EMC AND VIRTUSTREAM · EMC AND VIRTUSTREAM MAY 26, 2015 ... VIRTUSTREAM BUSINESS OVERVIEW ......

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EMC AND VIRTUSTREAM MAY 26, 2015


FORWARD-LOOKING STATEMENTS

This presentation contains “forward-looking statements” as defined under the Federal Securities Laws. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including but not limited to: (i) adverse changes in general economic or market conditions; (ii) delays or reductions in information technology spending; (iii) the relative and varying rates of product price and component cost declines and the volume and mixture of product and services revenues; (iv) competitive factors, including but not limited to pricing pressures and new product introductions; (v) component and product quality and availability; (vi) fluctuations in VMware, Inc.’s operating results and risks associated with trading of VMware stock; (vii) the transition to new products, the uncertainty of customer acceptance of new product offerings and rapid technological and market change; (viii) risks associated with managing the growth of our business, including risks associated with acquisitions and investments and the challenges and costs of integration, restructuring and achieving anticipated synergies; (ix) the ability to attract and retain highly qualified employees; (x) insufficient, excess or obsolete inventory; (xi) fluctuating currency exchange rates; (xii) threats and other disruptions to our secure data centers or networks; (xiii) our ability to protect our proprietary technology; (xiv) war or acts of terrorism; and (xv) other one-time events and other important factors disclosed previously and from time to time in EMC’s filings with the U.S. Securities and Exchange Commission. EMC disclaims any obligation to update any such forward-looking statements after the date of this presentation.

This presentation contains non-GAAP financial measures which include, but are not limited to, non-GAAP Gross Margin, non-GAAP Operating Margin, non-GAAP EPS, non-GAAP Net Income, Free Cash Flow and Non-GAAP Income Tax Rate.


ANNOUNCEMENT SUMMARY

Virtustream will form EMC’s new managed cloud services business

A transformational element of EMC’s Federation strategy to help customers move to cloud-based IT environments

Virtustream will be a key enabler for the EMC Federation to deliver the industry’s most comprehensive hybrid cloud portfolio

Portfolio delivered directly to customers and through EMC’s global partner ecosystem


TRANSACTION DETAILS

EMC to acquire privately held Virtustream

Virtustream CEO, Rodney Rodgers will become CEO of EMC’s managed cloud services business

All cash transaction of approximately $1.2 Billion

Transaction expected to close in 3Q 2015

No material financial impact expected in 2015

Expected to be revenue additive and EPS accretive in 2016


VIRTUSTREAM BUSINESS OVERVIEW

Global Cloud Service Provider that focuses specifically on hosting mission-critical workloads, including SAP and others

Provides cloud computing management software, IaaS, and managed services to enterprises, governments and service providers

Software for private, public and hybrid clouds that enable customers to move existing applications to the cloud

Enterprise-grade security and compliance, performance SLAs, multi-tenancy, and consumption based charging (µVM)

Professional services and support for cloud assessment, migration and onboarding, and application support


Emerged as the platform of record for running large-scale, mission-critical applications in the cloud, including SAP

Architected, designed and managed to optimize enterprise application performance across hybrid clouds both on and off premise

Allows application landscape automation across applications and interrelated infrastructure using a digitized library of blue prints deployed as needed

Consumption-based billing across hybrid clouds for 100% of applications

Single-pane-of-glass management across all deployment models

Defense, in-depth security and governance is built-in

VIRTUSTREAM CUSTOMER VALUE OFFERING


Source: The Forrester Wave™: Hosted Private Cloud Solutions, Q4 2014

Hosted Private Cloud Solutions(1)

A RECOGNIZED LEADER IN MANAGED CLOUD INFRASTRUCTURE AND SERVICES

Source: The Forrester Wave™:

Hosted Private Cloud Solutions, Q4 2014

Cloud IaaS Magic Quadrant

This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.


STRONG PARTNERSHIP WITH SAP BROAD AND DEEP SAP CAPABILITIES

Innovation Group • Ongoing HANA Collaboration • Performance Benchmarking • HANA Encryption COIL

SAP Certified Partner • HANA Certified Partner • Certified Cloud Provider • Certified Hosting Partner

Virtustream Customer • SAP Runs Their Demo Showrooms on VS IaaS • NS2 Runs Their Federal Cloud on VS Fed IaaS • SAP is an xStream Software Customer

Specific Industry Engagement • Federal and Public Sector • Regulated Industries • Consumer Products

Sales Enablement • S4 Early Adopter Partner • HANA Factory Collaboration

Cloud Partner Ecosystem • Federation • Orchestration

Corporate • VS is an MCaaS Participant

Regional Field Engagement • Brazil • Asia Pac • Middle East


GREAT SET OF CUSTOMERS INCLUDING:

Public Sector

Enterprise

Service Provider


CUSTOMERS LOOKING TO LEVERAGE CLOUD

They are seeking a partner who can help them:

Build a world class private cloud for applications that must remain in customer owned data centers

Enable public cloud economics in 3rd party data centers for workloads with lower performance and compliance constraints

Move mission critical apps that cannot move to public cloud, but can run in off-premise data centers to low cost managed private clouds

… finding a partner that can seamlessly provide all 3 models – across the customers’ entire application portfolio – is a market opportunity no one has adequately fulfilled to date


A VARIETY OF CLOUD MODELS


EMC’S COMPLETE HYBRID CLOUD PORTFOLIO

Presently, EMC provides the Federation Hybrid Cloud Solution - an on-premise private cloud offering that provides on-ramps to public cloud services such as VMware vCloud Air

Virtustream brings to the EMC portfolio a managed cloud services capability - whether on or off premise

With the addition of Virtustream, EMC will enable customers to move their entire application portfolio into a cloud environment

Virtustream’s cloud software and Infrastructure-as-a-Service portfolio will be delivered directly to customers and through partners

Service providers will receive access to Virtustream’s cloud management software platform and be enabled to adopt and deliver their own branded services based upon it


FEDERATION HYBRID CLOUD PORTFOLIO Enterprise Hybrid Cloud (EHC)

VMware vCloud Air

Virtustream Managed, Mission Critical Off-Premise


POWERFUL PARTNER ECOSYSTEM

Ecosystem of Partners will be fully enabled on the technology, software, and services IP of the EMC Cloud Services offering portfolio

A primary operational component of the EMC Federation’s cloud business

Reduces Partners’ expenses to deploy cloud solutions

Accelerates Partners’ ability to respond to customer demand

Differentiates Partners’ value to their customers through consulting, application migration/integration, business process integration, etc.

Expands Partners’ market reach by customer type, industry, geography, etc.

Ensures a world class repeatable consistent customer experience


SUMMARY

Cloud is transforming the way IT is architected, deployed and consumed

Virtustream is a leader in cloud software and Infrastructure as a Service (IaaS)

Virtustream is transformational for the EMC Federation’s hybrid cloud portfolio including the Federation Enterprise Hybrid Cloud Solution and VMware vCloud Air

After closing, with Virtustream forming EMC’s new managed cloud services business, the EMC Federation will have the most comprehensive hybrid cloud portfolio

This complete offering is unique in the industry and will be available directly and through the Federation’s expansive global partner ecosystem

EMC AND VIRTUSTREAM · EMC AND VIRTUSTREAM MAY 26, 2015 ... VIRTUSTREAM BUSINESS OVERVIEW ......

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