VMware Defines New Operating Model for the Cloud Era

SAN FRANCISCO, CA--(Marketwire - Aug 27, 2012) -   Designed to address the operational challenges businesses face in building, operating, staffing and measuring a high-functioning IT organization, VMware, Inc. (NYSE: VMW), the global leader in virtualization and cloud infrastructure, at VMworld® 2012 today announced new Cloud Ops Intellectual Property (IP) and advisory, transformation and education services. VMware's Cloud Ops IP helps IT transition to a new operating model for cloud computing that promises to accelerate delivery of new business value and innovation.

Part of the comprehensive cloud solution VMware unveiled today, Cloud Ops draws on VMware's experience helping hundreds of clients worldwide navigate through the complex decisions around building, running and optimizing public and private cloud environments. Through these proven implementations a new operating model has emerged. IT shifts from a reactive, tactical relationship with business, to the role of a strategic partner helping drive innovation and competitive advantage.

"Customers evolving to Cloud Ops are realizing significant gains in efficiency, agility and reliability," said Carl Eschenbach, VMware chief operating officer and co-president. "In fact, we have seen some VMware customers reduce labor operating costs by as much as 25 percent, freeing resources for reinvestment into new services that drive innovation and competitive differentiation."

VMware is also introducing the Cloud Ops Forum, a group of consulting and integration partners that will collaborate on further definition of this new operating model. Together with VMware, these companies will work to transfer knowledge to the end-customer community to realize the greatest efficiency, reliability and agility benefits from this transition. Launch members of the Cloud Ops Forum include Canopy, Capgemini, CGI, CSC, Dell, Deloitte, EMC, HP, Infosys, T-Systems and VMware. Participation in the Cloud Ops Forum may expand to include other industry participants and customers in the future. [Read what launch members are saying about the Cloud Ops Forum].

Consistent with many other generational shifts in IT, the shift to cloud computing is not limited to the technology itself. Cloud Ops and the Cloud Ops Forum take into consideration a modern organization's need to include cultural, financial, political and process elements as a part of their overall IT transformation planning -- all toward capturing the full benefits of cloud computing.

"The new IT will be agile -- not only with technology, but with its people," said Gartner Vice President of Research, Diane Berry, in the January 2012 report IT Workforce: The Road to 2016 and Beyond. "This requires organizations to move from the traditional approach of 'managing change' on a project-by-project basis to building a more mature level of competency termed 'organizational liquidity.' The mastery of this skill will enhance the value of IT to the business and, ultimately, will impact the bottom line."

Together, Cloud Ops and the Cloud Ops Forum address how to build, operate, staff and measure a cloud environment to maximize business innovation and efficiency, with a focus on four key areas:

• Processes and Control. As a result of IT's increasing movement toward a more dynamic and automated cloud approach, many traditional IT processes need to change. To help IT manage this transition, Cloud Ops introduces and outlines capabilities that allow the greatest opportunity for business gains. These include On-Demand Services; Automated Provisioning and Deployment; Proactive Incident and Problem Management; Policy-based Security; Compliance and Risk Management; and Consumption-based IT Financial Management.
• People and Organization. While secure, flexible and scalable technology is a cornerstone of any successful IT strategy, it's the people and team structure that deliver on the promise of responsiveness and efficiency. Cloud Ops includes a blueprint for organizational change including the development of a Cloud Center of Excellence, supported by new role-based training and certifications.
• Financial Modeling and Measurement. Moving beyond standard performance monitoring, Cloud Ops introduces new cloud-relevant metrics that establish modern parameters for measuring the efficiency, agility and reliability of cloud environments, as well as expanded capabilities of IT Business Management (ITBM) services to guide the transition to service-level financial management of IT.
• Software Technology and Architecture. The efficiency, agility and reliability of Cloud Ops requires a flexible, automatable and resilient infrastructure, delivered through VMware's vision for the software-defined datacenter. The VMware vCloud® Suite 5.1 is the first solution to deliver the software-defined datacenter by integrating VMware's leading virtualization, cloud infrastructure and management portfolio into a single SKU, simplifying adoption of cloud era technologies. [Read the VMware vCloud Suite 5.1 press release].

Today's announcement of Cloud Ops and the Cloud Ops Forum will support IT leaders and their teams as they manage through this unprecedented change. Specifically, the new IP and services will include:

• New cloud operations services provide customers with collaborative assistance in analyzing, designing and implementing cloud solutions.
• New and updated technology consulting services help customers quickly build experience with cloud computing and the industry's first complete and integrated cloud infrastructure suite, the VMware vCloud Suite.
• New Education Offerings and Certifications expand the in-house skills and experience customers need to effectively design, operate and evolve their cloud environment.
• VMware Architecture Toolkit (vCAT) 3.0 offers a set of documents designed to help customers construct a cloud solution leveraging technologies, recommended practices and innovative tools proven in real-world enterprise and service provider cloud deployments.

Availability
The new Cloud Ops services and education will be available starting today, with additional offerings made available through 2013. For more information, visit VMware Cloud Computing Solutions here and VMware Cloud Operations Services here.

Additional Resources

• Go to VMware Now
• Go to VMworld 2012 Press Kit
• Read VMware CTO Steve Herrod's blog: The Software-Defined Datacenter meets VMworld
• Read the Accelerate blog
• Learn more about VMworld 2012
• Follow VMworld on Twitter and Facebook

About VMware
VMware is the leader in virtualization and cloud infrastructure solutions that enable businesses to thrive in the Cloud Era. Customers rely on VMware to help them transform the way they build, deliver and consume Information Technology resources in a manner that is evolutionary and based on their specific needs. With 2011 revenues of $3.77 billion, VMware has more than 400,000 customers and 55,000 partners. The company is headquartered in Silicon Valley with offices throughout the world and can be found online at www.vmware.com.

Forward-Looking Statements
This press release contains forward-looking statements including, among other things, statements regarding the potential benefits, planned features and expected availability of Cloud Ops advisory, transformation and education services and Cloud Ops Intellectual Property and the expected benefits to customers and expectations for a generational shift in IT. 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 cloud computing and desktop 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) VMware's ability to protect its proprietary technology; and (ix) VMware's ability to attract and retain highly qualified employees. 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.

VMware, VMware vCloud and VMworld are registered trademarks and/or trademarks of VMware, Inc. in the United States and/or other jurisdictions. All other marks and names mentioned herein may be trademarks of their respective organizations. The use of the word "partner" or "partnership" does not imply a legal partnership relationship between VMware and any other company.