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PEGACLSA_6.2V2 Certified Lead System Architect (CLSA) 62V2

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PEGACLSA_6.2V2 exam Dumps Source : Certified Lead System Architect (CLSA) 62V2

Test Code : PEGACLSA_6.2V2
Test name : Certified Lead System Architect (CLSA) 62V2
Vendor name : Pegasystems
: 149 existent Questions

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Pegasystems Pegasystems Certified Lead System

Pegasystems' (PEGA) CEO Alan Trefler on Q2 2017 results - profits name Transcript | killexams.com existent Questions and Pass4sure dumps

No result discovered, are trying fresh keyword!They reported “Pega was the simplest selection when it comes to a person who unifies every single these channels, inbound, outbound, the entire different things you wish to consume to talk to consumers when they're linked -- ...

Pegasystems Extends Cloud alternative with Google Cloud Partnership | killexams.com existent 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 race 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 race mission-essential applications according to impulsively changing market dynamics. as an example, many firms nowadays role 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 felicitous to fresh variables.

Pega's customer engagement and digital technique automation options work without hardship throughout distinctive cloud infrastructures, permitting companies to felicitous 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 also 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 breathe Part 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 open 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 comfortable 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 fullfil 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 www.pega.com.

Press Contact: Sean AudetPegasystems Inc.Sean.Audet@pega.com (617) 528-5230Twitter: @pega 

Story Continues

New solution empowers CSPs to every single of a sudden keep in constrain intelligent advertising and marketing practices in accordance with business-selected AI and decisioning capabilities | killexams.com existent 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 intelligent consumer Decisioning as a provider, a cloud-based solution designed to forward advertising suggestions for telecommunications suppliers. With ingenious consumer Decisioning as a service, Communications carrier providers (CSPs) profit a fully operational company group from Accenture to race constructive actual-time advertising campaigns on Pega’s AI-pushed decisioning marketing solutions.

As CSPs combat for each client, many want the components to invoke superior one-to-one advertising capabilities to attract fresh valued clientele while cutting back churn. intelligent customer Decisioning as a provider helps CSPs enhance subscriber retention, acquisition prices, and revenue practices by way of combining Pega® advertising and marketing for Communications and Pega® consumer selection 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 intelligent advertising utility with consulting services to execute and control its advertising operations. in search of fresh the prerogative way to extend advertising presents and services, Etisalat became to Pega to centralize and analyze inbound and outbound customer information, enabling brokers to proffer 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 way of featuring enhanced, greater personalised presents, Etisalat stronger conversion prices, crusade performance, and consumer satisfaction in the first year of use, including:

  • enormous augment of proffer 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 charge 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 reply from Pega and Accenture helps enable CSPs of every single sizes to connect with purchasers in more imperative, significant techniques — with out requiring additional effort, time, or hiring. purchasable now, the solution will expand to different vertical markets later this yr. For more assistance, seek advice from https://www.pega.com/intelligent-client-decisioning.

    “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 intelligent advertising reply through which they can now continually compose 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 glimpse to continue and capitalize fresh profitable shoppers, they necessity the potential to immediately implement useful advertising recommendations that engage customers and secure consequences,” spoke of label Davies, senior director and trade primary, communications & media, Pegasystems. “with the aid of enabling companies with a team of industry specialists to race ingenious marketing campaigns using superior AI and decisioning know-how, agencies can achieve quick, profitable results with minimal chance 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 secure the most out of their technology investments,” notable David Steuer, managing director and Pegasystems international apply lead, Accenture. “today’s Cloud First driven landscape requires companies of every single sizes to merge 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 consume of market-main CRM, superior synthetic intelligence, and strong automation. Pega’s adaptive, cloud-architected purposes — constructed on its unified Pega® Platform — empower individuals with comprehensive visible tackle to with ease prolong and change functions to meet strategic company wants. For extra counsel on Pegasystems (NASDAQ:PEGA) consult with www.pega.com.

    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 suffer and really generous potential across greater than 40 industries and every single business capabilities — underpinned via the world’s biggest birth network — Accenture works at the intersection of company and expertise to support clients enrich their efficiency and create sustainable charge 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. seek advice from us at www.accenture.com.

    All logos are the property of their respective owners.

    Press Contacts: Mylissa Tsai Accenture mylissa.tsai@accenture.com +1 917 452-9729 Ilena Ryan Pegasystems Inc. ilena.ryan@pega.com +1 617 866-6722 Twitter: @Pega

    PEGACLSA_6.2V2 Certified Lead System Architect (CLSA) 62V2

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    PEGACLSA_6.2V2 exam Dumps Source : Certified Lead System Architect (CLSA) 62V2

    Test Code : PEGACLSA_6.2V2
    Test name : Certified Lead System Architect (CLSA) 62V2
    Vendor name : Pegasystems
    : 149 existent Questions

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    VMware's CEO Hosts 2013 monetary Analyst Day (Transcript) | killexams.com existent questions and Pass4sure dumps

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

    Jonathan C. Chadwick - Chief monetary 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 generic Manager of End-User Computing business Unit

    William D. Fathers - Senior Vice President and generic 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 subject to risks and uncertainties. Actual results may differ 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 also include certain non-GAAP monetary measures. Reconciliations to GAAP are available on VMware's Investor Relations web page at www.irvmware.com.

    Good morning, everyone, and to those of you on the Web, generous morning, generous afternoon and generous evening. I'm Paul Ziots, and it's my delectation to welcome you every single to the 2013 monetary 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 prerogative into the day.

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

    Now a word about seating. They are strictly required to absorb everybody seated. So anybody in the room, gladden breathe sure you're in a seat prerogative now. We're in plenary compliance with the Fire Marshal Code. Let's, please, retain it that way.

    Now lastly, mp;A is vital to every single of you, so I wanted to give you a quick heads-up on what to glimpse forward to during the day. From 1:10 to -- excuse me, 1:10 to 1:30, we'll absorb 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 large 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 powerful delectation to interlard to you Jonathan Chadwick, VMware's Chief monetary Officer, to start the presentations.

    Jonathan C. Chadwick

    Thank you. Clicker, don't race 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 powerful delectation to breathe here, not just because this is my first official Analyst Day for VMware, but also because it gives us the occasion to connect this in conjunction with, as Paul said, the world's industry-leading virtualization event and the cloud computing event of the industry. So I mediate they absorb a unique occasion to combine listening to us and the monetary context of today, but also talk about this occasion that's just incredible ahead, talking to their customers and their partners, and I just hearten you, as I know many of you attain already, to network as much as possible.

    If you mediate about where VMware has compass over the terminal decade plus, we've been about bringing disruptive innovation to the marketplace. And people don't inquire today what compute virtualization is every single about. They inquire 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 occasion for the next decade. We're just getting started. The occasion ahead of us is huge. They believe we've got the amend 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 steal one thing off the table, first of all, before they secure 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 monetary year -- plenary monetary year for FY '13 monetary guidance. So nothing has changed in the outlook I provided since July 13 -- July 23, excuse me.

    If you mediate back to March when they held their strategic forum meeting in fresh York, they showed this market occasion chart. This market occasion is extremely large. I mediate we're poised for a decade of significant occasion and significant growth. This is just talking about 2016. And this is just taking about their estimates of the market as they behold 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 consume the next 4 hours with you and give you a sense about what's coming up. So Pat will connect 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 connect 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 vital as the product aspect, how are they bringing this occasion and taking the occasion to the market, both with direct sales and with their very, very large customer and partner base. And then each of their generic 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 occasion ahead. And then we'll absorb a mp;A for about 20, 25 minutes with Bill, Sanjay and Raghu before we're honored to absorb Steve Hilton from Credit Suisse connect us. Steve is an industry-leading CIO amongst other things and we're very honored to absorb him connect 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 mediate about the industry transformation we're really just getting started with. I'll compass back, terminal but not least, with a monetary framework, recapping what I talked about in many way since March, but also talking about a few more details about how they should mediate about this, how you should mediate about this occasion from a monetary perspective, again, for the next 2 to 4 years. And then Pat and Carl will connect 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 hearten you -- as many of you as workable to connect 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 powerful delectation to interlard their leader and CEO, Pat Gelsinger, to kick us off. Thank you very much.

    Patrick P. Gelsinger

    Well, thank you, Jonathan, and powerful delectation to breathe with many chummy faces here. Slightly smaller audience than the terminal one. Great. compass on, it's a joke, right? There's over 10,000 people in that leeway 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 powerful show.

    So I attain want to briefly just Go through that. I know a number of you there sort of try to soar through some of these comments pretty quickly, and then talk about a few specific things that I mediate are unique to the monetary 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 race IT. And the first, the mainframe era, thousands of users and apps, right? The glass rooms of IT and that gave way 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 necessity to breathe 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 tool to Go build it, but they also necessity to reduce costs in their current client server environment. And in that, essentially, they necessity 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 behold the role of VMware as uniquely sitting as one of and maybe the only technology that allows you to serve build tomorrow, while also liberating resources from today. And that, to us, is the fire that they absorb because they secure to serve their customers, their partners and their ecosystems on both sides of this issue, saving costs today, pile the infrastructure for tomorrow.

    Jonathan showed this picture, and they continue to behold that there is a huge market occasion 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 compass 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 occasion 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 glimpse carefully at that model.

    The 3 imperatives that they laid out, the first one is extending virtualization to every single of IT, right? Every piece of the data focus needs to breathe virtualized. They necessity to bring that identical 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 focus needs to breathe redone, right, and this is one of the areas that they behold some of the greatest leverage for operational efficiency is the automation and fresh tools and analytics associated with, right, running a data focus of tomorrow. And then finally, that the Hybrid Cloud becomes the standard, right, this expected way of being able to steal edge 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 consume is 2x, right? They doubled the number of VMs, doubled the number of cores, doubled the number of sockets, right? every single of these 2xs as their customers continue, right, particularly to virtualize more large environments. Intel roadmap continues to give us more cores and enabling that continuing increase, right, in many aspects of the VMware consume cases against it. And against that 2x, we're likely to steal applications devotion mission critical, right? We'll behold 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 felicitous finish and improvements for that. They announced NSX, the combination of their organic networking, VCNS, with Nicira into a single platform. And they announced the generic beta of vSAN, their key technology for the software-defined storage layer.

    We also announced Hybrid Cloud, the generic availability of the vCloud Hybrid Service today, as Bill will Go into a small bit more in the course of their discussion today, powerful response from the early access program. And customers devotion Harley and Apollo that they had, right, feature in the stage today. Also, their first franchise partner, and Bill will explore this a small bit more. But to me, right, we've sort of given small 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 devotion asset-like and partner-friendly. And this is the first embodiment of what they really signify when they roar that because we're able to take, right, and Go to a major service provider devotion Savvis, forge a partnership where they are taking edge of their core software stack innovations and operations that we're going to attain 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 mediate 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 pile 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 pile on a secure, trustworthy SLA environment of vCloud Hybrid Service.

    We also announced today DR as a Service. They steal 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 also announced vSAN today, right, and Virtual SAN, one of the things that -- one of the consume cases that you heard me observation 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 steal those together, right, fundamentally, what you're going to behold from VMware as they Go forward against these 3 strategies is they will secure more and more technical leverage across the 3, product leverage across the 3 and go-to-market leverage across the 3. And you'll behold 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 breathe able to deliver to the marketplace. And ultimately, differentiation and competition -- advanced -- competitive edge 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 whole tale began with compute virtualization. It's where they began the tale and the Software-Defined Datacenter has been very successful. As you heard me roar from stage this morning, we're not done until 100% of apps are virtualized, right? We're not -- 90% is not a generous answer, 80% is a lousy answer, 70% is dreadful, right? We're just going to retain driving for more and more. But clearly, the Software-Defined Datacenter is a much bigger picture than that. And as you mediate 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 glimpse 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 absorb a plenary enterprise suite of technologies. And they sort of dive into any one of these and whether it's something devotion DRS or SRM or security features or virtual firewalls or fresh 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 steal edge 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 devotion Columbia taking edge 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 consume cases and this breadth and depth to meet the plenary purview 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 pile cloud. It's a set of open APIs, and against that, you can pick 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 glimpse at this list here, what they -- what I announced this morning is that the orchestration layer, right, the next release of vCloud Automation focus will breathe adding support for managing workloads into OpenStack environments. So we're embracing it. It's just going to breathe 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 absorb many customers and you'll hear from devotion 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 race in their management environment that they highly customized and built into their operations that they're doing for PayPal, right? Clearly, networking, it's Part 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 keep them in dash lines here since they haven't formally announced this yet, but you can guess what we'll attain with their storage technologies, right? We'll add support for the storage layers because we'll absorb 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 occasion and to those customers who would pick 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 also point out that the stack on the left is a whole 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 powerful 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 secure 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 also formed Pivotal, and with the formation of Pivotal, the movement of those assets, right, has clearly allowed us to breathe more focused on their priorities, but also participate uniquely in this tremendous Data space. also 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 limpid evidence thereof.

    We also 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 proud of the results that they brought forward.

    We also absorb world-class talent, and you'll hear from Bill Fathers, you saw him on stage this morning. We've added key fresh talent, Kevan and Dinesh [ph]. Where's Dinesh [ph]? Over here, right, recently joined the finance department. You'll hear from Sanjay a small bit later and today leading their EUC business. And this morning, they announced Tony Scott as their fresh CIO. Tony, what don't you stand up and wave? They're going to secure the chance to behold lots of Sanjay, right? So Tony, this morning, they announced as their fresh CIO coming from Microsoft, Disney and GM and a few places before that so a world-class CIO. And if you glimpse at that, they just absorb a powerful 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 absorb questioned that and some of that is just the natural transition of leadership. But I'll narrate you, this is a powerful leadership team and I am honored, right, to breathe able to breathe Part of such a powerful team of leaders.

    And fundamentally, they behold ourselves positioned to win. The Software-Defined Datacenter, right, it is the prerogative strategy. They finished their customer meeting about Software-Defined Datacenter and the question isn't if or why, it's when. How attain I secure started? When can they secure started? How attain they glide forward? Hybrid Cloud, right? Early access program. As I devotion to joke, right, the national anthem is still playing in many of these cloud discussions, and this whole thought of a valid hybrid seamless suffer any app, any place, no changes, very powerful. And End-User Computing, right, combining of the infrastructure and delivering every single the way to these emerging devices. Again, uniquely positioned, strong vision, powerful resonance with customers. They behold ourselves as positioned to win.

    We'd also roar that they also absorb a unique business model, and the federation gives us powerful opportunity, right, to both breathe independent but yet strategically aligned and leveraged. And you heard much about what we're doing this morning but GoPivotal, as an example, they absorb 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 forward their position with them as a result of that relationship. BCE, one of their largest customers, Visa, and they were able to forward 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 glide forward to accelerate the VMware position in the industry.

    So the takeaways I would devotion you to absorb as I finish my time and I'll breathe back for mp;A a small bit later, one is, this is a huge market opportunity, right? It is large, it is growing. We're uniquely positioned to Go steal edge 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 every single 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 leeway 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 limpid evidence, right, that what we're doing, the vision that they laid out is being powerfully embraced by some of the largest and most vital customers in the world but also by some of the most geographically dispersed customers, large 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 secure a small bit of the taste of the enthusiasm that they have, right, at VMworld, and thank you for joining us.

    Carl M. Eschenbach

    Thank you, Pat, and generous morning, everyone. It's powerful to behold everyone again here this year. And I'm very excited to announce, you every single asked me terminal year at this event when are they going to absorb a CFO, and I'm very pleased to advertise 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, suffer and fire to VMware and he couldn't breathe a bigger Part of their team than he is today. So Jonathan, thank you. And Paul, thanks for guys absorb done over the terminal year.

    So what I'd devotion to attain today is steal a small 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 mediate about IT as a Service, it really can only breathe delivered through the consume of software, and powerful software that reduces the friction between the consumers and producers of IT, and that establishes a fresh smooth of trust and collaboration between the 2 can only breathe achieved through the use, quite honestly, of powerful software that is being delivered as a service. And I'd devotion to spend some time just talking to you about how we're thinking about how to steal these technologies, products, services and goods to market and secure 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 glimpse back at something both Jonathan and Pat showed up here earlier, and that is the market occasion they absorb at VMware. And when you glimpse 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 occasion for us to Go out and once again radically transform an industry through the consume 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 call of embracing the public cloud is to achieve greater agility. Practically, they want to secure more done, they want to attain it with less, and they want to secure 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 roar practically what that means.

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

    We're also targeting this to breathe a platform that clients can build "born in cloud" and next-generation applications that necessity to secure access to content that already resides on their virtualized infrastructure on premise. And I'm going to give you a pair of very practical client examples, so every single these words can compass and seem more devotion reality.

    The secondary is around networking and basically being to extend their existing local area network over into their public cloud, and every single of those security policies every single 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 every single the identical 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 steal edge of the identical 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 sure if it's off-prem on your public cloud or on-prem, My VMware 1-800 or myVMware is the single plot that you can call. And the vision they deliver to their clients is so that they absorb a public cloud that allows them to develop any application and they can keep it either in vCloud Hybrid Service or on-premise and they don't absorb to compose any compromises.

    So I mentioned there that we're obviously targeting their existing client basis and the substantial $40 million VM footprint we've established around the world with over 500,000 clients. And again, I'll talk a small bit about how we're already birth to behold their clients steal edge of this service offering. But when they mediate about the addressable markets and specifically the addressable market for vCloud Hybrid Services, they behold 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 attain 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 benign of workloads that we're targeting. And on the right-hand side, I'm talking about the benign of buyers that we're targeting in various phases. And I'll talk you through what their 3-phase strategy looks devotion in the context of both of those things.

    So let me start with workloads. On the left-hand side, when they glimpse at the benign of workloads that clients glide off-premise, they mediate about them in a few ways. They mediate about whether the application type they're moving is a traditional application. By that, they signify perhaps it's a SQL database or an Oracle Database, or a very conventional ERP, Enterprise Resource Planning, tool devotion 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 progress life cycle?

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

    And now let's glimpse on the right-hand side, the benign of buyers. And perhaps we're oversimplifying, but they mediate 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 behold 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 sure many of you know, over the terminal 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 absorb disintermediated IT in some cases, they just Go ahead and buy what they necessity as quickly as they necessity it.

    So in the first facet of their strategy, you'll behold 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 breathe able to, with such a powerful installed base, present a seamless extension of what they're doing. And you'll behold us piling on with more and more hybrid services that reinforce this notion of ultimately, you're going to absorb some stuff on-premise, some stuff in the public cloud. And the more seamless you can compose that, that's a powerful value proposition.

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

    And the third phase, we'll behold us glide into becoming more attractive for targeting next-generation scale-out type 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 way is this necessarily sequential. Obviously, we're moving quickly. And I'd probably roar where they are today is, obviously, we're well establishing in facet 1 of the strategy. We're already starting to diagram and prepare for facet 2 in terms of geographic scale-out. And, frankly, you also saw us advertise 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 large overlap in the phasing of the strategy here.

    So let's talk of their business model. They absorb really 3 ways in which we're bringing the vCloud Hybrid Service to their clients. And faultfinding to this is to allow clients to absorb the selection to either buy this as a public cloud service offering directly from VMware through channel partners or they could buy this as Part of an offering that their service providers are taking edge 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 roar we're announcing the generic 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 role for delivering vCloud service into their clients. We're taking plenary edge of their third-party datacenters, which they behold as an excellent way of maintaining flexibility. Obviously, we're discovering here just how the physical location and how vital 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 Part of their orchestration, automation and virtualization suite. And in turn, their service provider partners consume this to deliver a cloud service to their finish clients. And this has been extremely successful for us over the terminal 3 or 4 years. Their clients leverage their software and consume that to deliver service to their finish clients. And now this model is already develope in over 70 countries.

    But they also announced this morning a third model, which is Part of their strategy for extending their footprint and helping us gain market compass very quickly. And this is a model where they behold service providers taking edge of the vCloud Hybrid Suite -- Service platform, so a very prescribed package of hardware and software that they will then consume to form their basis of delivering cloud services into their client basis as well. And it's likely that as they consume this model to deploy perhaps into geographies where having a physical presence and a brand is extremely important, perhaps on reasons of data solvency. also in terms of compliance. You may well behold us absorb this benign of relationships with service providers that absorb achieved very high 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, breathe it network application oriented or managed hosting or co-location. You'll behold them wrap other services around their underlying vCloud Hybrid Service platform. So it's a sort of logical extension of where we've been. But really at the finish of the day, it's going to breathe something that gives their clients a plenary breadth of selection of the options of how they buy vCloud service from us.

    Just in terms of how they mediate about at a very high level, how they mediate about this in terms of capital efficiency. Obviously, in the first model, what we're not doing is doing speculative builds of large 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 every single aspects of their software-defined datacenter, so the underlying cloud platform is as virtualized as they can humanly secure it. And they already mediate 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 breathe making their own investments in their platform to deploy it in their own datacenters. You can clearly behold that VMware's consume 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 specimen 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 small to no capital deployed for vCloud Hybrid Service and for VMware. But I mediate it's very vital that they -- clearly this is a -- it's a broad front upon which to attack the market, but they mediate it's vital that from Day 1, you establish the prerogative relationship with the ecosystem to breathe limpid that while they attain absorb a direct go-to-market model, we're absolutely about empowering a broad community of service providers that already depend upon their technology. And this frankly is resonating well with their service providers already.

    Let me just talk a small 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 breathe -- we've launched and we're generally available today, bang on schedule.

    And let me just give you a pair of examples of how clients absorb used the platform so it becomes a bit real. So Harley-Davidson Dealer Systems wanted to deploy a fresh 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 absorb 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 old-fashioned SQL database. But it critically needs to secure 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 absorb running. They experimented with a number of other public clouds to race this mobile app in various other clouds but just could not secure it to integrate because trying to circumnavigate the various layers of security you've wrapped around a very vital 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 absorb 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 behold them expanding that geographically. So hopefully, this brings it -- just existent examples of how for a client that saves them months and goodness knows how much in the complexity of rewriting the app.

    The second powerful specimen was in the Apollo Group and specifically the University of Phoenix. So online education for adults. Huge, huge volumes at certain times of the month or year, where various training courses occur or testing occurs, they behold colossal spikes in traffic. So they've become tremendous users, I signify big, tremendous users of some of the other consumer-oriented public clouds. And they took stock and said, "Okay, they absorb about 5 or 6 public clouds that we're now taking edge of. This has benign of proliferated around the world. How about they mediate about whether a hybrid model may compose 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 consume vCloud Hybrid Service to breathe the public cloud that they're going to consume seamlessly to steal 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 attain that? The way you finish up is, basically if you're proliferating the consume of multiple public clouds, it starts to become very inefficient. And secondly, it's about the way you designate resource.

    So in their model, they designate resource to their clients on a sort of guaranteed basis. They say, you absorb 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 secure 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 mediate you're going to necessity to give you a safety buffer. And pretty soon, the economics start to become pretty unattractive. So a very enthralling consume 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 necessity another datacenter on the West Coast or they're already absorb a pair of locations but want to establish a disaster recovery site and behold 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 behold such a broad spectrum of clients already looking to behold how they can consume this as a logical extension of how they attain business with VMware today.

    So hopefully those are sort of very generous practical examples of how this gets used. In the terminal 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 generic 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 Part of their offering into additional and they're starting with fresh Jersey and Chicago. But it's a powerful model there that shows you how you're going to extend the compass of the offering into fresh markets by leveraging the relationships they absorb with service providers.

    In terms of value-added services, disaster recovery as a service, which is a logical extension if you're an SRM, or a Site Recovery Manager, client. And if you just mediate about that, you deployed Site Recovery Manager and now you absorb the skill to consume that identical tool to create vCloud Hybrid Service as a destination point for disaster recovery.

    Our Cloud Foundry, very much oriented towards developers, who are already using the Cloud Foundry environment to progress applications. And of course, Desktop as a Service will breathe 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 necessity to consume vCloud Hybrid Service quickly to either expand the number of seats you have, secure into a fresh region or perhaps for testing fresh version of it, then again it's just an obvious way of extending it seamlessly. So you can behold 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 serve them, not only create the value-added services that will serve clients glide workload on to the platform, but also, obviously, very much steal -- the powerful thing they absorb is, I guess, powerful compass into the enterprise market, credibility and trust to breathe the benign of entity they would want to buy public cloud services from in the first place. But then we're also going to breathe 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 behold us focus on that capability as well.

    So in the terminal minute here before the shepherd's crook takes me off. Let's mediate about what we're going to breathe 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 behold us add more and more seamless hybrid experiences. So really by the middle of next year, we'll hope every single of their clients to just logically admiration vCloud Hybrid Service as an obvious extra resource pool that they can consume for deploying resources or for adding fresh applications. And so you'll behold us piling more and more hybrid-type services. And obviously, the moneyed ecosystem of software companies they hope will also start to felicitous 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 type of partnerships -- they talked about Model 2. You'll behold us expand this service offering from North America starting in Europe in Q1 of next year and in APJ probably around Q2. And I mediate we're actually moving just slightly ahead of diagram in terms of European expansion, so they may yet absorb an occasion to bring forward their expansion into United Kingdom earlier than Q1 of next year.

    And in terms of client experience, it's every single about delivering an utterly frictionless purchasing experience. So you'll behold us focus on that powerful deal. Having made the initial deployment determination to glide on to vCloud Hybrid Service, they want clients to breathe able to glide workloads or add workloads or compose adjustments to workloads in seconds rather than it having to breathe something that's a manual process. And, frankly, this is sort of underspoken of their aspect of cloud services. The skill to deliver that utterly frictionless suffer becomes the absolute basis upon which you necessity to build the repose of your service offering. If you can't attain that, frankly, it's given as availability. You absorb to breathe both available and absorb the availability at the position extremely quickly to breathe 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 fresh applications to compose sure that they work closely with a lot of the existing ISPs that absorb already technically certified on their platform, but also start to work with some of the providers of next-gen type application services. And you'll start to behold us add on, develop their oriented services on to the platform as they expand into facet 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 behold the market we're targeting. You can behold how clients are starting to the platform and, at a very high 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 delectation to breathe here and behold many chummy faces. I am on Day 6 of my VMware journey. So if you absorb deep product technical questions, you can inquire me that on Day 60. But it's a delectation to breathe here.

    I just wanted to speak a small 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 connect here. But one, I saw a company that was tremendously innovative. I was actually at Veritas when EMC beat Veritas to buying VMware. I remember that time, and since the spin-out, since then, absorb admired the innovation that VMware has had. And I mediate a generous testament to that is the recognition from Forbes as the #3 ranked company. terminal 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 mediate 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 strong team. The camaraderie in the team here that Pat had set up was just fantastic, including the fresh additions.

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

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

    But if you mediate about what's happening in the finish user area, every single of this is being transformed significantly by some tremendous 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 occasion exists a huge fresh way of looking at this that the traditional legacy players probably are trapped of not being able to attain with them. And that opens up a whole fresh way of the way in which virtual desktops, the way in which mobile is going to breathe viewed and the way social computing is going to breathe viewed.

    And if you mediate about the nature of how many of the CIO conversations today are moving out of the realm of traditional ways in which you dialogue with them to some of these fresh strategic topics, whether it's mobile, whether it's social, whether it's cloud computing, whether it's tremendous Data, I sense a tremendous occasion here. And I believe there's clearly an occasion 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 occasion 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 mediate about aspects of this, Pat emphasized that everything we're doing in key aspects of these fresh businesses triangulate and felicitous 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 mediate 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 breathe a connectedness to that adjacency that you can interpret so it doesn't feel completely out of wack.

    So you heard this and there are a pair 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 devotion mobile and then emphasizing fresh things devotion security. And when you secure some advantages devotion they absorb in vSAN, you secure the advantages of the investments we're making in the Hybrid Cloud, they also secure to steal edge of the innovations in both storage and where cloud computing is going. So I behold a tremendous occasion now here in End-User Computing to breathe able to steal both of those advantages and play a powerful 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 mediate about this from the context of a customer. And if a customer could reply why buy, why VMware, why now, from the lens of that customer, I mediate you've motivated them to understand why this is important.

    Now let me start at the bottom because how wintry is it when you work for a company, where your wife or your brother could say, "Could secure 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 consume 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 generous case studies that I mediate will motivate why what we're doing is different here. You'd probably can't secure 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 whole less complexity as to worrying about whether they'd deploy security software, PCI compliance, every single 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 breathe saving lives. When you mediate about John Hopkins, one of the best medical universities, and 10,000 plus clinicians. If you could provide them a way by which their clinical documentation, medical records and things of that benign could breathe 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 attain with John Hopkin.

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

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

    If you glimpse 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 also who are watching from the outside in, some of the reasons why we've been successful, you steal Amdocs. This is actually a Mirage customer [indiscernible] was the acquisition. 10,000 plus seats. In this type of consume case, where you can actually reduce the ache on the serve desk, it's a huge occasion for optimization.

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

    Now to attain that, they had to compose some very, very tremendous decisions. And they had to Go through what I would call a realignment process earlier this year. This is a chart that I showed terminal year at the monetary 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 terminal 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 felicitous into the strategy or they didn't. So what they absorb to do, they had to realign the business. They had to realign the people. They had to realign the resources to compose sure 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 skill to centrally manage your Windows environment on laptops, on PCs or any device moved into their End-User Computing strategy.

    At the identical time, over the terminal 5 years, they had to stop and respite and mediate about every single of the acquisitions they made, and whether or not they felicitous into 1 of these 3 key strategies and priorities of the company. And the ones that did not, over the terminal year, you've seen us attain divestitures of. Shekar and their business progress team has done an wonderful 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 keep a lot of these out there in the market into the other hands. They divested them, Part of the realignment effort.

    At the identical 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 keep them into pivotal to build the Go pivotal business, which I glimpse at as one of, if not, the single 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 roar 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 every single 3 of them. And let me steal you through just a pair of things we're doing in that double-down effort.

    First, let's start by talking about End-User Computing. And Sanjay will compass 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 mediate there's a significant occasion for VMware to actually continue to steal market share against the competition. And because they believe that to breathe the case, they absorb doubled down their go-to-market exertion 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 terminal 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 repose 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 absorb occurred without a realignment effort.

    At the identical time, you heard Pat articulate both here and on main stage their exertion to secure 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 breathe delivered through a hybrid model. It's the only way you can attain it efficiently and effectively. And it has to breathe done with someone devotion VMware, who can seamlessly extend that data focus into the public cloud. With the launch of the vCloud Hybrid Service, you heard Pat say, the early access program was oversubscribed. They saw strong customer demand. And at the identical time, once again, they doubled down their go-to-market efforts and we've hired and built out a specialized sales constrain to Go after this opportunity.

    And lastly, the Software-Defined Datacenter, where they virtualize every single of IT, not just infrastructure, but it's infrastructure, it's applications and finish users. And we, here, once again behold a massive opportunity, not just, again, to virtualize the infrastructure, but how attain they glide from a world of management to automation. And because they are growing as devotion a glint 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 constrain to steal edge of the massive market occasion they absorb around cloud management going forward. These 3 key areas of investment could not absorb taken plot unless they went through that realignment process earlier this year.

    At the identical time, they had to also, as you know, keep assets into pivotal. They did that. They took about 400-plus people. Some powerful people are now at pivotal and were still Part of that. And pivotal is a platform that will race very, very well on top of vSphere, as well as their public cloud with vCloud Hybrid Services. And that is an occasion for us to expand the workloads that race on top of their platform. Because today, a lot of what pivotal does in the tremendous Data space or with Hadoop actually race on physical servers. They now absorb the occasion to keep that on top of the VMware platform. Again, it couldn't breathe done unless they specifically were to focus on this realignment effort.

    We also continue to invest in emerging markets. They behold a significant occasion 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 array every single 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 mediate every single of you remember from their earnings call terminal 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 breathe able to compose as a company unless they actually did that realignment exertion earlier this year.

    And because there's this build-out around the world and these continued investments in the emerging markets, when you glimpse at VMware's share of business that they secure 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 terminal decade, they mediate this is pretty amazing. So more than 50% of their business in about a 10-year time frame actually compass from outside the U.S., and that is because of those investments they continue to compose in emerging markets. And as I said, you could behold that in their results in Q2.

    We had a powerful 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 every single 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 behold people to adopt it, to drive out the cost of their environment.

    And in APJ, they just had an wonderful quarter. And when you compare and contrast what they did in APJ terminal quarter, because of the strengths specifically that they saw out of Australia, I mediate it was quite impressive when you compare it to the repose 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 steal a quick step back and glimpse at how people absorb historically adopted virtualization, they've really gone through a 3-phase approach. They've taken, they've implemented virtualization, as every single of you know, to drive out massive CapEx savings. And they used to call that infrastructure focus and CapEx savings. But as people got more and more comfortable, whether they started to glide into what they call business production, where they started to actually secure the capitalize of both CapEx and OpEx. And then ultimately, more and more of their customers, as I'll array you in a pair 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 glimpse 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 devotion 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 whole 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 glimpse at their sales motion, what they sell, day 1, is a valid solution. They sell vSOM, which many of you know and inquire questions on the earnings call 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 fresh 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 absorb 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 secure access to this hybrid cloud. They want to leverage that identical infrastructure to transform their desktops in what they call end-user computing. So what they ultimately attain is they enter into an Enterprise License Agreement with VMware.

    And as you know, terminal quarter, they had a very hardy quarter. They had 37% of their bookings compass through ELAs. And many people say, "Is that good? Is that bad? What's it signify for VMware? What's it signify for the customers?" Quite frankly, they mediate it's exciting and it provides significant capitalize for both their customers and for VMware.

    If you glimpse at it through the eyes of their customers, it gives them the skill to have, what I call, frictionless deployment. Every time they want to adopt more virtualization, they did not necessity to Go and secure another purchase order. They attain not absorb to Go and justify another way to secure access to more VMware because they absorb a framework to secure access, an simple access to every single of their technology. It also allows them to secure predictable pricing. They know exactly how much it's going to cost per compute, per storage, per network component.

    And lastly, I mediate 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 breathe 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 devotion the word ELA because it seems very license centric. It's an enterprise license centric [ph]. I mediate of it as an EA, an enterprise agreement. Because the majority of their enterprise agreements include services components to serve them drive the deployment of every single of the assets they secure 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 basis they absorb out there today and moving 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 also globally because they absorb global access, that they're multinational company, to every single of this technology.

    And for us, it's also 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 savor and they want and we'll continue to build on the services engagements they absorb 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 attain you transform your IT organization into people process side of the business. This is why they mediate there's business capitalize by doing enterprise agreements for both their customers and VMware.

    Now along the way, what they mediate is going to betide here is we're going to behold their customers continue to glide 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 terminal pair 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 secure 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, moving from a system administrator of supporting 100 virtual machines in facet 1 to 300 in facet 3. These are the benefits that people will secure through Software-Defined Datacenter, the automation of the Software-Defined Datacenter, the efficiencies, and ultimately, deliver IT as a Service.

    And one specimen of this is a customer we're working with. It's a large monetary 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 attain I glide to this world of a fresh greenfield data focus and steal 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 focus over here that I absorb to protect, and I absorb to retain the lights on. And to compose that bridge or to jump from the legacy to this fresh world is extremely hard.

    So we've worked with them to say, can they secure enough capital to Go and stand up a troop fresh greenfield data focus 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 fresh greenfield data center, the savings were absolutely remarkable. As you behold here, they would deliver more than 54% over what they attain 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 secure up here and talk about network virtualization and how every single Layer 2 through 7 services are now done in software.. every single the appliances that people absorb 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 repose of the data focus and drive this Software-Defined Datacenter approach.

    Now we're also focused on making sure that they don't just acquire a company or customers. But once they secure 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 speak to you here in a few minutes about. But these are just some of the statistics that they secure back on Net Promoter Scores. The industry middling for high tech on Net Promoter Score is 13%; for B2B computer software companies, it's roughly 9%; and VMware terminal year was at 43%. One of the highest NPS scores you can find in every single 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 proud to roar that they came out on top with a Net Promoter Score of 47%. Again, making sure 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 also pretty proud of the fact, and Pat had it on a slide during his keynote earlier today, we've -- recently, I guess, it was terminal 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 devotion Google and Apple. That's the type of company they aspire to breathe in the future.

    So now let's very quickly talk about, if this is the market occasion and this is how they sell, how attain they secure access to their customers? Well, it starts with a customer view. It starts with a customer-centric strategy across the company. And if you mediate about most technology companies, they mediate about the technology they absorb to offer, and then they figure out what are the routes to market so I can secure 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 mediate about, okay, what is a technology that is going to solve those challenges? And in VMware's case, what are the partners we're going to leverage to secure access to those customers? And then they absorb to start to mediate about, okay, are their partners capable of delivering the technology customers want? And the only way to compose this every single compass together is that VMware thinks about every single 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 every single together to build out a go-to-market strategy.

    Now when they mediate about go-to-market, they mediate about it in segments. And at VMware, over the terminal few years, they started to really drive a segmented approach as to how they attack their customer basis and the opportunity. Starting at the highest end, they absorb a global accounts program, which is about 70 accounts around the world. When you start to drop down below there, they absorb their strategic accounts, which are the larger accounts out there that we're going after. They absorb 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 absorb a rep covering your account, and that's the only account they cover. He or she does not absorb any other account.

    When you Go down market, reps may absorb 1 to 10. When you even Go further down, they may absorb 20 to 50. When you Go every single the way 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 array you in the next slide.

    Now at times, they start to mediate about verticalization, and is there a selling motion or a solution that they can repeat as they sell into the market or a specific market, devotion the monetary services, devotion the federal government, devotion education, devotion 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 terminal decade, they said we're going to breathe 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 behold that changing at every single 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 absorb at the array this week.

    Now as they Go out and they compose acquisitions or as they continue to drive innovation internally and bring more and more solutions to other factory, they necessity to start mediate about how attain they steal them to market. And this is just a high-level framework of how they mediate about we're going to sell a fresh solution or a company that we're acquiring. If it's an emerging product, they really necessity to mediate about, is it ready to breathe sold with their core? Is it purely adjacent to something devotion vSphere or the Software-Defined Datacenter? Or is it an emerging market that they actually necessity to build a specialized sales constrain to actually sell this solution in the market? And that's their strategy. At times, we'll build a diversified sales constrain and a specialized sales constrain to Go proffer the opportunity. At other times, we'll steal the solution, we'll keep it prerogative into the core sales constrain and absorb those thousands of people prerogative off the bat start to sell it.

    And sometimes, they actually attain both. As I mentioned earlier, if you glimpse at this framework, technologies devotion View or technologies devotion NSX, we've decided to build specialized sales forces to steal it to market. At the identical time, they hope that their core will breathe 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 fresh solutions to market.

    Now as I said earlier, they also necessity to compose sure that we're giving a very simple and simple way for their partners to engage with us to ultimately engage with their customers. And it's very straightforward. As their customers secure into fresh accounts, they pay them and they pay them margin. As they expand in their accounts, they pay them more margin. They want to compose sure we're pile what they call 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 absorb often said is, "VMware, are you capable of changing the selling motion and enabling your existing sales organization in your channel to breathe able to sell this Software-Defined Datacenter?" Well, if you glimpse at the Software-Defined Datacenter as it's described today, a lot of the components of the Software-Defined Datacenter absorb actually been sold already through the channel.

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

    But if you glimpse 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 terminal decade. We're going to now Go and we're going to repeat that for network virtualization, as well as storage virtualization. This is their strategy to enable their channel. At the identical time, it's generous to sell the technology, but can you sell the management solutions around it? Can you attain automation? Can you attain provisioning? Can you attain remediation of that infrastructure? Which they mediate they can attain but they can't attain it alone, which provides their partners to absorb an occasion to Go in and sell management services as well.

    Our customers necessity serve on this journey to the Software-Defined Datacenter, both technologically, as well as on the people process side. And when you stop and glimpse at the market occasion for professional services that their partner community has, it's almost as tremendous as the TAM I showed you earlier for VMware. This is why the partners are very much engaged with VMware and behold 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 faultfinding for their success. They mediate of enablement once, then twice. They mediate of enablement, as they build enablement materials to serve radically transform their sales constrain to sell Software-Defined Datacenter, the hybrid Cloud and End-User Computing services, but they built that once knowing that it's going to breathe delivered twice, both to their existing sales constrain and their channel because they behold them one and the same. And they absorb been very aggressive and adopted many fresh technologies to bring enablement to the market.

    The latest one, we're working on an iPad and iPhone or a mini iPad solution that every single of their people will breathe able to access every single of the information they necessity through any device they want in a very secure way. And then we'll steal and we'll consume that identical infrastructure, that identical 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 steal edge of the $50 billion market occasion that Pat and Jonathan laid out earlier. And they couldn't breathe here without that realignment exertion that they went through as a company. I must say, we're every single proud 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 mediate 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 compose sure that VMware is not only committed to their customer, but the customers' existing investments they absorb in their infrastructure.

    And lastly, they will continue to focus on enabling both their sales constrain and their partners to breathe able to serve their customers once again, just devotion they absorb in the terminal decade, to Go and radically transform IT through the consume of simplified, powerful virtualization software.

    Thanks for your time.

    William D. Fathers

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

    In the next 20 minutes, what I'd devotion to attain 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 high level, give you a view of their strategy of how they -- their strategy for becoming a predominant player in the public cloud marketplace.

    So that they could cover everything from physical to virtual to mobile. If you glimpse 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, also watching from the outside in, some of the reasons why we've been successful, you steal Amdocs, this is actually a Mirage customer, Wanova was the acquisition, 10,000-plus seats. In this type of consume case, where you can actually reduce the ache on the serve desk, it's a huge occasion for optimization, where you can array cost, savings, and you actually are able to secure the plenary -- 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 mediate about geographically expanding, is the fact that in India, in China, and many of the fresh places where you're doing things, you want to absorb an efficient way by which these engineers can secure their diagrams or a variety of the things that Go on in car manufacturing. Again, a flawless consume case for a distributed workforce, geographically distributed, and one way you can manage this at a smooth of scale, in this case 4,000, 5,000 of them, much, much more easily with the solution as they provide. And then you steal 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 breathe probably in the tens of thousands when we're done. Part of what they establish was, in this space, there hasn't been a lot of attention given to the simplification of things devotion management consoles and so on. And as solutions from some of their competitors absorb been deployed, customers just establish a whole bunch of ache associated with that type of deployment.

    Here's a generous specimen of one where they will deploy with the suffer 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 devotion a glint fashion, we're finding that their customers themselves are able to glide much, much faster and certainly, to lower cost. And as you know, in IT, it's every single about being able to lower your cost and then free up those dollars to attain innovation. The flawless world is where if you're spending 90% of your money in the CIO budget, on keeping the lights on, you absorb very small time or money for innovation. And they could serve people steal 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 attain innovation, and that's really what a lot of what the technology here helps us do.

    So as they mediate about investments in where they want to breathe able to grow this, here are the 5 areas that they are prioritizing. They're clearly horizontal consume cases: the fork office; the local; the remote offices; the ones that I talked about for specimen in that Hertz consume case; but there are also many vertical consume cases in industries devotion healthcare. I talk about the consume 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 vertical 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 mediate there's a lot of momentum that they could also build out here. You heard me talk a lot about the way in which they mediate about the future of the desktop and the desktop going to cloud, and they believe that there's going to breathe a huge occasion for Desktop as a Service that I will talk about further. They also mediate that this is certainly going to expand not just in the case of you and its consume in mobile, but also mobile as a whole, which I'll cover a small bit later.

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

    Here's one specimen 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 absorb been done by Citrix, the user cost is just a factor different. You'll behold 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 consume and the generic 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 behold 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 mediate we're gaining a tremendous amount of share in this Part of the market.

    Desktop as a Service, they will absorb an offering by Q4 of this year, both, as I mentioned, through service providers and other players, but also in their Hybrid Cloud. And I mediate this is going to breathe tremendously exciting. This is the intersection of where VDI meets the cloud, and there's every single kinds of opportunities as to where they believe they can steal this. This is also going to ease the deployment in a much faster vogue as every single cloud computing does. And it's another plot where you will behold VMware breathe 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 breathe able to array thought leadership and also product leadership.

    As you expand to some of the other areas devotion mobile, they believe the mobile movement is just getting started. It's a huge occasion in front of us, billions of devices, and hope much more from us. They announced Workspace this year. This is going to breathe certainly an area of my own fire and focus. And I expect, as they expand in this area, it's not just going to breathe 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 occasion for both the management and the security of those things, so to speak, Internet of Things. So as they mediate about where this is headed, their focus will breathe not just in IT, but the finish users. And I mediate many of the identical constructs that you've seen us do, devotion for example, policy and management, will breathe ones that they extend there. In doing this, we're taking a very heedful view of looking at every single of the device-operating systems, from iOS to Android to Windows, every single 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 way the mobile movement will work in the market will breathe not just on their own, but through many of these vital channels.

    So overall, very, very excited to breathe 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 breathe tickled about that, and with that, let me interlard the godfather of the software-defined data center, Raghu.

    Rangarajan Raghuram

    Thanks. every single right, generous to behold you every single again. Hope you enjoyed the keynotes today. And don't miss the keynote tomorrow, you will behold Carl Eschenbach at its finest. I will talk about the software-defined data center, specifically covering 2 aspects. First, at this venue terminal year, they talked about their vision for the software-defined data center. They talked a small bit about what they absorb seen in the marketplace since then. And then specifically, they talked about the fresh developments, some -- most of it was announced today. I'll try to give you a small 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 intellect 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 pile that are replacing or becoming more vital than the old-fashioned systems of record that IP used to breathe managing. The systems of record where the ERP systems and so on and so forth, systems of engagement are these mobile social systems that customers are pile in order to secure 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 necessity for continuous progress and continuous deployment. That in turn called for a whole 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 type than what IT has been dealing with.

    Even while doing every single of these, every single of the infrastructure has not gone away. For most of their large 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 compass for a lot of them.

    And then terminal but not the least, shadow IT is a very existent phenomenon, a line of business bypassing IT altogether, and buying their compute resources from public cloud providers. And every single of this leads to a fresh set of requirements, a set of requirements where customers are expecting IT to breathe 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 terminal year. To recap, they mediate the way 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 existent data focus today in production, it gets slowed down because storage and network are done the old-fashioned way, the way physical infrastructure works.

    As a result, every single 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 terminal year. This is a concept of abstracting and pulling and virtualizing they absorb 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 every single 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 absorb announced products and every one of these are advanced products in every one of these domains. There is a fresh generation of vSphere, vSphere 5.5. The tremendous word of the array is, of course, NSX, the network virtualization platform. And Virtual SAN enters public beta.

    In the operations management front, terminal month, they introduced Log Insight, which allows us to apply tremendous Data techniques to log messages in order to gain operational insight and then set up automatic remediation. You can mediate of it as a companion product to their vCenter Operations product, which uses time-sensitive data, right, statistical time-sensitive information and then near 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 terminal year.

    The way they Go to market with these is they simplify these into suites. vCloud Suite was introduced at the terminal VMworld, and had been very successful for us over the terminal 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 absorb a better-managed virtualization environment. This is a small bit of an eye chart but just so that you absorb 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, large size, meant for different selling motions and different classes of customers.

    Over the terminal year, they absorb had 2 types of successes with customers. Customers that absorb adopted any particular component in a tremendous way, as well as customers that absorb adopted the whole suite. So these are examples of customers that absorb chosen 1 or more of these individual components. And here are a pair of examples of customers, both at in the Enterprise scale, as well as the mid-market that they would devotion to call out. For example, Symantec, which has been a long-term vSphere user, they absorb been deploying the plenary elements of their vCloud stack. And they absorb deployed over 200,000 VMs. This is the global support team at Symantec that supports the finish users. And so they consume this private cloud infrastructure to recreate customer pains 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 smooth that they're able to deliver to users that is the strategic capitalize 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 breathe particularly attractive because it enables customers, devotion those that are shown here, Greektown or Cornerstone, to secure more out of their virtual environment. Very often, when customers deploy the Operations Management component, they secure an additional 20% to 35% CapEx savings because they're able to consume the capacity more efficiently after looking at the insights from -- delivered by vCenter Ops. As you noticed, this is also enabling us to displace Hyper-V in these accounts, too.

    So that's a quick overview of some of the successes from terminal 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 absorb 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 attain of their customer base. The industry analysts attain their own survey, and they're every single in this ballpark, and the net-net is, the industry is about -- sorry, their customer basis is around a mid-60s virtualization percentage, right? They are steadily progressing towards a very high number. The chart at the bottom is equally instructive because this measures the percentage of virtualization of business faultfinding applications, customers that they roar they absorb virtualized their business faultfinding applications. Some of those applications are listed there, right?

    And that number again has been steadily growing. The understanding these 2 are vital is the more virtualized a customer is, the more it is an installed basis occasion for us to sell higher-value products. They assess there are approximately 40 million virtual machines installed in their customer basis on top of their paid product, right? 40 million virtual machines. Now imagine the occasion 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 strong basis 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 single platform for the Enterprise that can serve not only their traditional applications but also 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 fresh applications. So the tremendous Data extensions that they had announced earlier in the summer are now Part of vSphere 5.5. This enables Hadoop workloads to breathe 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 absorb seen very high interest from very large enterprises that absorb 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 absorb extended their platform to breathe very useful in high-performance computing. Here is a practical specimen of what a customer has been doing with 5.1. I'll talk a small 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 faultfinding applications continues to breathe 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 moving stuff off of old-fashioned Solaris or other risk platforms onto vSphere or on x86. Right? So this is every single net fresh occasion for vSphere Enterprise Plus because that's what customers deploy.

    One of the key breakthroughs that they absorb done with vSphere 5.5 is they absorb 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 tremendous bag that every single of you know very well. And this attests to the delivery of performance that they absorb 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 monetary analyst conference that they did, and you saw this chart earlier today, right? When people inquire us why are they in the virtual networking business? This is where their tale starts. We've been in the virtual networking business for a long, long time, right? As more and more applications secure virtualized, Go back to that 57% virtualized number that I showed you a few slides ago, the way every single these applications connect to the network is through a virtual edge switch, right? So the edge of the network is animate inside the hypervisor, every single right? And because of the growth of these applications coming onto the virtual platform, it's growing -- virtual switchboard count is growing much faster than physical switchboard count, right?

    The other enthralling observation here, that was a surprise to us until they did the survey, is the percentage of virtualization app virtual switch, right? A tremendous 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 strong 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 absorb brought it into their corporate data centers for the CapEx benefit. The understanding people absorb stuck with it is because it's transformed the operational model for compute. They took a server, which was a physical expostulate 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, waste it, glide it around, attain whatever you want to attain with this. This smooth of flexibility does not exist today in the network. This is why customers absorb told us that they absorb taken as much as 45 days and 50 days to deploy an application because the network is still physical and every single the configuration of load balancers and switches and access control lists and VPNs and VLANs and whatnot, every single of it is happening in a manual basis today, right? They're every single capacity-constrained. Each time you deploy an application, you absorb 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 focus is called east-west traffic. That traffic, according to network companies, is now 70% of every single network traffic, as opposed to the north-south traffic, which is the traffic going to the end-user device.

    And you can behold why that is the case, because each time you attain 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. every single of that is what they call east-west traffic. Right? As you keep more applications into the data center, every single of those applications generate traffic that has to breathe swift, that has to breathe 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 behold some numbers. That shows the throughput speed, right? They are able to attain this at line rate, so imagine 10 GB network backbones in the rack, they are able to attain this at line rate. So performances -- this is not a type, they are talking about existent data focus traffic at very high speeds being handled by software. The understanding they are able to attain this is a distributed architecture, okay? Unlike their previous attempts at providing, for example, firewalling, they attain not consume a virtual machine to attain 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 stop point on the network, next to the application, these services can breathe set up in response to what an application needs and when the application moves, the services of these policies can breathe moved to wherever the application is moved, right? So the mobility of policy enforcement becomes automatic. It's tremendous, and best of all, the way you scale these network services is no longer a separate competency from how you roar it's scaled to compute. When your application needs more horsepower, the way you scale to compute is most likely to scale out application, you keep more compute nodes. When the application needs more network services, the way you scale the network services is again the identical thing, you keep the network, you keep more compute nodes. The management of this is the identical as how you manage the application. The programmatic APIs is the identical as what you attain to provision the compute APIs to provision the application. It's a seamless extension of what to attain 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 compass back to this for storage as well. This is the scale-out power of doing networking this way, right? A single host, you secure the line rate speed that I talked about. vSphere clusters are often clusters of 32 nodes, so you can secure up to 1 terabyte of throughput on a cluster of 32 nodes. A single virtual focus domain can Go up to 1,000 holes, so you multiply 30 gigabits by 1,000 to secure the throughput of your network services in a large vSphere form, right?

    The terminal but not the least, that is a common API called the NSX API, that many partners that can breathe 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 way in a cloud management system agnostic manner. And the beauty of the underlying the server technology that they acquired terminal 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 absorb got a Hyper-V roadmap, et cetera, et cetera. And we've been working with a set of switch partners to compose sure that this can breathe extended to the physical domain. So if you absorb a database animate on a physical server connected to a switch, they can every single breathe Part of the identical logical network that's managed by NSX. So at this conference, you'll behold sessions from many of the networking vendors, whether they're Layer 2, Layer 3 vendors, or Layer 4 to 7 services devotion Palo Alto networks, et cetera, et cetera. If you absorb time, I would hearten you to Go snare up on one of these sessions.

    So that's storage -- sorry, that's networking. Let me quickly talk about storage. identical concept, how attain you compose 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 compose 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 exertion to compose underlying storage, external storage more application-centric. And you will behold tech previews with their partners. The vSphere glint is their attempt to exploit the glint 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 single storage solution that fits every single consume cases and workloads and deployment scenarios. Virtual SAN is a hypervisor attached persistence layer that uses the local glint and the local disk that is present in every modern-day server and clusters these to glimpse devotion a virtual storage array. Initially, the consume cases that they are targeting are virtual desktop, devotion Sanjay talked about, huge necessity for low cost storage there, Tier 2 or Tier 3 workloads devotion your file server and SharePoint, and so on and so forth. And of course, as a DR target, where you may breathe willing to live with the local disk performance.

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

    Here is the chart of the VDI performance, right? The dollars per VDI cost, behold how linearly it scales. In this chart, it's up to 4,500 nodes, so in desktops, and they absorb 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 effect with respect to Tier 2, Tier 3 workloads, read/write performance. You can behold in terms of IOPS, they are very compatible to midrange storage arrays while using local storage economics, right? So they mediate they are creating a fresh charge 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 terminal 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 array 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 intricate connection of applications to servers, to storage, to network. So the amount of data that you've got to analyze makes this a tremendous 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 absorb taken tremendous Data techniques, applied them to data focus 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 mediate about the cloud problem, it breaks categories by definition. So there is no longer -- you can attain capacity management separate from performance management, separate from some of the storage management performed, separate from network management, they're every single interrelated, right? So you necessity to steal a whole fresh approach and one that's based on policy-based automation, as well as applying these analytics approaches.

    So we've got this -- just a small 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 vogue to any cloud, right? Cloud operations, which is about managing the applications on the infrastructure, and having the software autism and steal remediation, remediation actions. And then cloud business, because IT is now a broker of services in addition to a builder of services, they necessity to breathe able to consume monetary metrics, as well as their seller metrics to determine where to deploy the application, and that requires a fresh discipline management that they call, cloud business management.

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

    Let me skip past this, in the interest of time, we've already seen some pretty tremendous 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 augment 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 purview of products, that takes us from being a single-point solution vendor, i.e. a server virtualization vendor, to a full-fledged data focus vendor, right? A data focus solution provider that's providing a very disruptive approach for how customers build and operate their next-generation data centers.

    These products are also suited for the identical type of customer today, and this chart sort of maps the products to the type 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? every single the way around to the fresh products, which are software-defined storage, just selling to the early, early adopters along with NSX, et cetera, right? As these products glide 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 augment the velocity even further. So that's why this chart is pretty important.

    So in summary, where they were terminal 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 devotion management and, obviously, end-user computing. And they absorb laid out a set of products that will enable a customer to build and operate a data focus 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.

    Earnings call Part 2:

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