VMware 2010 Annual Report Download - page 5

Table of Contents
Our solutions are based upon our core virtualization technology and are organized into four main product groups:
Background
Overview of Virtualization
Virtualization was first introduced in the 1970s to enable multiple business applications to share and fully harness the centralized
computing capacity of mainframe systems. Virtualization was effectively abandoned during the 1980s and 1990s when client-
server applications
and inexpensive x86 servers and personal computers established the model of distributed computing. Rather than sharing resources centrally in
the mainframe model, organizations used the low cost of distributed systems to build up islands of computing capacity, providing some benefits
but also introducing new challenges. Some of these challenges include a gross underutilization of hardware resources, inability to easily assure
quality of service to applications and unwieldy management processes made cumbersome by the tight coupling of applications to the underlying
hardware.
Cloud Infrastructure
Today, x86 hardware is becoming increasingly proficient with multi-core processors, growing memory capacity and higher speed
interconnects shipping in standard servers. Complexity of applications continues to rise with multi-element, mixed operating system (“OS”)
applications becoming increasingly common, making it difficult to provide a uniform quality of service across all components. Virtualization has
become accepted as a standard way of computing in data centers that enables highly efficient utilization of hardware.
VMware’
s infrastructure virtualization platform, VMware vSphere, not only decouples the entire software environment from its underlying
hardware infrastructure, but also enables the aggregation of multiple servers, storage infrastructure and networks into shared pools of resources
that can be delivered dynamically, securely and reliably to applications as needed. This approach enables organizations to build a computing
infrastructure with high levels of utilization, availability, automation and flexibility using building blocks of inexpensive industry-standard
servers.
In addition, VMware vSphere is able to deliver services to applications running inside virtual machines, in an OS and application agnostic
manner. This increases operational efficiency, since these services are built-in and easily enabled, and also allows mixed-element, multi-OS
applications to get standard service levels delivered by the infrastructure, broadening customer deployment choices.
In effect, VMware’s virtualization platform converts IT infrastructure into a “computing cloud.” Applications running in virtual machines
can move across servers, storage and networks without disruption or downtime to dynamically match computing supply and demand while built-
in services ensure high levels of availability, security and scalability.
To best leverage this cloud computing infrastructure, virtualization management products help streamline IT processes and reduce
operating costs by automating critical workflows in the data center. VMware products for application management enable organizations to
accelerate application development, automate application lifecycle processes and manage to application performance service levels.
Infrastructure management products help companies automate business continuity processes, manage capacity more efficiently and provide
financial cost information for internal chargeback.
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Cloud Infrastructure
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Cloud Application Platform
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End
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User Computing
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Virtualization and Cloud Management