© 2014 VMware Inc. All rights reserved.

vCloud AirTown Hall Updates

Kevin RooneySr. DirectorvCloud Air Channel Sales

VMware vCloud® Air™ is a secure public cloud operated by

VMware, built on the trusted foundation of vSphere.

The service supports both existing workloads as well as new

application development, giving IT a common platform to

seamlessly extend their data center to the cloud leveraging

the same tools and processes they use today.

vCloud Air Offerings

1Q15 vCloud Air Updates

Disaster Recovery 2.0

GA: March 16

vCloud Government Service (vCGS)

provided by Carpathia

PR: February 5

Subscription Purchasing Program

(SPP)

and vCloud Air On Demand

GA: March 9

Partner Services Opportunity

(Standard)

Storage

[1TB]

Compute

[10GHz,

20GB

RAM]

Bandwidth

[10Mbps]

Production

Support

IP

Addresses

[2]

Unlimited

Tests

Core

SKU for

Disaster

Recovery

Total: $795 (per month)

• Failback using vSphere Replication

• Multiple point in time recovery snapshots

• vRealize Orchestrator plug-in for vCloud Air

vCloud Air Disaster Recovery 2.0

Customer Benefits of Subscription Purchasing Program

CONFIDENTIAL 55

Adjust spend easily by adding funds to accounts on a regular basis, or adhoc purchases

Subscription Credits program brings flexibility in trying, buying andconsuming cloud services from VMware through one centralizedpurchasing program.

Centralized or decentralized management of fund balances, allowingcustomers to allocate such balances to different departments, projectsand users

Flexibility to use fund balances to provision new services, add-on toexisting services, renew services, cover recurring costs of services andoverages, without the need for monthly purchase orders.

Price Transparency as customers can easily track the MSRP costs oftheir services against their currency denominated fund balances

Includes the rights to future services

Partner Benefits of Subscription Purchasing Program

CONFIDENTIAL 66

Simple transaction model - selling Subscription Credits does not requireinvestment in new billing systems, uses the current License transactionmodel and simplifies SKUs considerably

Partners maintain billing relationships - and have insight into account activity when designated as offering partner. This allows them to deepen their engagement while continuing to service their customers

SPP is the channel transaction model for vCloud Air Virtual Private Cloud OnDemand, and the alternative to credit card billing for customers. SPP provides partners a way to seed accounts with OnDemand and preserve the billing relationship with customers

Build a cloud practice – SPP makes cloud services from VMware easy totransact, allowing partners to focus on building a true cloud servicesbusiness

vCloud Government Service provided by Carpathia

• Achieved the Provisional Authority to Operate (ATO) through the U.S. Government's Federal Risk and Authorization Management Program (FedRAMP)

• Generally available to U.S. government and defense organizations

• Infrastructure as a Service (IaaS) offering available today

• PR: February 5

FedRAMP Provisional

Authority to Operate

Supports US International

Traffic in Arms Regulations

(ITAR)

Federal Information Processing

Standard

(FIPS) 140-2

SOC 2 Type 2

Government Cloud

Compliance Certifications

Build Your Hybrid Cloud Services Opportunities

8

Optimize Consumption

Extend Value

Drive the Base

Via trial promotion

and On Demand

transactions

Cloud readiness

assessments

Cloud strategy consulting

Infrastructure

modernization

Cloud migration services

Application development

Cloud orchestration

Cloud management and

governance

Business case analysis

Organizational change

management

Pricing & Packaging: OnDemand &

Subscription,

Selling SPP credits

Partner-delivered Solution

Services

T I M E

RE

VE

NU

E

Dedicated Cloud

Virtual Private

Cloud

Disaster

Recovery

Other Services

CONFIDENTIAL

Thank you

Backup

Hybrid Cloud Customer Promotion (Jan 1 – Mar 26)

What is it?

“Risk Free” trial of 3+ month vCloud Air VPC and Dedicated Cloud skus, can cancel within first 30 days

CONFIDENTIAL 11

Hybrid Cloud Customer Promotion (Jan 1 – June 26)

What is it?

“Risk Free” trial of 3+ month vCloud Air Disaster Recovery skus, can cancel within first 30 days

IGNITE The Channel Sales Spiff

(Jan 1- Mar 31)

What is it?

Partner Rep Sales Spiff Program for net new vCloud Air sales

$100 1 month DR

$250 3 month DR

$500: vCloud and vCGS VPC 3+ month sale,

Disaster Recovery 12+ month sale

$1000: vCloud and vCGS VMware Air™

Dedicated Cloud 12+ month sale

Who gets it?

Managed Hybrid Cloud Competency Partners

Sales Rewards

(Jan 1- Mar 31)

What is it?

1000 points for closing 5 vCloud Air deals

Who gets it?

See Sales Rewards program requirements

Cu

sto

me

r F

ac

ing

Pro

mo

tio

ns

Pa

rtn

er

Inc

en

tive

svCloud Air Promotions

Solution Rewards

What is it?

Increased from 5 to 10%

• Beginning on March 9th , 2015, VMware will offer Solution Rewards benefits to eligible sales of VMW SPP Credits SKUs.

• Partners are eligible to earn a 10% Rebate on List License Valuethrough Solution Rewards for the sale of eligible SPP Credit SKUs.

Who gets it?

Hybrid Cloud Competency Partners

Protect selected

virtual

machines

Seeding or

ODT

Review

protection

plan

Expand or

broaden

protection

End-to-End DR Customer Lifecycle

12

Plan

What are the design objectives?

Which

workloads

should get

protected first?

What will the

networking

design need to

be?

Install vSphere

Replication

appliance

Connect

replication to

vCloud Air

Connect VPN

or Direct

Connect as

needed

Improve/

UpdateImplementSet Up

Easy Self-Service

Partner Service Opportunity

vCloud Air Updates: Q1

Disaster Recovery 2.0

• Failback using vSphere Replication

• Multiple point in time recovery snapshots

• vRealize Orchestrator plug-in for vCloud Air

• $795/month

• GA: March 16

vCloud Air Updates: Q1

Disaster Recovery 2.0

• Failback using vSphere Replication

• Multiple point in time recovery snapshots

• vRealize Orchestrator plug-in for vCloud Air

• $795/month

• GA: March 16

Subscription Purchasing

Program (SPP)

• Credits purchase and burn down model to procure and consume cloud services from VMware

• Provides customers flexibility and easy purchasing of cloud services

• Provides partners a streamlined transaction model so they can focus on value-added services

• Solution Rewards available

• GA: March 9

vCloud Air Updates: Q1

Disaster Recovery 2.0

• Failback using vSphere Replication

• Multiple point in time recovery snapshots

• vRealize Orchestrator plug-in for vCloud Air

• $795/month

• GA: March 16

Subscription Purchasing

Program (SPP)

vCloud Government

Service (vCGS) provided by Carpathia

• Achieved the Provisional Authority to Operate (ATO) through the U.S. Government's Federal Risk and Authorization Management Program (FedRAMP)

• Generally available to U.S. government and defense organizations

• Infrastructure as a Service (IaaS) offering available today

• PR: February 5

• Credits purchase and burn down model to procure and consume cloud services from VMware

• Provides customers flexibility and easy purchasing of cloud services

• Provides partners a streamlined transaction model so they can focus on value-added services

• Solution Rewards available

• GA: March 9

DR 2.0

March Release - Highlights

17

Failback using vSphere Replication

SITE A(PRIMARY)

vCLOUD AIR , SITE B(RECOVERY)

FAILBACK

FAILOVER

DR Instance

vSphere Replication

March Release - Highlights

18

Multiple point in time recovery snapshots

9:00am

8:45am

8:30am

Choose from up to 24 recovery snapshots based on your RPO settings.

8:15am

8:00am

4:15am

March Release - Highlights

19

vRealize Orchestrator plug-in for vCloud Air

SITE A(PRIMARY)

vCLOUD AIR , SITE B(RECOVERY)

FAILBACK

FAILOVER

DR Instance

vRealize

Orchestra

tor

Plugin

Customize

automation tasks,

then quickly access

and launch

workflows as

needed

Disaster Recovery Pricing

20

Total: $795

(per month)(Standard)

Storage

[1TB]

Compute

[10GHz,

20GB RAM]

Bandwidth

[10Mbps]

Production

Support

IP

Addresses

[2]

Unlimited

Tests

Core SKU

for

Disaster

Recovery

SPP

Subscription Purchasing Program (SPP)

Highlights

Single SKU

SPP-CREDIT-CSPP-CREDIT-ASpecial SKUs for Volume Discounts

Term 1 year from order book date. Use it or lose it.

Discounts

0% to 4% based on volume

How many Credits

Flexible based on customer budget, strategy

Min Deal Size

Suggest enough to cover 12 months of service

Rate Card

MSRP value of actual services redeemed

• Burndown Model for Subscription Services only

• Commercial & Academic customers

• Customer’s acquire Credits which can be redeemed for eligible Subscription Services

• Eligible Services include vCloud Air, vCloud Air OnDemand, Horizon Air.

• Default right to future services as they become available in SPP

• 1 Credit carries a list price of 100 (USD, Euro, GBP, EMEA USD, Global USD, Yen – 10,000)

• Purchase of 1 credit by the customer result’s in 100 (USD, GBP, Euro, etc) being deposited in their MyVMware account

• Credits must be fully consumed within one year from the order book date (use it or lose it)

SPP Double Click

23

Credits

Redemption

Preferred Partner

Can only be redeemed services on the Eligibility Matrix

Works like a bank balance. Each purchase increases your Fund Balance

Add additional credits at any time

Simple Structured

Pricing

Credits can be redeemed for services with any term length or payment type

Fund balances are debited based on the type of service redeemed –upfront, monthly or annually

Customer designated partner has access to customer redemptions

Only available for partners with Hybrid Cloud or DaaSCompetency

SKUs

SPP-CREDIT-C SPP-CREDIT-A

SPP-CREDIT-C-

L1

SPP-CREDIT-A-

L1

SPP-CREDIT-C-

L2

SPP-CREDIT-A-

L2

SPP-CREDIT-C-

L3

SPP-CREDIT-A-

L3

SPP-CREDIT-C-

L4

SPP-CREDIT-A-

L4

SKUs on channel price list with buy prices like any other SKU

Small SKU footprint – 10 SKUs in total

Min Order Qty = 1 CREDIT. Recommend enough to cover 12 months of service

Partner Incentives for SPP Credit Sales

• Beginning on March 9th , 2015, VMware will offer Solution Rewards benefits to eligible sales of VMW SPP Credits SKUs.

• Partners are eligible to earn a 10% Rebate on List License Value through Solution Rewards for the sale of eligible SPP Credit SKUs.

• Partners must have achieved the Hybrid Cloud or DaaSCompetency to be eligible for the rebate.

• Full Solution Rewards T&Cs apply, please refer to: www.vmware.com/go/solutionre

CONFIDENTIAL 24

Eligible SPP Products SKUs

SPP-CREDIT-C

SPP-CREDIT-A

SPP: Key Customer Policies

The Fine Print

EPP TokensSPP CreditsCloud Credits

Cannot be exchanged, traded,swapped for each other

EligibleServices

Services that are listed on the SPP eligibility matrix

Fund Balance Debit

Prepaid – full cost upfrontAnnual – One year upfrontMonthly – 1 month cost each month

PO Only needed when you are buying more credits

• SPP Credits expire 1 year from the order book date. Any unused fund balances at the end of the term expire

• Changing payment method from SPP Credits to standard POs for redeemed services or vice-versa is only allowed at the time of renewal

• Customers are expected to maintain sufficient fund balances to cover all costs associated with the service. Additional credits can be purchased at any time

• All customers receive a 30-day grace to replenish their balances in case those are insufficient to cover their current monthly bill.

• Redeemed services are not co-termed to the SPP term. Depending on when the redemption occurs, the service term can be less than, equal to or greater than the SPP term

• Add-ons are always co-termed to the term of

SPP: Quoting & Operations• VPP Number is Required to Book an Order

• Person getting the credits must also be registered as a Fund Owner in advance and must be indicated on the submission to vmware as the end user email address

• Use the Configurator to determine number of credits and correct SKUs to use

• Academic and Commercial SKUs available

• SPP Credit orders flow the same as Licensing SKUs

• No need to manage any monthly billing, invoicing for the services.

• If a customer run’s out of credits, sell more credits (that is the only financial transaction under this model)

• Please refer to your Price Book for buy prices

• There is no accumulation in SPP

• SPP Credit purchases get VPP points

SKU Order

Quantity

Volume

Discount

SPP-CREDIT-

C

NA NA

SPP-CREDIT-

C-l1

1-249 0%

SPP-CREDIT-

C-l2

250-599 2%

SPP-CREDIT-

C-l3

600-999 3%

SPP-CREDIT-

C-l4

1,000+ 4%SKU Order

Quantity

Volume

Discount

SPP-CREDIT-

A

NA NA

SPP-CREDIT-

A-l1

1-249 0%

SPP-CREDIT-

A-l2

250-599 2%

SPP-CREDIT-

A-l3

600-999 3%

SPP-CREDIT-

A-l4

1,000+ 4%

Note: Final prices are determined between the reseller and end customer

SPP: Partner Summary

Initial Sale Redemption & BillingPartner Qualifications &

Rewards

Enroll the customer for a VPP number & designate a Fund Owner

Use the estimator to sell enough credits to at least cover 12-months or greater service costs

Volume Discount between 0-4% are available using the appropriate SKUs. Discounts for service term, billing type, service volume are accounted for in the redemption values of the service

EPP Tokens, SPP credits cannot be swapped or exchanged. OK to include both on the same order

Credits are represented as MSRP local currency balances in the customers MyVMware account

Credits can be used for new services, add-on to services redeemed using SPP, renew services, cover recurring costs of services and overages

Ensure redeemed services consume SPP credits fully prior to their expiration

Billing in this case represents the debit of a customers fund balance for the costs associated with the service. No POs are needed until a

SPP credits can be sold by Corporate Resellers, Enterprise and Premier Solution Providers

Solution Rewards on SPP Credit SKUs for Partners who have achieved the Hybrid Cloud or DaaSCompetency

Only Partners with the Hybrid Cloud or DaaSCompetency that are designated by the customer as an offering partner are able to get access to consumption data

Introduction to vCloud Government Service

VMware vCloud

Government

Service

Provided by

IaaS Hybrid Community Cloud

from VMware

Meets FedRAMP standard

Built on vSphere and NSX

VMware: Leader in Federal

Data Center Virtualization

and Cloud Infrastructure

Carpathia: Leader in

compliant hosting

Existing &

New Apps

Seamless

Networking

Common

Management

One Support

Call

VMware

vCloud

Government

Service

Your

Datacenter /

Private Cloud

Compliance

needs

addressed

Government

Community

Cloud

Saves time

and money

Provided by Carpathia

Why vCloud Government Service

vCGS

Experience with Compliance Certifications

SOC 1 Type 2

(SSAE 16)

SOC 2 Type 1

SOC 2 Type 2

HIPAA and

HITECH

Security Rule

FedRAMP

Provisional

Authority to

Operate

Supports US

International Traffic in

Arms Regulations

(ITAR)

Federal Information

Processing Standard

(FIPS) 140-2

ISO

27001:2005

SOC 2 Type 2

Hybrid Cloud Government Cloud

vCloud

Government

ServiceSame Networking & Management Constructs

Same Security Policies

Your Private

Cloud

Flexibility

Configure

networking at

granular levels

Freedom

BYO security policies &

IPv4 layer 3 address

spaces

Resiliency

Highly Available

Edge Gateways

Seamless Networking: Extending your Data Center