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Pegasystems' (PEGA) CEO Alan Trefler on Q2 2017 results - profits designation Transcript | actual Questions and Pass4sure dumps

No outcome discovered, are trying current keyword!They reported “Pega was the simplest election when it comes to a person who unifies any these channels, inbound, outbound, the entire different things you wish to expend to talk to consumers when they're linked -- ...

Pegasystems Extends Cloud alternative with Google Cloud Partnership | actual Questions and Pass4sure dumps

Integration gives purchasers with much more alternatives to deploy Pega purposes

CAMBRIDGE, Mass., June 1, 2018 /PRNewswire/ -- Pegasystems Inc. (PEGA), the application enterprise empowering consumer engagement at the world's main organizations, today announced a partnership with Google Cloud to allow consumers to hasten and set up Pega options on Google Cloud Platform (GCP). This reinforces Pega's dedication to give its customers with the flexibility to opt for the arrogate deployment mannequin that suits their needs and evade seller lock-in.

The company logo for Pega (PRNewsfoto/Pegasystems Inc.)


Agile groups want flexibility to opt for how they set up and hasten mission-essential applications according to impulsively changing market dynamics. as an example, many firms nowadays function in hybrid-cloud environments – equivalent to leveraging Pega's entirely managed cloud capabilities while additionally self managing different cloud deployments to meet specific necessities. despite the fact, many competing cloud application vendors present few pragmatic cloud platform choices backyard their personal, which limits valued clientele' options to lucky to current variables.

Pega's customer engagement and digital technique automation options work without hardship throughout distinctive cloud infrastructures, permitting companies to lucky their cloud techniques as enterprise wants exchange. by means of integrating with Google Cloud's international, relaxed, and excessive-performance infrastructure, Pega permits its valued clientele to leverage any present GCP investments. Pega Cloud services can further speed up cost from hybrid clouds with GCP and aid companies focus on their company, not managing environments. GCP provides to Pega's roster of certified cloud platform options, which contains Microsoft Azure, Amazon net functions, and Pivotal Cloud Foundry.

Google Cloud will likewise keynote at this yr's PegaWorld annual convention on June three-6, 2018, in Las Vegas at the MGM Grand. James Stavropoulos, Google's world lead for community deployment operations, will subsist piece of Pega's Kerim Akgonul to talk about how Pega utility and cloud services are empowering companies to interact their valued clientele, automate digital approaches, and directly build essential apps.

costs & Commentary: "in their ongoing digital transformation journeys, corporations want the flexibleness to speed up the value of cloud that goes past cost," stated frank Guerrera, chief technical methods officer, Pegasystems. "Our partnership with Google Cloud allows for us to supply customers with the alternative to leverage the vigour of Pega on Google Cloud's restful and dynamic cloud platform. This expands their capacity to empower clients to select the arrogate cloud solution that meets the challenges of today and day after today."

assisting substances:

About Pegasystems Pegasystems Inc. is the leader in utility for client engagement and operational excellence. Pega's adaptive, cloud-architected utility – developed on its unified Pega Platform – empowers americans to abruptly set up, and easily prolong and change purposes to satisfy strategic enterprise needs. Over its 35-yr heritage, Pega has delivered award-profitable capabilities in CRM and BPM, powered by using advanced synthetic intelligence and robotic automation, to support the area's leading manufacturers obtain breakthrough business results. For greater information on Pegasystems (PEGA) consult with

Press Contact: Sean AudetPegasystems (617) 528-5230Twitter: @pega 

Story Continues

New solution empowers CSPs to any of a sudden build in oblige brilliant advertising and marketing practices in accordance with business-selected AI and decisioning capabilities | actual Questions and Pass4sure dumps

July 19, 2017 12:00 ET | supply: Pegasystems Inc.

CAMBRIDGE, Mass. and long island, July 19, 2017 (GLOBE NEWSWIRE) -- Pegasystems Inc. (NASDAQ:PEGA), the software business empowering customer engagement at the world’s main companies, and Accenture (NYSE:ACN), a leading global knowledgeable features business, nowadays launched brilliant consumer Decisioning as a provider, a cloud-based solution designed to further advertising suggestions for telecommunications suppliers. With clever consumer Decisioning as a service, Communications carrier providers (CSPs) profit a fully operational company group from Accenture to hasten constructive actual-time advertising campaigns on Pega’s AI-pushed decisioning marketing solutions.

As CSPs combat for each client, many requisite the components to enforce superior one-to-one advertising capabilities to attract current valued clientele while cutting back churn. brilliant customer Decisioning as a provider helps CSPs enhance subscriber retention, acquisition prices, and revenue practices by passage of combining Pega® advertising and marketing for Communications and Pega® consumer election Hub with Accenture’s consulting, managed services, and deep business abilities across know-how, digital, and advertising. Leveraging Pega know-how that optimizes client engagement, Accenture’s teams execute AI-pushed advertising thoughts for shoppers to obtain efficiency dreams, with out disrupting daily operations or requiring additional components.

Etisalat, a UAE-based telecom provider that continues over 10 million instant subscribers and serves just about a million mounted-line and broadband capabilities providers, become an early adopter of this technology method, combining the implementation of brilliant advertising utility with consulting services to execute and control its advertising operations. in search of current the birthright passage to extend advertising presents and services, Etisalat became to Pega to centralize and dissect inbound and outbound customer information, enabling brokers to present the most principal products to the arrogate shoppers on an individualized groundwork. Accenture performed and managed their marketing activities to give tips and insight.

by passage of featuring enhanced, greater personalised presents, Etisalat stronger conversion prices, crusade performance, and consumer satisfaction in the first year of use, including:

  • enormous extend of present acceptance tiers and common revenue per consumer (ARPU)
  • New offers and products taken to market within hours
  • assorted systems consolidated to at least one Pega-primarily based device that reduces dealing with time
  • One view of shoppers across channels
  • The Accenture and Pega alliance helps clients improved serve customers via increasing the cost of each consumer interplay. As a Pega Strategic Consulting accomplice, Accenture has greater than 4,600 consultants expert in Pega solutions, over 2,000 Pega certifications, and 15 Pega expertise birth facilities, and became currently identified as Pega associate of the year for the fifth consecutive year. This latest retort from Pega and Accenture helps enable CSPs of any sizes to join with purchasers in more imperative, significant techniques — with out requiring additional effort, time, or hiring. purchasable now, the solution will expand to different plumb markets later this yr. For more assistance, hunt recommendation from

    “In a crowded telco marketplace, Etisalat essential to differentiate itself by using empowering its personnel with the potential to market effortlessly to their present and capabilities purchasers,” pointed out Antonio Ricciardi, vice president, consumer intelligence & engagement, Etisalat. “Accenture and Pega helped us to launch a unified and brilliant advertising retort through which they can now continually construct the very best offers to clients and possibilities. This has helped us seriously change their business and set ourselves up for future success.”

    “As CSPs examine to continue and benefit current profitable shoppers, they requisite the potential to immediately implement useful advertising recommendations that engage customers and salvage consequences,” spoke of notice Davies, senior director and trade primary, communications & media, Pegasystems. “with the aid of enabling companies with a team of industry specialists to hasten clever marketing campaigns using superior AI and decisioning know-how, agencies can achieve quick, profitable results with minimal haphazard and upfront investment, both as a short lived solution or a protracted-term strategy.”

    “At Accenture, they support unify process, expertise, and people so their clients can obtain know-how and business transformation sooner to salvage the most out of their technology investments,” preeminent David Steuer, managing director and Pegasystems international apply lead, Accenture. “today’s Cloud First driven landscape requires companies of any sizes to coalesce professional enterprise resources with superior expertise and managed services capabilities to increase, execute, and manipulate marketing campaigns that obtain huge success in an as-a-carrier economic system.”

    About PegasystemsPegasystems Inc. is a frontrunner in software that streamlines business and enhances client engagement in global 3000 companies. With greater than 30 years of confirmed innovation, Pega seamlessly connects agencies with their shoppers throughout diverse channels in actual time the expend of market-main CRM, superior synthetic intelligence, and sturdy automation. Pega’s adaptive, cloud-architected purposes — constructed on its unified Pega® Platform — empower individuals with comprehensive visible gear to with ease prolong and change functions to meet strategic company wants. For extra counsel on Pegasystems (NASDAQ:PEGA) consult with

    About AccentureAccenture is a leading world skilled capabilities company, presenting a huge latitude of features and options in method, consulting, digital, know-how and operations. Combining unmatched undergo and really advantageous potential across greater than 40 industries and any business capabilities — underpinned via the world’s biggest dawn network — Accenture works at the intersection of company and expertise to support clients enrich their efficiency and create sustainable cost for their stakeholders. With more than 411,000 people serving purchasers in more than one hundred twenty international locations, Accenture drives innovation to enrich the style the realm works and lives. hunt recommendation from us at

    All logos are the property of their respective owners.

    Press Contacts: Mylissa Tsai Accenture +1 917 452-9729 Ilena Ryan Pegasystems Inc. +1 617 866-6722 Twitter: @Pega

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    VMware's CEO Hosts 2013 fiscal Analyst Day (Transcript) | actual questions and Pass4sure dumps

    VMware, Inc. (VMW) 2013 fiscal Analyst Day August 26, 2013 2:00 PM ET

    Jonathan C. Chadwick - Chief fiscal Officer and Executive Vice President

    Patrick P. Gelsinger - Chief Executive Officer, Director and Member of Mergers & Acquisitions Committee

    Carl M. Eschenbach - President and Chief Operating Officer

    Sanjay J. Poonen - Former Executive Vice President and universal Manager of End-User Computing business Unit

    William D. Fathers - Senior Vice President and universal Manager of Hybrid Cloud Services business Unit

    Rangarajan Raghuram - Executive Vice President of Cloud Infrastructure and Management

    John S. DiFucci - JP Morgan Chase & Co, Research Division

    Keith F. Bachman - BMO Capital Markets U.S.

    Jayson Noland - Robert W. Baird & Co. Incorporated, Research Division

    Louis R. Miscioscia - CLSA Limited, Research Division

    Gregg S. Moskowitz - Cowen and Company, LLC, Research Division

    This event includes forward-looking statements that are matter to risks and uncertainties. Actual results may vary materially as a result of various risk factors, including those described in the 10-Ks, 10-Qs and 8-Ks VMware files with the SEC. This presentation will likewise involve inevitable non-GAAP fiscal measures. Reconciliations to GAAP are available on VMware's Investor Relations web page at

    Good morning, everyone, and to those of you on the Web, advantageous morning, advantageous afternoon and advantageous evening. I'm Paul Ziots, and it's my delight to welcome you any to the 2013 fiscal Analyst Day being held in conjunction with the 10th anniversary of VMworld, the leading virtualization and cloud computing event. I'll cover a few housekeeping items and then we'll jump birthright into the day.

    First, we're scheduled to hasten from 11 to 3:30. They contain a short intermission from 1:30 to 1:45. There's no scheduled lunch break, but as you observe there's food outside birthright outside the door, so grab food at your convenience.

    Now a word about seating. They are strictly required to contain everybody seated. So anybody in the room, gratify subsist confident you're in a seat birthright now. We're in replete compliance with the Fire Marshal Code. Let's, please, withhold it that way.

    Now lastly, mp;A is considerable to any of you, so I wanted to give you a quick heads-up on what to examine forward to during the day. From 1:10 to -- excuse me, 1:10 to 1:30, we'll contain a mp;A with executives from their Software-Defined Datacenter, BU, their Hybrid Cloud and their End-User Computing businesses as well; from 2 to 2:15, mp;A with a very great VMware customer; and from 2:45 until approximately 3:15, mp;A with their CEO, CFO and their President.

    With that, it's now my noteworthy delight to interpose to you Jonathan Chadwick, VMware's Chief fiscal Officer, to start the presentations.

    Jonathan C. Chadwick

    Thank you. Clicker, don't hasten away with that. Morning, everyone, and afternoon, wherever you are, to you around the world, if you're watching or listening verbally. It's my noteworthy delight to subsist here, not just because this is my first official Analyst Day for VMware, but likewise because it gives us the chance to join this in conjunction with, as Paul said, the world's industry-leading virtualization event and the cloud computing event of the industry. So I assume they contain a unique chance to combine listening to us and the fiscal context of today, but likewise talk about this chance that's just incredible ahead, talking to their customers and their partners, and I just embolden you, as I know many of you conclude already, to network as much as possible.

    If you assume about where VMware has Come over the last decade plus, we've been about bringing disruptive innovation to the marketplace. And people don't query today what compute virtualization is any about. They query about how much more there is to go. And if you listen to the keynote today, and you'll hear again from Pat in just a second, we're taking a direct parallel from what we've done with ESX in the first introduction there and the chance for the next decade. We're just getting started. The chance ahead of us is huge. They believe we've got the remedy vision and very sound strategies for how to execute against that vision, and they believe they got opportunities to delivering growth today and continuing into tomorrow.

    I want to assume one thing off the table, first of all, before they salvage started getting into too much detail. Nothing has changed since my outlook I provided to you on July 23 at the finish of Q2. We're reaffirming Q2 -- Q3 '13 and fiscal year -- replete fiscal year for FY '13 fiscal guidance. So nothing has changed in the outlook I provided since July 13 -- July 23, excuse me.

    If you assume back to March when they held their strategic forum meeting in current York, they showed this market chance chart. This market chance is extremely large. I assume we're poised for a decade of significant chance and significant growth. This is just talking about 2016. And this is just taking about their estimates of the market as they observe it today. We're talking about the next wave of innovation. Each one of their leaders has focused their teams and their organizations on how we're going to capture these market segments. And each one of them will talk about how this market is going to unfold, their visions and their strategy for this as they Go forward.

    So with that, let me talk about how we're going to expend the next 4 hours with you and give you a sense about what's coming up. So Pat will join me on stage in just a second here to review his vision and strategy for VMware and how he's leading us on that journey for the next decade. Carl will then join us on stage and lead us through a conversation on their go-to-market strategy. The go-to-market aspect of their business is as considerable as the product aspect, how are they bringing this chance and taking the chance to the market, both with direct sales and with their very, very great customer and partner base. And then each of their universal Managers in the areas of Hybrid Cloud, End-User Computing and Software-Defined Datacenter will lead us through their visions and their strategies about how they're aligning their businesses to seize the chance ahead. And then we'll contain a mp;A for about 20, 25 minutes with Bill, Sanjay and Raghu before we're honored to contain Steve Hilton from Credit Suisse join us. Steve is an industry-leading CIO amongst other things and we're very honored to contain him join us and lead us in a conversation with Carl when they hear about the journey he's on and the opportunities that he sees ahead as they assume about the industry transformation we're really just getting started with. I'll Come back, last but not least, with a fiscal framework, recapping what I talked about in many passage since March, but likewise talking about a few more details about how they should assume about this, how you should assume about this chance from a fiscal perspective, again, for the next 2 to 4 years. And then Pat and Carl will join me on stage around 3:00 for about half an hour of mp;A as they spend the time answering as many of your questions as possible. And then I'd embolden you -- as many of you as feasible to join us at the W Hotel for a reception, and I'm looking forward to seeing as many of you there as possible.

    So with that, it's my noteworthy delight to interpose their leader and CEO, Pat Gelsinger, to kick us off. Thank you very much.

    Patrick P. Gelsinger

    Well, thank you, Jonathan, and noteworthy delight to subsist with many chummy faces here. Slightly smaller audience than the last one. Great. Come on, it's a joke, right? There's over 10,000 people in that latitude and over -- how many in the overflow, Carl? 3,000 or 4,000 in the overflow. I mean, what an overwhelming audience, right? I mean, just incredible, right? Just -- they didn't realize there were that many V geeks on the planet, did you, right? Yes, this is a noteworthy show.

    So I conclude want to briefly just Go through that. I know a number of you there sort of try to Fly through some of these comments pretty quickly, and then talk about a few specific things that I assume are unique to the fiscal analyst audience. But I started the keynote by talking about these waves, right, as they've gone through the IT industry and their implications on the infrastructure required to hasten IT. And the first, the mainframe era, thousands of users and apps, right? The glass rooms of IT and that gave passage to the client server era, right, where they ended up building, right, very specific infrastructure, deliver on very specific application domains, ERPs, CRM, et cetera. And today, we're on the cusp of the transition to the mobile cloud era and -- right? This mobile Cloud Era is one we're talking about literally every person in the planet becoming a user, right? We're seeing, right, the age of software, this application, right, and the burgeoning set of applications and self-service environments, and fundamentally, the IT operations that requisite to subsist delivered against that as IT as a Service, right? This rapid, agile environment against it.

    And as their customers are looking at this mobile cloud world, virtualization is a key and powerful instrument to Go build it, but they likewise requisite to reduce costs in their current client server environment. And in that, essentially, they requisite to drive out cost from this client server environment, the legacy environment, these silos, this museum of IT to enable the investments in IT of tomorrow or into these cloud and mobile infrastructure. And they observe the role of VMware as uniquely sitting as one of and maybe the only technology that allows you to back build tomorrow, while likewise liberating resources from today. And that, to us, is the fire that they contain because they salvage to back their customers, their partners and their ecosystems on both sides of this issue, saving costs today, building the infrastructure for tomorrow.

    Jonathan showed this picture, and they continue to observe that there is a huge market chance for us as they Go forward. The Software-Defined Datacenter, the largest of the components thereof, right, compute representing the smallest piece, right? But as they open up to network and security, to management and automation, storage and availability, right, and accelerating growth rate potential and a much larger market opportunity. The Hybrid Cloud today, they made the announcement vCloud Hybrid Service is $14 billion market in Hybrid Cloud, and you'll hear us constantly Come back to the phrase of hybrid, the seamless connection of those 2 worlds together. And then End-User Computing, right, again, leading to liberate resources from the secular decline in the PC industry to, right, this mobile environment of the future, both saving cost for today's client infrastructure, as well as building, right, the environment for tomorrow. So that's the $50 billion market chance as we've laid out from here to 2016. They gave you that framework back in March and nothing's changed, even though they continue to analyze, refine and examine carefully at that model.

    The 3 imperatives that they laid out, the first one is extending virtualization to any of IT, right? Every piece of the data headquarters needs to subsist virtualized. They requisite to bring that selfsame software-driven, right, flexibility and agility to networking, to security services, to data services and storage facilities, to, right, the availability services and deliver inside of the environments of management and automation, right? And then next up, right, as we've laid out, is the announcement of NSX, their networking platform. That entire layer, right, of management in the data headquarters needs to subsist redone, right, and this is one of the areas that they observe some of the greatest leverage for operational efficiency is the automation and current tools and analytics associated with, right, running a data headquarters of tomorrow. And then finally, that the Hybrid Cloud becomes the standard, right, this expected passage of being able to assume odds of public cloud resources.

    So they announced a number of things this morning, a brief reprise of the things that they discussed today, right. First, right, the continuing cadence of their core product line with vSphere 5.5. The simple term I'd expend is 2x, right? They doubled the number of VMs, doubled the number of cores, doubled the number of sockets, right? any of these 2xs as their customers continue, right, particularly to virtualize more great environments. Intel roadmap continues to give us more cores and enabling that continuing increase, right, in many aspects of the VMware expend cases against it. And against that 2x, we're likely to assume applications infatuation mission critical, right? We'll observe up to a 2x performance improvement, right, as a result of those continuing enhancements in the core virtualization layer.

    We announced vCloud suite 5.5, a lot of lucky finish and improvements for that. They announced NSX, the combination of their organic networking, VCNS, with Nicira into a separate platform. And they announced the universal beta of vSAN, their key technology for the software-defined storage layer.

    We likewise announced Hybrid Cloud, the universal availability of the vCloud Hybrid Service today, as Bill will Go into a diminutive bit more in the course of their discussion today, noteworthy response from the early access program. And customers infatuation Harley and Apollo that they had, right, feature in the stage today. Also, their first franchise partner, and Bill will explore this a diminutive bit more. But to me, right, we've sort of given diminutive hints of this direction to you as we've talked about the Hybrid Cloud strategy for us in the past. We've sort of used terms infatuation asset-like and partner-friendly. And this is the first embodiment of what they really matter when they recount that because we're able to take, right, and Go to a major service provider infatuation Savvis, forge a partnership where they are taking odds of their core software stack innovations and operations that we're going to conclude and combine that with their assets, their network, their infrastructure, their service relationships to their partners. And that win-win relationship, both of us Go faster into delivering this hybrid environment.

    And in End-User Computing, the key announcement of today was Desktop as a Service. And as you assume about Desktop as a Service, to me it really sort of combines, right, some of the legs of their strategy together. Because for it, it allows us to start building, right, the layer, these 3 pillars of their strategy and start demonstrating how we're going to work together across those different pillars in the strategy. And so Desktop as a Service, right, it accelerates their End-User Computing offerings, but it does so by building on their vCloud Hybrid Service. So every time I, right, sell a vCloud Hybrid Service, I advanced the Desktop as a Service opportunity. Every time I sell a Desktop as a Service user, right, what are they running on, right? They're building on a secure, liable SLA environment of vCloud Hybrid Service.

    We likewise announced today DR as a Service. They assume that footprint of SRM, SRM probably the most successful adjacency in VMware's history, and they gave it this nice elegant target in the cloud. So again, we're tying together both technically and business go-to-market and customer value, right, of 2 legs of the strategy, right? They likewise announced vSAN today, right, and Virtual SAN, one of the things that -- one of the expend cases that you heard me comment on the stage is VDI. And VDI needs very performant, low-cost storage infrastructure because the storage component of End-User Computing for VDI is the largest barrier to the cost model, right, of VDI being broadly deployed and Sanjay will cover this a bit more in his conversations.

    So we're leveraging their End-User Computing position with key technologies coming out of their SDDC position. And when you assume those together, right, fundamentally, what you're going to observe from VMware as they Go forward against these 3 strategies is they will salvage more and more technical leverage across the 3, product leverage across the 3 and go-to-market leverage across the 3. And you'll observe us tie these together in closer and more powerful ways for their customers as they Go forward. And this is why they think, in many cases, right, there will be, right, an acceleration of business value, customer value, services that we're going to subsist able to deliver to the marketplace. And ultimately, differentiation and competition -- advanced -- competitive odds over any of the alternative players in the industry. And this leverage, they think, is a very powerful, right, capability that we're just getting started on and I wanted to specifically highlight some of those unique cross-strategies that are starting to materialize today.

    Now this gross anecdote began with compute virtualization. It's where they began the anecdote and the Software-Defined Datacenter has been very successful. As you heard me recount from stage this morning, we're not done until 100% of apps are virtualized, right? We're not -- 90% is not a advantageous answer, 80% is a lousy answer, 70% is dreadful, right? We're just going to withhold driving for more and more. But clearly, the Software-Defined Datacenter is a much bigger picture than that. And as you assume about this broad set of things that we've laid out, this picture has become a very broad set of capabilities for the datacenter overall, touching on management, security, orchestration, user interface, self-service portals, right, a very, very broad set of capabilities. And when you examine at those, it's like, wow, the VMware technology stack. There's a lot to it, right, and we've continued to build out the set of unique products, services and capabilities to contain a replete enterprise suite of technologies. And they sort of dive into any one of these and whether it's something infatuation DRS or SRM or security features or virtual firewalls or current load equipoise for services, wow, there's a lot of stuff inside of that suite. And they continue to pick up the pace on their innovations as their customers are anxious to assume odds of the individual capabilities. Some of the customer examples on stage, right, could you imagine 3 better customers, right, than GE, Citi and eBay, right, for NSX, right? As you listen to some of the customers infatuation Columbia taking odds of everything, right, that they do, Apollo Group, the consolidation ratios they're seeing and the benefits of both public and private, very, very powerful expend cases and this breadth and depth to meet the replete gain of enterprise customers.

    Now one of the things I touched on as well on stage is trying to clarify this position of OpenStack. And for OpenStack, what is OpenStack? It's a framework for building cloud. It's a set of open APIs, and against that, you can select different technologies, right, to Go execute against that framework. And we've said very clearly that VMware is embracing those OpenStack APIs. We're adding support for them to their products. And if you examine at this list here, what they -- what I announced this morning is that the orchestration layer, right, the next release of vCloud Automation headquarters will subsist adding support for managing workloads into OpenStack environments. So we're embracing it. It's just going to subsist another target cloud, right, that they can drop workloads and manage it in, right? Their portal and interfaces, we're adding support, right, through vCache (sic) [VFCache] for that as well. We've added support, right, and the grizzly release for vSphere and they contain many customers and you'll hear from infatuation PayPal here at the conference this week who's using vSphere, right, against their own version of their Nova controller that they've built, right, and there was some discussion on that early in the year. And they're saying, I want the world's best hypervisor to hasten in their management environment that they highly customized and built into their operations that they're doing for PayPal, right? Clearly, networking, it's piece of the rationale for Nicira, right, was their leadership in Quantum, which has now become called Neutron, right, the latest versions of the networking APIs. And I build them in dash lines here since they haven't formally announced this yet, but you can guess what we'll conclude with their storage technologies, right? We'll add support for the storage layers because we'll contain best-of-breed storage technologies. And what are they going to do? We're going to support just another set of APIs to extend their market chance and to those customers who would select to build OpenStack, largely service providers, Internet providers, just another set of customers for us to deliver their best-of-breed technologies into.

    But I'd likewise point out that the stack on the left is a gross lot richer and more robust for enterprise customers, highly integrated and complete, compared to the stack on the right, right? And this is why we're really saying, this is mature, it's early, and we're going to support it just as another set of interfaces and another set of customer interest might drive us to.

    It's been -- VMworld is a noteworthy marker for me personally since exactly a year ago, I took the baton from Paul. I stood on stage and pontificated about things I don't know yet or didn't understand at the time. And now a year later, right, we've gotten a lot done, right, as a leadership team. First, just clarity of focus. And they clearly said, these are the 3 things that we're going to salvage done and these are big, audacious, aggressive goals. And we're going to align everything that they do, right, against these 3 areas. And that clarity of focus, as Carl and others refer to, is understood throughout the company. They likewise formed Pivotal, and with the formation of Pivotal, the movement of those assets, right, has clearly allowed us to subsist more focused on their priorities, but likewise participate uniquely in this mammoth Data space. likewise driven excellence and execution. Today's conference, the numerous product announcements that we've announced, right, the enablement, right, against their core priority areas, we're performing as a company and the Q2 earnings numbers were lucid evidence thereof.

    We likewise reaccelerated growth of VMware, and for this, we're proud, right? They said they were going to, you were skeptical. Q2 proved that, right? We've reaccelerated the growth of the company and we're quite supercilious of the results that they brought forward.

    We likewise contain world-class talent, and you'll hear from Bill Fathers, you saw him on stage this morning. We've added key current talent, Kevan and Dinesh [ph]. Where's Dinesh [ph]? Over here, right, recently joined the finance department. You'll hear from Sanjay a diminutive bit later and today leading their EUC business. And this morning, they announced Tony Scott as their current CIO. Tony, what don't you stand up and wave? They're going to salvage the haphazard to observe lots of Sanjay, right? So Tony, this morning, they announced as their current CIO coming from Microsoft, Disney and GM and a few places before that so a world-class CIO. And if you examine at that, they just contain a noteworthy leadership team. And with Jonathan and Carl and the others, Raghu and the others on their leadership team, we're just delighted for the attribute of their leadership team. And I know some of you contain questioned that and some of that is just the natural transition of leadership. But I'll narrate you, this is a noteworthy leadership team and I am honored, right, to subsist able to subsist piece of such a noteworthy team of leaders.

    And fundamentally, they observe ourselves positioned to win. The Software-Defined Datacenter, right, it is the birthright strategy. They finished their customer meeting about Software-Defined Datacenter and the question isn't if or why, it's when. How conclude I salvage started? When can they salvage started? How conclude they roam forward? Hybrid Cloud, right? Early access program. As I infatuation to joke, right, the national anthem is soundless playing in many of these cloud discussions, and this gross conviction of a trusty hybrid seamless undergo any app, any place, no changes, very powerful. And End-User Computing, right, combining of the infrastructure and delivering any the passage to these emerging devices. Again, uniquely positioned, sturdy vision, noteworthy resonance with customers. They observe ourselves as positioned to win.

    We'd likewise recount that they likewise contain a unique business model, and the federation gives us noteworthy opportunity, right, to both subsist independent but yet strategically aligned and leveraged. And you heard much about what we're doing this morning but GoPivotal, as an example, they contain been the point of the arrow with the GE relationship. VMware has advanced their position with GE as a direct result of GoPivotal's engagement with GE. We're getting leverage from that.

    EMC. You saw Citigroup on stage this morning. Citigroup, one of EMC's largest customers and that they were able to further their position with them as a result of that relationship. BCE, one of their largest customers, Visa, and they were able to further the VMware position with Visa as a result of BCE's position with them. Strategically aligned, uniquely independent and able to operate effectively in this way, leveraging the power of that federation, right, as they roam forward to accelerate the VMware position in the industry.

    So the takeaways I would infatuation you to contain as I finish my time and I'll subsist back for mp;A a diminutive bit later, one is, this is a huge market opportunity, right? It is large, it is growing. We're uniquely positioned to Go assume odds of this opportunity. They are executing well. The leadership team that we're forming, the strategy and alignment and priority against that, they are picking up the pace as they execute across any aspects of the business. And finally, their momentum with customers, right? And I -- just I -- that room, I mean, it's just overwhelming, right? Standing latitude only, 15,000-ish people in the room, 22,000 people here at the conference, an overwhelming amount of interest in what they are doing. And their partnership and relationship with customers is lucid evidence, right, that what we're doing, the vision that they laid out is being powerfully embraced by some of the largest and most considerable customers in the world but likewise by some of the most geographically dispersed customers, great and small, right, across them. And in the course of Carl's presentation updating you on customers and Sanjay and Bill Fathers and Raghu, right, to Jonathan's presentation, they hope you'll just salvage a diminutive bit of the relish of the enthusiasm that they have, right, at VMworld, and thank you for joining us.

    Carl M. Eschenbach

    Thank you, Pat, and advantageous morning, everyone. It's noteworthy to observe everyone again here this year. And I'm very excited to announce, you any asked me last year at this event when are they going to contain a CFO, and I'm very pleased to broadcast we've had Jonathan for almost a year and he's been a welcome addition to the team, a world-class CFO, and he's brought a tremendous amount of industry knowledge, undergo and fire to VMware and he couldn't subsist a bigger piece of their team than he is today. So Jonathan, thank you. And Paul, thanks for guys contain done over the last year.

    So what I'd infatuation to conclude today is assume a diminutive bit of time and talk to you about how VMware is accelerating their customers on this journey to IT as a Service. And when they assume about IT as a Service, it really can only subsist delivered through the expend of software, and powerful software that reduces the friction between the consumers and producers of IT, and that establishes a current flush of confidence and collaboration between the 2 can only subsist achieved through the use, quite honestly, of powerful software that is being delivered as a service. And I'd infatuation to spend some time just talking to you about how we're thinking about how to assume these technologies, products, services and goods to market and salvage them into the hands to their customers to allow them to achieve the goal of IT as a Service.

    And let me start by taking a quick examine back at something both Jonathan and Pat showed up here earlier, and that is the market chance they contain at VMware. And when you examine at this across these 3 different key priorities that Pat has laid out for us, it's a massive market opportunity. A $50 billion market chance for us to Go out and once again radically transform an industry through the expend of virtualization software.

    So quite a lot of ground to cover in 20 minutes.

    So let's start with the core value proposition to their clients, many of whom the overarching business summon of embracing the public cloud is to achieve greater agility. Practically, they want to salvage more done, they want to conclude it with less, and they want to salvage there quicker.

    Our value proposition to their clients is around providing a seamless extension of their existing IT environment into the public cloud. And this resonates extremely well with clients. Let me just recount practically what that means.

    We assume about this at 4 different ways. One is the existing applications they've already -- they're running very happily and are fully certified to hasten on their existing VMware infrastructure. They can now roam or create current versions of that selfsame application without facing the fix of whether the application will work, whether they contain to rewrite it, test it and reconfigure it. They know because of the noteworthy control point they contain in the infrastructure at the hypervisor layer. You can pick the application up, roam it, and it's going to work first time. Very powerful.

    We're likewise targeting this to subsist a platform that clients can build "born in cloud" and next-generation applications that requisite to salvage access to content that already resides on their virtualized infrastructure on premise. And I'm going to give you a yoke of very practical client examples, so any these words can Come and look more infatuation reality.

    The secondary is around networking and basically being to extend their existing local area network over into their public cloud, and any of those security policies any remain intact. So from a security perspective, this is great. This means you haven't got to recreate the arc. You can just extend your existing networking and firewalls into the cloud Hybrid Service, and it's going to work with any the selfsame security protections. And this means if you've achieved compliance on your platform for a regulatory, governmental or industry standard, as you extend it into vCloud Hybrid Service, you're guaranteed to preserve that compliance, which is, again, very valuable.

    And their common management framework, you can assume odds of the selfsame tools you're using on-premise to manage this public cloud service off-premise. And for many clients, just practically having one organization you can call. If you've got -- if an issue should occur and you're not confident if it's off-prem on your public cloud or on-prem, My VMware 1-800 or myVMware is the separate space that you can call. And the vision they deliver to their clients is so that they contain a public cloud that allows them to develop any application and they can build it either in vCloud Hybrid Service or on-premise and they don't contain to construct any compromises.

    So I mentioned there that we're obviously targeting their existing client ground and the substantial $40 million VM footprint we've established around the world with over 500,000 clients. And again, I'll talk a diminutive bit about how we're already dawn to observe their clients assume odds of this service offering. But when they assume about the addressable markets and specifically the addressable market for vCloud Hybrid Services, they observe the total addressable market in 2016 at around $14 billion with this 30% compound annual growth rate.

    So let's talk about the strategy. How conclude they win? I want to orientate you on to this slide. So I'm going to talk about their strategy with 2 main reference points. On the left-hand side there, I'm talking about the kindhearted of workloads that we're targeting. And on the right-hand side, I'm talking about the kindhearted of buyers that we're targeting in various phases. And I'll talk you through what their 3-phase strategy looks infatuation in the context of both of those things.

    So let me start with workloads. On the left-hand side, when they examine at the kindhearted of workloads that clients roam off-premise, they assume about them in a few ways. They assume about whether the application character they're affecting is a traditional application. By that, they matter perhaps it's a SQL database or an Oracle Database, or a very conventional ERP, Enterprise Resource Planning, instrument infatuation SAP, Oracle Financials, JD Edwards. And again, the other dimension is, is it a workload that's in production or is it something that's somewhere in the test and development life cycle?

    And on the right-hand side, they assume about workloads in terms of being a potential "born in the cloud" or next-gen character applications. And characteristically, they watch to obviously scale out much quicker and perhaps space less reliance on the fundamental performance of the infrastructure. And in this category, a lot of mammoth Data applications, analytical tools, very often based on unstructured databases, and quite a lot of net current growth in enterprises goes into this right-hand side in terms of workloads.

    And now let's examine on the right-hand side, the kindhearted of buyers. And perhaps we're oversimplifying, but they assume about their clients in terms of the buyers and the economic buyers we're targeting either within the technical domain or in the line of business. And they observe application developers animate on both sides, but we're obviously quite focused on the application -- we'll talk about application developers that live within the line of business. And as I'm confident many of you know, over the last few years, the decision-making around buying public cloud services has started to shift rather towards the right-hand side of this chart as the line of businesses contain disintermediated IT in some cases, they just Go ahead and buy what they requisite as quickly as they requisite it.

    So in the first phase of their strategy, you'll observe us very much targeting their traditional core buyer and traditional applications and workloads and really establishing this fundamental basis of differentiation, this hybrid model, uniquely placed to subsist able to, with such a noteworthy installed base, present a seamless extension of what they're doing. And you'll observe us piling on with more and more hybrid services that reinforce this notion of ultimately, you're going to contain some stuff on-premise, some stuff in the public cloud. And the more seamless you can construct that, that's a noteworthy value proposition.

    The second phase, you'll observe us assume that value proposition and continue to pile on with more features and services, but really expand it geographically. And we'll talk a diminutive bit about their various business models for how they observe ourselves expanding it geographically.

    And the third phase, we'll observe us roam into becoming more attractive for targeting next-generation scale-out character applications and really starting to zero in on the line-of-business buyer as well.

    Now I should just respite and point out that in no passage is this necessarily sequential. Obviously, we're affecting quickly. And I'd probably recount where they are today is, obviously, we're well establishing in phase 1 of the strategy. We're already starting to routine and prepare for phase 2 in terms of geographic scale-out. And, frankly, you likewise saw us broadcast earlier today, Cloud Foundry as a service, which is clearly an indication that we're already embarking upon making this platform an attractive destination for next-gen applications. So there's sort of a fairly great overlap in the phasing of the strategy here.

    So let's talk of their business model. They contain really 3 ways in which we're bringing the vCloud Hybrid Service to their clients. And captious to this is to allow clients to contain the election to either buy this as a public cloud service offering directly from VMware through channel partners or they could buy this as piece of an offering that their service providers are taking odds of their technology to deliver the vCloud Hybrid Service to their finish customers. So let me talk you through that.

    So we'll talk about this as being Model 1. So just -- I'd recount we're announcing the universal availability of this model today. This is where VMware own and operate the platform and obviously sell and Go -- they own the sales and go-to-market function for delivering vCloud service into their clients. We're taking replete odds of their third-party datacenters, which they observe as an excellent passage of maintaining flexibility. Obviously, we're discovering here just how the physical location and how considerable physical location is to many of their clients as they're delivering a vCloud Hybrid Service.

    The second model we've had around for sometime. So this is their VSPP program that they referred to, I think, in a number of earnings calls, very successful. This is where they empower service providers. They provide them with the software, often based around vCloud Director, and a piece of their orchestration, automation and virtualization suite. And in turn, their service provider partners expend this to deliver a cloud service to their finish clients. And this has been extremely successful for us over the last 3 or 4 years. Their clients leverage their software and expend that to deliver service to their finish clients. And now this model is already develope in over 70 countries.

    But they likewise announced this morning a third model, which is piece of their strategy for extending their footprint and helping us gain market gain very quickly. And this is a model where they observe service providers taking odds of the vCloud Hybrid Suite -- Service platform, so a very prescribed package of hardware and software that they will then expend to configuration their basis of delivering cloud services into their client ground as well. And it's likely that as they expend this model to deploy perhaps into geographies where having a physical presence and a brand is extremely important, perhaps on reasons of data solvency. likewise in terms of compliance. You may well observe us contain this kindhearted of relationships with service providers that contain achieved very tall levels of compliance, perhaps with government or other industry standards. But the other value, of course, for service providers is that they can wrap around this platform the myriad of other services, subsist it network application oriented or managed hosting or co-location. You'll observe them wrap other services around their underlying vCloud Hybrid Service platform. So it's a sort of analytic extension of where we've been. But really at the finish of the day, it's going to subsist something that gives their clients a replete breadth of election of the options of how they buy vCloud service from us.

    Just in terms of how they assume about at a very tall level, how they assume about this in terms of capital efficiency. Obviously, in the first model, what we're not doing is doing speculative builds of great datacenters. We're really thinking and focusing on success-based capital, obviously, investing in the underlying hardware and infrastructure to deliver the platform services. And as you'd expect, they are aggressive and major users of any aspects of their software-defined datacenter, so the underlying cloud platform is as virtualized as they can humanly salvage it. And they already assume that that's sort of providing us with capital efficiency savings very early on at 10% to 15%. But frankly, as they scale, I'd hope that performance and the savings we're deriving from embracing their own dog food is going to accelerate rapidly.

    In the franchise partner model, we're -- likely the service providers will subsist making their own investments in their platform to deploy it in their own datacenters. You can clearly observe that VMware's expend of their own capital is probably further reduced. And I'd just mentioned that they announced this morning the first of those franchise-type relationships with Savvis, a very well-established global player that is deciding to embrace vCloud Hybrid Service as their preferred enterprise cloud platform, and we'll jointly invest and partly invest in deploying this infrastructure in a number of their datacenters as a first example of how this model is going to work.

    And obviously, in the third and final case, where we're providing their service providers with software, clearly that's diminutive to no capital deployed for vCloud Hybrid Service and for VMware. But I assume it's very considerable that they -- clearly this is a -- it's a broad front upon which to storm the market, but they assume it's considerable that from Day 1, you establish the birthright relationship with the ecosystem to subsist lucid that while they conclude contain a direct go-to-market model, we're absolutely about empowering a broad community of service providers that already reckon upon their technology. And this frankly is resonating well with their service providers already.

    Let me just talk a diminutive bit about the Early Access Program. They started this in June. It's gone well. It was oversubscribed. And the main litmus test is that we're going to subsist -- we've launched and we're generally available today, bang on schedule.

    And let me just give you a yoke of examples of how clients contain used the platform so it becomes a bit real. So Harley-Davidson Dealer Systems wanted to deploy a current application for their 500-plus dealers around the country. So it's a sort of tablet-based applications, point-of-sale, and it allows the salesperson to basically contain quick reference to inventory and perhaps the profile of the client that they're talking to and their purchasing history. Now it is an app that's mobile. It's obviously based on an worn SQL database. But it critically needs to salvage access to content that resides in their inventory and client databases that reside in their datacenter, inside their firewalls on the existing highly virtualized databases they already contain running. They experimented with a number of other public clouds to hasten this mobile app in various other clouds but just could not salvage it to integrate because trying to circumnavigate the various layers of security you've wrapped around a very considerable client data -- really, really complicated.

    They basically came to us and said, "Look, this is what they want to achieve. Can they deploy this app and not contain to fret [ph] around with the networking?" And it worked. So it just worked instantly. So they were obviously delighted. They are very aggressive a rolling this application out, and we'll observe them expanding that geographically. So hopefully, this brings it -- just actual examples of how for a client that saves them months and goodness knows how much in the complexity of rewriting the app.

    The second noteworthy example was in the Apollo Group and specifically the University of Phoenix. So online education for adults. Huge, huge volumes at inevitable times of the month or year, where various training courses occur or testing occurs, they observe colossal spikes in traffic. So they've become mammoth users, I matter big, mammoth users of some of the other consumer-oriented public clouds. And they took stock and said, "Okay, they contain about 5 or 6 public clouds that we're now taking odds of. This has kindhearted of proliferated around the world. How about they assume about whether a hybrid model may construct more sense?" So they ran some analyses and concluded that the best solution for them was to really host their steady-state workload on VMware technology on-premise and expend vCloud Hybrid Service to subsist the public cloud that they're going to expend seamlessly to assume and accommodate seasonal bursts.

    Now this is where it gets interesting. They achieved a consolidation ratio in excess of 15:1, 15:1. And you sort of well, how would you conclude that? The passage you finish up is, basically if you're proliferating the expend of multiple public clouds, it starts to become very inefficient. And secondly, it's about the passage you earmark resource.

    So in their model, they earmark resource to their clients on a sort of guaranteed basis. They say, you contain an absolute guarantee on this amount of capacity, and within that you can hopefully create as many or as few VMs as want to do. But the one thing that's guaranteed is your capacity. Whereas in the other consumer-oriented public clouds, you'd salvage a VM. And frankly the performance of that VM is highly, highly variable. So you can't bank on it. So you automatically self-provision a lot more than you assume you're going to requisite to give you a safety buffer. And pretty soon, the economics start to become pretty unattractive. So a very exciting expend case.

    We've seen a number of other sort of more conventional classic cloud deployments, as you'd hope to see. A lot of clients who are already well established on the East Coast just now requisite another datacenter on the West Coast or they're already contain a yoke of locations but want to establish a calamity recovery site and observe vCloud Hybrid Service as an obvious site for doing that. Incredible adoption across various industries in their Early Access Program. So they were delighted to observe such a broad spectrum of clients already looking to observe how they can expend this as a analytic extension of how they conclude business with VMware today.

    So hopefully those are sort of very advantageous practical examples of how this gets used. In the last few minutes here, let's just recap on where they are today. So having had a successful Beta 1 and 2, a successful Early Access Program, they are announcing the universal availability in the United States of the service today, expanding their physical footprint into their datacenter here in Silicon Valley, their datacenter in Sterling, Virginia, and there in September, and then in October a fourth location in Dallas.

    And in addition to that, the relationship with Savvis, where they're now investing with their technology, they're going to deploy vCloud Hybrid Services as piece of their offering into additional and they're starting with current Jersey and Chicago. But it's a noteworthy model there that shows you how you're going to extend the gain of the offering into current markets by leveraging the relationships they contain with service providers.

    In terms of value-added services, calamity recovery as a service, which is a analytic extension if you're an SRM, or a Site Recovery Manager, client. And if you just assume about that, you deployed Site Recovery Manager and now you contain the talent to expend that selfsame instrument to create vCloud Hybrid Service as a destination point for calamity recovery.

    Our Cloud Foundry, very much oriented towards developers, who are already using the Cloud Foundry environment to development applications. And of course, Desktop as a Service will subsist what I suspect will a long list of existing VMware applications that will now deliver as a service based on the vCloud Hybrid Service platform. And again, bringing back the differentiation, if you've got an existing desktop infrastructure already running on-premise but you requisite to expend vCloud Hybrid Service quickly to either expand the number of seats you have, salvage into a current region or perhaps for testing current version of it, then again it's just an obvious passage of extending it seamlessly. So you can observe where we're going with the hybrid value proposition and just pouring on more capabilities on top of that. And as Carl mentioned, very, very much investing in their channel partners to back them, not only create the value-added services that will back clients roam workload on to the platform, but also, obviously, very much assume -- the noteworthy thing they contain is, I guess, noteworthy gain into the enterprise market, credibility and confidence to subsist the kindhearted of entity they would want to buy public cloud services from in the first place. But then we're likewise going to subsist introducing increasingly frictionless models so they, having made the initial purchase, they can add more and more in seconds, not necessarily days. So you'll observe us focus on that capability as well.

    So in the last minute here before the shepherd's crook takes me off. Let's assume about what we're going to subsist focused on over the next sort of 14 to 18 months. As you can see, we're attacking the market in a pretty broad front. I'm very pleased with where they are today with a very successful Early Access Program. You'll observe us add more and more seamless hybrid experiences. So really by the middle of next year, we'll hope any of their clients to just logically respect vCloud Hybrid Service as an obvious extra resource pool that they can expend for deploying resources or for adding current applications. And so you'll observe us piling more and more hybrid-type services. And obviously, the wealthy ecosystem of software companies they hope will likewise start to lucky their own product technically and commercially so that it can live in this hybrid model as well.

    In terms of market reach, so a combination of direct model -- they talked about Model 1 -- and franchise relationships character of partnerships -- they talked about Model 2. You'll observe us expand this service offering from North America starting in Europe in Q1 of next year and in APJ probably around Q2. And I assume we're actually affecting just slightly ahead of routine in terms of European expansion, so they may yet contain an chance to bring forward their expansion into United Kingdom earlier than Q1 of next year.

    And in terms of client experience, it's any about delivering an utterly frictionless purchasing experience. So you'll observe us focus on that noteworthy deal. Having made the initial deployment conclusion to roam on to vCloud Hybrid Service, they want clients to subsist able to roam workloads or add workloads or construct adjustments to workloads in seconds rather than it having to subsist something that's a manual process. And, frankly, this is sort of underspoken of their aspect of cloud services. The talent to deliver that utterly frictionless undergo becomes the absolute basis upon which you requisite to build the ease of your service offering. If you can't conclude that, frankly, it's given as availability. You contain to subsist both available and contain the availability at the position extremely quickly to subsist a credible offering that's able to grow at the compound annual growth rate that they talked about earlier.

    And of course, finally, around existing and current applications to construct confident that they work closely with a lot of the existing ISPs that contain already technically certified on their platform, but likewise start to work with some of the providers of next-gen character application services. And you'll start to observe us add on, develop their oriented services on to the platform as they expand into phase 3 of their rollout.

    Great. Well, I'm out of time. And hopefully, in 20 minutes, you've got a better understanding of the value proposition to clients, you can observe the market we're targeting. You can observe how clients are starting to the platform and, at a very tall level, you understood their 3-phase strategy. Thank you very much.

    Patrick P. Gelsinger

    Sanjay Poonen. Just try to stick [indiscernible]. Thanks.

    Sanjay J. Poonen

    Thanks, Pat. It's a delight to subsist here and observe many chummy faces. I am on Day 6 of my VMware journey. So if you contain deep product technical questions, you can query me that on Day 60. But it's a delight to subsist here.

    I just wanted to talk a diminutive bit personally from the heart as to why I joined VMware from SAP. Many of you covered SAP. And I talked to a few of you as I was considering this decision, and thank you for your encouragements to join here. But one, I saw a company that was tremendously innovative. I was actually at Veritas when EMC beat Veritas to buying VMware. I recollect that time, and since the spin-out, since then, contain admired the innovation that VMware has had. And I assume a advantageous testament to that is the recognition from Forbes as the #3 ranked company. last year, in 2012, VMware was not even listed. To Go from not being on the Top 100 to being #3 is a huge accomplishment.

    And it's not just innovation in product. I assume you heard from Carl the go-to-market machine that he's created of both kinds, both direct and channel.

    Second, I really sensed a very sturdy team. The camaraderie in the team here that Pat had set up was just fantastic, including the current additions.

    And third, my commute got 50 yards shorter. I used to gyrate left to Go to SAP, and now I gyrate right.

    If you'd -- just on a earnest note now, if you examine at this chart that everybody talked about, let me give you a diminutive bit of my own personal sense as to why the End-User Computing chance is big. Most of you know that I've spent my life in the finish user space, mostly in analytics and in mammoth Data and in mobile at SAP, where half the revenue of that company was stuff that they drove.

    But if you assume about what's happening in the finish user area, any of this is being transformed significantly by some mammoth trends. The desktop of today is transforming significantly. It's transforming because of the cloud. It's transforming because of mobile. And at that pivot of chance exists a huge current passage of looking at this that the traditional legacy players probably are trapped of not being able to conclude with them. And that opens up a gross current passage of the passage in which virtual desktops, the passage in which mobile is going to subsist viewed and the passage sociable computing is going to subsist viewed.

    And if you assume about the nature of how many of the CIO conversations today are affecting out of the realm of traditional ways in which you dialogue with them to some of these current strategic topics, whether it's mobile, whether it's social, whether it's cloud computing, whether it's mammoth Data, I sense a mammoth chance here. And I believe there's clearly an chance for VMware to extend its brand from the datacenter to the desktop and where the desktop is going. In doing that, I believe there's a huge chance for a multibillion-dollar business in this, perhaps even a business that's the size of VMware today. And that's why I'm here.

    As you assume about aspects of this, Pat emphasized that everything we're doing in key aspects of these current businesses triangulate and lucky with each other, and that's really important. Because one of the things when I talk to CIOs about what's the nature of why you would assume about an adjacency, whether it's going from the datacenter to management or from management to End-User Computing, or the things that we're doing in the Hybrid Cloud, there needs to subsist a connectedness to that adjacency that you can account for so it doesn't feel completely out of wack.

    So you heard this and there are a yoke of things that they clearly are going to emphasize. I've always felt that End-User Computing is really extending the nature of management to the desktop, management to things infatuation mobile and then emphasizing current things infatuation security. And when you salvage some advantages infatuation they contain in vSAN, you salvage the advantages of the investments we're making in the Hybrid Cloud, they likewise salvage to assume odds of the innovations in both storage and where cloud computing is going. So I observe a mammoth chance now here in End-User Computing to subsist able to assume both of those advantages and play a noteworthy curveball disruptive innovation to the traditional players in this space.

    what I'd thought to do, rather than walk through a lot of product detail, is walk you through how you might assume about this from the context of a customer. And if a customer could retort why buy, why VMware, why now, from the lens of that customer, I assume you've motivated them to understand why this is important.

    Now let me start at the bottom because how unruffled is it when you work for a company, where your wife or your brother could say, "Could salvage me copy of that software?" And this is Fusion and Workstation. So many of you know that whether it's a college student or any of the folks who are consumers of this, or whether it's a PC or a Mac, probably expend that software. And that's the roots of a lot of the technology here.

    But as the world has moved to the enterprise, I just thought to give you 3 vignettes of very advantageous case studies that I assume will motivate why what we're doing is different here. You'd probably can't salvage a more distributed environment than rental car business, okay? There's thousands of people at Hertz, multiple locations. This case study is actually a year on view. They're in essence creating a gross less complexity as to worrying about whether they'd deploy security software, PCI compliance, any of the things that potentially you've got to worry about in a workforce that's distributed, and in essence, lower their cost. This has become a fabless case study for us.

    But it extends from not just those types of distributed workforces to ones where you can actually subsist saving lives. When you assume about John Hopkins, one of the best medical universities, and 10,000 plus clinicians. If you could provide them a passage by which their clinical documentation, medical records and things of that kindhearted could subsist deployed through these clinicians or on the run, whether it's on thin desktops or whether it's on their mobile devices, that's what we're starting to conclude with John Hopkin.

    And it's actually led us into some opportunities where they assume in the health keeping space, they could conclude more with Epic. And Epic, as you know, is a leader in the EMR space, and Carl hinted the verticalization. They assume that where a lot of these desktop technologies can enhance themselves is actually optimizing for some of the verticals, and I'll Come back to that in a second.

    And we're starting to observe this becoming something that will allow us with this suite now, not just View, but likewise Mirage and Workspace, so that they could cover everything from physical to virtual to mobile.

    If you examine at some of the case studies of where we've seen this success, these are ones -- when I asked the team, and I talk to some of these customers likewise who are watching from the outside in, some of the reasons why we've been successful, you assume Amdocs. This is actually a Mirage customer [indiscernible] was the acquisition. 10,000 plus seats. In this character of expend case, where you can actually reduce the pain on the back desk, it's a huge chance for optimization.

    And it was exactly this pie chart that about a year ago, when Pat came in, helped us lay the current foundation and framework for their strategy.

    Now to conclude that, they had to construct some very, very mammoth decisions. And they had to Go through what I would summon a realignment process earlier this year. This is a chart that I showed last year at the fiscal Analysts Conference. And there's only one more additional acquisition on this chart, and that was Virsto from earlier this year. Everything else had been done in the past. In fact, there was many different acquisitions we've made over the last few years. But when you Go back to the $50 billion and the 3 key priorities and strategies that they needed to focus on, a number of these either lucky into the strategy or they didn't. So what they contain to do, they had to realign the business. They had to realign the people. They had to realign the resources to construct confident they were in alignment to Go and tackle that massive opportunity.

    And a lot of these, actually, went into 2 different areas. They actually went into either the Software-Defined Datacenter that Pat was up here articulating, with a lot of the things around networking, with the things around storage, automation and management. And the Wanova acquisition, which is the talent to centrally manage your Windows environment on laptops, on PCs or any device moved into their End-User Computing strategy.

    At the selfsame time, over the last 5 years, they had to discontinue and respite and assume about any of the acquisitions they made, and whether or not they lucky into 1 of these 3 key strategies and priorities of the company. And the ones that did not, over the last year, you've seen us conclude divestitures of. Shekar and their business development team has done an astounding job at divesting a number of business into hands of people they trusted, so that they can continue to service these customers that are already VMware customers. So they build a lot of these out there in the market into the other hands. They divested them, piece of the realignment effort.

    At the selfsame time, they took a number of our, what they used to call, Layer 2 assets, the Spring Framework. They took a lot of the things from Cetas, as well as the Cloud Foundry, which is the open-source PaaS platform that VMware brought to market a few years back. And they build them into pivotal to build the Go pivotal business, which I examine at as one of, if not, the separate largest startup out there today. 1,400 employees strong, with assets from both VMware and EMC, $300 million-plus in revenue, it's a very exciting business joint venture between us, EMC and now GE as well. And that was the realignment effort.

    It now has us aligned strictly on 3 things and 3 things only. And inside of VMware, they recount if you're not working on 1 of these 3 key areas of focus, you're probably not aligned with VMware. And through this realignment, it has allowed us to double down their efforts across any 3 of them. And let me assume you through just a yoke of things we're doing in that double-down effort.

    First, let's start by talking about End-User Computing. And Sanjay will Come up and spend a lot more speaking about the End-User Computing space, but they are really excited about the End-User Computing business. They assume there's a significant chance for VMware to actually continue to assume market partake against the competition. And because they believe that to subsist the case, they contain doubled down their go-to-market effort and strategy by hiring hundreds of people on the go-to-market and sales side to actually Go out and target customers looking to radically transform their desktops. And as we've said, the last 2 quarters, in both Q1 and Q2, their license bookings were growing in the mid-teens in the End-User Computing business. And when you compare and contrast that to the ease of the market in this segment, they can actually stand up here and believe, from their perspective, we're taking market share. That couldn't contain occurred without a realignment effort.

    At the selfsame time, you heard Pat articulate both here and on main stage their effort to salvage into the hybrid cloud business. It's not public or private. It's not public versus private. It's one and the same. It's hybrid. The world of computing in the future will subsist delivered through a hybrid model. It's the only passage you can conclude it efficiently and effectively. And it has to subsist done with someone infatuation VMware, who can seamlessly extend that data headquarters into the public cloud. With the launch of the vCloud Hybrid Service, you heard Pat say, the early access program was oversubscribed. They saw sturdy customer demand. And at the selfsame time, once again, they doubled down their go-to-market efforts and we've hired and built out a specialized sales oblige to Go after this opportunity.

    And lastly, the Software-Defined Datacenter, where they virtualize any of IT, not just infrastructure, but it's infrastructure, it's applications and finish users. And we, here, once again observe a massive opportunity, not just, again, to virtualize the infrastructure, but how conclude they roam from a world of management to automation. And because they are growing as hasty as they are in the management space and we're the #1 vendor in cloud management today, we've decided to once again double down their efforts, build out a specialized sales and technical oblige to assume odds of the massive market chance they contain around cloud management going forward. These 3 key areas of investment could not contain taken space unless they went through that realignment process earlier this year.

    At the selfsame time, they had to also, as you know, build assets into pivotal. They did that. They took about 400-plus people. Some noteworthy people are now at pivotal and were soundless piece of that. And pivotal is a platform that will hasten very, very well on top of vSphere, as well as their public cloud with vCloud Hybrid Services. And that is an chance for us to expand the workloads that hasten on top of their platform. Because today, a lot of what pivotal does in the mammoth Data space or with Hadoop actually hasten on physical servers. They now contain the chance to build that on top of the VMware platform. Again, it couldn't subsist done unless they specifically were to focus on this realignment effort.

    We likewise continue to invest in emerging markets. They observe a significant chance in emerging markets around the world, from China to Eastern Europe and Russia to Japan and Latin America. And this is just an illustration to demonstrate any of you, actually the bookings growth we're getting out of this market as compared to the headcount growth that we're putting into it. And I assume any of you recollect from their earnings summon last quarter, they had a phenomenal quarter, specifically in APJ, where they grew the business significantly year-over-year and quarter-over-quarter. Again, these are investments that they would not subsist able to construct as a company unless they actually did that realignment effort earlier this year.

    And because there's this build-out around the world and these continued investments in the emerging markets, when you examine at VMware's partake of business that they salvage outside of the U.S., it's now up to 52.5%. And for a company who's really only been selling in the market for the last decade, they assume this is pretty amazing. So more than 50% of their business in about a 10-year time frame actually Come from outside the U.S., and that is because of those investments they continue to construct in emerging markets. And as I said, you could observe that in their results in Q2.

    We had a noteworthy quarter around the world, growing the Americas business, which is, obviously, their largest individual business, by more than 20%. In EMEA, they grew the business on what they said is in the mid-teens. And they any know there's massive headwinds we're facing in EMEA. But they continue to power on.

    And their technology provides such incredible ROI and TCO value. Even in the most challenging climates, they continue to observe people to adopt it, to drive out the cost of their environment.

    And in APJ, they just had an astounding quarter. And when you compare and contrast what they did in APJ last quarter, because of the strengths specifically that they saw out of Australia, I assume it was quite impressive when you compare it to the ease of the market. So very key investments on the go-to-market side across the 3 priorities, key investments in emerging markets, and they continue to pay off for us going forward.

    So now let me switch gears and talk about how VMware continues to accelerate their customers adoption of the Software-Defined Datacenter and IT as a Service. So if they assume a quick step back and examine at how people contain historically adopted virtualization, they've really gone through a 3-phase approach. They've taken, they've implemented virtualization, as any of you know, to drive out massive CapEx savings. And they used to summon that infrastructure focus and CapEx savings. But as people got more and more comfortable, whether they started to roam into what they summon business production, where they started to actually salvage the benefit of both CapEx and OpEx. And then ultimately, more and more of their customers, as I'll demonstrate you in a yoke of slides, are actually adopting this technology to truly deliver IT as a Service.

    Now as their customer has evolved, we've had to evolve. We've had to evolve how they sell into the market. And if you examine at back, historically, how we've sold, we've sold point products. They sold vSphere to address that CapEx savings opportunity.

    Then as people got further along, they started to sell things infatuation SRM that Pat spoke about earlier, vCloud Director, vC Ops and other management and automation tools. But what they found, as their customers were going on this journey with us, they didn't want point products. They wanted the gross solution from VMware.

    So they started to change their selling motion and they changed their pricing and packaging along with it. So that now, as you examine at their sales motion, what they sell, day 1, is a trusty solution. They sell vSOM, which many of you know and query questions on the earnings summon and in the analysts conference, asking about how is vSOM going. And in the first quarter it did extremely well. It's a combination of the vSphere platform coupled with vC Ops, bringing to their customers highly scalable virtualization software and now software and an automation tools to allow them to operate in this current world. And their vCloud suite continues to power along.

    For the fourth consecutive quarter, it beat their expectations. And it's being sold in conjunction with the ELA, exactly as they would contain expected.

    As their customers continue on the journey, what we're finding is more and more of them want to buy the Software-Defined Datacenter. They want to salvage access to this hybrid cloud. They want to leverage that selfsame infrastructure to transform their desktops in what they summon end-user computing. So what they ultimately conclude is they enter into an Enterprise License Agreement with VMware.

    And as you know, last quarter, they had a very well quarter. They had 37% of their bookings Come through ELAs. And many people say, "Is that good? Is that bad? What's it matter for VMware? What's it matter for the customers?" Quite frankly, they assume it's exciting and it provides significant benefit for both their customers and for VMware.

    If you examine at it through the eyes of their customers, it gives them the talent to have, what I call, frictionless deployment. Every time they want to adopt more virtualization, they did not requisite to Go and salvage another purchase order. They conclude not contain to Go and warrant another passage to salvage access to more VMware because they contain a framework to salvage access, an light access to any of their technology. It likewise allows them to salvage predictable pricing. They know exactly how much it's going to cost per compute, per storage, per network component.

    And lastly, I assume most importantly, they start to align their long-term strategic vision to VMware. In this notion of the Software-Defined Datacenter that they brought to VMworld in 2012, it's becoming a reality. Their customers believe or they wouldn't subsist entering into multi-year strategic agreements with us. And they also, at the time, they buy an Enterprise License Agreement. In fact, I don't infatuation the word ELA because it seems very license centric. It's an enterprise license centric [ph]. I assume of it as an EA, an enterprise agreement. Because the majority of their enterprise agreements involve services components to back them drive the deployment of any of the assets they salvage access to under this agreement.

    For VMware, there's many benefits. Some of them are actually the same, some are slightly different. But for us, it allows us to capitalize on that massive installed ground they contain out there today and affecting from this interactive model of a point product sale through a strategic relationship, and allows us to very quickly expand their footprint, not only in their accounts, but likewise globally because they contain global access, that they're multinational company, to any of this technology.

    And for us, it's likewise frictionless deployment. Their customers can easily deploy the technology, and their sales teams and their engineering teams aren't going in and selling point product. We're selling a solution.

    And lastly, they indulge in and they want and we'll continue to build on the services engagements they contain with their customers because they absolutely know, and as you'll hear up here later on today with me when I spend some time with Steve Hilton, one of the challenges is not just technology adoption, but how conclude you transform your IT organization into people process side of the business. This is why they assume there's business benefit by doing enterprise agreements for both their customers and VMware.

    Now along the way, what they assume is going to befall here is we're going to observe their customers continue to roam on this journey to IT as a Service. These numbers here are out of their most recent customer survey that we've done, and the results just came in, in the last yoke of months. And this percentage here is where their customers believe that they're at in this 3-phase approach to IT as a Service. And as you can see, IT as a service now about 20% of their customers believe they are delivering IT as a Service. And what's most compelling about this isn't necessarily what percent of their customers are at, what different phase. But it's a fact, as they further drive this notion of the Software-Defined Datacenter, they salvage a much richer recur on investment.

    And the recur on investment isn't just on the capital cost savings that they get, but it's on the operational efficiencies, affecting from a system administrator of supporting 100 virtual machines in phase 1 to 300 in phase 3. These are the benefits that people will salvage through Software-Defined Datacenter, the automation of the Software-Defined Datacenter, the efficiencies, and ultimately, deliver IT as a Service.

    And one example of this is a customer we're working with. It's a great fiscal services company. Many of you would, obviously, know who it was if I said it. But we've been working with this company for a few months. And one of their challenges was, how conclude I roam to this world of a current greenfield data headquarters and assume advantage, VMware, of everything you're laying out? I want to virtualize my compute, network and storage. That's a greenfield environment. But I had this legacy data headquarters over here that I contain to protect, and I contain to withhold the lights on. And to construct that bridge or to jump from the legacy to this current world is extremely hard.

    So we've worked with them to say, can they salvage enough capital to Go and stand up a troupe current greenfield data headquarters and leverage everything that Pat spoke about today. And that you'll hear further from the presenters up here.

    And what they establish is if they could build a current greenfield data center, the savings were absolutely remarkable. As you observe here, they would redeem more than 54% over what they conclude today on the OpEx side of running IT, and their capital requirements will Go down by 74%. That's the power of the Software-Defined Datacenter. The understanding for this, for example, on the capital side, Raghu will salvage up here and talk about network virtualization and how any Layer 2 through 7 services are now done in software.. any the appliances that people contain bought in the past are no longer needed.

    Again, this is transformational stuff. This is exactly what VMware did a decade ago when they disrupted a market with ESX. Now we're about to Go on the next journey in the next decade to disrupt the ease of the data headquarters and drive this Software-Defined Datacenter approach.

    Now we're likewise focused on making confident that they don't just acquire a company or customers. But once they salvage those customers, they build a long, meaningful enduring partnership with them. And every year, they focus on what is VMware's Net Promoter Score. And they are maniacal about this, and everyone in the company thinks about it. It's a very customer-centric approach, as I'll talk to you here in a few minutes about. But these are just some of the statistics that they salvage back on Net Promoter Scores. The industry middling for tall tech on Net Promoter Score is 13%; for B2B computer software companies, it's roughly 9%; and VMware last year was at 43%. One of the highest NPS scores you can find in any of tech.

    And just recently, this group called the Temkin Group did an NPS study. This was specific to North America. And once again, they were supercilious to recount that they came out on top with a Net Promoter Score of 47%. Again, making confident that they understand, it's not only technology that allows us to gain access to customers, which, quite frankly, is probably easier than maintaining a customer for life, which is why they spend so much time thinking about this. We're likewise pretty supercilious of the fact, and Pat had it on a slip during his keynote earlier today, we've -- recently, I guess, it was last week, they were announced as the Third Most Innovative Technology Company by Forbes. It was the first year that VMware was actually even eligible for this ranking. In their first year of eligibility, they came in third, ahead of companies infatuation Google and Apple. That's the character of company they aspire to subsist in the future.

    So now let's very quickly talk about, if this is the market chance and this is how they sell, how conclude they salvage access to their customers? Well, it starts with a customer view. It starts with a customer-centric strategy across the company. And if you assume about most technology companies, they assume about the technology they contain to offer, and then they design out what are the routes to market so I can salvage them to customers, as opposed to thinking about what does the customer need. And then once you understand what the customer needs and you understand what their business challenges are, you start to assume about, okay, what is a technology that is going to unravel those challenges? And in VMware's case, what are the partners we're going to leverage to salvage access to those customers? And then they contain to start to assume about, okay, are their partners capable of delivering the technology customers want? And the only passage to construct this any Come together is that VMware thinks about any these different disciplines of a go-to-market strategy, starting with a customer, understanding the requirements they have, leveraging the technology we're building, leveraging the partners, and then VMware bringing that any together to build out a go-to-market strategy.

    Now when they assume about go-to-market, they assume about it in segments. And at VMware, over the last few years, they started to really drive a segmented approach as to how they storm their customer ground and the opportunity. Starting at the highest end, they contain a global accounts program, which is about 70 accounts around the world. When you start to drop down below there, they contain their strategic accounts, which are the larger accounts out there that we're going after. They contain a commercial business, and then they have, what they call, their mid-market and SMB business.

    And then across each of these segments, they cover them different. As you can imagine, with the global accounts, many of your accounts, they contain a rep covering your account, and that's the only account they cover. He or she does not contain any other account.

    When you Go down market, reps may contain 1 to 10. When you even Go further down, they may contain 20 to 50. When you Go any the passage down market, we're just going to leverage their channel.

    And as most of you know, VMware does about 85% of their business through the channel, so the channel is always involved in everything they do, as I'll demonstrate you in the next slide.

    Now at times, they start to assume about verticalization, and is there a selling motion or a solution that they can iterate as they sell into the market or a specific market, infatuation the fiscal services, infatuation the federal government, infatuation education, infatuation state and local. So at times, they actually build verticals to Go out and drive a consistent selling motion, with a consistent set of solutions each and every day. And along the way, as I said earlier, their partners are always involved.

    For the last decade, they said we're going to subsist a partner-led and -driven selling organization, and they are that today. 85-plus percent of their business still, at this point, goes to their partners, and I don't observe that changing at any as they Go forward. The partner community is one of the reasons VMworld is as successful as it is. There's over 2,000 partners here, and they're the ones who brought a lot of the 22,000 customers that they contain at the demonstrate this week.

    Now as they Go out and they construct acquisitions or as they continue to drive innovation internally and bring more and more solutions to other factory, they requisite to start assume about how conclude they assume them to market. And this is just a high-level framework of how they assume about we're going to sell a current solution or a company that we're acquiring. If it's an emerging product, they really requisite to assume about, is it ready to subsist sold with their core? Is it purely adjacent to something infatuation vSphere or the Software-Defined Datacenter? Or is it an emerging market that they actually requisite to build a specialized sales oblige to actually sell this solution in the market? And that's their strategy. At times, we'll build a diversified sales oblige and a specialized sales oblige to Go present the opportunity. At other times, we'll assume the solution, we'll build it birthright into the core sales oblige and contain those thousands of people birthright off the bat start to sell it.

    And sometimes, they actually conclude both. As I mentioned earlier, if you examine at this framework, technologies infatuation View or technologies infatuation NSX, we've decided to build specialized sales forces to assume it to market. At the selfsame time, they hope that their core will subsist capable to sell this as well.

    This is their framework, and it's worked very successfully in the past and it's something we're going to leverage in the future, whether they organically or inorganically bring current solutions to market.

    Now as I said earlier, they likewise requisite to construct confident that we're giving a very simple and light passage for their partners to engage with us to ultimately engage with their customers. And it's very straightforward. As their customers salvage into current accounts, they pay them and they pay them margin. As they expand in their accounts, they pay them more margin. They want to construct confident we're building what they summon a value channel. A lot of people talk about the channel in the context of a value versus a fulfillment channel. They don't want fulfillment channels. They only want value channels, and they will pay their partners for delivering value to their customers.

    Now one of the things that people contain often said is, "VMware, are you capable of changing the selling motion and enabling your existing sales organization in your channel to subsist able to sell this Software-Defined Datacenter?" Well, if you examine at the Software-Defined Datacenter as it's described today, a lot of the components of the Software-Defined Datacenter contain actually been sold already through the channel.

    And in fact, if you examine at this, if I wreck this down, 70% of servers in data centers today contain been sold through the channel, approximately 85% of any networking security services and goods contain been sold through the channel. And lastly, if you examine at storage, even storage, the high-end involved storage solutions are actually sold through the channel. So the channel has already, if you will, primed the pump and sold to the customers any of the hardware that we're going to Go out and virtualize. And people say, "Well, how conclude you roam to a sales organization that can sell or a channel that can sell software solutions?" Well, it's actually, they don't assume any that difficult, there are some challenges.

    But if you examine at it first through the server view, and they already know that today server virtualization has been delivered to the market through a channel. We've proven that in the last decade. We're going to now Go and we're going to iterate that for network virtualization, as well as storage virtualization. This is their strategy to enable their channel. At the selfsame time, it's advantageous to sell the technology, but can you sell the management solutions around it? Can you conclude automation? Can you conclude provisioning? Can you conclude remediation of that infrastructure? Which they assume they can conclude but they can't conclude it alone, which provides their partners to contain an chance to Go in and sell management services as well.

    Our customers requisite back on this journey to the Software-Defined Datacenter, both technologically, as well as on the people process side. And when you discontinue and examine at the market chance for professional services that their partner community has, it's almost as mammoth as the TAM I showed you earlier for VMware. This is why the partners are very much engaged with VMware and observe this vision of a Software-Defined Datacenter as something they want to align to going forward.

    With that being said, let me talk about enablement and wrap up. So enablement is captious for their success. They assume of enablement once, then twice. They assume of enablement, as they build enablement materials to back radically transform their sales oblige to sell Software-Defined Datacenter, the hybrid Cloud and End-User Computing services, but they built that once knowing that it's going to subsist delivered twice, both to their existing sales oblige and their channel because they observe them one and the same. And they contain been very aggressive and adopted many current technologies to bring enablement to the market.

    The latest one, we're working on an iPad and iPhone or a mini iPad solution that any of their people will subsist able to access any of the information they requisite through any device they want in a very secure way. And then we'll assume and we'll expend that selfsame infrastructure, that selfsame technology, and we'll give it to their channel. Enablement is focused on not only enabling their sales force, but their channel, build it once, deliver it twice.

    So in wrapping up, this is what I would say: They are aligned more than ever. We're aligned to Go out and assume odds of the $50 billion market chance that Pat and Jonathan laid out earlier. And they couldn't subsist here without that realignment effort that they went through as a company. I must say, we're any supercilious of how quickly they got through that and how well we've been able to maintain their focus in both Q1 and Q2.

    We're going to continue to invest, as Pat said, across the 3 areas and strategies of the company: the Software-Defined Datacenter, the Hybrid Cloud and End-User Computing.

    And when you assume about what Pat laid out on main stage this morning, he didn't lay out just a vision, strategy or direction for VMware. He laid out a vision, strategy and direction for an entire industry. And they will continue to focus on customer adoption and construct confident that VMware is not only committed to their customer, but the customers' existing investments they contain in their infrastructure.

    And lastly, they will continue to focus on enabling both their sales oblige and their partners to subsist able to back their customers once again, just infatuation they contain in the last decade, to Go and radically transform IT through the expend of simplified, powerful virtualization software.

    Thanks for your time.

    William D. Fathers

    Thank you very much. Thank you, Carl. Great. My designation is Bill Fathers. I'm the universal Manager, Senior Vice President for their current vCloud Hybrid Services business unit.

    In the next 20 minutes, what I'd infatuation to conclude is give you an overview of the service offering and how they differentiate in the market, talk a bit about their market opportunity, at a very tall level, give you a view of their strategy of how they -- their strategy for becoming a preeminent player in the public cloud marketplace.

    So that they could cover everything from physical to virtual to mobile. If you examine at some of the case studies of where we've seen the success, these are ones -- when I asked the team and when I talked to some of these customers, likewise watching from the outside in, some of the reasons why we've been successful, you assume Amdocs, this is actually a Mirage customer, Wanova was the acquisition, 10,000-plus seats. In this character of expend case, where you can actually reduce the pain on the back desk, it's a huge chance for optimization, where you can demonstrate cost, savings, and you actually are able to salvage the replete -- the organization working in a much more agile fashion.

    Land Rover, as you know, was taken over by Tata. And a lot of what happens in an organization of that kind, especially as you assume about geographically expanding, is the fact that in India, in China, and many of the current places where you're doing things, you want to contain an efficient passage by which these engineers can salvage their diagrams or a variety of the things that Go on in car manufacturing. Again, a consummate expend case for a distributed workforce, geographically distributed, and one passage you can manage this at a flush of scale, in this case 4,000, 5,000 of them, much, much more easily with the solution as they provide. And then you assume one of the larger -- largest deployments we've seen, NTT, the Jaguar one was actually a competitive win against their competitor in the space, the NTT was actually a rip-out, where they actually replaced the competitor here, and this one's going to subsist probably in the tens of thousands when we're done. piece of what they establish was, in this space, there hasn't been a lot of attention given to the simplification of things infatuation management consoles and so on. And as solutions from some of their competitors contain been deployed, customers just establish a gross bunch of pain associated with that character of deployment.

    Here's a advantageous example of one where they will deploy with the undergo that the finish -- the customer felt was easier to use, more scalable to tens of thousands. And to the extent that they can deploy this now across the world in a very, very hasty fashion, we're finding that their customers themselves are able to roam much, much faster and certainly, to lower cost. And as you know, in IT, it's any about being able to lower your cost and then free up those dollars to conclude innovation. The consummate world is where if you're spending 90% of your money in the CIO budget, on keeping the lights on, you contain very diminutive time or money for innovation. And they could back people assume that amount of money that's typically keeping the lights on and reduce it by a significant amount of fraction. You free up money to conclude innovation, and that's really what a lot of what the technology here helps us do.

    So as they assume about investments in where they want to subsist able to grow this, here are the 5 areas that they are prioritizing. They're clearly horizontal expend cases: the arm office; the local; the remote offices; the ones that I talked about for example in that Hertz expend case; but there are likewise many plumb expend cases in industries infatuation healthcare. I talk about the expend case with Epic. In state and local government, educational institutions are ones which are rife with lots of examples of students and teachers, and places where you don't want to spend a lot of money on laptops.

    And clearly, the other types of segments are banking. So we'll prioritize many of these plumb segments and the lighter become things that they either productize, or actually build a go-to-market machine around how they can expand in a particular vertical. I saw that play very successful in SAP. I assume there's a lot of momentum that they could likewise build out here. You heard me talk a lot about the passage in which they assume about the future of the desktop and the desktop going to cloud, and they believe that there's going to subsist a huge chance for Desktop as a Service that I will talk about further. They likewise assume that this is certainly going to expand not just in the case of you and its expend in mobile, but likewise mobile as a whole, which I'll cover a diminutive bit later.

    Desktop as a Service is a huge opportunity. Their competitors contain not innovated in this area. This is an chance for us to not just conclude a Desktop as a Service in the context of a cloud offering from their service providers, and you'll observe us partnering with service providers to conclude that, but likewise in the context of their Hybrid Cloud. So this is a space where they can amplify one of the offerings that Bill provides in the Hybrid Cloud. As they assume about the innovations in storage, whether it's with vSAN or where the future of Flash-based storage is headed, they assume any of that will likewise further reduce the cost of a typically -- typical VDI deployment. And at the finish of the day, they want to subsist the solution that can subsist managed at great levels of scale. If they assume there's an chance to both replace, as well as innovate, in many of these current areas where you can deploy to tens of thousands, potentially hundreds of thousands and collectively, millions of seats, they believe they can conclude this in a much cheaper, faster and an easier-to-use fashion.

    Here's one example of that cost equation, when contrasted with one of their competitors. And they think, again, because of the complexity of many of the different ways in which acquisitions that contain been done by Citrix, the user cost is just a factor different. You'll observe in this study that was done by an independent third-party, at least 1/2 the cost from the standpoint of their for-user cost, and the other aspects of it is just the ease of expend and the universal scalability. They probably haven't done enough of a job at telling you some of the stories of some of their largest deployments. You're going to observe us doing it a lot more, so that through the years of -- so that through the voice of their customers, you're going to hear some of the success stories that we've had in growing this business. As Carl pointed out, we're growing twice the pace of their competitors. They assume we're gaining a tremendous amount of partake in this piece of the market.

    Desktop as a Service, they will contain an offering by Q4 of this year, both, as I mentioned, through service providers and other players, but likewise in their Hybrid Cloud. And I assume this is going to subsist tremendously exciting. This is the intersection of where VDI meets the cloud, and there's any kinds of opportunities as to where they believe they can assume this. This is likewise going to ease the deployment in a much faster mode as any cloud computing does. And it's another space where you will observe VMware subsist an innovator. We've been an innovator in a number of different areas, but the intersection of VDI and cloud is one more area where they believe we'll subsist able to demonstrate thought leadership and likewise product leadership.

    As you expand to some of the other areas infatuation mobile, they believe the mobile movement is just getting started. It's a huge chance in front of us, billions of devices, and hope much more from us. They announced Workspace this year. This is going to subsist certainly an area of my own fire and focus. And I expect, as they expand in this area, it's not just going to subsist something that will allow us to touch the billions of devices in the world, the future is the fact that every machine is potentially a device, your thermostat, your refrigerator, your Tesla car, is in fact a mobile device long term, and has an chance for both the management and the security of those things, so to speak, Internet of Things. So as they assume about where this is headed, their focus will subsist not just in IT, but the finish users. And I assume many of the selfsame constructs that you've seen us do, infatuation for example, policy and management, will subsist ones that they extend there. In doing this, we're taking a very watchful view of looking at any of the device-operating systems, from iOS to Android to Windows, any the various different telco providers because the service providers are very important, and the VARs because you understand that the distribution of much of the passage the mobile movement will work in the market will subsist not just on their own, but through many of these considerable channels.

    So overall, very, very excited to subsist here. This is probably the first presentation that I've done in my life, where I'm actually 4 minutes ahead of time. But Paul, you'll subsist pleased about that, and with that, let me interpose the godfather of the software-defined data center, Raghu.

    Rangarajan Raghuram

    Thanks. any right, advantageous to observe you any again. Hope you enjoyed the keynotes today. And don't miss the keynote tomorrow, you will observe Carl Eschenbach at its finest. I will talk about the software-defined data center, specifically covering 2 aspects. First, at this venue last year, they talked about their vision for the software-defined data center. They talked a diminutive bit about what they contain seen in the marketplace since then. And then specifically, they talked about the current developments, some -- most of it was announced today. I'll try to give you a diminutive bit more color on those.

    So what's driving the software-defined data center, as Pat pointed out today, is a fundamental transformation in what customers hope out of their infrastructure, right? Velocity and agility has become paramount top of understanding for most of their forward-thinking customers. The understanding is, as businesses shift towards engaging with customers, in a variety of different media and different devices, it is the systems of engagement that customers are building that are replacing or becoming more considerable than the worn systems of record that IP used to subsist managing. The systems of record where the ERP systems and so on and so forth, systems of engagement are these mobile sociable systems that customers are building in order to salvage in front of their customers in more and more attractive ways, right?

    Out of this, combined with a change in how software is being built in most of their customers, is driving the requisite for continuous development and continuous deployment. That in gyrate called for a gross different model underneath in the infrastructure space.

    Associated with this is the explosion of data, right, because as you engaged particularly with customers, you got to understand that in a much deeper stage, that again calls for an explosion of infrastructure of a different character than what IT has been dealing with.

    Even while doing any of these, any of the infrastructure has not gone away. For most of their great companies, they stood out of significant risk-based infrastructures and other non-x86 space infrastructures. And that is where the next generation of cost-cutting is going to Come for a lot of them.

    And then last but not the least, shadow IT is a very actual phenomenon, a line of business bypassing IT altogether, and buying their compute resources from public cloud providers. And any of this leads to a current set of requirements, a set of requirements where customers are expecting IT to subsist able to deliver applications and services on-demand, on top of an infrastructure that's not siloed to any particular hardware vendor, on top of an infrastructure that's elastic and highly automated and, of course, extend seamlessly externally to provide pools of capacity when that's needed.

    That's really the foundation of the set of requirements that's driving their thinking around the software-defined data center. This is the vision that they introduced last year. To recap, they assume the passage to achieve these requirements is by abstracting infrastructure services away from hardware, pulling it, virtualizing it and then automating it, okay? This was very successful for their customers in compute, but the minute that application gets deployed into a actual data headquarters today in production, it gets slowed down because storage and network are done the old-fashioned way, the passage physical infrastructure works.

    As a result, any the automation that it can apply is very brittle. With the software-defined data center, this is the next evolution of their stack from what they showed last year. This is a concept of abstracting and pulling and virtualizing they contain taken from compute and extended it to network and storage. With CACs, their cloud automation system that allows you to define anything as a service, as service catalog that's extensible by the customer, to deliver any these infrastructure services and deploy applications on these infrastructure services whether they're local or remote. And their operations management product is a product that allows you to deliver these with the consistent SLAs.

    For this VMworld, they contain announced products and every one of these are advanced products in every one of these domains. There is a current generation of vSphere, vSphere 5.5. The mammoth tidings of the demonstrate is, of course, NSX, the network virtualization platform. And Virtual SAN enters public beta.

    In the operations management front, last month, they introduced Log Insight, which allows us to apply mammoth Data techniques to log messages in order to gain operational insight and then set up automatic remediation. You can assume of it as a companion product to their vCenter Operations product, which uses time-sensitive data, right, statistical time-sensitive information and then nearby to divine analytical insights out of it. The Log Insight is a companion of complementary solutions app. And then vCAC is their cloud automation suite, consisting of their Application Director, as well as their DynamicOps purchase of last year.

    The passage they Go to market with these is they simplify these into suites. vCloud Suite was introduced at the last VMworld, and had been very successful for us over the last 4 quarters. And that's meant for the Enterprise consumer, and vSphere with Operations Management is for the virtualization mid-market customer that wants to contain a better-managed virtualization environment. This is a diminutive bit of an eye chart but just so that you contain this for your records, these are the product components for vCloud Suite, as well as the vSphere with Operations Management. Consistent with their packaging strategy, it comes with a small, medium, great size, meant for different selling motions and different classes of customers.

    Over the last year, they contain had 2 types of successes with customers. Customers that contain adopted any particular component in a mammoth way, as well as customers that contain adopted the gross suite. So these are examples of customers that contain chosen 1 or more of these individual components. And here are a yoke of examples of customers, both at in the Enterprise scale, as well as the mid-market that they would infatuation to summon out. For example, Symantec, which has been a long-term vSphere user, they contain been deploying the replete elements of their vCloud stack. And they contain deployed over 200,000 VMs. This is the global support team at Symantec that supports the finish users. And so they expend this private cloud infrastructure to recreate customer effort scenarios and troubleshoot them. This is their estimates of the engineering man-hour saved, and you can translate these into dollars. More importantly, it is the agility of the service flush that they're able to deliver to users that is the strategic benefit of the app. You saw a lot about Columbia today at the keynote. And then, in the mid-market, vSphere Operations Management has proven to subsist particularly attractive because it enables customers, infatuation those that are shown here, Greektown or Cornerstone, to salvage more out of their virtual environment. Very often, when customers deploy the Operations Management component, they salvage an additional 20% to 35% CapEx savings because they're able to expend the capacity more efficiently after looking at the insights from -- delivered by vCenter Ops. As you noticed, this is likewise enabling us to displace Hyper-V in these accounts, too.

    So that's a quick overview of some of the successes from last year. Now let's talk about where they are going looking forward, starting with the announcements that they made today with compute, right? So this is a chart that they contain religiously shown you every year that we've had this, right? The top chart is the percent virtualized in the marketplace. This comes from their annual survey that they conclude of their customer base. The industry analysts conclude their own survey, and they're any in this ballpark, and the net-net is, the industry is about -- sorry, their customer ground is around a mid-60s virtualization percentage, right? They are steadily progressing towards a very tall number. The chart at the bottom is equally instructive because this measures the percentage of virtualization of business captious applications, customers that they recount they contain virtualized their business captious applications. Some of those applications are listed there, right?

    And that number again has been steadily growing. The understanding these 2 are considerable is the more virtualized a customer is, the more it is an installed ground chance for us to sell higher-value products. They assay there are approximately 40 million virtual machines installed in their customer ground on top of their paid product, right? 40 million virtual machines. Now imagine the chance it opens up for us to sell additional management, or the Virtual SAN, or the NSX platform, or other management products that they may build in the future. So this is a huge and sturdy ground across 500,000 customers that they intend to deliver more and more value in the coming years.

    So with vSphere 5.5, their focus is to create a separate platform for the Enterprise that can serve not only their traditional applications but likewise their next-generation applications. So vSphere 5.5 is not a major release, but the major focus of this minor release is to deliver value for current applications. So the mammoth Data extensions that they had announced earlier in the summer are now piece of vSphere 5.5. This enables Hadoop workloads to subsist easily deployed and utilized in a general-purpose vSphere infrastructure.

    We announced their collaboration with Pivotal to deploy, to create a version of a Pivotal cloud foundry that runs on top of vSphere. They contain seen very tall interest from very great enterprises that contain sizable developer audiences, that want to Go from an Infrastructure as a Service private cloud to Platform as a Service private cloud. Of course, they talk plenty about what we're doing with OpenStack. And they contain extended their platform to subsist very useful in high-performance computing. Here is a practical example of what a customer has been doing with 5.1. I'll talk a diminutive bit about additional things they are doing in the future.

    And they continue to work with the chip manufacturers to support their newer and newer platforms, such as the ones that are coming out with the -- such as the Habiton [ph] platforms from Intel.

    As I showed you earlier in the chart, business captious applications continues to subsist a focus for us. This is what customers are deploying, right? I was talking to one of their BCE experts from Asia just yesterday night, and he was telling me that just in the first half of the year alone, he's been involved in over $200 million of displacement opportunity, where customers are affecting stuff off of worn Solaris or other risk platforms onto vSphere or on x86. Right? So this is any net current chance for vSphere Enterprise Plus because that's what customers deploy.

    One of the key breakthroughs that they contain done with vSphere 5.5 is they contain made it suitable for applications that are tremendously latency-sensitive, such as in Wall Street trading environments, such as in other telco environments down the road. Right? And this is a verbatim quote from a very, very mammoth bag that any of you know very well. And this attests to the delivery of performance that they contain done in vSphere 5.5. Right?

    So that's a quick overview on compute. Now let's talk about networking, right? I showed this chart at the March fiscal analyst conference that they did, and you saw this chart earlier today, right? When people query us why are they in the virtual networking business? This is where their anecdote starts. We've been in the virtual networking business for a long, long time, right? As more and more applications salvage virtualized, Go back to that 57% virtualized number that I showed you a few slides ago, the passage any these applications connect to the network is through a virtual edge switch, right? So the edge of the network is animate inside the hypervisor, any right? And because of the growth of these applications coming onto the virtual platform, it's growing -- virtual switchboard matter is growing much faster than physical switchboard count, right?

    The other exciting observation here, that was a astonish to us until they did the survey, is the percentage of virtualization app virtual switch, right? A mammoth understanding why they introduced CLIs and why they did third-party virtual switches in ESX, was so that network administrators that are chummy with how network switches work could manage network switches from their favorite vendor. What they are finding is there is an equally sturdy population of server administrators that are now turning into virtualization, network virtualization administrators. And this is an additional proof point of what Martin [ph] talked about upstage, on the main stage, is that network virtualization is adopting -- sorry, the networking is adopting the operational model of compute, right?

    And that will climb the second understanding why they are doing network virtualization, okay? Server virtualization was usually successful for 2 reasons: People contain brought it into their corporate data centers for the CapEx benefit. The understanding people contain stuck with it is because it's transformed the operational model for compute. They took a server, which was a physical remonstrate in sheet-metal and A6 and whatnot, chips, turned it into a software object, which was a virtual machine, so you can programmatically create it, demolish it, roam it around, conclude whatever you want to conclude with this. This flush of flexibility does not exist today in the network. This is why customers contain told us that they contain taken as much as 45 days and 50 days to deploy an application because the network is soundless physical and any the configuration of load balancers and switches and access control lists and VPNs and VLANs and whatnot, any of it is happening in a manual basis today, right? They're any capacity-constrained. Each time you deploy an application, you contain a thinker with the network configuration and the network topology, which in turn, makes things more trouble-prone and leads to more operational costs.

    With network virtualization, they are recreating the network in software through NSX software, right? The major elements of which are switching, which I just talked about. Distributed routing, the traffic between applications in the data headquarters is called east-west traffic. That traffic, according to network companies, is now 70% of any network traffic, as opposed to the north-south traffic, which is the traffic going to the end-user device.

    And you can observe why that is the case, because each time you conclude a web lookup or access a net application from your mobile device, it hits one of many web servers. But from then on, the traffic goes on to some business logic server and then to some database, perhaps through some middleware, to some mainframe, et cetera, et cetera. any of that is what they summon east-west traffic. Right? As you build more applications into the data center, any of those applications generate traffic that has to subsist swift, that has to subsist routed, et cetera, et cetera. And what they are doing with NSX is turning these into software services.

    In addition to switching and routing, we're doing firewalling and load balancing, another hit services.

    Now on top of this chart, you observe some numbers. That shows the throughput speed, right? They are able to conclude this at line rate, so imagine 10 GB network backbones in the rack, they are able to conclude this at line rate. So performances -- this is not a type, they are talking about actual data headquarters traffic at very tall speeds being handled by software. The understanding they are able to conclude this is a distributed architecture, okay? Unlike their previous attempts at providing, for example, firewalling, they conclude not expend a virtual machine to conclude that. The technology for this is built-in as an extension of the hypervisor, right? So they are able to provide this sort of functionality at line rate speeds, number one. Number two, because they are the first discontinue point on the network, next to the application, these services can subsist set up in response to what an application needs and when the application moves, the services of these policies can subsist moved to wherever the application is moved, right? So the mobility of policy enforcement becomes automatic. It's tremendous, and best of all, the passage you scale these network services is no longer a discrete competency from how you recount it's scaled to compute. When your application needs more horsepower, the passage you scale to compute is most likely to scale out application, you build more compute nodes. When the application needs more network services, the passage you scale the network services is again the selfsame thing, you build the network, you build more compute nodes. The management of this is the selfsame as how you manage the application. The programmatic APIs is the selfsame as what you conclude to provision the compute APIs to provision the application. It's a seamless extension of what to conclude with compute, right? So this leads to an order of magnitude simplification of how networking works in the data center, okay?

    Remember this theme because we're going to Come back to this for storage as well. This is the scale-out power of doing networking this way, right? A separate host, you salvage the line rate speed that I talked about. vSphere clusters are often clusters of 32 nodes, so you can salvage up to 1 terabyte of throughput on a cluster of 32 nodes. A separate virtual headquarters domain can Go up to 1,000 holes, so you multiply 30 gigabits by 1,000 to salvage the throughput of your network services in a great vSphere form, right?

    The last but not the least, that is a common API called the NSX API, that many partners that can subsist used to interface this to any cloud management system. So whether you're deploying OpenStack or VMware vCAC, vCD or CloudStack, you can then walk these network services in a consistent passage in a cloud management system agnostic manner. And the beauty of the underlying the server technology that they acquired last year is that it's inherently multi-hypervisor, it's hypervisor-agnostic. So we'll work on vSphere, we'll work on KVM, Zen, they contain got a Hyper-V roadmap, et cetera, et cetera. And we've been working with a set of switch partners to construct confident that this can subsist extended to the physical domain. So if you contain a database animate on a physical server connected to a switch, they can any subsist piece of the selfsame analytic network that's managed by NSX. So at this conference, you'll observe sessions from many of the networking vendors, whether they're Layer 2, Layer 3 vendors, or Layer 4 to 7 services infatuation Palo Alto networks, et cetera, et cetera. If you contain time, I would embolden you to Go ensnare up on one of these sessions.

    So that's storage -- sorry, that's networking. Let me quickly talk about storage. selfsame concept, how conclude you construct storage more software-driven? As Pat talked about, 3 aspects of this, right? One is you virtualized the core data plane, right? Then you provide a policy-driven control plane and then thirdly, you construct data services very application-centric as opposed to infrastructure-centric. They are announcing 4 products today -- are announcing 3 products and progressing on one other. Virtual SAN is in public beta. I'll talk about Virtual SAN in a second. Virtual volumes, this is their effort to construct underlying storage, external storage more application-centric. And you will observe tech previews with their partners. The vSphere flash is their attempt to exploit the flash layers that are present in more and more server systems. And then, Virsto is their acquisition that they did a few months ago, and it's now useful for customers in order to deliver data services and better performance where they're using external storage or ACE.

    Virtual SAN, I mean, those of you that are chummy with the storage space know that there is no separate storage solution that fits any expend cases and workloads and deployment scenarios. Virtual SAN is a hypervisor attached persistence layer that uses the local flash and the local disk that is present in every modern-day server and clusters these to examine infatuation a virtual storage array. Initially, the expend cases that they are targeting are virtual desktop, infatuation Sanjay talked about, huge requisite for low cost storage there, Tier 2 or Tier 3 workloads infatuation your file server and SharePoint, and so on and so forth. And of course, as a DR target, where you may subsist willing to live with the local disk performance.

    Because they are using a distributed architecture, everything that I told you about networking, supersede the word with networking and -- we'll substitute the word networking with storage. any those benefits you'll get, again, because of the distributor architecture. The passage you scale storage now is exactly the you scale compute, add another node. So if your application needs more storage resources, you just requisite to add another node, just infatuation you requisite to add another node for compute or requisite to add another note for networking.

    Here is the chart of the VDI performance, right? The dollars per VDI cost, observe how linearly it scales. In this chart, it's up to 4,500 nodes, so in desktops, and they contain seen results of the goes -- span much larger as well. So this is a killer solution for VDI. The chart on the right-hand side shows how they perform with respect to Tier 2, Tier 3 workloads, read/write performance. You can observe in terms of IOPS, they are very compatible to midrange storage arrays while using local storage economics, right? So they assume they are creating a current cost point in the storage industry ecosystem in terms of choices for customers.

    All right, 5 more minutes, I've got to cover management. This has been a significant focus for us in the last 3 years. And as Pat talked about, the keynote today, cloud management is a rapidly growing category and they are seen as the leading vendor in cloud management. The understanding this is a fundamentally different and disruptive category to traditional enterprise management is because the technology requirements are very different. Enterprise assumes management products are built for a client/server era, agent based, they collect data from a few tens of devices and try to demonstrate it to you using some virtualization technology. Whereas, the mobile cloud area requires something fundamentally different, here, you're talking about thousands of devices, thousands of virtual machines, and the involved connection of applications to servers, to storage, to network. So the amount of data that you've got to dissect makes this a mammoth Data problem. This is why enterprise systems management vendors are not able to transition smoothly to the cloud era, right? And their product, because they started from new, they contain taken mammoth Data techniques, applied them to data headquarters management problems and cloud management problems.

    And lastly, but not the least, the third disruption that's happening here is one of category disruption, right? When you assume about the cloud problem, it breaks categories by definition. So there is no longer -- you can conclude capacity management divorce from performance management, divorce from some of the storage management performed, divorce from network management, they're any interrelated, right? So you requisite to assume a gross current approach and one that's based on policy-based automation, as well as applying these analytics approaches.

    So we've got this -- just a diminutive bit of eye chart, I apologize for that, we've got 3 major areas of focus in management, cloud automation, which is about deploying applications in an automated mode to any cloud, right? Cloud operations, which is about managing the applications on the infrastructure, and having the software autism and assume remediation, remediation actions. And then cloud business, because IT is now a broker of services in addition to a builder of services, they requisite to subsist able to expend fiscal metrics, as well as their seller metrics to determine where to deploy the application, and that requires a current discipline management that they call, cloud business management.

    The baby of building about their management portfolio is to start from their obvious strength, which is infrastructure management for virtualized domains. From there, they contain expanded to hybrid domains, infrastructure management for both of vSphere, as well as non-vSphere environments. And then affecting up into applications, you're progressively advancing their management portfolio, they contain done it through a sequence of acquisitions, as well as in-house development and go-to-market activity.

    Let me skip past this, in the interest of time, we've already seen some pretty mammoth successes with their management products and this has contributed to the increasing velocity of their management business. And Dow Jones, significant, significant reduction in provisioning time for applications. Boeing, significant extend in their capacity utilization and reclamation of CapEx. And nationwide insurance, using ITBM to lower overall IT as a service cost.

    So we've thrown a lot at you today, right? Both at the keynote, as well as here, I've walked through the gain of products, that takes us from being a single-point solution vendor, i.e. a server virtualization vendor, to a full-fledged data headquarters vendor, right? A data headquarters solution provider that's providing a very disruptive approach for how customers build and operate their next-generation data centers.

    These products are likewise suited for the selfsame character of customer today, and this chart sort of maps the products to the character of customers that we're going to target over the next year or so. Clearly, compute virtualization, fully mature, they are selling it everywhere to everybody that wants it, right? any the passage around to the current products, which are software-defined storage, just selling to the early, early adopters along with NSX, et cetera, right? As these products roam up the maturity chain, and as these products start to appeal to mainstream customers, their strategy is to start bundling them into the suite, and extend the velocity even further. So that's why this chart is pretty important.

    So in summary, where they were last year was SDDC, as a vision, but the bulk of the business was server virtualization. Where they are today is the bulk of the -- a significant portion of the business is coming from beyond core server virtualization into things infatuation management and, obviously, end-user computing. And they contain laid out a set of products that will enable a customer to build and operate a data headquarters entirely based on software. And that's where they are headed towards with the software-defined data center. With that, let me bring up Bill and Sanjay for some mp;A.

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