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VMware Announces Extension of Alliance Affiliate Initiative, Delivering Enhanced Financial Incentives, Tools and Market Opportunities to VMware VIP Partners Worldwide

September 17, 2008

Today at VMworld 2008, VMware, Inc. (NYSE:VMW), the global leader in virtualization solutions from the desktop to the datacenter, announced the second wave of technology partners to join the VMware Alliance Affiliate Initiative. These new Alliance Affiliate partners build on the success of current participating technology partners, including CA, Dell, EMC, LeftHand Networks, McAfee, NetApp, Riverbed, and Vizioncore. Participation in the VMware Alliance Affiliate Initiative provides technology partners with the opportunity to expand their channel partner ecosystem and generate incremental revenue growth with these new solution providers.

New technology partners will be participating in this unique initiative to expand their sales by leveraging VMware’s industry leadership and award-winning virtualization solutions. New partners include BMC Software, Cisco, Emulex, Force10 Networks, HP, IBM, Kingston Technology, and Symantec, which can now leverage VMware’s best-in-class product line to create joint solution selling programs to launch later this year.

As part of the VMware Alliance Affiliate Initiative, each VMware technology partner is creating its own custom program that provides financial incentives and specialized tools and training for jointly selling a VMware virtualization solution along with their products. By combining VMware’s robust virtualization solutions portfolio and its extensive technology partner ecosystem with incentives, tools and training, VMware channel partners are equipped to compete with joint solutions that create new sales opportunities and drive delivery of profitable new consulting practices. These channel partners are meeting customer demand for value and innovation with solutions in the areas of applications, disaster recovery, high availability, business continuity, networking, security, storage and systems management.

“The VMware Alliance Affiliate Initiative has enabled enhanced solutions for our partners, and ultimately, optimal value for our joint customers,” said Steve Houck, vice president of worldwide channels, VMware. “We’re committed to expanding this initiative by engaging our growing ecosystem of technology partners to actively support it as a ‘win-win’ for technology partners, channel partners and customers.”

Current partners have seen significant economic and ecosystem impacts

Since its launch in May 2008, a variety of VMware technology partners have reported the benefits of joint solution selling through the VMware Alliance Affiliate Initiative. Partner results include:

 -- CA Alliance Affiliate Program -- Forty partners have participated in CA's Alliance Affiliate Program training webinar in just two months -- Over the next two months, CA will be educating more than 500 resellers on the VMware Affiliate Alliance Program and its joint CA and VMware solution  -- Dell Enterprise Architecture Virtualization Specialty Program -- Seventy-eight members including: Bear Data Systems, CITOC, J4 Systems, Merrimac Solutions and others -- Dell has closed 26 deals in the 90 days since the launch of Dell's program -- More than 1,300 leads have been generated in 60 field marketing events conducted since June 2008  -- NetApp Virtualization Specialization Program -- VMware partners have joined NetApp's Virtualization Specialization Program while NetApp partners have joined the VMware Authorized Consultant (VAC) Program, increasing the joint partner ecosystem -- Numerous NetApp Virtualization Specialization Program partners have benefited from incentives and a flexible engagement model for delivering virtualization services -- The average deal size with the NetApp Virtualization Specialization Program is more than three times NetApp's overall average  -- Vizioncore PLUS Program -- Achieved heightened awareness and commitment with current resellers and incentives to sign up new partners -- Added 28 new resellers since the launch of its Alliance Affiliate program -- 20 percent increase in Vizioncore PLUS program deals since launching the program 

New opportunities benefit partner, customer and reseller ecosystem

VMware has extended the Alliance Affiliate Initiative to a new group of partners, including BMC Software, CA (Infrastructure Management), Cisco, Emulex, Force10 Networks, HP, IBM Information Management, Kingston Technology, and Symantec. Currently creating individual programs for their specific channel partner communities, these industry leaders will launch the next wave of Alliance Affiliate programs starting in Q4 2008.

BMC

“BMC’s participation in the VMware Alliance Affiliate Initiative is rooted in a comprehensive channel partner strategy designed to give customers comprehensive solutions that support their business priorities,” said Johnny Ola, vice president of corporate business development, BMC Software. “By combining BMC’s market-leading management portfolio with VMware’s proven virtualization solutions, customers get high-impact IT solutions that deliver rapid ROI by reducing cost and improving energy efficiencies and service level compliance.”

CA

“More and more customers are looking to combine virtualization and recovery management technologies to implement cost-effective and reliable disaster recovery and business continuity strategies,” said Jason Magee, director, channel marketing, CA. “By combining CA’s award-winning CA ARCserve Backup and CA XOsoft High Availability software with VMware’s proven virtualization solution, and leveraging the Alliance Affiliate Program, resellers can deliver on these needs and increase deal value.”

Cisco

“Cisco MDS 9000 storage networking platforms provide comprehensive capabilities to enable VM-aware SANs,” said Rajeev Bhardwaj, senior director of data center switching technology group, Cisco. “Cisco has been at the forefront of SAN virtualization with unique capabilities such as Virtual SANs, QoS, Mobility, and Security. MDS 9000 enabled VM-aware SAN solutions for VMware set the standard for managing heterogeneous virtual and physical storage environments in enterprise data centers. We look forward to working with VMware’s Alliance Affiliate Initiative to offer our joint customers industry-leading functionality and security.”

Dell

“Dell’s dedication to working with VMware as a part of the Alliance Affiliate Initiative has enabled our virtualization practice to position more competitive solutions in the marketplace,” said John Biglin, CEO, Interphase Systems, Inc, a Dell partner. “Through our partnership with Dell EqualLogic, Interphase Systems is able to offer high performance, economical storage systems to our customers, providing a solid backbone for our Virtualization Strategies.”

EMC

“EMC is committed to helping our Velocity Partners take advantage of the new business prospects that exist as customers look to virtualize more of their IT resources to achieve a more efficient data center environment,” said Pete Koliopoulos, vice president, global channel marketing, EMC. “We’re seeing good traction from partners as a result of the VMware Alliance Affiliate Initiative because mutual partners like the opportunity to increase their deal value by selling joint EMC and VMware solutions that address critical business needs such as more cost-effective information backup, improved disaster recovery capabilities and the information management benefits of a virtual desktop environment.”

Emulex

“Emulex is committed to providing its customers with adapters that deliver enhanced performance and simplified management for VMware-based server virtualization environments,” said Steve Marconi, vice president of worldwide channel sales, Emulex. “Emulex now brings that commitment to the reseller community with our participation in the VMware Alliance Affiliate Initiative and by providing the customized programs and incentives to enable reseller partners to grow their virtualization solutions. This initiative will further align Emulex and VMware as partners in promoting the adoption of virtualized servers connected to SANs.”

Force10 Networks

“Working together, VMware and Force10 Networks enable IT managers to deploy consolidated, integrated networks that reduce the server hardware and manpower needed to scale networks,” said James Hanley, senior vice president of worldwide sales, Force10 Networks. “By improving the efficiency, reliability and scalability of the network, the VMware and Force10 solution allows datacenter managers to significantly lower TCO while dramatically increasing total system configuration flexibility.”

HP

“Customers are increasingly using virtualization to deliver lower costs and reduced risks to the business, as virtualization moves from being a tactical technology towards becoming a key transformation strategy,” said Bill Swales, vice president, Americas StorageWorks Division, HP. “Our participation and contributions to the VMware Affiliate Initiative will help partners and customers leverage simple, scalable and affordable storage virtualization solutions from HP. These solutions not only help customers realize the full value of virtualization, but also help them accelerate business growth and mitigate risk.”

Kingston

“Kingston has been a champion of the channel since our beginning, and working with VMware to bring virtualization to the world is an incredible opportunity,” said John Holland, vice president of sales, Kingston. “We are honored to be a part of VMware’s Affiliate Alliance Initiative and look forward to demonstrating the power that optimum memory brings to both the enterprise and small business customer.”

Left Hand Networks

“Our LeftHand Virtual Advantage Program has provided additional motivation for our resellers to pursue and close more virtualization opportunities,” said Kristy Morris, marketing director, LeftHand Networks, Inc. ” With our resellers pursuing disaster recovery opportunities based on VMware Site Recovery Manager and LeftHand SANs, this program is allowing them to increase overall deal value.”

NetApp

“NetApp is an ideal choice in virtualized environments for both business and product value,” said Jay Kidd, chief marketing officer at NetApp. “Our Virtualization Specialization Program provides channel partners the resources, training, and tools they need to successfully deliver joint solutions around NetApp and VMware.”

Symantec

“Symantec is dedicated to providing partners with increased opportunities for selling a broad portfolio of market-leading security and availability products to their customers,” said Julie Parrish, vice president, global channel office, Symantec Corp. “Symantec’s participation in the VMware Alliance Affiliate Initiative will enable joint partners to provide customers with the confidence that their information is protected and easily managed, in both physical and virtual environments.”

Vizioncore

“We have discovered that many customers haven’t thought about how they will back up their virtual machines or how to monitor their overall performance,” said Julian Box, managing director, VirtualizeIT, a Vizioncore partner. “By including vEssentials from Vizioncore we not only provide our customers with a robust, proven solution, thus increasing our customer satisfaction, we also make a considerable amount of extra margin. Increased margins allow us to plough back more money into the business to continue our intensive training programs for our staff, provide bonuses and incentives and increase our overall staff morale and retention.”

About VMworld 2008

VMworld 2008, now in its fifth year, with more than 14,000 attendees and 206 sponsors and exhibitors, is the must-attend event for IT professionals looking for actionable ideas, innovative products and best practices for virtualizing the enterprise – from the desktop to the datacenter. Under the theme, “Virtually Anything is Possible,” VMworld celebrates what is happening today and what the future of virtualization holds. Keynotes are being given by Platinum Sponsors Cisco, Dell, EMC, HP, IBM, Intel, NEC, NetApp, Symantec and VMware. VMworld features more than 285 breakout sessions and hands-on labs, led by VMware and industry professionals, and is being held September 15-18 at the Venetian in Las Vegas.

About VMware

VMware (NYSE: VMW) is the global leader in virtualization solutions from the desktop to the datacenter. Customers of all sizes rely on VMware to reduce capital and operating expenses, ensure business continuity, strengthen security and go green. With 2007 revenues of $1.3 billion, more than 120,000 customers and nearly 18,000 partners, VMware is one of the fastest growing public software companies. Headquartered in Palo Alto, California, VMware is majority-owned by EMC Corporation (NYSE: EMC) and on the web at www.vmware.com.

VMware is a registered trademark of VMware, Inc. in the United States and/or other jurisdictions. All other marks and names mentioned herein may be trademarks of their respective companies.

Forward-Looking Statements

Statements made in this press release which are not statements of historical fact are forward-looking statements and are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate, but are not limited, to new product, technology and marketing initiatives, introduction of new virtualization products, market adoption and deployment of VMware products and architecture, levels of demand for VMware products including market size and leadership, ongoing development and delivery of innovative new products and applications and capabilities of VMware products and technologies. 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 consumer or information technology spending; (iii) competitive factors, including but not limited to pricing pressures, industry consolidation, entry of new competitors into the virtualization market, and new product and marketing initiatives by our competitors; (iv) VMware customers’ ability to develop, and to transition to, new products, (v) the uncertainty of customer acceptance of emerging technology; (vi) rapid technological and market changes in virtualization software; (vii) uncertainties in product development timelines; (viii) VMware’s ability to resolve technical challenges; (ix) VMware’s relationship with EMC Corporation, and EMC’s ability to control matters requiring stockholder approval, including the election of VMware’s board members; (x) VMware’s ability to protect our proprietary technology; (xi) VMware’s ability to attract and retain highly qualified employees; and (xii) the impact of fluctuating currency exchange rates. These forward looking statements are based on current expectations and are subject to uncertainties and changes in condition, significance, value and effect as well as other risks detailed in documents filed with the Securities and Exchange Commission, including the report on Form 10-Q for the quarter ended June 30, 2008, which could cause actual results to vary from expectations. VMware disclaims any obligation to update any such forward-looking statements after the date of this release.