OVERVIEW OF ACADIA AND VCE COALITION

INTRODUCTION On November 3rd, 2009, Cisco and EMC, together with VMware, announced the Virtual Computing Environment coalition, an unprecedented collaboration of three information technology industry leaders. The coalition was created to take the risk out of customers’ journeys to private clouds by delivering best-of-breed solutions in integrated packages supported by a comprehensive partner-led go-to-market and services strategy. ‘PRIVATE CLOUD’ INFRASTRUCTURES ‘Private Cloud’ is the name Cisco, EMC and VMware gave to their vision for a new model and a new way of thinking about both information technology and the way it is delivered. The term Private Cloud refers to the ability of internal and external (i.e. service provider) IT functions (or some combination of both) to deliver IT-as-a-service (“in the cloud”) on highly virtualized data center infrastructures. These Private Clouds are simpler, more agile, robust and reliable IT infrastructures which enable IT functions to lower capital, service, energy and operating costs. By creating Private Clouds based on integrated best-of-breed technologies from Cisco, EMC and VMware, organizations can shift IT costs away from maintenance and management to investments that drive growth and competitive advantage. VCE COALITION: ADDRESSING THE CUSTOMER’S DILEMMA The ‘accidental architectures’ of IT today unnecessarily increase procurement costs, management costs and complexity, while making it difficult for IT functions to meet customer service level agreements. As a result, IT is perceived as less responsive and more costly to the business than it should be. The benefits of virtualized data center environments are well known, but the path to the model has not been simple. The realities of outdated technologies and incremental approaches, the limitations of today’s vendor landscape, and the lack of compelling end-state architectures all impede customers. Prior to the unveiling of the VCE coalition, customers were essentially asked to choose between best-of-breed technologies and end-to-end vendor accountability; self-assembly, or vendor lock-in. The VCE coalition offers a new paradigm wherein customers can enjoy best-of-breed technologies coupled with end-to-end vendor accountability.

THE JOURNEY TO PRIVATE CLOUDS To help customers accelerate the journey to private cloud infrastructures, the VCE coalition has announced four offerings to date: 

(a) Vblock Infrastructure Packages; integrated IT offerings combining best-of-breed virtualization, networking, computing, storage, security, and management technologies with end-to-end vendor accountability.

(b) Integrated pre-sales, professional services and support; the VCE coalition invested in providing a seamless, end-to-end customer and partner experience. (c) Acadia; a Cisco/EMC joint venture to enable adoption of Vblocks by building, operating and transferring Vblock infrastructure packages for large customers, service providers and partners. (d) Vblock partner ecosystem; an ecosystem of systems integrators, value added resellers, service providers, and independent software vendors augment, sell and deliver Vblock solutions

VCE COALITION MOMENTUM Since the VCE coalition was announced, more than 45 partners have joined the Vblock partner ecosystem. A further 200 partners are in the process of joining. Our first three Vblock offerings (Vblock 0, Vblock 1 and Vblock 2) have become generally available and are shipping to customers. Furthermore, our first six system integrator partners (Wipro Technologies, Accenture, Capgemini, CSC, Lockheed Martin and Tata Consultancy Services) are driving customer momentum and our service provider partners are beginning to offer managed services built on Vblocks. Leading technology services company, SunGard, was announced as one of our early successes. Finally, our joint venture, Acadia, started operations as planned during the first quarter of the calendar year and we expect the announcement on May 6th, that Michael Capellas has been appointed CEO of Acadia and overall leader of the VCE coalition will further accelerate our already swift start. THE TOTAL ADDRESSABLE MARKET FOR PRIVATE CLOUDS

According to studies by McKinsey Consulting, worldwide data center spending exceeds $350 billion annually, with half of that spend on capital expenses (products) and half on operating expenses (services and labor). An estimated 70 percent of this cost is spent maintaining existing infrastructure, leaving 30 percent or less for new technology initiatives focused on growth and competitive advantage.

It is estimated that approximately $85 billion, or 25% of this total market, can be addressed by the data center virtualization and private cloud offerings of VCE coalition and Acadia by 2015.

FREQUENTLY ASKED QUESTIONS ABOUT ACADIA AND THE VCE COALITION

Q. Do the services offered by the VCE Coalition put Cisco, EMC and VMware into competition with channel partners who have previously sold your technologies?

A. No. Both the VCE Coalition and ACADIA present partners, resellers, service providers and systems integrators with new opportunities in the data center. Partners are core to the Coalition’s and to ACADIA’s go-to-market strategies and we believe Vblocks present partners with an opportunity to move from commoditized product selling to high-margin systems and services businesses. We similarly see Vblocks providing systems integrators with opportunities for accelerating practice expansion, and new offer creation.

Q. Is the partnership between Cisco, EMC and VMware exclusive? What impact will it have

on partnerships that Cisco, EMC and VMware have with other vendors? A. The VCE Coalition and ACADIA do not impact Cisco, EMC or VMware’s existing partnerships.

We each recognize that customers have unique requirements that cannot be addressed by a ‘one size fit all’ approach. We will separately continue to partner to address customer requirements.

Q. What is the relationship between ACADIA and the VCE coalition? A.  Acadia is one of four offerings announced by the VCE coalition in November 2009. The first

three were: (i) technology innovation via Vblock Infrastructure Packages, (ii) Integrated pre-sales, professional services and support and (iii) the Vblock partner ecosystem. Acadia, the fourth offering, was established as a combined center of excellence for enabling our largest customers, service providers and our partners to build, operate and transfer Vblocks to accelerate pervasive data center virtualization. Acadia provides organizations an alternative approach for rapidly deploying and operating their new infrastructure with the end goal of either managing the infrastructure themselves or having it managed by a partner of their choice.

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