vmware and ibm ibm total solution business partner event
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VMware and IBM
IBM Total Solution Business Partner EventAtlanta, GA
Jesse CrespoCorporate Account Manager
June 2007
Agenda
VMware overview
Pricing and processes
IBM VMware Business Relationship
IBM/VMware Differentiators
Did you know?
Field Engagement
VMware: Powerful Momentum in 2006
VMware Infrastructure Emerged as De Facto Industry Standard 83% revenue growth over 2005
Fifth consecutive quarter of accelerating growth
Customer Adoption Accelerating
Approx. 20,000 new customers in 2006
Customer Profile: 100% of Fortune 100
87% of Fortune 500
Total Employees: ~3,000
Operating Structure: Independent subsidiary of EMC
IPO portion of VMware in 2007
VMware Revenue ($MM)
$218
2001 2002 2003 2004 2006
$387
<$100
2005
$709
VMware overview
Virtualization: More Responsive IT at a Lower Cost
VMware Infrastructure delivers Key Customer Solutions
Business Continuity – Disaster Recovery and High Availability
Server Consolidation and Server Containment
Development and Test Environments
Enterprise Desktops
Value to IBM partners
VMware solutions are highly relevant to your customers and complement IBM technologies
VMware drives high end systems, storage, software and services
Addresses critical customer issues with space, power, and cooling
VMware is….Beyond Partitioning
Revolutionizing the way IT runs a Datacenter
Capacity On Demand (i.e. rapid provisioning)
Always On (i.e. HA, Disaster Recovery, Planned downtime)
Policy Driven Automation (i.e. DRS)
Resource Pooling
Top Reasons to Virtualize (Gartner and VMworld survey)
Improve Server utilization 65%
Server Reduction 62%
Improve DR/BC 55%
Lower Datacenter Operation Cost 42%
…Delivering Real ROI for Real Customers
Customer Scenario: Need to replace 92 Windows servers
Option 1: Physical Hardware Refresh
Number Price Total
Hardware Costs
92 7,372* 678,224
Total $678,224
Physical Refresh: $678,224
Virtualization Refresh: $286,435
Cost Savings: $391,789
*Physical Refresh• X366 Express (2 x 2.80 GHz)• 8GB RAM, 2 80GB DrivesVirtualized Refresh• X366 Express (4x3.66 GHz)• 20GB RAM (2) 36GB Drives• 2 Fiber HBA’s
Option 2: Virtual Infrastructure
7,372 7,372 1 VirtualCenter
Server
185,430 30,905 6 ESX Host Server
Hardware Costs:
TotalPriceNumber
VMware Software:
48,984 8,164 6 ESX Server VIN
34,6625,777 6 3-Yr RTS
7,098 7,098 1 VirtualCenter
2,8892,889 1 3-Yr VC RTS
$286,435 Total
76% of VMware Infrastructure customers report extensive use of VMware products
74% of VMware Infrastructure customers stated it’s ready to run mission-critical
applications
43% of VMware customers are standardizing on VMware Infrastructure
Just Scratching The Surface
20042004 20082008 2010201020052005
% ofServers
Virtualized
% ofServers
Virtualized
20072007
1% ~2%
15% 40%
~6%
Agenda
VMware overview
Pricing and processesIBM VMware Business Relationship
IBM/VMware Differentiators
Did you know?
Field Engagement
VMware Infrastructure 3 Packaging
Starter Standard EnterpriseConsolidated Backup
HA
DRS
VMotion
Virtual SMP
VMFS Cluster File System
Virtual Center Agent
ESX Server 3
Target Remote office / Retail office
Department /datacenter
Self-optimizing datacenter
Price (per 2-processor, North America)
$999 $3,749 $5,749
Packaging and Pricing Info
Capacity pricing per two sockets
Subscription now a separate SKU no longer bundled with license
Full and Limited Subscription options
Part number conversion document
VMware Infrastructure 3 A-La-Carte Offerings
Name Approximate Price
VMware VirtualCenter Management Server $4,999
VMware VMotion $1,399
VMware HA $1,999
VMware DRS $ 1,999
VMware Consolidated Backup $499
Per Server
Per 2 sockets
VMware/IBM Infrastructure 3 Subscription OptionsLS - Limited Subscription
LS Includes Minor Upgrades Only
Customers choosing LS cannot upgrade to Full Subscription (before the next major release)
FS - Full Subscription
FS includes Minor and Major Upgrades
Major vs. Minor Release - Example
ESX Server 2.5.3Major release
Minor release
License Fulfillment
Customers receive an Activation Code (one per order)
Activation Code is entered on vmware.com Web-based License Activation portal
Customer chooses product version
Same fulfillment process for upgrades and new orders
New Customer Places Order for
N Licenses
Customer Visits
VMware Website
to RedeemActivation
CodesExisting Customer
Entitled to Upgradesfor N Licenses
VMware / partner Emails
“Activation Code”
Valid for N Licenses
Customer ChoosesProductVersion
VMwareInfrastructure
3
ESX 2.x /VC 1.x
Centralized Licensing
Centralized license server - FlexNet
Installed and configured on the same system as VirtualCenter 2
All licenses in a single license file
Centrally managed licenses can be tracked, and dynamically allocated/re-allocated to servers in 2-socket increments
Once configured, VirtualCenter and ESX Servers remain fully functional during periods of license server unavailability
ESX Servers
License server(a Windows binary)
VirtualCenter MS 2.0
Licensefile
Agenda
VMware overview
Pricing and processes
IBM VMware Business RelationshipIBM/VMware Differentiators
Did you know?
Field Engagement
IBM VMware Business Relationship
IBM SKU’s for VMware products
System x part number (recognized as System x option)
IBM and VMware dedicated full time resources
IBM revenue in 2007 will be approximately $75M in North America
IBM sells bundled solutions and strategic volume sales
VMware ESX is “IBM Server Proven”
IBM is single contact for VMware support issues: SupportLine and Remote Telephone Support
VMware Solutions are “IBM System Storage Proven”
IBM VMware Business Relationship
Strategic Team:
WW Senior Director
Alliances Manager for System x, Storage, SWG, IGS
Dedicated technical resources for each brand
Dedicated partner engineering resources
Dedicated World-Wide Marketing team
NA Sales and SE Team:
5 Dedicated Sales Professionals
3 Dedicated System Engineers
Agenda
VMware overview
Pricing and processes
IBM VMware Business Relationship
IBM/VMware DifferentiatorsDid you know?
Field Engagement
IBM/VMware Differentiators
X3 Chipset
Faster than any other for Intel CPU’s. Up to 32 socket scalability
Makes overall system faster to get more workload or more VMs on a single server
IBM Virtualization Manager
Free plug-in to IBM Director
Lets you manage VM’s like you would manage a native server, plus system management actions unique to a VM
Tivoli Usage and Accounting Manager
Support Line
NO competitor can compete with Support Line cost
One stop customer support agreement (IBM Server, VMware, VI3, IBM applications, OS, and middleware)
VMware/IBM Joint Technology Initiatives
Embedded VMware: High probability VMware will be pre-installed on System x Servers
Enterprise Workload Manager: Dynamically monitors and manages distributed heterogeneous workloads in an On Demand Environment. Statistics can show how well business goals are being met as well as isolate performance problems.
Capacity Planner: Capacity planner tool to be integrated with CDAT
Power Executive: Senses and responds to real-time changes in the environment, calibrating cooling and system processing to optimize power usage.
VDI/VCS: Integration of Enterprise Desktop Solution
Large Memory: VMware supports 64GB on a server. Teams are testing 128GB and 256GB
Agenda
VMware overview
Pricing and processes
IBM VMware Business Relationship
IBM/VMware Differentiators
Did you know?Field Engagement
DID YOU KNOW? VMware-IBM Alliance Info
VMware Enterprise License Agreements (ELA’s) can be executed by an IBM partner
VMware Acct Managers get credit for sales through IBM
VMware is sold “Unbundled” with IBM/VMware RD approval
88% of VMware ships from IBM within 3 days of order receipt by IBM
IBM is shipping a FREE VMware Evaluation license with every 2 way system and above through the end of 2007
DID YOU KNOW? VMware-IBM Alliance Info
Customers buying VMware for IBM x460’s can receive 8CPU licenses for the price of 4CPU machines
Special Bid required
Downloaded evaluations allow unbundled purchases for those servers
CDAT Studies (80% Close Rate)
Free 2-day ESX Jumpstart
IBM offering up to 8.5% through a combination of three IBM promotions (Brian Kielty)
MDF Funds are available to all Partners Selling VMware
Agenda
VMware overview
Pricing and processes
IBM VMware Business Relationship
IBM/VMware DifferentiatorsDid you know?
Field Engagement
VMware Resources for IBM and Partners
Dick Franchi, WW Alliance Manager
919-791-9488 or dfranchi@vmware.com
Neil Tantingco, West, Texas & Louisiana
650-842-9254 or neil@vmware.com
Jon Gilbert, Southeast/Mid-Atlantic/LATAM
678-343-6779 or jgilbert@vmware.com
Laura Duplisea, Northeast, Federal, Canada
781-424-4642 or lduplisea@vmware.com
John Hoppa, North Central & South Central
314-503-8748 or jhoppa@vmware.com
Peter Escue, Global Staff Systems Engineer
817-875-9907 or pescue@vmware.com
Eric Hardcastle, Sr. Systems Engineer (East)
919-796-6990 or ehardcastle@vmware.com
David Jiang, Sr. Systems Engineer (West)
817-875-9907 or djiang@vmware.com
SALES TECHNICAL
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