© 2014 VMware Inc. All rights reserved.

VMware: Delivering Desktops and Apps as a Service (DaaS)Business Decision Maker Presentation for Service Provider

1

Agenda

• Market Trends

• Market Opportunity

• Platform Overview

• Solution Overview

• Use Cases

• Competitive Positioning

• How to Buy

• Additional Information

2

Market Trends

3

43% of workforce using

3+ devices

74% of employees use consumer

technologies, due to a lack of

alternatives from IT

2010The year the number of

non-Windows based apps

exceeded Windows apps

4

How do I secure IP and data

and maintain compliance?• $459K/year spent on losses

associated with lost or stolen data

and endpoints

How do I manage all of these

new devices and apps?• Up to 8 hours for device deployment

per user

• Over 4.5 hours spent patching

applications per user

How do I contain costs?• Managing BYOD typically costs

companies about 17-20% more

than supporting company

allocated devices

5

How Virtual Desktops Solve this problem

6

End-users will

continue to win

the battle of

choice

IT will be able to

securely offer

end-users access

to their data and

apps from

anywhere

With a strategic

control point, IT

will be able to

offer higher

agility to the

business

To regain control,

IT will use a

strategic control

point for managing

all desktops, apps

and data

How DaaS Works

7

VMware Horizon™ DaaS® Platform is purpose-built for delivering virtual desktops in the cloud…a quickly deployed, affordable cloud-based virtual desktop solution.

Cloud Provider

Virtual Desktop: User profile,

applications, OS and optional

user data

End User Devices

Use your own or choose to have

SP provide thin clients with or

without MSFT licenses

Corporate OfficeRemote Office

Corporate Wi-Fi

Mobile Workers

Benefits of DaaS

8

Fast & Flexible (Low Risk) – Easy to try &

easy to buy. Start small and grow. Get desktops

immediately when needed.

No CapEx – All OpEx. No upfront costs.

No Operational Skills Needed – Consume

desktops as a monthly subscription service and pay

for desktop SLA.

Multiple Datacenters – Desktops are hosted in

the nearest datacenter.

Hybrid Model – Deploy VDI for some locations and

cloud for others.

Why DaaS Now?• DaaS solves many real and

perceived desktop virtualization

challenges.• No upfront CAPEX: OPEX model of

utility based pricing

• Burstability: Scale up/down

(flexibility)

• Minimal internal expertise required

• Remote locations where building

data center capacity is impossible

• Customers are becoming more

comfortable moving IT workloads

to the cloud. Why not virtual

desktops?

• Cloud providers are looking to add

more cloud subscription services

and to differentiate in the market.

9

Market Opportunity

10

66%Use DaaS now or

plan to use DaaSWe currently use both VDI

and DaaS, 15%

We currently use VDI and plan to use DaaS, 21%

We currently use VDI but

have no plans to use DaaS, 34%

We have plans to use both VDI and DaaS, 19%

We currently use DaaS and

plan to use VDI, 9%

We currently use DaaS but

have no plans to use VDI, 3%

Which of the following statements is most accurate? (Percent of respondents, N=158)

Cisco Sponsored Survey with ESG

Group: Organizational Usage and

Plans for VDI and DaaS

11

Latest IDC Market Sizing

12

Worldwide Hosted Workspace as a Service by Segment, 2008-2016 ($M)

Hosted 2008 2009 2010 2011 2012 2013 2014 2015 2016

2011

Share

(%)

2011-

2016

CAGR

(%)

2016

Share

(%)

Centralized

virtual

desktop

$0.0 $0.0 $2.9 $10.2 $26.8 $52.1 $91.8 $151.5 $220.4 33.2 84.8 33.3

Distributed

virtual

desktop

$0.0 $0.0 $0.0 $0.1 $0.3 $0.8 $1.9 $4.0 $6.1 0.3 125.8 0.9

User state

virtualization$0.0 $0.0 $0.8 $3.1 $9.1 $18.8 $33.2 $48.9 $62.9 10.0 82.8 9.5

Virtual user

session$0.0 $0.0 $7.8 $16.3 $41.4 $83.0 $153.5 $233.2 $310.3 52.7 80.3 46.9

Total 0.0 0.0 12.0 30.9 87.3 174.6 311.1 481.6 661.1 100.0 84.6 100.0

Source: IDC

• 84.6% CAGR over 5 years

• Software license revenue only – services pull through not included

Why Service Providers Want to Offer DaaS…

13

Easy try & buy

model - cloud

Huge market potential

- getting customer

demand (pull)

High switching

costs - DaaS is

anchor tenant

Lowers cost of desktop

management & support

Recurring

revenue stream

IaaS commoditization -

need to differentiate

Additional

infrastructure &

services drag

Unique position to ‘own’

many VDI market

segments vs. on-premise

deployments

Sample Revenue Drag with Each Desktop Sold

14

Desktop

Management

Services Backup Anti-virus App Hosting

Migration

Services

Document

Storage

$1 Desktop sold = 5X Additional Products & Services Sold

Up-sell Products/Services

$30-50 $10-100 $ MSRP

$30-$150Virtual Desktop

*sample

Platform Overview

15

VMware Horizon DaaS Platform Differentiators

16

The only virtual desktop platform purpose built for service providers andcloud delivery

Multi-tenancy Scalability Lower Cost

DaaS

Platform • Grid-based

Architecture

• All open source -

no MSFT license

costs

• Unified

Platform

VMware Horizon DaaS Platform Workspace Models for All Use Cases, All User Types

17

Economically balanced Business & Personal objectives

80% 15% 5%• Replace XenApp Farm

• Terminal Services – “just an app”

• Published Apps – via an icon

• Students, Virtual Labs

• Shared Desktop

• Shift Workers

• Desktop Replacement –“My Desktop”

• Thick to Thin Client “flip”

+ + 100%=

Provision & Manage

Entitlements – single console

RDS Desktops

RemoteApp

RDS

Win 7/8/XP, Win Server Dedicated

VDI DesktopsPersistent or Non-persistentDesktop

Shared Desktops

Published ApplicationsFrom VDI or RDS Pools

*sample

Solution Overview

18

Enabling the Business of VMware Horizon DaaS

19

VM

ware

Horiz

on D

aaS

Sta

ck

Data Center

Service Provider

Hardware Options

Go to Market

Business Operations

SW Operations

Horizon DaaS Platform

Hardware

+1 Value-addsBLUEprint

VMware Horizon DaaS Solution Components

20

VMware Horizon DaaS Bundles

Horizon DaaS Bundle – VDI Edition

Horizon DaaS Bundle – RDSH Edition

Compute

Rack Mount or Blades

Storage

NFS

Network

VLAN and VRF Support

Alignment of Responsibilities

21

Management, devices, apps, OS

• Desktop management

• Access devices (end-point) – PC, laptop, tablet, etc.

• Applications – Word, Excel, LOB apps, antivirus, etc.

• Image creation, deployment and maintenance

• Operating system licenses – Windows clients/server

CAN BE PROVIDED BY:

END CUSTOMER

SERVICE PROVIDER

SOLUTION PROVIDER

Software• DaaS software

• Server/data store

• SW patching

and administration

• Support and

maintenance

Hardware• Servers

• Storage (RAID protected)

• Networking infrastructure

• Hardware administration

• Support and maintenance

Facilities• Data center

• Racks

• Power and cooling

• Security

Support• 7 x 24 x 365 L2+ support for desktop admin

• DaaS Platform — certified

• support personnel

• Integrated incident, service

request and escalation

management system

PROVIDED BY

SERVICE PROVIDER

• 24 x7 Enterprise ITIL

Support

• Enterprise Security

• Enterprise Class

Data Center

Operations

The only multi-tenant desktop

virtualization platform in the

market with many DaaS specific

features including:

Unique Architecture:Multi-tenant, Multi Data Center

Mgmt, Multi-desktop Model, Role

Separation, Grid-Scale, Security, etc.

Technology

Front to back services blueprint

for quick time to market

Tested and highly optimized

Solution Blueprint

Best practices for building,

operating and monitoring

VMware DaaS Platform

100% Channel Model

vCAN Usage ModelPer user/per month pricing

Sales, Marketing & Prod

ManagementPricing, Packaging, Positioning, Lead

Gen, etc.

Built from Day 1 for Service Providers and as a Service Delivery

Operational Expertise GTM Model

22

Super EASY To Try

23

3 Clicks to a Virtual Desktop

Create Virtual

Desktop1 2 Assign to

Users3 User Login

Use Cases

24

DaaS Use Cases

General DesktopReplacement

DisasterRecovery

Remote Offices/Field Workers

Seasonal and Contract

Employees

MobileEmployees

Reduce Management Effort & TCO

Include Desktops

in DR Plans

Centralize Desktop

Management

Improve Data Security & Load

Changes

Full Desktop to Any Device

Special Desktop Needs

FlexibleConfiguration

Access to

desktops

applications and

data across

locations and

devices-including

BYOD without data

residing on

endpoint

Flexibility to

increase or

decrease

workforce based

on seasonal needs

- may have their

own end-point

devices (e.g.

M&As)

Central image

management and

for remote, branch

offices and call

centers

Central image

management and

for remote, branch

offices and call

centers

Central image

management and

for remote, branch

offices and call

centers

Access to

desktops

applications and

data across

locations and

devices-including

BYOD without data

residing on

endpoint

25

DaaS Use Case for Disaster Recovery

Desktop

• Enables partners to deliver a secure corporate desktop that can be accessed by customers from any device, anywhere.

Desktop DR

• Enables partners to ensure workforce continuity with a secure corporate desktop that can be accessed by customers from any device, anywhere.

26

Horizon

DaaS

Bundles*

Partner delivers virtual desktop as a service (DaaS) from cloud

HOT

Desktop

Reservation

Capacity

Horizon

DaaS

Bundles*

or

Partner reserves

desktop capacity in cloud

for the number of users

the customer wants to

have “insurance” for

Partner “turns on”

desktops sitting in

reserve in case of

disaster event

COLD HOT

New

* VMware Horizon DaaS Bundle – VDI Edition, VMware Horizon DaaS Bundle – RDSH Edition

Competitive Positioning

27

Competitive Environment

28

Microsoft & Amazon Citrix Aggressively Pushing DaaS

VMware vs. Amazon

29

VMware Horizon DaaS Amazon WorkSpaces

Meets Enterprise Customer Requirements

Desktop/Workspace Options

Windows XP Genuine Desktop

Windows 7 Genuine Desktop

Windows 8 Genuine Desktop

Windows Server 2008 R2

Windows Server 2012

Windows Server 2008 R2 with RDSH

Windows Server 2012 With RDSH

Linux

Windows Apps Publishing

Works with Zero Clients

Soft 3D Capable

Shared GPU Capable

ThinApp Compatibility

Works with all existing management and security tools

Managed value added services available on top of base offering

Can be offered by existing service provider of choice

Available free trials and POCs (Proof of Concept)

Live 24x7 support options

Security and compliance assurances

Service Level Agreement

VMware vs. Citrix

30

VMware Horizon DaaS Citrix Avalon

Unified platform for VDI, RDS desktops & RDS applications

Multi-tenant ability

Scales to multiple data centers

Grid-based architecture (no single point of failure)

Platform deployed as HA by default

Scale model for 100s of 1,000s of desktops & apps

ThinApp Compatibility

Does not require MS-SQL and WinServer licenses

Role separation between desktop administrator and service provider

Does not need Active Directory trust

Isolated tenant broker repositories

Proven mature cloud delivery platform

World-class hypervisor: vSphere

High-definition end-user experience: View Agent Connect

RESTful API for custom integration

Available now

How to Buy

31

VMware Horizon DaaS Solution Go-To-Market

• Partner Requirements

– 10,800 point VMware Service Provider Program (vCAN) rental contract

– Partner skill sets, business model, and pipeline assessment

– Paid proof-of-concept

– VMware Horizon DaaS Bundle(s) for vCAN

– Paid professional deployment & training services

– Hosting customer monthly usage reporting

• Routes-to-Market

– Direct (vCAN partner sells to end-customer)

– vCAN partner sells thru reseller (end-customer deal goes on reseller’s paper)

– Referral (deal goes on vCAN partner’s paper)

• vCAN partner pays referral partner a referral fee when deal closes

32

Additional Information

• VMware Horizon DaaS Platform and FREE TRIAL

– http://www.vmware.com/products/daas

• VMware Service Provider Program

– http://www.vmware.com/partners/service-provider.html

• VMware Products

– http://www.vmware.com

– partnernetwork@vmware.com

– +1-877-4-VMWARE (North America)

– +1-650-427-5000 (Outside North America)

33

Thank You

34