Confidential© 2012 VMware Inc. All rights reserved

VMware Partner Profitability: Partner Rewards

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Disclaimers

All information conveyed during this session is to be treated as confidential.

While every effort has been made to portray actual end functionality and display information accurately, all items demonstrated within this session are subject to change without notice.

While all efforts have been made to ensure working functionality, this session is being conducted on a test environment which is subject to change and modification without prior notice, which in turn may impact on the availability, performance and functionality of the demonstration.

As per the NDA agreement entered into previously, all information displayed is proprietary to VMware and should not be copied or recorded in any way during or after this session.

This session may contain product features that are currently under development.

This session/overview of the new technology represents no commitment from VMware to deliver these features in any generally available product.

Features are subject to change, and must not be included in contracts, purchase orders, or sales agreements of any kind.

Technical feasibility and market demand will affect final delivery.

Pricing and packaging for any new technologies or features discussed or presented have not been determined.

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Forward-Looking Statements

Statements made in this presentation which are not statements of historical fact are forward-looking statements based upon current expectations. Actual results could differ materially from those projected in the forward-looking statements. Information regarding risk factors that could cause actual results to materially differ are contained in documents filed by VMware with the Securities and Exchange Commission, including report that VMware may file with the SEC from time to time on periodic reports on Form 10-Q and Form 10-K and current reports on Form 8-K. VMware disclaims any obligation to update any such forward-looking statements after the date of this presentation.

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Incentive Program Disclaimer

Eligibility for programs and benefits discussed in this session may vary by Partner Type, Program Level, and Partner Location. See VMware Partner Central for complete details.

Partner financial incentives discussed in this session represent maximum available through the program.

Program Terms, conditions, and benefits are subject to change at the sole discretion of VMware.

VMware reserves the right to decline and/or restrict the programs for any reason and at any time.

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Agenda

Partner Rewards OverviewOpportunity RegistrationRebate ProgramsSales Rep IncentivesOrganization Benefit ProgramsMDFResources to Support You

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Partner Rewards Overview

VMware’s portfolio of incentive programs is designed to reward Partners for value-creation and investments made in their VMware

product and solution sales practices.

Registered Professional Enterprise Premier

MDF MDF

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Over 300,000 installed VMware Customers to ……..

80% of companies <1000 employees are an

opportunity for virtualizationVMware

$3+ Billion

in 2011

The Market Opportunity Continues to Grow ……

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Leverage Partner Rewards to Address the Opportunity

Advantage+

Partner opportunity registration program to reward Partners for value-added selling activities

Solution Rewards

Rewards Partners for product expertise on

solution sales

Partner Rewards provides added incentives for acquiring new customers and cross-selling customers with new product solutions

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Advantage+, VMware’s Opportunity Registration Program

Program benefits:• Enhance VMware Partner profitability and protect pre-sales investments

• Reward Partners for acting as trusted advisors and bringing in new customers

• Create a cooperative selling environment for our value focused Partners

Program components:

VMware’s Opportunity Registration Program that rewards Partners for value-selling and leading with VMware Solutions

Develop new VMware opportunities

Influence customer’s VMware purchase,but deal fulfilled by another Partner

Register and protect key opportunities by demonstrating value selling

Influence

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• $10,000 list license value minimum deal size for opportunities

Advantage+ Program Effective Feb. 1, 2012

REGISTERED

PROFESSIONAL

ENTERPRISE

PREMIERPARTNER

LEVEL

+10%10%

NEW CUSTOMERBONUS REBATE

STANDARD OPPREGDISCOUNT

See program terms & conditions for program eligibility, payment structure, and payment method variations

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Advantage+ New Customer Bonus Rebate

Customer site has no VMware license purchases(including OEM-branded VMware licenses) in past 4 years

• Liberal towards subsidiaries & remote locations

• Accounts are still considered new if they have prior purchases of Workstation of Fusion

10%Oppreg

CR, GSI, Solution Provider: Premier & Enterprise

+10%New Customer

Bonus

Earn up-to 20% on new customer sales

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Solution Competencies: Increase Expertise, Increase Revenue

Your ROI: 2-4X Increase in Deal Size PLUS Solution Rewards incentives

Learn more: www.vmware.com/go/competencies

$115K with Competency

$32K without

Infra

stru

ctur

e Vi

rtual

izat

ion

Des

ktop

Virt

ualiz

atio

n

$45K with Competency

$11K withoutBus

ines

s C

ontin

uity

$48K with Competency

$24K without

3.5x

2x 4x

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VMware Solution Rewards

EUC

CIM

Desktop Virtualization

Infrastructure Virtualization

Business Continuity

Virtualization of Business Critical Applications (VBCA)

Designed to accelerate profitability for Partners achieving VMware Solution Competencies

VMware vCenter Site Recovery Manager Licenses

• All Partner Levels are eligible

• Eligible upon Competency achievement

• Quarterly back-end rebate issued to Partners

• No minimum deal size required for transactions*Program benefits available In Emerging Markets only

VMware View & VMware ThinApp Licenses

VMware vSphere & VMware Server Licenses*

VMware vCenter Business Production Bundle Licenses

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Solution Rewards Program Changes

Customer site has no VMware license purchases of eligible product families (including OEM-branded VMware licenses)

in past 4 years

Earn up-to 20% on first-time solution sales

2%IV (Emerging Countries)

10%Desktop, BC/DR

&New Competencies

+10%First-time Sale

Bonus

Additional incentives available for Partners as more Solution

Competencies become available

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Rewards for New Customer Sales

advantage+ discount for value-selling on $10K+ deals (upfront discount)

advantage+ bonus rebate on sales to new customers (after sale)

On sales to new customers with advantage+

Opportunity: 1 vSphere Standard Acceleration Kit (>$10,000 USD License)

Rewards represent maximum available through the programs and are calculated as a % of eligible list license value

Standard Program

Bonus Reward

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New Customer Rewards Margin Example

*Margin calculated as a % of Reseller Price

Partner has an approved advantage+ Opportunity with a new VMware Customer containing:

vSphere and vCenter Operations Licenses worth $15,000

Deal List PriceReseller PriceStreet PriceReseller Markup 10%

Reseller ProfitReseller Margin

Standard Opportunity

Advantage+ Opportunity

$15,000 $15,000$12,450 $12,450$13,695 $13,695

$1,245 $1,245

$1,24510%

Advantage+ 10%Advantage+ Bonus 10%

Standard Discount$1,500New Customer$1,500

34%$4,245 3.4X Margin

Improvement

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Rewards for Cross-Sell Opportunities

Solution Rewards rebate for Business Continuity

Solution Rewards bonus rebate for first time sale of Business Continuity

advantage+ discount for value-selling on $10K+ deals (upfront discount)

On first time solution sales with Solution Rewards & advantage+

Rewards represent maximum available through the programs and are calculated as a % of eligible list license value

Up-Sell Opportunity: 1 vCenter SRM Enterprise (>$10,000 USD License)

Standard Program

Bonus Reward

Cross-Sell Opportunity: 1 vCenter SRM Standard license (<$10,000 USD License)

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New Customer Rewards Margin Example

*Margin calculated as a % of Reseller Price

Partner has an approved advantage+ Opportunity for a customer who has never purchased Desktop products containing:

1 View Premier License worth $25,000

Standard Opportunity

Advantage+ & Solution Rewards

Deal List Price $25,000 $25,000Reseller Price $20,750 $20,750Street Price $22,825 $22,825Reseller Markup 10% $2,075 $2,075Advantage+ 10%Solution Rewards 20%Reseller Profit $2,075Reseller Margin 10%

Standard Discount$2,500First-time Sale$5,000

46%$9,575 4.6X Margin

Improvement

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VMware Premier Rewards

Program benefits:• Available to Solution Provider - Premier Partners

• Quarterly back-end rebate issued to Partners

• 2% rebate for achieving quarterly VMware sales targets

Provides financial incentives to partners who achieve excellence

within their market and meet or exceed quarterly goals set by VMware

Quarterly performance based incentive designed to align with VMware’s go-to-market strategy and drive focused goals with our Partners.

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VMware Partner Network Revenue Credit for OEM Sales

Get credit for OEM-branded VMware product sales

Gain access to greater benefits and rewards as you progress in the VMware Partner Network Solution Provider Program

Participating Global Alliance OEMs:

Partners need to opt-in to release their sales data to VMware

For more information, refer to the Frequently Asked Questions on Partner Central at: www.vmware.com/partners/partners.html? 06880000000cTzY

Confidential© 2012 VMware Inc. All rights reserved

VMware Partner Programs

Dev PrabhuSr. Manager – Channel & Alliances Marketing VMware India & SAARC

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Individual Sales Rep IncentivesRewards for Accredited and Certified Individuals

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Accelerate new business opportunities and increase revenue up to 16x

Learn more: www.vmware.com/go/partneruniversity

$74,464 with

$4,540 without

$101,249 with

$10,936 without

$209,289 with

$34,842 without

VS

P

VC

P

VTS

P

6x

9x

16x

Accreditations & Certifications: Increased Business & Revenue

VMware Sales Professional (VSP)Introductory sales training. Online. Free.

VMware Technical Sales Professional (VTSP) Self-paced technical accreditation. Online.

VMware Certified Professional (VCP)Best practices, hands-on. Instructor-led. Industry recognized.

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VMware Sales Rewards

Rewards accredited sales and technical Partner reps for completing sales and training activities. The more you sell and train, the more you earn!

• Available to Solution Provider: Premier, Enterprise, and Professional level companies

• Promotional Rewards available for:• Product SPIFFs

• Closed advantage+ sales

• Training & Enablement

• and more…

• Earn reward points to exchange for the reward of your choice!

Program may not be available in all regions, see Partner Central for complete details.

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Current Promotion: Rewards for New Customer Sales

Terms and conditions apply, visit www.vmware.com/go/salesrewards for

program details and eligibility

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Current Promotion: Product SPIFFs

1st April Through 30th June: Earn reward points for selling:

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Product Name (SKU) Points per SKUVMware vCenter Operations Management Standard 5.0 (VC-O5-STD25-C) 100 points

VMware vCenter Operations Management Suite Advanced 5.0 (VC-O5-ADV25-C) 200 points

VMware vCenter Operations Management Suite Enterprise 5.0 (VC-O5-ENT25-C) 300 points

VMware vCenter Site Recovery Manager 5 Standard (VC-SRM5-25S-C) 400 points

VMware vCenter Site Recovery Manager 5 Enterprise (VC-SRM5-25E-C) 800 points

VMware View 5 Premier Bundle 100 pack* (VU5-PR-100-C) 1,500 points

*Promotion not available in all regions

**In some regions, academic and VPP version SKUs may qualify see program site for complete details

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Example

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10100 points = 1,01,000 INR

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Choose your own reward…

Exact merchandise varies by country, subject to availability and change, point values may vary

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Organizational Programs

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VMware Market Development Fund (MDF) Program

Program benefits:• Extend your marketing budget with shared resources from VMware

• Expand your VMware footprint by investing in demand generation and sales incentive programs that create leads, drive opportunities and grow your VMware business

• Utilize funds for enablement and training to better understand and sell VMware products

Proposal-based reimbursement program to support our Partners’ VMware marketing campaigns and demand generation activities

Work with your VMware Partner Business Manager or VMware Partner Marketing Manager to get started on your

marketing plan!

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Alliances & OEMsJoint revenue model

HP, IBM, Dell, EMC, Cisco, Intel, NetApp, etc

MDF (Market Development Fund)

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ProspectingCampaigns Events

Online Ads Web Site(incl. Evals)Email

Offers

Raw Leads

Pipeline

Won Opps

Opps

TQL Leads

Lead Generation

DistributorsBusiness Volume

Avnet, Ingram, etc

SIMarketing Programs – Revenue Impact

HCL, TCS, Wipro, etc

VSPPMarketing Programs – Revenue Impact

Kryptos, Airtel, Sify, etc

SP’sMarketing Programs – Revenue Impact

Premier, Enterprise, Professional

Partner Develop

Partner Recruitment

Partner Incentives

Partner Sales

Thought Leadership

Market Awareness

Lead Generation

Sales Acceleration

Relationship Building

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The Bureau is made up of a group of consultants whose sole purpose is to assist VMware Partners in their lead generation efforts – everything from how to run a Grid campaign through to setting up a Website in a Box or

even where to locate marketing assets in Partner Central.

Partner Marketing Bureau

© 2011 ZINFI Technologies Inc. All Rights Reserved.

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Partner Engagement and Demand Gen. Assets

© 2011 ZINFI Technologies Inc. All Rights Reserved.

PMB Portal

Partner registration

Engage, aware & onboard

PMB contact VMware Partner

Coach, train & execute

Telequalification(TQL)

Demand generation assets

Partner ready campaigns

A campaign portal, which allows you to create interactive permission-based email

marketing campaigns – run sophisticated campaigns quickly

and easily.

Check VMware latest SMB campaign

To help you follow up leads generated by the

Grid campaigns, VMware will provide you

with telemarketing support.

Easy way for you to display accurate VMware product and solution content on your own website. With a simple addition

to your current webpage, content will automatically be published in

minutes.

Allows you to create and customize your own VMware event and contains everything

you need to promote and manage the registration.

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Latest Grid Campaigns

© 2011 ZINFI Technologies Inc. All Rights Reserved.

Symantec/VMware Virtualisation -Accelerate your race to 100% Virtualisation

Campaign Goals:Generate leads for joint VMware/Symantec Partners focused on driving Symantec Application HA, with VMware vSphere and vCenter.

VMware campaign for Small to Mid-Sized Businesses – Real World Advantage

Campaign Goals:Generate leads for joint VMware’s SMB virtualization solutions targeted to acquire net new customers and to cross sell adjacent solutions to the existing customer base

VMware Support and subscription Renewal Campaign

Campaign Goals: Generate renewals requests from customers whose contract is expiring within 90 days. To increase the value of the deal we recommend to up-sell the customer to a production contract

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Salesforce – why?

Registering your opportunities in Salesforceto get rewarded through Advantage + Program

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Coming in Q2: Partner Rewards Management

Created to deliver the experience you asked for, Partner Central is being updated with a VMware Partner Rewards management section to improve the Partner

experience around VMware’s portfolio of incentive programs

One Location,All your Rewards

Benefit Summary

Combined Payments

Program Reporting

Self-service Tools

MDF Management

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Partner Rewards Benefit Summary

• Specific to your reward programs

• Four-quarter summary

• Available on demand

• Prior years statements saved

What Gets Measured, Gets Better!Manage and Track your VMware Partner Rewards

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Partner Central Resources to Support You

Complete Program details available on Partner Central > Incentives• Individual Program overviews & documents

• Program update and recordings

• Access to Opportunity Registration, Sales Rewards, and more

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Things to Remember

1. Register new VMware opportunities through advantage+2. Submit payment details to receive Partner Rewards rebates3. Accept Solution Rewards terms & conditions & Premier

Rewards Goals regularly

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How Can we Help?• Partner Program & Benefit questions

• Partner Central access, navigation, visibility

• Payment and processing inquiries

• And more…

• Available 24x5

Languages Supported:English | Spanish | German | French | Italian

Japanese | Chinese | Portuguese

Contact Us:• Email: vmwareindiasales@vmware.com

Phone: 1800-102-6802 / 080-42486800• Open a case through Partner Central

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Next Steps

1. Go to Partner Central to learn more• Partner Central > Incentives

2. If you have additional questions:• Contact your VMware Partner Business Manager

• Contact the Partner Support Center

• Email PartnerNetwork@vmware.com

3. Visit the Partner Rewards booth today

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Call to Action

ListenKnow where your customers are on their Journey to ITaaS – and create a plan to accelerate their progress.

LearnUpgrade your knowledge across the VMware stack for ITaaS. Update your Accreditations and Certifications.

LeverageMaximize the networking opportunities here and use those new relationships to accelerate your success.

http://www.vmware.com/partners/partners.html