Just left a session entitled PAR110 – VMware Infrastructure 3 Operational Readiness: People and Process Considerations. Maybe it is me I was a bit confused during this session, following the morning general session where the advertised VMware ASP (average sale price) was 50K I’m not sure how much of a need there is for ITIL (Information Technology Infrastructure Library) level process and procedures. With an ASP how large can the addressable market be for these services? Will finding opportunities be like searching for a needle in a hay stack? I sensed similar confusion from others in the room. Who is the target audience for this? I am sure it will play very well in the fortune 100.

Just completed sitting through PAR105 – ware Lab Manager: Technical Sales Overview which ran from 10 AM – 11 AM.

Interesting session although I was a aware of most of this information from some of the briefings I had from Akimbi prior to the ware acquisition. In no particular order here are some of the notes from the session. Note: I was typing very fast and the slides were changing faster so I do not guarantee that this post is 100% accurate.

• ware announced Lab Manager Public Beta 1 today at VMworld 2006
• Defined market space as Virtual Application Automation
• Competition: Surgient
  • Interestingly enough I hit the Surgient web site and on the top of the page there is a quote from EMC See final note…
• Lab Mgr Avg Deal Size approximately 30K but this quickly grows to 100s of thousands of dollars
• Cost and Licensing Model
  • Two Specific Models
    • a la carte – 15K per Lab Manager Server + 1K per 2 CPUs
    • Enterprise which will include Lab Manager w/ VI Ent or Std plus VMware Workstation
• Performance concerns associated with VMDK snapshots
  • Yes, there can be performance degradation but it has not been measured as significant
• Automated IP and SID Management
• Creation of vs
  • Checkout from the Lab Mgr library which creates and exact duplicate environment with the same SID but fencing is used to protect the duplicate environment
  • Creation of a new config from a template
    • Unlike VM templates the creation of a new VM using Lab Manager templates does not copy the base disk but it creates a difference disk so the creation is near instantaneous.
• REDO limitations / best practices
  • # of VMDK files per LUN consideration, depends on how you plan to use the system – number of Vicks per LUN is gated by the number of REDO logs per VMDK.
• Target Markets:
  • Enterprise/Commercial IT – > Target Mage >10,000 Employees
    SIs and VARs -> National and Global
    ISVs -> Small, Medium and Large
• Target Customers
  • CxO – Architecture Committee
  • IT Pops
  • Application Dev – Management
• Service Opportunities
  • 2 Day Jump Start
    • Designed to up and running quickly – takes about an hour to get the base system up and going
    • Organizations will require assistance with architecture and design, integration, dvt process, best practice, etc…

As a final note, it was interesting to me during the key note this morning that em’s logo was scarce on the partner slide. In particular there was a software partner slide that had Symantec but not EMC on it. I have to wonder if the thought was that EMC is implied or if it was left off intentionally?

This morning Carl Eschenbach, executive vice president of VMware’s worldwide field operations presented to the VMware partner community and he represented what I feel was one of the better representations of marker segmentation. Many IT vendors are segmenting the marketplace by revenue dollars which proves to be difficult because it does not always directly correlate to IT spend which is what are all most interested in. VMware is representing market segmentation by the number installed servers, which I believe functions as a much better barometer of an organizations investment in technology. I quickly recreated the segmentation model for your viewing pleasure.

I think I captured most of the relevant stats but I may have missed a few.

Revenue growth:

• 2001 – 8 Million
• 2002 – 22 Million
• 2003 – 76 Million
• 2004 – 218 Million
• 2005 – 387 Million
• 2006 (3 Quarters)- 477 Million

Revenue breakdown:

• 2005 – 82% from partners
• 2006 – 85% from partners

60% of Virtual Infrastructure implementations are on SAN infrastructure

Estimated Terabytes directly driven by virtualization:

• 2004 – 8 TB
• 2005 – 26 TB
• 2006 – 61 TB
• 2007 – 126 TB

Average Deal Size:

• 2004 – 13K
• 2005 – 37K
• 2006 – 50K
• Services drag of 4X

Partners who do VMware and Microsoft services related work will make more money on VMware services than they will on Microsoft related services.

Partners are reporting 23% account base penetration estimated to grow to 45% over the next 2 years.

Market is made up of 38 million x86 servers VMware is installed on 4%.

Technical Achievement Awards

• Americas
  • LongView
• EMEA
  • Bechtle
• APAC
  • Commander
• Global
  • INS
  • 50 VCPs growing to 65 in the 2 months

Market Maker Awards

• Americas
  • Entisys
• EMEA
  • ATEA
• APAC
  • GT Enterprises

Rising Star Awards

• Americas
  • IT Partners
• EMEA
  • ITAA (IT Alignment Associates)
• APAC
  • NTT Data

Value Added Distributors

• France based AmosDec