting services from you today? No Yes

What is your gut feeling? Negative Strong

Will we have to participate in a Rfx or Tender process with other vendors? RFx or Tender No/existing customer

Competition Section Score: Have we overcome competition for budget from other IT initiatives? No Yes

Does the prospect value the combination of vCloud IaaS and related services when compared with any other contenders for the budget?

NovCloud IaaS

vCloud IaaS plus adjacent products and services

If Amazon Web Services or other 'credit card' providers are being considered, is the customer actually looking for a strategic Cloud initiative?

Preference is for AWS or Credit Card

NeutralNeed IaaS as a strategic company wide initiative

Are we in a RFx process where we are making up the numbers? YesLeading and influencing

the process

Basis of the decision Section Score: Have we proven our capabilities with a proof of concept or trial and can we meet their key decision criteria (e.g. ability to deliver, company profile, business model, references, etc.)

No Yes

Have we understood their decision-making process? No Yes

Have we successfully used references and/or Exec meetings to demonstrate our collective strengths?

NoReference call planned

Reference call and/or Exec meeting completed

Have we created a close plan that has the support of our sponsor? No Yes

Timescale Section Score: Can we identify an immediate need that will drive a decsion now? No Yes

Have we conducted a POC with defined success criteria to accelerate their willingess to invest? NoPlanned Completed

or not required

Have we engaged purchasing and legal early in the game? No Yes

Have we proposed a project plan to which both the partner(s) and the customer agree? NoWork in progress

Agreed


Next > 1


Parameters

Low 0 1 2 3 4 Parameters High

What’s our plan to improve our score? Action owner? Target

date

Solution Section Score: Are there any uncontrolled risks associated with the delivery, e.g. applications, timeline, Professional Service resources or SLA requirements?

Yes No

Have we enaged with VMware on a vision pitch ? No Yes or Not Applicable

Is the customer going to ask us to implement all or some of its Cloud related Professional Services? NoneSome

All

Will their adoption of vCloud IaaS add value to an existing contract? No Yes

Can we identify any contractual terms that will increase our chances of winning against a competitor? No Yes or Not Applicable

Money: should we bid – is it worth winning? Section Score:

Is the deal size worth chasing? Too lowOK with pull thru

Worth chasing

Can the customer get the budget to spend in our current sale year? Next sales year Current sales year

Can we evidence the financial benefits from IaaS using Test Drive and/or a POC? No Yes

Is there pull-through for other products and services? NoYes

Yes and part of this sale

Will this maximise quota or incentive plan objectives? NoPartly

Yes

Authority and relationships Section Score: Define our relationship with the Decision Maker or Team Weak Strong

Is there clarity over roles and responsibilities with any other Solution or Service Provider partners? NoOther partner leading

We are actively leading

Do we have a coach and are they effectively engaged to work with us? No Yes

Are we engaged with the key influencers - like the business users? No Yes

Need Section Score:

Is there a business case supported by the prospect's decision makers?Still being

disccovered

Payback is >1 yearPayback is < 1 year

Can we link tangible business issues to our proposed solution? (e.g. IT resource recovery, cost reduction, data center consolidation)

None identifiedIdentified Identified and customer

understands the linkage and value

Does the client agree vCloud IaaS will enable the business to increase opportunity and/or reduce cost? No

Opportunity up or cost down Opportunity up and cost down

Will their IT team recover resources – people or capital? NoPeople or capital

People and capital


Score:

Clear table

VMware vCloud IaaSClose

My customer’s top CBIs are:

Financial

Operational

Business

Technical


< Previous 2

Confidential - Not for external distribution VMware vCloud IaaS Success Stories

Who’s Succeeding? Electronic Point of Sale Company Business Challenge This company provides software and managed services to independent electronic retailers in Europe that lets them make informed decisions on stock, staff, sales and suppliers. To grow revenues from its customer base the company owners wanted to extend the existing portfolio to cover a broader set of IT services. The company realized that the IT resources needed for this project would be diverted from sustaining their current IT environment and the on-boarding of new customers to their existing Electronic Point of Sale services. Sales Response A VMware Service Provider partner learned of the company’s concerns while discussing a contract renewal for hosting services with one of the two business owners responsible for IT. This discussion highlighted concerns around how the company could retain control over its servers while reducing the operational cost of travel and the maintenance of their hosted servers. The VMware partner offered to run a zero cost pilot for vCloud in order to ascertain specific capacity requirements and demonstrate that the vCloud infrastructure met the required redundancy capabilities. The pilot was used to prove the business case for using the Cloud, demonstrate the portability of virtual machine images and related production data between vCloud and the customer’s data center, prove the ability to deal with critical failures and eliminate concerns over vendor lock-in. Portability was a key requirement because the customer had previously lost access to their data when another hosting service provider suffered a critical failure.

Success The pilot was finished in December 2011, it removed concerns over control and service security and it allowed the customer to identify the business case for a three-year contract. The customer has been able to make an immediate $75K cost saving by terminating a server hosting contract with their alternate service provider. Success with vCloud also resulted in the customer being able to migrate data center connectivity for 200 of their customers to the Service Provider’s WAN in order to further reduce costs and improve Quality of Service.


An Architectural Advisory Service Business Challenge This company’s income is historically derived from membership subscriptions and purchases from its catalogue of paper-based documents and images, sold via its on-line store. The company’s board of directors knew that to attract and retain its members, grow income and control costs it would need to digitize its documents and distribute them electronically. The IT Director realized that the company’s existing server infrastructure, hosted in a service provider data center, was not suited to this new application, and as the servers were near end-of-life this triggered a technology refresh assessment. The company believed that the new hardware platform for the digitized service would have to be located and managed in-house. Sales Response During July 2011, the incumbent VMware service provider partner, who had been hosting the legacy servers asked for an account review meeting. During this meeting the partner learned of the new service initiative and the IT Director’s key concern that any service failure would result in damage to the company’s excellent reputation. The VMware partner used these concerns to secure an opportunity to position vCloud as a way to deliver the new service and recover the IT resources necessary to sustain it. Following a successful presentation, the IT Director explained the benefits of the vCloud approach to his board of directors and secured a one-month delay to the project go live date, so that they could better understand the benefits through the use of a well-defined trial.

Success The trial proved that the vCloud IaaS solution met the customer’s pre-defined success criteria. In August 2011 the VMware partner won a vCloud contract for three years, starting with seven virtual server instances. The customer’s internal business case showed that using vCloud IaaS, they would achieve a payback within nine months compared with the eighteen month ROI for the capital purchase and operational cost of an equivalent on-premise infrastructure. Consequently the customer is now considering moving all of its IT services on to vCloud IaaS over the next three years.


International Media Company Business Challenge As part of a cost cutting initiative an International Media Company planned to consolidate four of its data centers. Mid-way through this project a hacking incident forced the company to audit the security and reliability of 250 e-commerce websites. The audit demonstrated that many websites resided on unsecured servers, or were located in 3rd party developer offices and that the company had little or no control over them. This situation threatened to disrupt the data center consolidation project and delay cost saving objectives. Sales Response During an account review with a VMware Service Provider partner the company discussed its data center consolidation project. In response, the vCloud partner introduced its IaaS offer as a cost effective alternative to the company’s plans to build its new data centers. The company’s IT Executive expressed interest in the predictable ‘pay per use‘ business model and the ability to manage their servers through the self-care portal. The IT team concluded that vCloud would allow it to meet its cost reduction objectives, maintain the data center consolidation plan and close the security gaps exposed by the audit. However, the IT team wanted the proposal for vCloud IaaS to be presented to the company’s Executive management team without bias towards a particular vendor. The vCloud partner account team helped the IT team to create the internal proposal, detailing how the company would manage its own migration using a hybrid Cloud deployment. The media company also reviewed solutions from their leading web site developers, but these were rejected because of concerns over security and control. Likewise, a competitive offer was discounted because the service provider could not provide VMware EL4+ data security certification.

Success The vCloud Service Provider won the deal because of its track record and the trust it had created with the company’s IT team, the partner was also able to prove it could meet the security requirements and offered a pilot to prove the case for investment. The media company has now consolidated two of its four data centers and has recovered valuable IT resources previously trapped in managing day-to-day support tasks. The IT team now has more bandwidth to focus on business enablers rather than the upkeep of hardware.


Sports Equipment Company Business Challenge Following inclusion in the prestigious ‘Cool Brands Top 500’ list, a sports equipment company was expecting an increase in website traffic and sales. At the same time its CFO implemented an initiative mandating lower IT spend. Faced with the challenge of meeting the needs of sales and marketing and having to renew its old and inefficient IT infrastructure with a reduced budget, the IT team’s ability to execute was further impacted by a key staff member taking maternity leave. Sales Response The company had a long-term relationship with a Service Provider for hosted IT services. During an account review the IT Director outlined his challenges in meeting increased demand with fewer resources. The Service Provider was also a VMware vCloud Partner and presented vCloud IaaS as a viable solution to lower IT costs, improve server utilization and increase IT staff productivity. Consequently the partner was asked to dimension and price a vCloud IaaS offer and assist in selling this approach to the company’s CFO. The vCloud partner’s proposition included a document illustrating how it could support the current applications and server capacity and provide a manageable growth plan. The CFO’s alternative strategies included a plan to freeze spending for nine months, or use a proven IT reseller to implement and support a small CapEx based server upgrade. To secure the IaaS opportunity, the vCloud Partner proved its dimensioning was accurate, that the platform was ISO27001 and EAL4+ compliant and that they could provide service before a significant maintenance and support contract renewal date. Success The CFO was convinced and consequently signed a three-year vCloud IaaS contract that included a 10Mbps MPLS connection and back-up services. The company has maintained control of its IT resources and by

eliminating the need to manage its server hardware, the vCloud Partner has further enabled them to reduce their annual IT operation costs by 48% per annum. The company has also been able to avoid a large CapEx investment for server upgrades and has benefited from increased productivity, and in so doing was able to avoid hiring a contractor to cover for the member of staff on maternity leave.

Documents

VMware vCloud IaaS Sales Guide