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SMBs Achieve ‘Always On’ IT with VMware vSphere&trade

SMBs Achieve ‘Always On’ IT with VMware vSphere™

Small and Midsize Businesses Improve Business Continuity and IT Productivity with High Availability, Fault Tolerance and Data Recovery

PALO ALTO, Calif. – Jan. 27, 2011 – VMware, Inc. (NYSE: VMW), the global leader in virtualization and cloud infrastructure, today announced the continued momentum of its datacenter virtualization solutions within small and midsized businesses (SMBs). 

According to an October 2010 Gartner surveyof midmarket companies, SMBs are adopting virtualization at a very aggressive pace – by 2012, slightly more than 75 percent expect to have server virtualization in wide use, up from 28 percent of companies adopting the technology in 2009 – with business continuity and disaster recovery representing the largest areas of IT investment for SMBs over the next two years.

As SMBs achieve higher levels of virtualization, more are continuing to turn to VMware for advanced capabilities such as fault tolerance, data recovery and high availability in order to improve business responsiveness, maximize uptime and simplify IT management. In fact, 88 percent of Gartner survey respondents indicated they are using some version of VMware. 1

With the accelerated industry wide adoption of virtualization and a broad set of solution sales opportunities for its channel partners, SMB-focused VMware solution providers can continue to leverage VMware vSphere™ as their lead offering in the SMB segment. VMware channel partners are a driving force behind the momentum in the SMB segment, with virtualization packages specifically designed and priced for SMBs driving technology refreshes that typically include servers, storage and services.

Graydon, Head & Ritchey, LLP

Several years ago, before adopting virtualization, the 175 employee law firm Graydon, Head & Ritchey had an outage that shut down email and document management systems for several hours. To avoid this happening again, the firm’s management decided to modernize its IT infrastructure with virtualization. After evaluating Microsoft Hyper-V and VMware vSphere, Graydon selected VMware for its superior technology, ease of set up and management, and performance. Today, the firm has virtualized close to 75 percent of its environment, cutting its server footprint in half, boosting its IT team’s productivity (management of the entire virtualized infrastructure averages only 15 minutes a week of staff time), and recovering 50 percent of its investment in two years through reduced licensing costs.

The Brand Felt Ltd.

Like many SMBs, manufacturer The Brand Felt Ltd. faced the dual challenge of maximizing IT resources and providing high availability and data protection with minimal upfront investment. In an effort to stretch its IT dollars, the company recently implemented a comprehensive virtualization program with VMware vSphere. Brand Felt has virtualized approximately 90 percent of its IT environment, including all of its mission-critical applications, and plans to be 100 percent virtualized within six months. With VMware vSphere high availability and fault tolerance, IT is able to eliminate unplanned downtime and improved application performance – all while simplifying IT administration.

Comments on the News

“For VMware, SMBs are the largest and fastest growing virtualization customer segment. Once our SMB customers begin their virtualization journey, they progress more rapidly than other types of businesses and adopt virtualization to support a larger percentage of their infrastructure, including the use of the technology for more advanced applications such as business continuity and disaster recovery. SMBs who virtualize IT choose VMware due to its proven technology, advanced functionality and rapid ROI.” – Tim Stephan, senior director of product marketing, VMware

“To control costs, we keep a lean staff and make careful purchasing decisions. At the same time, we can’t skimp on what we need to accomplish our mission. VMware was easy to set up, easy to manage, great performance – everything we were looking for.” – Robert Gunyon, IT manager, Graydon Head & Ritchey, LLP

“VMware vSphere has really opened doors in terms of high availability and simplified IT management. We don’t see ourselves ever turning back from virtualization, and VMware vSphere Essentials Plus is the product out there that offers cost-effective high availability.” – Michael Paquette, network administrator, The Brand Felt Ltd.

“As virtualization has become more widespread, SMBs are actively seeking out how to implement the technology within their IT environment. Across the board, our customers are selecting VMware solutions because they provide them with enterprise-like capabilities without the huge price tag. Offerings like VMware vSphere Essentials Plus allow our SMB customers to take advantage of capabilities like high availability and business continuity so they can realize true operational efficiency and cost savings." – Richard Travis, vice president and general manager, Computer Professionals International

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About VMware

VMware delivers virtualization and cloud infrastructure solutions that enable IT organizations to energize businesses of all sizes.  With the industry leading virtualization platform – VMware vSphere ® – customers rely on VMware to reduce capital and operating expenses, improve agility, ensure business continuity, strengthen security and go green. With 2010 revenues of $2.9 billion, more than 250,000 customers and 25,000 partners, VMware is the leader in virtualization, which consistently ranks as a top priority among CIOs. VMware is headquartered in Silicon Valley with offices throughout the world and can be found online at

1. Gartner, Inc., “User Survey Analysis: Next Steps for Server Virtualization in the Midmarket,” James A. Browning and Alan Dayley, 21 October 2010.

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Forward-Looking Statements

This press release contains forward-looking statements including, among other things, statements regarding the momentum for VMware datacenter virtualization solutions within SMB’s, including adoption rates and potential benefits to customers.  These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including but not limited to: (i) adverse changes in general economic or market conditions; (ii) delays or reductions in consumer or information technology spending; (iii) competitive factors, including but not limited to pricing pressures, industry consolidation, entry of new competitors into the virtualization market, and new product and marketing initiatives by our competitors; (iv) our customers’ ability to develop, and to transition to, new products and computing strategies such as IT virtualization, (v) the uncertainty of customer acceptance of emerging technology; (vi) rapid technological and market changes in virtualization software and platforms for cloud and desktop computing; (vii) changes to product development timelines; (viii) our ability to protect our proprietary technology; (ix) our ability to attract and retain highly qualified employees; and (x) the successful integration of acquired companies and assets into VMware. These forward looking statements are based on current expectations and are subject to uncertainties and changes in condition, significance, value and effect as well as other risks detailed in documents filed with the Securities and Exchange Commission, including our most recent reports on Form 10-K and Form 10-Q and current reports on Form 8-K that we may file from time to time, which could cause actual results to vary from expectations. VMware assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release.