Vm Ware Market Analysis

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Successfully Selling Virtualization To SMBs

Infrastructure Practice

Proprietary and Confidential

Agenda

• Market Overview

• Identifying Opportunities

• Customer Presentation

• New SMB Packages

• Handling Objections

• PTG Infrastructure 2011 Goals


1/3 of SMBs have started virtualizing and ~50% are implementing in next 12 months1

VMware has 3X the market share in SMB as the nearest competitor

SMBs express 3-to-1 brand preference for VMware

VMware introduced vSphere pricing designed for SMBs

VMware is launched a global SMB marketing campaign

The SMB Virtualization Opportunity is Growing…

1. Source: Forrester Research, Inc., “The State of Emerging SMB Hardware Trends: 2008 To 2009,” February 29, 2009.

$25B MarketOppty


The Problem

• Overwhelming complexity

• >70% of IT budgets just to keep the lights on

• <30% of IT budgets goes to innovation and competitive advantage


Virtualization Mission – “Make the Plumbing Disappear!”

“Make the IT plumbing disappear in the small and

mid-sized business”•Stop worrying about daily IT operations and start planning for the future

•Focus on ways to better service your customers

•Have confidence that you can deploy new services faster, at a lower cost, and with less risk


SMB Sales Approach•Containment approach - An ongoing effort to virtualize new applications and manage growth of existing ones

•Consolidation Approach - One-time event that moves existing applications onto a fewer number of servers

•Availability Approach - Introducing virtualization to increase application availability and data recoverability

– Ideal for customers looking for robust, affordable business continuity solutions

New


The Customer Presentation


How does Virtualization Solve My Problems?

Spend less of your budget on hardware, power, maintenance and administration

Spend less time worrying about and

reacting to downtime

VMware virtualization will get you 10x productivity on your servers

VMware virtualization is the most cost-effective business continuity solution

• High Availability

• Data Recovery


Hardware

Virtualized World Physical WorldHow Do I Get 10x Productivity On My Servers?

Traditional x86 Architecture• Legacy rule: Run only one application

per server because single application crashes result in OS or server failure

• Typical hardware utilization under 8%

Virtualization: • New rule: Run multiple applications per

server because OS/applications are isolated from one another

• Typical hardware utilization 80%


VMware Impact on Small and Midsized Businesses

Increase Staff Productivity

Increase Application Availability

Reduce Physical Infrastructure Cost1

Increase Data Protection

2

3

4

3-Yr Cost Savings Opportunity*

20 Servers 50 Servers

$290k $774k

1 month Payback

3 month Payback

* VMware TCO Calculator


Immediate Savings on Server Consolidation

ATER VMware

Before VMware With VMware Savings in $ Savings in %

Servers 20 3

Utilization 8% 80%

Server HW 3 -Yr Cost $208,000 $49,918 $158,082 76%

Networking 3 -Yr Cost $17,649 $4,412 $13,237 75%

Real Estate, Power & Cooling $97,000 $36,141 $60,819 74%

VMware license and support cost $0 $5,706 ($5,706)

Shared storage 3 -Yr Cost $0 $23,004 ($23,004)

Total 3 Yr Capital Costs $322,649 $119,181 $203,468 $63%

Before VMwareWith VMware

More applications per server = less servers to buy, power, and maintain

Reduce Physical Infrastructure Cost1

$200k+ 3-Yr Cost Savings!

Source: VMware TCO Calculator – www.vmware.com

http://www.vmware.com/


Get More Done with Existing Staff

% of IT Staff Time Spent on Maintenance

With VMware

24%

Do more work with the same number of people = operating cost savings

Drivers of productivity improvements:

Zero downtime maintenance

Built-in high availability

Dynamic patching

Instant provisioning

Increase Staff Productivity2

Before VMware With VMware Savings in $ Savings in %

Servers 20 3

Utilization 8% 80%

Server Provisioning 3 -Yr Cost $26,065 $1,954 $24,111 93%

Server Administration 3 -Yr Cost $139,971 $120,374 $19,597 14%

Automated Patching with VMware Update Mgr $57,375 $15,501 $41,874 73%

Total 3 Yr Staff Operating Costs $223,411 $137,829 $85,582 $38%

72% $85k+ 3-Yr Productivity

Savings!

Source: VMware TCO Calculator – www.vmware.com

http://www.vmware.com/


Keep Your Business Running

Automatic detection and restart of failed servers

Increase Application Availability3

Detects server failures and initiates the new virtual machine restart on a different physical

server without human intervention

Typical downtime per failure

4 hours

Lost revenue per hour $14k*

Lost staff productivity per hour

$50/hour

Average failures per year

2

Savings per Year $120k

Average Downtime Costs*

* Assumes company with 150 employees, 20 servers and $37.5m a year in sales (lost revenue is 10% of affected server time)

How much does down time cost your

business?


Ensures Data is Available and Recoverable

Increase Data Protection4

Built in data protection saves time and money

•Simplifies administration

•Faster recovery times

•Save on storage costs with disk de-duplication

•Less downtime = higher staff productivity


Benefits: •Low cost, entry-level option for users without shared storage

Recommended VMware Product: •Essentials

Benefits: •Enables virtualization features such as high availability, vMotion and DRS•Enhanced scalability, management and performance

Recommended VMware Product: •Essentials Plus or Advanced Acceleration Kit NAS, iSCSI or

SAN Storage

Seamless Storage Integration

ESX

OSAPP

OSAPP

OSAPP

ESX

OSAPP

OSAPP

OSAPP

NFS or

VMFS

Virtual machine data can be stored on local disks

Storage can be shared between multiple virtual machines

Local Storage

Shared Storage (NAS, iSCSI or SAN)


Which Package is Right for Your Customer?


Selecting the Right Package

VmwareAdvanced

Acceleration Kit

Microsoft Hyper-V

Microsoft Hyper-V

• Wants to virtualize more than 3 physical servers

• Or will want to in the future

Customer NeedsRecommended Product

VMwareEnterprise Plus Acceleration Kit

• Will not want to virtualize than 3 physical servers

• And won’t in the future

• Is interested value added features like zero downtime Fault Tolerance, VMotion, DRS/DPM, Storage VMotion

or

• Is NOT interested features like zero downtime Fault Tolerance, VMotion, DRS/DPM, Storage VMotion

or


Handling Objections


What Puts VMware Ahead of Microsoft?

2.Most Trusted, Reliable, Robust VMware is the proven market leader in its 4th generation product.

3.Easiest to deploy application uptime and data protection FT, Data Recovery with de-duplication, HA & VMotion

4.Most Cost Effective Lowest cost per application – the real way to measure cost

Low entry price with Essentials packages for small IT environments


All My Eggs in One Basket?

• “It seems risky loading up so many apps on one server. What if the server fails or one of the apps?”

• Response

– Failure to an application on one virtual machine does not affect other virtual machines on the same physical server

– VMware High Availability and Data Recovery protect your application workloads and data in the event of unplanned downtime.


I’m Already Using Open Source, Why Buy?

1. Business continuity functionality

– Fault Tolerance

– High Availability

– Data Recovery

3. Centralized management of virtual machines

– Save significant administration time

– Update and patch all servers simultaneously


Plan for 2011

Business Performance$ ??? K plan for 2011

Direct Staffing

Projects

$$ ??? K $$ ??? K

RajatAkash

+Prosoft Team

VMwareMicrosoft

??? consultants @ 100/hr

??? Projects @ ??K


Thank you!

Documents

Vm Ware Market Analysis