VMware Enables Enterprise Desktop of Tomorrow

VMware Announces End-to-End Desktop Virtualization Solution

PALO ALTO, Calif., September 10, 2007— VMware, Inc., the virtualization leader, today announced an end-to-end virtual desktop infrastructure (VDI) solution with the introduction of VMware Virtual Desktop Manager 2, the company’s next generation connection broker. Today’s news extends VMware’s comprehensive line of desktop virtualization software and services to bring new levels of security, mobility and manageability to global enterprise desktop users. The new software will be among the many products and solutions showcased this week at VMworld 2007 in San Francisco.

“The desktop is fundamentally changing,” said Jerry Chen, senior director of enterprise desktop solutions at VMware. “Our customers are transforming the way they manage their desktop infrastructure and replacing traditional PCs with centralized desktops that can be more effectively managed and controlled. Users of virtual desktops can enjoy reliability, data protection and disaster recovery capabilities that have traditionally been available only for server applications. In addition, they get the flexibility of being able to access their desktops from many locations and devices.”

VMware Virtual Desktop Manager 2 is a component of VMware VDI, an end-to-end desktop virtualization solution that enables organizations to centralize desktop management and control using the VMware Infrastructure 3 platform. Through tight integration with VMware Virtual Center, VMware Virtual Desktop Manager delivers enterprise-class virtual desktop management while providing end users with a familiar desktop experience. VMware Virtual Desktop Manager connects remote clients to centralized desktops that can be accessed securely from almost anywhere and from many different hardware platforms. VMware Virtual Desktop Manager is designed to meet the security and scalability needs of small and large deployments.

“We are in the process of virtualizing 21,000 desktops using VMware VDI,” said Tom Petry, director of technology at the District School Board of Collier County. “We have seen firsthand the manageability and control VDI brings to a desktop computing environment; including the security and business continuity benefits of centralizing our desktop infrastructure in our world class data centers—no small thing in hurricane country.”

“VMware Virtual Desktop Manager 2 makes our desktop virtualization solution that much better,” continued Petry. “Having an enterprise-class connection broker that both ties in with our current desktop management practices and is built by the same partner who provides our virtual infrastructure enables a tightly integrated, end-to-end desktop virtualization solution. One of the things we’re most excited about is the Microsoft Active Directory integration, which, together with VMware Virtual Desktop Manager, will let our students and staff access their personal desktop from any location.”

Analyst firm IDC predicts the market for desktop virtualization software will be nearly $2 billion by 2011. We feel virtual machines for desktop computing is one of the most exciting developments within the technology industry in recent years," said IDC’s John Humphreys. "We see significant opportunity for organizations to improve the efficiency with which they provide computing resources through the use of virtualized client computing technologies. With a solution like VDI, organizations have an alternative that not only provides a familiar user experience, but also helps to centralize desktops and improve data security and user productivity."

The entire ecosystem of hardware, operating system and software application vendors is retooling for virtualization. VMware collaborates with systems and software providers from within its partner ecosystem to deliver end-to-end desktop virtualization solutions and services. For example, emerging technologies such as application virtualization and streaming provide an alternative mechanism to install and deploy applications to a virtual machine and complement VMware VDI. In addition, thin computing, software and hardware companies are working collaboratively with VMware to improve the virtual desktop user experience and provide a complete virtual desktop solution.

"IBM is very pleased by the strong market momentum we are experiencing for server-based desktop solutions,” said James Northington, vice president and business line executive of IBM System x. “We are proud to have been the first to introduce a comprehensive virtual desktop solution with VMware in the fall of 2005 and excited to have collaborated closely together ever since. IBM and VMware share a common vision of desktop computing and have a strong and growing track record of successfully delivering desktop functionality for customers from highly secure and reliable System x and BladeCenter servers."

"IBM is excited to include the new Virtual Desktop Management 2 as an integral component to our new Virtual Infrastructure Access managed service offering launching in October of this year," said Brenda Harvey, vice president of end user services of IBM Portfolio Lifecycle Management.

"Dell is committed to providing our customers with solutions that remove complexity and increase efficiencies and utilization of their computing resources," said Rick Becker, vice president of solutions, Dell Product Group. "Extending the benefits of virtualization technology from data centers to desktop operations will help customers realize new levels of efficiency and value while simplifying how they manage their IT environments from end-to-end."

“HP and VMware have been working to develop a complete VDI solution, that includes HP ProLiant and Blade servers, HP Thin Clients, VMware Infrastructure and now the VMware Virtual Desktop Manager,” said Scott Farrand, vice president of Industry Standard Server software at HP. “VDI is a critical part of HP’s Remote Client Solutions portfolio, which is enabling the email stations this week at the VMworld conference.”

“Virtualization solves many of the technology challenges our customers are currently facing with their enterprise desktop deployments, including manageability, security and mobility,” said Yoshikazu Maruyama, senior vice president at NEC Corporation. “NEC’s Virtual PC Center, an end-to-end desktop virtualization solution, already offers a high level of administrative functions, including resources and user sessions. We have no doubt that the launch of VMware Virtual Desktop Manager will highlight the value-added benefits of the virtual desktop and contribute to further expansion of the market.”

Availability

Additional information about VMware Virtual Desktop Manager 2 beta program is available on www.vmware.com. The product is expected to be generally available later this year.

About VMware

VMware (NYSE:VMW) is the global leader in virtual infrastructure software for industry-standard systems. Organizations of all sizes use VMware solutions to simplify their IT, fully leverage their existing computing investments and respond faster to changing business demands. VMware is based in Palo Alto, California and majority-owned by EMC Corporation (NYSE:EMC). For more information, visit www.vmware.com.

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This release 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 consumer or information technology spending; (iii) competitive factors, including but not limited to pricing pressures and new product introductions; (iv) the transition to new products, the uncertainty of customer acceptance of new product offerings and rapid technological and market change; (v) insufficient, excess or obsolete inventory; (vi) war or acts of terrorism; (vii) the ability to attract and retain highly qualified employees; (viii) fluctuating currency exchange rates; and (ix) other one-time events and other important factors disclosed previously and from time to time in VMware’s filings with the U.S. Securities and Exchange Commission. VMware disclaims any obligation to update any such forward-looking statements after the date of this release.