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VMware’s Journey to the Cloud

Business Applications Center of Excellence Driving Best Practices in Mergers, Acquisitions and Divestitures

Al Ansari

February 2014

Objectives VMware Acquisitions and Divestitures

2013

Biz Apps M&A/D Center of Excellence

• Project Description

– The creation of the Biz Apps M&A/D CoE provided a dedicated team of skilled resources to execute M&A work and to establish standard and repeatable processes for legacy and future M&A and divestiture activities at VMware

• Key Objective: Streamline business process integration for all VMware acquisitions and divestitures

– The creation of the Biz Apps M&A/D CoE established the ability to quickly and predictably integrate (or divest) acquisitions into or out of VMware’s application footprint

– A dedicated M&A/Divestiture team based out of Bangalore own specific integration activities and deliverables, as well as provide flexible capacity and additional skillsets as demand dictates

– All impacted business process, applications and data for front-end, back-end, product launch, and data organizations; ongoing, backlog and new M&A work in scope

• Established: May 2013

• Total Staffing: 11

• Location: Bangalore/Palo Alto

CONFIDENTIAL 3

Solution

Highlights

• Updated and agreed on functional areas that the CoE will be responsible for when managing M&A and divestiture activities

• Finalized CoE governance model

• Completed Business/IT Apps Playbooks for mergers, acquisitions and divestitures comprising L1 process flows, checklists, RACI matrices

• Accomplished standard and repeatable processes and templates

Key Benefits

• CoE team completely ramped up and involved in end-to-end project execution

• Good success rate of integration and divestiture projects

• Reusable assets created and are being utilized in project execution

• Requirements are being collected at a much faster pace due to the Playbooks

• High adoption rate of the Playbooks among stakeholders

CONFIDENTIAL 4

Biz Apps M&A/D CoE Governance Structure A governance structure has been established to manage the Biz Apps M&A/D CoE on an ongoing basis

* Web Marketing will use flex resources and not have permanent staff * DEV/QA and Infrastructure support are not included in the COE * DEV/QA will be managed by Apps lead PM

PMO - IT & Biz Project Managers (Daily meeting if needed)

Sr. Project Manager

Steering Committee (Quarterly meeting) Senior Executive(s)

Leadership Team (Weekly Meeting) Director(s)

Business Process Analysts Back Office

Front Office

Core Operations

Data Analyst

IT Business Analysts Sales & Support

Order Management / Renewal

Finance

Engagement Manager

Customer Ops IT

Sr. Mgr.

Bus. Ops. IT

Sr. Mgr.

Back office IT

Sr. Mgr.

SPAN Biz

Sr. Mgr.

Back Office Biz

Sr. Mgr.

Bus. Ops. Biz

Sr. Mgr.

Customer

Operations Biz

Sr. Mgr.

C

O

R

E

T

E

A

M

Integration

Management

Office Leads

C

O

E

L

E

A

D

S

CONFIDENTIAL

Playbook Example

Customer Support Migrate, retain and archive products Vcat Vsubcat for future

research for like products, and similar issues.

Entitlement Management Add re-direct message then remove product from Phone

Tree after 30-60 days

Case Management Remove all web references for customer support

Knowledge Management Archive/sunset 3rd party customer support systems

Customer Portal/ Self-service

License Support

Global

Support

(GSS)

Archive support case data

Disable support request filing process (My VMware, phone

tree)

Extract support entitlement data

Function Process Activities

RACI

Activity Checklist Task Systems Responsible Accountable Consulted Informed

Migrate, retain and archive

products Vcat Vsubcat for future

research for like products, and

similar issues.

.

1. Identify the Vcat and

Vsubcat categories

which need to be

disabled

Portals - SCA GSS IMO CoE

2. Deactivate/Disable

the product Vcat and

Vsubcat on the cut-

off date

Portals - SCA CoE

Checklists

For each functional area, processes have been broken down and incorporated into a

specific set of tasks with checklists and a responsibility matrix.

Reusable Assets and Playbooks Reusable integration/divestiture assets have been created that are being leveraged in project execution

Integration

/

Divestiture

Playbook

M&A

Launch

Playbook

M&A R&D

Playbook

M&A

IT/Tech

Ops

Playbook

Business

Continuity

Questionnaire

The M&A playbooks leverage an established framework and follow a

structured, re-useable approach

Function Process 1 Activity A Task W

Process 2 Activity B

Activity C

Task X

Task Y

Task Z

RACI

Responsible Accountable Consulted Informed

Network

LAN Team

Network

LAN Team

IT M&A,

Security

Strategic

Sourcing

IT M&A PM IT M&A PM

Strategic

Sourcing -

Hardware

CONFIDENTIAL

• Integration/ Divestiture Playbook • M&A IT/TechOps Playbook • M&A Launch Playbook • M&A R&D Playbook (WIP) • Business Continuity (BC)

assessment questionnaire

• Socialcast Integration Phase 1 & 2 • Zimbra Divestiture • Digital Fuel Integration Phase 1 & 2 • Divestiture Portal CE • Pivotal CF / re-SKU (WIP) • Desktone Integration (WIP)

Reusable Assets Created M&A Projects Executed / Underway

Conclusions • CoE governance model and project execution model completely

ramped up and involved in end-to-end execution of M&A projects

• Requirements are being collected at a considerably faster pace due to the playbooks

• Reusable assets created are being utilized in project execution • High adoption rate of the playbooks among stakeholders • Excellent success rate of integration and divestiture projects • Ongoing development and implementation of a Biz Apps Merger

and Acquisition/Divestiture CoE Knowledge Management Infrastructure

• Continuing progress in establishing Global Delivery Relationships

Stakeholder Feedback

CONFIDENTIAL 10

“Well done! It’s all about delighted customers!”

“Awesome job team in completing the Phase 1 of Socialcast Integration project

and a Big Thank You to all those who were involved in the weekend release.”

“Thanks everyone for the successful migration! It’s a bit easier now to provide

support.”

Bill Heil

(VP, VMware Ops)

Brian Klapac

(Sr. Dir, Customer

Ops)

“Thank you everyone involved! Much appreciate your effort for this customer

experience improvement for divested products.”

Ashok Gupta

(Sr. Mgr., IT)

Mithun Srikanta

(Sr. Proj. Mgr.,

FAST)

“Great work and job well done. Thank you very much for all your outstanding

work.” Al Ansari

(Dir. M&A)

“I would like to take this moment to thank you; you have been doing excellent

work as IT PM (offshore) for M&A/Divestiture COE projects.”

Mia Leondakis (VP,

Customer Ops) “Outstanding! Another big win toward improving our customer experience!”

Job Simon

(VP, IT Apps)

“Outstanding team work. Job well done.” Brian Nichols

(Sr. Dir, IT PMO)

For More Information: Al Ansari, ansaria@vmware.com