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Test Code : PEGACLSA_6.2V2
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Pegasystems Pegasystems Certified Lead System

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

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

Pegasystems Extends Cloud alternative with Google Cloud Partnership | real 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 date 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 function in hybrid-cloud environments – equivalent to leveraging Pega's entirely managed cloud capabilities while additionally self managing different cloud deployments to meet specific necessities. despite the fact, many competing cloud application vendors present few pragmatic cloud platform choices backyard their personal, which limits valued clientele' options to conform to recent variables.

Pega's customer date and digital technique automation options work without hardship throughout distinctive cloud infrastructures, permitting companies to conform 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 hurry 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 moreover 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 live allotment 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 hurry up the value of cloud that goes past cost," stated candid 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 snug 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 date 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 meet 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 champion the area's leading manufacturers obtain breakthrough trade results. For greater information on Pegasystems (PEGA) consult with

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

Story Continues

New solution empowers CSPs to full of a sudden establish in compel quick-witted advertising and marketing practices in accordance with business-selected AI and decisioning capabilities | real 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 trade empowering customer date at the world’s main companies, and Accenture (NYSE:ACN), a leading global knowledgeable features business, nowadays launched quick-witted consumer Decisioning as a provider, a cloud-based solution designed to forward advertising suggestions for telecommunications suppliers. With shrewd 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 requisite the components to enforce superior one-to-one advertising capabilities to attract recent valued clientele while cutting back churn. quick-witted customer Decisioning as a provider helps CSPs enhance subscriber retention, acquisition prices, and revenue practices by artery of combining Pega® advertising and marketing for Communications and Pega® consumer option Hub with Accenture’s consulting, managed services, and abysmal trade 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 quick-witted advertising utility with consulting services to execute and control its advertising operations. in search of recent the perquisite artery to extend advertising presents and services, Etisalat became to Pega to centralize and anatomize 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 artery 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 cost of each consumer interplay. As a Pega Strategic Consulting accomplice, Accenture has greater than 4,600 consultants expert in Pega solutions, over 2,000 Pega certifications, and 15 Pega expertise birth facilities, and became currently identified as Pega associate of the year for the fifth consecutive year. This latest reply from Pega and Accenture helps enable CSPs of full sizes to combine 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 counsel from

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

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

    “At Accenture, they champion unify process, expertise, and people so their clients can obtain know-how and trade transformation sooner to win the most out of their technology investments,” eminent David Steuer, managing director and Pegasystems international apply lead, Accenture. “today’s Cloud First driven landscape requires companies of full sizes to mix 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 trade and enhances client date 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 employ of market-main CRM, superior synthetic intelligence, and tough automation. Pega’s adaptive, cloud-architected purposes — constructed on its unified Pega® Platform — empower individuals with comprehensive visible paraphernalia to with ease prolong and change functions to meet strategic company wants. For extra counsel on Pegasystems (NASDAQ:PEGA) consult with

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

    All logos are the property of their respective owners.

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

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

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

    Jonathan C. Chadwick - Chief pecuniary 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 trade Unit

    William D. Fathers - Senior Vice President and generic Manager of Hybrid Cloud Services trade 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 theme to risks and uncertainties. Actual results may disagree 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 moreover comprehend inescapable non-GAAP pecuniary measures. Reconciliations to GAAP are available on VMware's Investor Relations web page at

    Good morning, everyone, and to those of you on the Web, superb morning, superb afternoon and superb evening. I'm Paul Ziots, and it's my joy to welcome you full to the 2013 pecuniary 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 perquisite into the day.

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

    Now a word about seating. They are strictly required to believe everybody seated. So anybody in the room, gladden live confident you're in a seat perquisite now. We're in full compliance with the Fire Marshal Code. Let's, please, withhold it that way.

    Now lastly, mp;A is significant to full of you, so I wanted to give you a quick heads-up on what to keep forward to during the day. From 1:10 to -- excuse me, 1:10 to 1:30, we'll believe 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 magnificient joy to interpolate to you Jonathan Chadwick, VMware's Chief pecuniary 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 magnificient joy to live here, not just because this is my first official Analyst Day for VMware, but moreover because it gives us the occasion to combine this in conjunction with, as Paul said, the world's industry-leading virtualization event and the cloud computing event of the industry. So I assume they believe a unique occasion to combine listening to us and the pecuniary context of today, but moreover talk about this occasion that's just incredible ahead, talking to their customers and their partners, and I just cheer you, as I know many of you carry out already, to network as much as possible.

    If you assume about where VMware has arrive over the last decade plus, we've been about bringing disruptive innovation to the marketplace. And people don't query today what compute virtualization is full about. They query about how much more there is to go. And if you listen to the keynote today, and you'll hear again from Pat in just a second, we're taking a direct parallel from what we've done with ESX in the first introduction there and the occasion for the next decade. We're just getting started. The occasion ahead of us is huge. They believe we've got the reform 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 seize one thing off the table, first of all, before they win started getting into too much detail. Nothing has changed since my outlook I provided to you on July 23 at the End of Q2. We're reaffirming Q2 -- Q3 '13 and pecuniary year -- full pecuniary year for FY '13 pecuniary guidance. So nothing has changed in the outlook I provided since July 13 -- July 23, excuse me.

    If you assume back to March when they held their strategic forum meeting in recent York, they showed this market occasion chart. This market occasion is extremely large. I assume 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 note 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 travel forward.

    So with that, let me talk about how we're going to employ the next 4 hours with you and give you a sense about what's coming up. So Pat will combine 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 combine us on stage and lead us through a conversation on their go-to-market strategy. The go-to-market aspect of their trade is as significant 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 colleague 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 believe a mp;A for about 20, 25 minutes with Bill, Sanjay and Raghu before we're honored to believe Steve Hilton from Credit Suisse combine us. Steve is an industry-leading CIO amongst other things and we're very honored to believe him combine us and lead us in a conversation with Carl when they hear about the journey he's on and the opportunities that he sees ahead as they assume about the industry transformation we're really just getting started with. I'll arrive back, last but not least, with a pecuniary framework, recapping what I talked about in many artery since March, but moreover talking about a few more details about how they should assume about this, how you should assume about this occasion from a pecuniary perspective, again, for the next 2 to 4 years. And then Pat and Carl will combine me on stage around 3:00 for about half an hour of mp;A as they disburse the time answering as many of your questions as possible. And then I'd cheer you -- as many of you as feasible to combine 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 magnificient joy to interpolate their leader and CEO, Pat Gelsinger, to kick us off. Thank you very much.

    Patrick P. Gelsinger

    Well, thank you, Jonathan, and magnificient joy to live with many close faces here. Slightly smaller audience than the last one. Great. arrive on, it's a joke, right? There's over 10,000 people in that elbowroom 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 magnificient show.

    So I carry out want to briefly just travel 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 assume are unique to the pecuniary 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 artery to the client server era, right, where they ended up building, right, very specific infrastructure, deliver on very specific application domains, ERPs, CRM, et cetera. And today, we're on the cusp of the transition to the mobile cloud era and -- right? This mobile Cloud Era is one we're talking about literally every person in the planet becoming a user, right? We're seeing, right, the age of software, this application, right, and the burgeoning set of applications and self-service environments, and fundamentally, the IT operations that requisite to live 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 implement to travel build it, but they moreover requisite to reduce costs in their current client server environment. And in that, essentially, they requisite to drive out cost from this client server environment, the legacy environment, these silos, this museum of IT to enable the investments in IT of tomorrow or into these cloud and mobile infrastructure. And they note the role of VMware as uniquely sitting as one of and maybe the only technology that allows you to serve build tomorrow, while moreover liberating resources from today. And that, to us, is the fire that they believe because they win 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 note that there is a huge market occasion for us as they travel 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 arrive 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 keep carefully at that model.

    The 3 imperatives that they laid out, the first one is extending virtualization to full of IT, right? Every piece of the data focus needs to live virtualized. They requisite to bring that very 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 live redone, right, and this is one of the areas that they note some of the greatest leverage for operational efficiency is the automation and recent 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 artery of being able to seize odds of public cloud resources.

    So they announced a number of things this morning, a brief reprise of the things that they discussed today, right. First, right, the continuing cadence of their core product line with vSphere 5.5. The simple term I'd employ is 2x, right? They doubled the number of VMs, doubled the number of cores, doubled the number of sockets, right? full 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 employ cases against it. And against that 2x, we're likely to seize applications like mission critical, right? We'll note 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 separate platform. And they announced the generic beta of vSAN, their key technology for the software-defined storage layer.

    We moreover announced Hybrid Cloud, the generic availability of the vCloud Hybrid Service today, as Bill will travel into a petite bit more in the course of their discussion today, magnificient response from the early access program. And customers like Harley and Apollo that they had, right, feature in the stage today. Also, their first franchise partner, and Bill will explore this a petite bit more. But to me, right, we've sort of given petite 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 like asset-like and partner-friendly. And this is the first embodiment of what they really live of value when they articulate that because we're able to take, right, and travel to a major service provider like Savvis, forge a partnership where they are taking odds of their core software stack innovations and operations that we're going to carry out and combine that with their assets, their network, their infrastructure, their service relationships to their partners. And that win-win relationship, both of us travel faster into delivering this hybrid environment.

    And in End-User Computing, the key announcement of today was Desktop as a Service. And as you assume about Desktop as a Service, to me it really sort of combines, right, some of the legs of their strategy together. Because for it, it allows us to start building, right, the layer, these 3 pillars of their strategy and start demonstrating how we're going to work together across those different pillars in the strategy. And so Desktop as a Service, right, it accelerates their End-User Computing offerings, but it does so by 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, reliable SLA environment of vCloud Hybrid Service.

    We moreover announced today DR as a Service. They seize 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 trade go-to-market and customer value, right, of 2 legs of the strategy, right? They moreover announced vSAN today, right, and Virtual SAN, one of the things that -- one of the employ cases that you heard me remark 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 seize those together, right, fundamentally, what you're going to note from VMware as they travel forward against these 3 strategies is they will win more and more technical leverage across the 3, product leverage across the 3 and go-to-market leverage across the 3. And you'll note us tie these together in closer and more powerful ways for their customers as they travel forward. And this is why they think, in many cases, right, there will be, right, an acceleration of trade value, customer value, services that we're going to live able to deliver to the marketplace. And ultimately, differentiation and competition -- advanced -- competitive odds over any of the alternative players in the industry. And this leverage, they think, is a very powerful, right, capability that we're just getting started on and I wanted to specifically highlight some of those unique cross-strategies that are starting to materialize today.

    Now this whole record began with compute virtualization. It's where they began the record and the Software-Defined Datacenter has been very successful. As you heard me articulate from stage this morning, we're not done until 100% of apps are virtualized, right? We're not -- 90% is not a superb answer, 80% is a lousy answer, 70% is dreadful, right? We're just going to withhold driving for more and more. But clearly, the Software-Defined Datacenter is a much bigger picture than that. And as you assume about this broad set of things that we've laid out, this picture has become a very broad set of capabilities for the datacenter overall, touching on management, security, orchestration, user interface, self-service portals, right, a very, very broad set of capabilities. And when you keep 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 believe a full enterprise suite of technologies. And they sort of dive into any one of these and whether it's something like DRS or SRM or security features or virtual firewalls or recent load balance 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 seize odds of the individual capabilities. Some of the customer examples on stage, right, could you imagine 3 better customers, right, than GE, Citi and eBay, right, for NSX, right? As you listen to some of the customers like Columbia taking odds of everything, right, that they do, Apollo Group, the consolidation ratios they're seeing and the benefits of both public and private, very, very powerful employ cases and this breadth and depth to meet the full sweep 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 travel execute against that framework. And we've said very clearly that VMware is embracing those OpenStack APIs. We're adding champion for them to their products. And if you keep 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 live adding champion for managing workloads into OpenStack environments. So we're embracing it. It's just going to live 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 believe many customers and you'll hear from like 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 allotment 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 establish them in dash lines here since they haven't formally announced this yet, but you can guess what we'll carry out with their storage technologies, right? We'll add champion for the storage layers because we'll believe best-of-breed storage technologies. And what are they going to do? We're going to champion 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 moreover 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 champion it just as another set of interfaces and another set of customer interest might drive us to.

    It's been -- VMworld is a magnificient 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 win 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 moreover formed Pivotal, and with the formation of Pivotal, the movement of those assets, right, has clearly allowed us to live more focused on their priorities, but moreover participate uniquely in this sizable Data space. moreover 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 transparent evidence thereof.

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

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

    And fundamentally, they note ourselves positioned to win. The Software-Defined Datacenter, right, it is the perquisite strategy. They finished their customer meeting about Software-Defined Datacenter and the question isn't if or why, it's when. How carry out I win started? When can they win started? How carry out they swagger forward? Hybrid Cloud, right? Early access program. As I like to joke, right, the national anthem is still playing in many of these cloud discussions, and this whole view of a upright hybrid seamless undergo any app, any place, no changes, very powerful. And End-User Computing, right, combining of the infrastructure and delivering full the artery to these emerging devices. Again, uniquely positioned, tough vision, magnificient resonance with customers. They note ourselves as positioned to win.

    We'd moreover articulate that they moreover believe a unique trade model, and the federation gives us magnificient opportunity, right, to both live independent but yet strategically aligned and leveraged. And you heard much about what we're doing this morning but GoPivotal, as an example, they believe been the point of the arrow with the GE relationship. VMware has advanced their position with GE as a direct result of GoPivotal's date 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 swagger forward to accelerate the VMware position in the industry.

    So the takeaways I would like you to believe as I End my time and I'll live back for mp;A a petite bit later, one is, this is a huge market opportunity, right? It is large, it is growing. We're uniquely positioned to travel seize odds of this opportunity. They are executing well. The leadership team that we're forming, the strategy and alignment and priority against that, they are picking up the pace as they execute across full 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 elbowroom 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 transparent evidence, right, that what we're doing, the vision that they laid out is being powerfully embraced by some of the largest and most significant customers in the world but moreover 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 win a petite bit of the savor of the enthusiasm that they have, right, at VMworld, and thank you for joining us.

    Carl M. Eschenbach

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

    So what I'd like to carry out today is seize a petite bit of time and talk to you about how VMware is accelerating their customers on this journey to IT as a Service. And when they assume about IT as a Service, it really can only live delivered through the employ of software, and powerful software that reduces the friction between the consumers and producers of IT, and that establishes a recent even of faith and collaboration between the 2 can only live achieved through the use, quite honestly, of powerful software that is being delivered as a service. And I'd like to disburse some time just talking to you about how we're thinking about how to seize these technologies, products, services and goods to market and win 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 keep back at something both Jonathan and Pat showed up here earlier, and that is the market occasion they believe at VMware. And when you keep 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 travel out and once again radically transform an industry through the employ 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 trade call of embracing the public cloud is to achieve greater agility. Practically, they want to win more done, they want to carry out it with less, and they want to win 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 articulate practically what that means.

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

    We're moreover targeting this to live a platform that clients can build "born in cloud" and next-generation applications that requisite to win access to content that already resides on their virtualized infrastructure on premise. And I'm going to give you a brace of very practical client examples, so full these words can arrive and look more like reality.

    The secondary is around networking and basically being to extend their existing local zone network over into their public cloud, and full of those security policies full 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 full the very 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 seize odds of the very tools you're using on-premise to manage this public cloud service off-premise. And for many clients, just practically having one organization you can call. If you've got -- if an issue should occur and you're not confident if it's off-prem on your public cloud or on-prem, My VMware 1-800 or myVMware is the separate residence that you can call. And the vision they deliver to their clients is so that they believe a public cloud that allows them to develop any application and they can establish it either in vCloud Hybrid Service or on-premise and they don't believe to construct any compromises.

    So I mentioned there that we're obviously targeting their existing client groundwork and the substantial $40 million VM footprint we've established around the world with over 500,000 clients. And again, I'll talk a petite bit about how we're already genesis to note their clients seize odds of this service offering. But when they assume about the addressable markets and specifically the addressable market for vCloud Hybrid Services, they note 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 carry out they win? I want to orientate you on to this slide. So I'm going to talk about their strategy with 2 main reference points. On the left-hand side there, I'm talking about the kindhearted of workloads that we're targeting. And on the right-hand side, I'm talking about the kindhearted of buyers that we're targeting in various phases. And I'll talk you through what their 3-phase strategy looks like in the context of both of those things.

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

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

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

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

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

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

    Now I should just recess and point out that in no artery is this necessarily sequential. Obviously, we're touching quickly. And I'd probably articulate where they are today is, obviously, we're well establishing in phase 1 of the strategy. We're already starting to artery and prepare for phase 2 in terms of geographic scale-out. And, frankly, you moreover saw us announce 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 trade model. They believe really 3 ways in which we're bringing the vCloud Hybrid Service to their clients. And faultfinding to this is to allow clients to believe the option to either buy this as a public cloud service offering directly from VMware through channel partners or they could buy this as allotment of an offering that their service providers are taking odds of their technology to deliver the vCloud Hybrid Service to their End customers. So let me talk you through that.

    So we'll talk about this as being Model 1. So just -- I'd articulate we're announcing the generic availability of this model today. This is where VMware own and operate the platform and obviously sell and travel -- they own the sales and go-to-market function for delivering vCloud service into their clients. We're taking full odds of their third-party datacenters, which they note as an excellent artery of maintaining flexibility. Obviously, we're discovering here just how the physical location and how significant 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 allotment of their orchestration, automation and virtualization suite. And in turn, their service provider partners employ this to deliver a cloud service to their End clients. And this has been extremely successful for us over the last 3 or 4 years. Their clients leverage their software and employ that to deliver service to their End clients. And now this model is already age in over 70 countries.

    But they moreover announced this morning a third model, which is allotment of their strategy for extending their footprint and helping us gain market attain very quickly. And this is a model where they note service providers taking odds of the vCloud Hybrid Suite -- Service platform, so a very prescribed package of hardware and software that they will then employ to profile their basis of delivering cloud services into their client groundwork as well. And it's likely that as they employ this model to deploy perhaps into geographies where having a physical presence and a brand is extremely important, perhaps on reasons of data solvency. moreover in terms of compliance. You may well note us believe this kindhearted of relationships with service providers that believe achieved very towering 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, live it network application oriented or managed hosting or co-location. You'll note 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 End of the day, it's going to live something that gives their clients a full breadth of option of the options of how they buy vCloud service from us.

    Just in terms of how they assume about at a very towering level, how they assume about this in terms of capital efficiency. Obviously, in the first model, what we're not doing is doing speculative builds of 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 full aspects of their software-defined datacenter, so the underlying cloud platform is as virtualized as they can humanly win it. And they already assume that that's sort of providing us with capital efficiency savings very early on at 10% to 15%. But frankly, as they scale, I'd expect that performance and the savings we're deriving from embracing their own dog food is going to accelerate rapidly.

    In the franchise colleague model, we're -- likely the service providers will live making their own investments in their platform to deploy it in their own datacenters. You can clearly note that VMware's employ 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 petite to no capital deployed for vCloud Hybrid Service and for VMware. But I assume it's very significant that they -- clearly this is a -- it's a broad front upon which to storm the market, but they assume it's significant that from Day 1, you establish the perquisite relationship with the ecosystem to live transparent that while they carry out believe a direct go-to-market model, we're absolutely about empowering a broad community of service providers that already faith upon their technology. And this frankly is resonating well with their service providers already.

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

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

    The second magnificient specimen was in the Apollo Group and specifically the University of Phoenix. So online education for adults. Huge, huge volumes at inescapable times of the month or year, where various training courses occur or testing occurs, they note colossal spikes in traffic. So they've become sizable users, I live of value big, sizable users of some of the other consumer-oriented public clouds. And they took stock and said, "Okay, they believe about 5 or 6 public clouds that we're now taking odds of. This has kindhearted of proliferated around the world. How about they assume about whether a hybrid model may construct more sense?" So they ran some analyses and concluded that the best solution for them was to really host their steady-state workload on VMware technology on-premise and employ vCloud Hybrid Service to live the public cloud that they're going to employ seamlessly to seize 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 carry out that? The artery you End up is, basically if you're proliferating the employ of multiple public clouds, it starts to become very inefficient. And secondly, it's about the artery you designate resource.

    So in their model, they designate resource to their clients on a sort of guaranteed basis. They say, you believe 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 win a VM. And frankly the performance of that VM is highly, highly variable. So you can't bank on it. So you automatically self-provision a lot more than you assume you're going to requisite to give you a safety buffer. And pretty soon, the economics start to become pretty unattractive. So a very captivating employ case.

    We've seen a number of other sort of more conventional classic cloud deployments, as you'd expect to see. A lot of clients who are already well established on the East Coast just now requisite another datacenter on the West Coast or they're already believe a brace of locations but want to establish a calamity recovery site and note 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 note such a broad spectrum of clients already looking to note how they can employ this as a logical extension of how they carry out trade with VMware today.

    So hopefully those are sort of very superb practical examples of how this gets used. In the last few minutes here, let's just recap on where they are today. So having had a successful Beta 1 and 2, a successful Early Access Program, they are announcing the 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 allotment of their offering into additional and they're starting with recent Jersey and Chicago. But it's a magnificient model there that shows you how you're going to extend the attain of the offering into recent markets by leveraging the relationships they believe with service providers.

    In terms of value-added services, calamity recovery as a service, which is a logical extension if you're an SRM, or a Site Recovery Manager, client. And if you just assume about that, you deployed Site Recovery Manager and now you believe the skill to employ that very implement to create vCloud Hybrid Service as a destination point for calamity recovery.

    Our Cloud Foundry, very much oriented towards developers, who are already using the Cloud Foundry environment to development applications. And of course, Desktop as a Service will live what I suspect will a long list of existing VMware applications that will now deliver as a service based on the vCloud Hybrid Service platform. And again, bringing back the differentiation, if you've got an existing desktop infrastructure already running on-premise but you requisite to employ vCloud Hybrid Service quickly to either expand the number of seats you have, win into a recent region or perhaps for testing recent version of it, then again it's just an obvious artery of extending it seamlessly. So you can note 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 swagger workload on to the platform, but also, obviously, very much seize -- the magnificient thing they believe is, I guess, magnificient attain into the enterprise market, credibility and faith to live the kindhearted of entity they would want to buy public cloud services from in the first place. But then we're moreover going to live 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 note us focus on that capability as well.

    So in the last minute here before the shepherd's crook takes me off. Let's assume about what we're going to live 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 note us add more and more seamless hybrid experiences. So really by the middle of next year, we'll expect full of their clients to just logically respect vCloud Hybrid Service as an obvious extra resource pool that they can employ for deploying resources or for adding recent applications. And so you'll note us piling more and more hybrid-type services. And obviously, the wealthy ecosystem of software companies they hope will moreover start to conform 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 ilk of partnerships -- they talked about Model 2. You'll note us expand this service offering from North America starting in Europe in Q1 of next year and in APJ probably around Q2. And I assume we're actually touching just slightly ahead of artery in terms of European expansion, so they may yet believe an occasion to bring forward their expansion into United Kingdom earlier than Q1 of next year.

    And in terms of client experience, it's full about delivering an utterly frictionless purchasing experience. So you'll note us focus on that magnificient deal. Having made the initial deployment decision to swagger on to vCloud Hybrid Service, they want clients to live able to swagger workloads or add workloads or construct adjustments to workloads in seconds rather than it having to live 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 undergo becomes the absolute basis upon which you requisite to build the repose of your service offering. If you can't carry out that, frankly, it's given as availability. You believe to live both available and believe the availability at the position extremely quickly to live 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 recent applications to construct confident that they work closely with a lot of the existing ISPs that believe already technically certified on their platform, but moreover start to work with some of the providers of next-gen ilk application services. And you'll start to note us add on, develop their oriented services on to the platform as they expand into phase 3 of their rollout.

    Great. Well, I'm out of time. And hopefully, in 20 minutes, you've got a better understanding of the value proposition to clients, you can note the market we're targeting. You can note how clients are starting to the platform and, at a very towering 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 joy to live here and note many close faces. I am on Day 6 of my VMware journey. So if you believe abysmal product technical questions, you can query me that on Day 60. But it's a joy to live here.

    I just wanted to converse a petite 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 combine here. But one, I saw a company that was tremendously innovative. I was actually at Veritas when EMC beat Veritas to buying VMware. I bethink that time, and since the spin-out, since then, believe admired the innovation that VMware has had. And I assume a superb testament to that is the recognition from Forbes as the #3 ranked company. last year, in 2012, VMware was not even listed. To travel from not being on the Top 100 to being #3 is a huge accomplishment.

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

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

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

    If you'd -- just on a staid note now, if you keep at this chart that everybody talked about, let me give you a petite 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 End user space, mostly in analytics and in sizable Data and in mobile at SAP, where half the revenue of that company was stuff that they drove.

    But if you assume about what's happening in the End user area, full of this is being transformed significantly by some sizable 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 recent artery of looking at this that the traditional legacy players probably are trapped of not being able to carry out with them. And that opens up a whole recent artery of the artery in which virtual desktops, the artery in which mobile is going to live viewed and the artery companionable computing is going to live viewed.

    And if you assume about the nature of how many of the CIO conversations today are touching out of the realm of traditional ways in which you dialogue with them to some of these recent strategic topics, whether it's mobile, whether it's social, whether it's cloud computing, whether it's sizable Data, I sense a sizable 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 trade in this, perhaps even a trade that's the size of VMware today. And that's why I'm here.

    As you assume about aspects of this, Pat emphasized that everything we're doing in key aspects of these recent 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 assume about an adjacency, whether it's going from the datacenter to management or from management to End-User Computing, or the things that we're doing in the Hybrid Cloud, there needs to live 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 brace 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 like mobile and then emphasizing recent things like security. And when you win some advantages like they believe in vSAN, you win the advantages of the investments we're making in the Hybrid Cloud, they moreover win to seize odds of the innovations in both storage and where cloud computing is going. So I note a sizable occasion now here in End-User Computing to live able to seize both of those advantages and play a magnificient curveball disruptive innovation to the traditional players in this space.

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

    Now let me start at the bottom because how wintry is it when you work for a company, where your wife or your brother could say, "Could win 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 employ 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 superb case studies that I assume will motivate why what we're doing is different here. You'd probably can't win 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, full 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 live saving lives. When you assume about John Hopkins, one of the best medical universities, and 10,000 plus clinicians. If you could provide them a artery by which their clinical documentation, medical records and things of that kindhearted could live 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 carry out with John Hopkin.

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

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

    If you keep 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 moreover who are watching from the outside in, some of the reasons why we've been successful, you seize Amdocs. This is actually a Mirage customer [indiscernible] was the acquisition. 10,000 plus seats. In this ilk of employ case, where you can actually reduce the pang 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 recent foundation and framework for their strategy.

    Now to carry out that, they had to construct some very, very sizable decisions. And they had to travel through what I would call a realignment process earlier this year. This is a chart that I showed last year at the pecuniary Analysts Conference. And there's only one more additional acquisition on this chart, and that was Virsto from earlier this year. Everything else had been done in the past. In fact, there was many different acquisitions we've made over the last few years. But when you travel 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 believe to do, they had to realign the business. They had to realign the people. They had to realign the resources to construct confident they were in alignment to travel 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 very time, over the last 5 years, they had to discontinue and recess and assume about full 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 last year, you've seen us carry out divestitures of. Shekar and their trade development team has done an improbable job at divesting a number of trade into hands of people they trusted, so that they can continue to service these customers that are already VMware customers. So they establish a lot of these out there in the market into the other hands. They divested them, allotment of the realignment effort.

    At the very 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 establish them into pivotal to build the travel pivotal business, which I keep at as one of, if not, the separate largest startup out there today. 1,400 employees strong, with assets from both VMware and EMC, $300 million-plus in revenue, it's a very exciting trade 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 articulate 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 full 3 of them. And let me seize you through just a brace of things we're doing in that double-down effort.

    First, let's start by talking about End-User Computing. And Sanjay will arrive up and disburse a lot more speaking about the End-User Computing space, but they are really excited about the End-User Computing business. They assume there's a significant occasion for VMware to actually continue to seize market share against the competition. And because they believe that to live the case, they believe doubled down their go-to-market ail and strategy by hiring hundreds of people on the go-to-market and sales side to actually travel out and target customers looking to radically transform their desktops. And as we've said, the last 2 quarters, in both Q1 and Q2, their license bookings were growing in the mid-teens in the End-User Computing business. And when you compare and contrast that to the 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 believe occurred without a realignment effort.

    At the very time, you heard Pat articulate both here and on main stage their ail to win 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 live delivered through a hybrid model. It's the only artery you can carry out it efficiently and effectively. And it has to live done with someone like 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 tough customer demand. And at the very time, once again, they doubled down their go-to-market efforts and we've hired and built out a specialized sales compel to travel after this opportunity.

    And lastly, the Software-Defined Datacenter, where they virtualize full of IT, not just infrastructure, but it's infrastructure, it's applications and End users. And we, here, once again note a massive opportunity, not just, again, to virtualize the infrastructure, but how carry out they swagger from a world of management to automation. And because they are growing as like a glisten 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 compel to seize odds of the massive market occasion they believe around cloud management going forward. These 3 key areas of investment could not believe taken residence unless they went through that realignment process earlier this year.

    At the very time, they had to also, as you know, establish assets into pivotal. They did that. They took about 400-plus people. Some magnificient people are now at pivotal and were still allotment 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 sizable Data space or with Hadoop actually race on physical servers. They now believe the occasion to establish that on top of the VMware platform. Again, it couldn't live done unless they specifically were to focus on this realignment effort.

    We moreover continue to invest in emerging markets. They note 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 prove full of you, actually the bookings growth we're getting out of this market as compared to the headcount growth that we're putting into it. And I assume full of you bethink from their earnings call last quarter, they had a phenomenal quarter, specifically in APJ, where they grew the trade significantly year-over-year and quarter-over-quarter. Again, these are investments that they would not live able to construct as a company unless they actually did that realignment ail earlier this year.

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

    We had a magnificient quarter around the world, growing the Americas business, which is, obviously, their largest individual business, by more than 20%. In EMEA, they grew the trade on what they said is in the mid-teens. And they full 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 note people to adopt it, to drive out the cost of their environment.

    And in APJ, they just had an improbable quarter. And when you compare and contrast what they did in APJ last quarter, because of the strengths specifically that they saw out of Australia, I assume it was quite impressive when you compare it to the 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 seize a quick step back and keep at how people believe historically adopted virtualization, they've really gone through a 3-phase approach. They've taken, they've implemented virtualization, as full 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 swagger into what they call trade production, where they started to actually win the capitalize of both CapEx and OpEx. And then ultimately, more and more of their customers, as I'll prove you in a brace 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 keep 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 like 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 keep at their sales motion, what they sell, day 1, is a upright solution. They sell vSOM, which many of you know and query 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 recent 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 believe 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 win access to this hybrid cloud. They want to leverage that very infrastructure to transform their desktops in what they call end-user computing. So what they ultimately carry out is they enter into an Enterprise License Agreement with VMware.

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

    If you keep 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 requisite to travel and win another purchase order. They carry out not believe to travel and warrant another artery to win access to more VMware because they believe a framework to win access, an facile access to full of their technology. It moreover allows them to win predictable pricing. They know exactly how much it's going to cost per compute, per storage, per network component.

    And lastly, I assume most importantly, they start to align their long-term strategic vision to VMware. In this notion of the Software-Defined Datacenter that they brought to VMworld in 2012, it's becoming a reality. Their customers believe or they wouldn't live 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 like the word ELA because it seems very license centric. It's an enterprise license centric [ph]. I assume of it as an EA, an enterprise agreement. Because the majority of their enterprise agreements comprehend services components to serve them drive the deployment of full of the assets they win 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 groundwork they believe out there today and touching 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 moreover globally because they believe global access, that they're multinational company, to full of this technology.

    And for us, it's moreover 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 Enjoy and they want and we'll continue to build on the services engagements they believe with their customers because they absolutely know, and as you'll hear up here later on today with me when I disburse some time with Steve Hilton, one of the challenges is not just technology adoption, but how carry out you transform your IT organization into people process side of the business. This is why they assume there's trade capitalize by doing enterprise agreements for both their customers and VMware.

    Now along the way, what they assume is going to occur here is we're going to note their customers continue to swagger on this journey to IT as a Service. These numbers here are out of their most recent customer survey that we've done, and the results just came in, in the last brace 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 win a much richer recrudesce on investment.

    And the recrudesce on investment isn't just on the capital cost savings that they get, but it's on the operational efficiencies, touching from a system administrator of supporting 100 virtual machines in phase 1 to 300 in phase 3. These are the benefits that people will win 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 pecuniary 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 carry out I swagger to this world of a recent greenfield data focus and seize 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 believe to protect, and I believe to withhold the lights on. And to construct that bridge or to jump from the legacy to this recent world is extremely hard.

    So we've worked with them to say, can they win enough capital to travel and stand up a company recent 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 found is if they could build a recent greenfield data center, the savings were absolutely remarkable. As you note here, they would save more than 54% over what they carry out today on the OpEx side of running IT, and their capital requirements will travel down by 74%. That's the power of the Software-Defined Datacenter. The intuition for this, for example, on the capital side, Raghu will win up here and talk about network virtualization and how full Layer 2 through 7 services are now done in software.. full the appliances that people believe 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 travel 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 moreover focused on making confident that they don't just acquire a company or customers. But once they win 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 converse to you here in a few minutes about. But these are just some of the statistics that they win back on Net Promoter Scores. The industry middling for towering tech on Net Promoter Score is 13%; for B2B computer software companies, it's roughly 9%; and VMware last year was at 43%. One of the highest NPS scores you can find in full of tech.

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

    So now let's very quickly talk about, if this is the market occasion and this is how they sell, how carry out they win access to their customers? Well, it starts with a customer view. It starts with a customer-centric strategy across the company. And if you assume about most technology companies, they assume about the technology they believe to offer, and then they pattern out what are the routes to market so I can win 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 trade challenges are, you start to assume 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 win access to those customers? And then they believe to start to assume about, okay, are their partners capable of delivering the technology customers want? And the only artery to construct this full arrive together is that VMware thinks about full 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 full together to build out a go-to-market strategy.

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

    When you travel down market, reps may believe 1 to 10. When you even travel further down, they may believe 20 to 50. When you travel full the artery down market, we're just going to leverage their channel.

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

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

    For the last decade, they said we're going to live a partner-led and -driven selling organization, and they are that today. 85-plus percent of their trade still, at this point, goes to their partners, and I don't note that changing at full as they travel forward. The colleague 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 believe at the prove this week.

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

    And sometimes, they actually carry out both. As I mentioned earlier, if you keep at this framework, technologies like View or technologies like NSX, we've decided to build specialized sales forces to seize it to market. At the very time, they expect that their core will live 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 recent solutions to market.

    Now as I said earlier, they moreover requisite to construct confident that we're giving a very simple and facile artery for their partners to engage with us to ultimately engage with their customers. And it's very straightforward. As their customers win into recent accounts, they pay them and they pay them margin. As they expand in their accounts, they pay them more margin. They want to construct confident we're 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 believe often said is, "VMware, are you capable of changing the selling motion and enabling your existing sales organization in your channel to live able to sell this Software-Defined Datacenter?" Well, if you keep at the Software-Defined Datacenter as it's described today, a lot of the components of the Software-Defined Datacenter believe actually been sold already through the channel.

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

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

    Our customers requisite serve on this journey to the Software-Defined Datacenter, both technologically, as well as on the people process side. And when you discontinue and keep at the market occasion for professional services that their colleague community has, it's almost as sizable as the TAM I showed you earlier for VMware. This is why the partners are very much engaged with VMware and note 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 assume of enablement once, then twice. They assume of enablement, as they build enablement materials to serve radically transform their sales compel to sell Software-Defined Datacenter, the hybrid Cloud and End-User Computing services, but they built that once knowing that it's going to live delivered twice, both to their existing sales compel and their channel because they note them one and the same. And they believe been very aggressive and adopted many recent technologies to bring enablement to the market.

    The latest one, we're working on an iPad and iPhone or a mini iPad solution that full of their people will live able to access full of the information they requisite through any device they want in a very secure way. And then we'll seize and we'll employ that very infrastructure, that very 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 travel out and seize odds of the $50 billion market occasion that Pat and Jonathan laid out earlier. And they couldn't live here without that realignment ail that they went through as a company. I must say, we're full supercilious of how quickly they got through that and how well we've been able to maintain their focus in both Q1 and Q2.

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

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

    And lastly, they will continue to focus on enabling both their sales compel and their partners to live able to serve their customers once again, just like they believe in the last decade, to travel and radically transform IT through the employ 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 recent vCloud Hybrid Services trade unit.

    In the next 20 minutes, what I'd like to carry out 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 towering level, give you a view of their strategy of how they -- their strategy for becoming a preponderant player in the public cloud marketplace.

    So that they could cover everything from physical to virtual to mobile. If you keep 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, moreover watching from the outside in, some of the reasons why we've been successful, you seize Amdocs, this is actually a Mirage customer, Wanova was the acquisition, 10,000-plus seats. In this ilk of employ case, where you can actually reduce the pang on the serve desk, it's a huge occasion for optimization, where you can prove cost, savings, and you actually are able to win the full -- the organization working in a much more agile fashion.

    Land Rover, as you know, was taken over by Tata. And a lot of what happens in an organization of that kind, especially as you assume about geographically expanding, is the fact that in India, in China, and many of the recent places where you're doing things, you want to believe an efficient artery by which these engineers can win their diagrams or a variety of the things that travel on in car manufacturing. Again, a impeccable employ case for a distributed workforce, geographically distributed, and one artery you can manage this at a even of scale, in this case 4,000, 5,000 of them, much, much more easily with the solution as they provide. And then you seize 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 live probably in the tens of thousands when we're done. allotment of what they found was, in this space, there hasn't been a lot of attention given to the simplification of things like management consoles and so on. And as solutions from some of their competitors believe been deployed, customers just found a whole bunch of pang associated with that ilk of deployment.

    Here's a superb specimen of one where they will deploy with the undergo that the End -- 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 like a glisten fashion, we're finding that their customers themselves are able to swagger much, much faster and certainly, to lower cost. And as you know, in IT, it's full about being able to lower your cost and then free up those dollars to carry out innovation. The impeccable world is where if you're spending 90% of your money in the CIO budget, on keeping the lights on, you believe very petite time or money for innovation. And they could serve people seize 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 carry out innovation, and that's really what a lot of what the technology here helps us do.

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

    Desktop as a Service is a huge opportunity. Their competitors believe not innovated in this area. This is an occasion for us to not just carry out a Desktop as a Service in the context of a cloud offering from their service providers, and you'll note us partnering with service providers to carry out that, but moreover in the context of their Hybrid Cloud. So this is a residence where they can amplify one of the offerings that Bill provides in the Hybrid Cloud. As they assume about the innovations in storage, whether it's with vSAN or where the future of Flash-based storage is headed, they assume full of that will moreover further reduce the cost of a typically -- typical VDI deployment. And at the End of the day, they want to live the solution that can live managed at large levels of scale. If they assume there's an occasion to both replace, as well as innovate, in many of these recent areas where you can deploy to tens of thousands, potentially hundreds of thousands and collectively, millions of seats, they believe they can carry out 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 believe been done by Citrix, the user cost is just a factor different. You'll note 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 employ 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 note us doing it a lot more, so that through the years of -- so that through the voice of their customers, you're going to hear some of the success stories that we've had in growing this business. As Carl pointed out, we're growing twice the pace of their competitors. They assume we're gaining a tremendous amount of share in this allotment of the market.

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

    As you expand to some of the other areas like mobile, they believe the mobile movement is just getting started. It's a huge occasion in front of us, billions of devices, and expect much more from us. They announced Workspace this year. This is going to live certainly an zone of my own fire and focus. And I expect, as they expand in this area, it's not just going to live 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 assume about where this is headed, their focus will live not just in IT, but the End users. And I assume many of the very constructs that you've seen us do, like for example, policy and management, will live ones that they extend there. In doing this, we're taking a very careful view of looking at full of the device-operating systems, from iOS to Android to Windows, full 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 artery the mobile movement will work in the market will live not just on their own, but through many of these significant channels.

    So overall, very, very excited to live 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 live cheerful about that, and with that, let me interpolate the godfather of the software-defined data center, Raghu.

    Rangarajan Raghuram

    Thanks. full right, superb to note you full again. Hope you enjoyed the keynotes today. And don't miss the keynote tomorrow, you will note Carl Eschenbach at its finest. I will talk about the software-defined data center, specifically covering 2 aspects. First, at this venue last year, they talked about their vision for the software-defined data center. They talked a petite bit about what they believe seen in the marketplace since then. And then specifically, they talked about the recent developments, some -- most of it was announced today. I'll try to give you a petite 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 expect out of their infrastructure, right? Velocity and agility has become paramount top of intelligence for most of their forward-thinking customers. The intuition is, as businesses shift towards engaging with customers, in a variety of different media and different devices, it is the systems of date that customers are pile that are replacing or becoming more significant than the extinct systems of record that IP used to live managing. The systems of record where the ERP systems and so on and so forth, systems of date are these mobile companionable systems that customers are pile in order to win in front of their customers in more and more attractive ways, right?

    Out of this, combined with a change in how software is being built in most of their customers, is driving the requisite for continuous development and continuous deployment. That in revolve 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 ilk than what IT has been dealing with.

    Even while doing full of these, full 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 arrive for a lot of them.

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

    That's really the foundation of the set of requirements that's driving their thinking around the software-defined data center. This is the vision that they introduced last year. To recap, they assume the artery 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 real data focus today in production, it gets slowed down because storage and network are done the old-fashioned way, the artery physical infrastructure works.

    As a result, full the automation that it can apply is very brittle. With the software-defined data center, this is the next evolution of their stack from what they showed last year. This is a concept of abstracting and pulling and virtualizing they believe 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 full 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 believe announced products and every one of these are advanced products in every one of these domains. There is a recent generation of vSphere, vSphere 5.5. The sizable advice of the prove is, of course, NSX, the network virtualization platform. And Virtual SAN enters public beta.

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

    The artery they travel to market with these is they simplify these into suites. vCloud Suite was introduced at the last VMworld, and had been very successful for us over the last 4 quarters. And that's meant for the Enterprise consumer, and vSphere with Operations Management is for the virtualization mid-market customer that wants to believe a better-managed virtualization environment. This is a petite bit of an eye chart but just so that you believe 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 last year, they believe had 2 types of successes with customers. Customers that believe adopted any particular component in a sizable way, as well as customers that believe adopted the whole suite. So these are examples of customers that believe chosen 1 or more of these individual components. And here are a brace of examples of customers, both at in the Enterprise scale, as well as the mid-market that they would like to call out. For example, Symantec, which has been a long-term vSphere user, they believe been deploying the full elements of their vCloud stack. And they believe deployed over 200,000 VMs. This is the global champion team at Symantec that supports the End users. And so they employ this private cloud infrastructure to recreate customer concern 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 even 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 live particularly attractive because it enables customers, like those that are shown here, Greektown or Cornerstone, to win more out of their virtual environment. Very often, when customers deploy the Operations Management component, they win an additional 20% to 35% CapEx savings because they're able to employ the capacity more efficiently after looking at the insights from -- delivered by vCenter Ops. As you noticed, this is moreover enabling us to displace Hyper-V in these accounts, too.

    So that's a quick overview of some of the successes from last year. Now let's talk about where they are going looking forward, starting with the announcements that they made today with compute, right? So this is a chart that they believe 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 carry out of their customer base. The industry analysts carry out their own survey, and they're full in this ballpark, and the net-net is, the industry is about -- sorry, their customer groundwork is around a mid-60s virtualization percentage, right? They are steadily progressing towards a very towering number. The chart at the bottom is equally instructive because this measures the percentage of virtualization of trade faultfinding applications, customers that they articulate they believe virtualized their trade faultfinding applications. Some of those applications are listed there, right?

    And that number again has been steadily growing. The intuition these 2 are significant is the more virtualized a customer is, the more it is an installed groundwork occasion for us to sell higher-value products. They appraise there are approximately 40 million virtual machines installed in their customer groundwork 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 tough groundwork across 500,000 customers that they intend to deliver more and more value in the coming years.

    So with vSphere 5.5, their focus is to create a separate platform for the Enterprise that can serve not only their traditional applications but moreover 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 recent applications. So the sizable Data extensions that they had announced earlier in the summer are now allotment of vSphere 5.5. This enables Hadoop workloads to live 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 believe seen very towering interest from very large enterprises that believe sizable developer audiences, that want to travel 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 believe extended their platform to live 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 petite bit about additional things they are doing in the future.

    And they continue to work with the chip manufacturers to champion 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, trade faultfinding applications continues to live 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 touching stuff off of extinct Solaris or other risk platforms onto vSphere or on x86. Right? So this is full net recent occasion for vSphere Enterprise Plus because that's what customers deploy.

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

    The other captivating observation here, that was a flabbergast to us until they did the survey, is the percentage of virtualization app virtual switch, right? A sizable intuition why they introduced CLIs and why they did third-party virtual switches in ESX, was so that network administrators that are close with how network switches work could manage network switches from their favorite vendor. What they are finding is there is an equally tough 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 soar the second intuition why they are doing network virtualization, okay? Server virtualization was usually successful for 2 reasons: People believe brought it into their corporate data centers for the CapEx benefit. The intuition people believe stuck with it is because it's transformed the operational model for compute. They took a server, which was a physical remonstrate in sheet-metal and A6 and whatnot, chips, turned it into a software object, which was a virtual machine, so you can programmatically create it, extinguish it, swagger it around, carry out whatever you want to carry out with this. This even of flexibility does not exist today in the network. This is why customers believe told us that they believe taken as much as 45 days and 50 days to deploy an application because the network is still physical and full the configuration of load balancers and switches and access control lists and VPNs and VLANs and whatnot, full of it is happening in a manual basis today, right? They're full capacity-constrained. Each time you deploy an application, you believe 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 full network traffic, as opposed to the north-south traffic, which is the traffic going to the end-user device.

    And you can note why that is the case, because each time you carry out 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 trade logic server and then to some database, perhaps through some middleware, to some mainframe, et cetera, et cetera. full of that is what they call east-west traffic. Right? As you establish more applications into the data center, full of those applications generate traffic that has to live swift, that has to live 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 note some numbers. That shows the throughput speed, right? They are able to carry out this at line rate, so imagine 10 GB network backbones in the rack, they are able to carry out this at line rate. So performances -- this is not a type, they are talking about real data focus traffic at very towering speeds being handled by software. The intuition they are able to carry out this is a distributed architecture, okay? Unlike their previous attempts at providing, for example, firewalling, they carry out not employ a virtual machine to carry out that. The technology for this is built-in as an extension of the hypervisor, right? So they are able to provide this sort of functionality at line rate speeds, number one. Number two, because they are the first discontinue point on the network, next to the application, these services can live set up in response to what an application needs and when the application moves, the services of these policies can live moved to wherever the application is moved, right? So the mobility of policy enforcement becomes automatic. It's tremendous, and best of all, the artery you scale these network services is no longer a divorce competency from how you articulate it's scaled to compute. When your application needs more horsepower, the artery you scale to compute is most likely to scale out application, you establish more compute nodes. When the application needs more network services, the artery you scale the network services is again the very thing, you establish the network, you establish more compute nodes. The management of this is the very as how you manage the application. The programmatic APIs is the very as what you carry out to provision the compute APIs to provision the application. It's a seamless extension of what to carry out 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 arrive back to this for storage as well. This is the scale-out power of doing networking this way, right? A separate host, you win the line rate hurry that I talked about. vSphere clusters are often clusters of 32 nodes, so you can win up to 1 terabyte of throughput on a cluster of 32 nodes. A separate virtual focus domain can travel up to 1,000 holes, so you multiply 30 gigabits by 1,000 to win the throughput of your network services in a large vSphere form, right?

    The last but not the least, that is a common API called the NSX API, that many partners that can live 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 artery in a cloud management system agnostic manner. And the beauty of the underlying the server technology that they acquired last year is that it's inherently multi-hypervisor, it's hypervisor-agnostic. So we'll work on vSphere, we'll work on KVM, Zen, they believe got a Hyper-V roadmap, et cetera, et cetera. And we've been working with a set of switch partners to construct confident that this can live extended to the physical domain. So if you believe a database alive on a physical server connected to a switch, they can full live allotment of the very logical network that's managed by NSX. So at this conference, you'll note sessions from many of the networking vendors, whether they're Layer 2, Layer 3 vendors, or Layer 4 to 7 services like Palo Alto networks, et cetera, et cetera. If you believe time, I would cheer you to travel trap up on one of these sessions.

    So that's storage -- sorry, that's networking. Let me quickly talk about storage. very concept, how carry out you construct storage more software-driven? As Pat talked about, 3 aspects of this, right? One is you virtualized the core data plane, right? Then you provide a policy-driven control plane and then thirdly, you construct data services very application-centric as opposed to infrastructure-centric. They are announcing 4 products today -- are announcing 3 products and progressing on one other. Virtual SAN is in public beta. I'll talk about Virtual SAN in a second. Virtual volumes, this is their ail to construct underlying storage, external storage more application-centric. And you will note tech previews with their partners. The vSphere glisten is their attempt to exploit the glisten 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 close with the storage space know that there is no separate storage solution that fits full employ cases and workloads and deployment scenarios. Virtual SAN is a hypervisor attached persistence layer that uses the local glisten and the local disk that is present in every modern-day server and clusters these to keep like a virtual storage array. Initially, the employ cases that they are targeting are virtual desktop, like Sanjay talked about, huge requisite for low cost storage there, Tier 2 or Tier 3 workloads like your file server and SharePoint, and so on and so forth. And of course, as a DR target, where you may live willing to live with the local disk performance.

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

    Here is the chart of the VDI performance, right? The dollars per VDI cost, note how linearly it scales. In this chart, it's up to 4,500 nodes, so in desktops, and they believe 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 note in terms of IOPS, they are very compatible to midrange storage arrays while using local storage economics, right? So they assume they are creating a recent cost point in the storage industry ecosystem in terms of choices for customers.

    All right, 5 more minutes, I've got to cover management. This has been a significant focus for us in the last 3 years. And as Pat talked about, the keynote today, cloud management is a rapidly growing category and they are seen as the leading vendor in cloud management. The intuition 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 prove it to you using some virtualization technology. Whereas, the mobile cloud zone requires something fundamentally different, here, you're talking about thousands of devices, thousands of virtual machines, and the tangled connection of applications to servers, to storage, to network. So the amount of data that you've got to anatomize makes this a sizable 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 believe taken sizable 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 assume about the cloud problem, it breaks categories by definition. So there is no longer -- you can carry out capacity management divorce from performance management, divorce from some of the storage management performed, divorce from network management, they're full interrelated, right? So you requisite to seize a whole recent approach and one that's based on policy-based automation, as well as applying these analytics approaches.

    So we've got this -- just a petite bit of eye chart, I apologize for that, we've got 3 major areas of focus in management, cloud automation, which is about deploying applications in an automated mode to any cloud, right? Cloud operations, which is about managing the applications on the infrastructure, and having the software autism and seize remediation, remediation actions. And then cloud business, because IT is now a broker of services in addition to a builder of services, they requisite to live able to employ pecuniary metrics, as well as their seller metrics to determine where to deploy the application, and that requires a recent discipline management that they call, cloud trade 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 believe expanded to hybrid domains, infrastructure management for both of vSphere, as well as non-vSphere environments. And then touching up into applications, you're progressively advancing their management portfolio, they believe done it through a sequence of acquisitions, as well as in-house development and go-to-market activity.

    Let me skip past this, in the interest of time, we've already seen some pretty sizable 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 sweep 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 moreover suited for the very ilk of customer today, and this chart sort of maps the products to the ilk 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? full the artery around to the recent products, which are software-defined storage, just selling to the early, early adopters along with NSX, et cetera, right? As these products swagger 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 last year was SDDC, as a vision, but the bulk of the trade was server virtualization. Where they are today is the bulk of the -- a significant portion of the trade is coming from beyond core server virtualization into things like management and, obviously, end-user computing. And they believe 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 allotment 2:

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