HPE OneSphere Competitive Positioning

November 2018 Agenda

Industry Overview – Analyst View – Hybrid IT – Customer Challenges – Analyst View - Competitive Landscape – HPE OneSphere Goals, Benefits, Features Competitive Analysis – Overview (Best Bets) – Competitive Overview Tables – Individual Competitors – Summary

a00060155enw For HPE and Channel Partner internal use only 2 Digital transformation leads to better customer outcomes and experiences

Top digital transformation objectives – Enhanced experience and engagement with your products and services. – New revenue streams and business models through new products and services – Optimize operations

50% 72% 80% of Global 2,000s will depend on of businesses cite improving of organizations will implement digitally-enhanced products, customer experience as changes as a result of services, and experiences their top priority digital disruption

Source (l. to r.): IDC, Forrester, IDC

a00060155enw For HPE and Channel Partner internal use only 3 Hybrid continues to get more complex

Multiple tools

Multiple public and private clouds Apps span multiple clouds and sites

Developers IT Ops CIO/Business “I need it as fast as possible.” “I need to shift resources from ops to apps” “Our costs are a surprise every month.”

a00060155enw For HPE and Channel Partner internal use only 4 Today’s IT challenges

Many enterprises have multiple cloud stacks, each managed as a separate silo

Enterprises use 7 or more tools to manage cloud environments (IDC, 2017)

Organizations are using public cloud services with no governance or control

Enterprises have low visibility into public cloud costs, leading to “end of the month” sticker shock

Developers expect instant access to resources; if they don’t get it from IT, they go elsewhere e.g. AWS

a00060155enw For HPE and Channel Partner internal use only 5 Gartner Seven Technical Competencies for CMPs

Inventory & Classification Cost Management Identity, Security & Compliance and Resource Optimization Observations – Gartner has identified 50+ Resource Tagging players in the space and Forrester has highlighted 41 – Currently, there is no offering Provisioning & Orchestration Evolving market that covers all 7 core functions – Two major types of offerings: tool (deep in single functions) Azure ARM vs. platform (multipurpose) - Cloud Management most of the players are vRealize categorized as tool CSA/OO – Customers don’t want Mature market a sprawl of “tools” and instead want “platforms” Cloud Migration / Backup / DR Service Request Monitoring & Analytics

OneSphere target use cases

a00060155enw For HPE and Channel Partner internal use only 6 CMP Landscape

Niche players Broad players

Cost and optimization Core areas*

Security and * Referring to Gartner CMP definition compliance

Service level management Core areas* plus Cloud Center

Calm Automation vRealize tools * Referring to Gartner CMP definition HCM

a00060155enw For HPE and Channel Partner internal use only 7 HPE OneSphere

Personas Themes Goals Benefits

Developers Manage private cloud and – Minimize manual tasks infrastructure automation – Enable faster and consistent deployment Automation – Reduce time between request to provision for private cloud resources

CIO Visibility and insights into – Reduce cost through visibility and higher spending and actions to utilization Information control spend – Showback & chargeback to increase accountability

Enterprises want to provide – Consistent governance across clouds IT Ops their developers and line of – Accelerate time to value Control business direct access to – Reduce complexity and enhance public cloud resources in standardization a safe and secure way – Minimize risks with consistent compliance

a00060155enw For HPE and Channel Partner internal use only 8 HPE OneSphere

Personas Themes Features

Developers Containers Hypervisors Providers Automation vSphere Kubernetes

CIO Pricing Models Vendors – Capital – Single vs. Multi-vendor Information – Expense – Open source & Enterprise – Consumption – HPE Integration – Subscriptions vs Perpetual

Governance & Compliance Regulatory IT Ops – Identity Access Management – PCI – Catalog Curation – HIPAA Control – Policies and Visibility – GDPR

a00060155enw For HPE and Channel Partner internal use only 9 Competitive Analysis

a00060155enw For HPE and Channel Partner internal use only 10 What are our best bets?

– Does the competitor offer a software only distribution? Yes – What are the upfront resources required? – What are the installation complexities? OneSphere is SaaS – Does the competitor offer a perpetual license? Yes – This leads to version lock-in Software – What are the annual support costs? – What are the version and edition complexities? OneSphere is a subscription service. You always get the latest code.

– Is there a lower cost virtualization need for dev environments? – Is there an open source play? OneSphere can onboard KVM nodes and Ceph block storage. Open Source Hypervisor KVM (with a RHEL/SLES subscription) costs 30% lower than vSphere Enterprise (over 3 years)

a00060155enw For HPE and Channel Partner internal use only 11 What are our best bets?

– Are they adopting Docker (cloud native) and need orchestration tools but have no expertise operating them? – Do they want to run container workloads on-premises and also in AWS? Container as a Service OneSphere provisions Kubernetes on AWS or on-premises VMware

– Is there a need to manage the guest OS images for different clouds? – Are developers using Docker images from Docker Hub causing security and compliance nightmare? – Need help governing these artifacts? OneSphere enables IT to offer an approved catalog of OS & Docker Catalog images, Helm Charts from public repositories or home-grown code

– Do you want to see your spend on resources provisioned from the CMP or directly using native cloud tools? – Need reports which slice and dice cloud metrics, tags to analyze spend? OneSphere Insights (Cloud Cruiser 16 based) does exactly that. This Container as a Service analysis can help optimize resource allocation and usage

a00060155enw For HPE and Channel Partner internal use only 12 Competitive Glance – Infra Support

Product Clouds Hypervisors Containers HPE OneSphere AWS, Azure, GCP*, AzureStack* VMW, KVM K8s on AWS, bare metal*, VMW VMware vRealize Suite AWS, Azure, GCP# VMW K8s, OpenShift AWS, Azure, GCP, IBM , Cisco Cloud Center VMW K8s (on-prem, GCP) OpenStack (Pike), AzureStack VMW, KVM, Red Hat Cloudforms AWS, Azure, GCP K8s, OpenShift Hyper-V VMW, AHV, AWS, Azure, GCP, Nutanix Xi K8s on-prem & GCP Hyper-V, XenServer AWS, Azure, GCP, CMP VMW, Hyper-V Docker, K8s IBM Softlayer, Rackspace AWS, Azure, GCP, VMW, KVM, Docker, K8s, RightScale CMP + Optima IBM Softlayer, Rackspace Hyper-V, XenServer CE VMW, KVM, Docker, K8s, Microfocus HCM AWS, Azure Hyper-V, XenServer Marathon VMW, KVM, Morpheus AWS, Azure, GCP, Softlayer, Yes Hyper-V VMW, KVM, Turbonomic AWS, Azure Yes Hyper-V, XenServer Apptio Cloud Cost Management Yes (cost only) Yes (cost only) No

* Future # Tech Preview

a00060155enw For HPE and Channel Partner internal use only 13 Competitive Glance – Workload, Cost, Analytics, Compliance

App Workload Workload Cost Show Cost Product Blueprint Analytics Compliance Provisioning Optimization back Optimization Modeling HPE OneSphere No Yes No Yes No No* Yes VMware vRealize Suite Yes Yes Yes Yes Yes Yes Yes

Cisco Cloud Center Yes Yes Yes Yes Yes Yes Yes

Red Hat Cloudforms Yes Yes No Yes Yes Yes Yes Nutanix Yes Yes Yes Yes Yes Yes Yes Scalr CMP Yes Yes No Yes No Yes Yes RightScale CMP + Optima Yes Yes Yes Yes Yes Yes Yes Microfocus HCM Yes Yes No Yes Yes Yes Yes Morpheus Yes Yes Yes Yes Yes Yes Yes Turbonomic Yes Yes Yes Yes Yes Yes Yes Apptio Cloud Cost No No No Yes No Yes No Management

a00060155enw For HPE and Channel Partner internal use only 14 Competitive Glance – Delivery + Pricing

Product Delivered As Licensing Options Price HPE OneSphere SaaS Subscription Starts at $6,000 / (10 core or 20vCPU) Standard Enterprise version per PLU ~ $10k Vmware vRealize Suite Software Perpetual Advanced USD Enterprise Premium ~USD $220k 500 vms Cisco Cloud Center Software Perpetual 1 yr Support ~ $100k STD $1,849 -$2,399 Standard Red Hat Cloudforms Software Subscription Premium $5,270 - $6,837 Premium (annual - 2 socket, $66/vCPU) Nutanix Software Subscription Hosted (SMB), Subscription, Scalr CMP No open source Software (Enterprise) Perpetual RightScale CMP + Optima SaaS Subscription Optima (optional) CMP Starts at $150,000 Express Microfocus HCM Software Perpetual Premium Ultimate Essentials Software (enterprise), Starts at $25K per 500 VMs Morpheus Perpetual Pro managed (small scale) (Essentials) Enterprise Essentials Perpetual, Turbonomic Software Advanced Term Premier Apptio Cloud Cost Management SaaS Subscription SaaS module

a00060155enw For HPE and Channel Partner internal use only 15 VMware vRealize Suite https://docs.vmware.com/en/vRealize-Suite/

a00060155enw For HPE and Channel Partner internal use only 16 VMware vRealize Suite

– VMware vRealize Suite is a software platform to help build and manage heterogeneous, hybrid cloud – Offered as a set of products and editions (Standard, Advanced, Enterprise)

Features of VMware vRealize Suite – Automation – Multi-vendor and multi-cloud support – Unified IT service catalog – Resource provisioning and configuration – Operations – Ops management across physical, virtual and cloud envs – Service discovery and application dependency mapping – Log Insight – Customizable dashboards; security auditing & compliance testing – Business for Cloud – Private and public cloud cost tracking – Workload cost comparison – Consumption analysis across business groups, apps and services

a00060155enw For HPE and Channel Partner internal use only 17 OneSphere Positioning against VMware vRealize Suite

Acknowledge the Strengths Pitch the Weaknesses – Set of products and editions with Enterprise edition offering most – Market leader in virtualization for capability; complex interdependencies; enterprise – Software installation only; multi-step deployment – Mature feature rich product – Disruptive upgrades with high configuration drift – Not focused on developers – AWS partnership – Strong partner ecosystem – Container support How OneSphere wins – SaaS delivered as a single solution; you just login – No DevOps or orchestration tools lock in; use tools you already know – Simple all-inclusive pricing; no feature based pricing – Provisioning enterprise-grade Kubernetes included – No version & feature lock in; subscription gives you latest and greatest updates seamlessly

a00060155enw For HPE and Channel Partner internal use only 18 Cisco Cloud Center https://www.cisco.com/c/en/us/products/cloud- systems-management/cloudcenter/index.html

a00060155enw For HPE and Channel Partner internal use only 19 Cisco Cloud Center

– Cisco Cloud Center is an application centric hybrid cloud management platform that provisions infrastructure and deploys applications to the , private cloud and public cloud environments

Features of Cisco Cloud Center

– Model a cloud-agnostic application blueprint; combine infra and app automation with management and scaling policies – Private and public application marketplace – Deploy on demand to a data center or cloud; optimize cloud placement and instance sizing for best cost and performance; one click deployment – Manage apps with a wide range of actions – Tag-Based Governance; rules associated with tags; Policy driven placement, deployment and run-time decisions – Cost controls and reporting; cost and usage based plans to manage self service sprawl

a00060155enw For HPE and Channel Partner internal use only 20 OneSphere Positioning against Cisco Cloud Center

Acknowledge the Strengths Pitch the Weaknesses – Proprietary cloud agnostic deployment modeling & orchestration; new tool – Market leader in virtualization for to learn; not mainstream enterprise – Software only deployment model; complicated installation procedure; you – Support for AWS, Azure, GCP, have to take care of provisioning infra on premises, install, patch, update, IBM BlueMix, Vmware vCenter, take care of HA etc. OpenStack (Pike) – Support for Azure Stack and Kubernetes on-premises and on How OneSphere wins GCP – SaaS delivered; nothing to install to get started – Cost planning with non-standard – No DevOps or orchestration tools lock in; use tools you already know discounts; globally applied versus per service – Cost controls capabilities like cost and usage based plans to manage consumption – Multi currency support

a00060155enw For HPE and Channel Partner internal use only 21 Scalr https://www.scalr.com

a00060155enw For HPE and Channel Partner internal use only 22 Scalr

– Scalr utilizes a hierarchical, top-down approach to policy enforcement that empowers administrators to find the balance between the needs of finance, security, IT and development teams – Enables cost-effective, automated and standardized app deployments across multi-cloud environments Features of Scalr

– Preventative and Reactive Policies; inheritance model – configure once, enforce everywhere – Policy based governance of cost, orchestration, security and placement; developers are free to operate within policy boundaries – Application level visibility into cloud spend as well as budgeting tools and reports – Service catalog – Available as Hosted version (for SMB) and Enterprise version (on-premises) for larger enterprises

a00060155enw For HPE and Channel Partner internal use only 23 OneSphere Positioning against Scalr

Acknowledge the Strengths Pitch the Weaknesses – Uncertain business and product roadmap; open source project – Mature product offering that is discontinued feature rich – Not user friendly to navigate the scope hierarchy and set policies – Support many environments – Policy driven – Insights How OneSphere wins – Low entry point for hosted – SaaS delivered; nothing to install to get started deployment – No orchestration tools lock in – Intuitive user interface – Developer friendly that started as an open source project

a00060155enw For HPE and Channel Partner internal use only 24 RightScale https://www.rightscale.com

a00060155enw For HPE and Channel Partner internal use only 25 RightScale - Overview

RightScale Universal Cloud Management is a SaaS based platform made up of three integrated modules that enable enterprises to orchestrate, automate, and govern applications across any cloud, any server, and any container Features of RightScale – Cloud Management – Single console across clouds; compute, storage and network views; universal tag management; templates; integrate with devops tools; RBAC; Single sign on; audit trails; Single API; Docker support – Self-Service – Portal; catalog; ITSM integration API; Workflows; Full App orchestration; Policy based governance; cost visibility & tracking; – Cloud Analytics (Optima) – Cost visibility across clouds; manual and automated reporting; reserved instance usage reports; markups & discounts; private cloud pricing; automated recommendation and actions; forecasting & budgeting;

a00060155enw For HPE and Channel Partner internal use only 26 OneSphere Positioning against RightScale

Acknowledge the Strengths Pitch the Weaknesses – Lacks low ops on-premises experience – Thought leader in cloud – Higher upfront costs – Mature feature rich product – User experience is fragmented; many appliances – User have complained about interface – Strong partner ecosystem – Strong container support How OneSphere wins – Unified customer experience – Managed private cloud

a00060155enw For HPE and Channel Partner internal use only 27 RedHat CloudForms https://www.redhat.com/en/technologies/man agement/cloudforms

a00060155enw For HPE and Channel Partner internal use only 28 RedHat CloudForms

– Red Hat Cloudforms is a multi-cloud management platform that helps IT operations setup policy controlled, self-service environments – Deployed as an on-premises appliance Features of VMware vRealize Suite – Unified Management – Private cloud: OpenStack, vSphere – Public cloud: AWS, Azure – Containers: OpenShift, Kubernetes – Bare metal – Self-service – Catalog; Resources; financial management – Operational Visibility – User based quotas; usage monitoring – Financial show back – Resource trend tracking to inform capacity – Compliance and governance – Corporate compliance and governance policies across all environments

a00060155enw For HPE and Channel Partner internal use only 29 OneSphere Positioning against RedHat CloudForms

Acknowledge the Strengths Pitch the Weaknesses – Complex installations – Market leader in open source – In public cloud, CloudForms appliances need to be uploaded with – Mature feature rich product dedicated storage for appliance & databases – Customer has to manage the CMP – Strong partner ecosystem – Strong Container support with OpenShift How OneSphere wins – Robust Ansible integration – SaaS delivered as a single solution; you just login – No DevOps or orchestration tools lock in; use tools you already know – Managed private cloud

a00060155enw For HPE and Channel Partner internal use only 30 Nutanix https://www.nutanix.com

a00060155enw For HPE and Channel Partner internal use only 31 Nutanix

– Nutanix Enterprise Cloud OS is an approach to private cloud that also attempts to deliver multi-cloud management capabilities using Nutanix software ecosystem components – Blend of hyper-converged capabilities + multi-cloud management

Features of Nutanix

– Acropolis: Platform that converges compute, storage, networking and virtualization resources; AHV virtualization and DR protection included – Prism: A unified management plane to manage applications and infrastructure across different datacenters and clouds; operational insights, planning, and performance – Calm: Application automation and lifecycle management for the Nutanix and public clouds; create deployment blueprints; integrated local and global marketplace for blueprints for end user consumption; Role based permissions for usage – Beam: Multi-cloud optimization service; deep analytics, budgeting and cost controls; compliance & remediation – Xi: Disaster Recovery in Nutanix’s public cloud for on- premises Nutanix Enterprise OS VMs – Flow: Network and policy management with focus on applications; integration with partner services possible

a00060155enw For HPE and Channel Partner internal use only 32 OneSphere Positioning against Nutanix

Acknowledge the Strengths Pitch the Weaknesses – Software installation only; need to install many products to enable – Support for AHV, ESXi, Hyper-V, complete multi-cloud management Xenserver hypervisors and AWS, – Subscription cost for every product; every added product increases cost Azure, GCP and Nutanix public clouds – Proprietary deployment modeling tool; lock-in – Need to buy in to Nutanix Acropolis first – Partnership with Google Cloud – Xi only works with AHV hypervisor Platform – Cloud optimization, budgeting, cost controls, show back How OneSphere wins – VM DR capability available with Xi – SaaS delivered as a single solution – No DevOps or orchestration tools lock in; use tools you already know – Compelling value additions for – Simple all-inclusive pricing; no feature based pricing existing Nutanix customers – Pricing by v/p CPU count and not VM count

a00060155enw For HPE and Channel Partner internal use only 33 MicroFocus https://www.microfocus.com

a00060155enw For HPE and Channel Partner internal use only 34 Micro Focus

– Micro Focus Hybrid Cloud Management is a software suite for multi-cloud management, orchestration, release management and brokering public and private clouds – Sold in three editions – Express, Premium, Ultimate. Each edition is additive and includes features of lower edition. – Cloud Service Automation (CSA) and Operations Orchestration (OO) are the core components of this offering Features of MicroFocus HCM – Traditional approach to Hybrid IT. Primarily offers management based on VMware and OpenStack KVM resources. – Delivered on-premises as software – Service design for modeling app deployments targeted for multi-clouds – Orchestration engine to deploy service designs – Catalogs of service designs with role based access control – Ability to set pricing models for services in the catalog – Delivers basic metering by enabling access to raw data that can be used for chargeback – For in-depth performance and capacity analysis, Operations Analytics with Cloud Optimizer is required – Application release management capabilities in Ultimate edition

a00060155enw For HPE and Channel Partner internal use only 35 OneSphere Positioning against MicroFocus

Acknowledge the Strengths Pitch the Weaknesses – Services-led installation and onboarding requires heavy investment – Flexible deployment strategy; – Complex onboarding process containerized so can be run – Disparate offerings stitched together anywhere – No private cloud – Access to HPE customers

How OneSphere wins – SaaS delivered as a single solution; nothing to install or self manage – No DevOps or orchestration tools lock in – Managed private cloud – Simple all-inclusive pricing; no feature based pricing

a00060155enw For HPE and Channel Partner internal use only 36 Morpheus https://www.morpheusdata.com/

a00060155enw For HPE and Channel Partner internal use only 37 Morpheus

– Unified Ops Orchestration – Powerful infrastructure agnostic Cloud Application Management Platform (CAMP)

Features

– Intelligent Analytics – optimize multi-cloud costs with discovery, analytics and clean up – Deterministic governance – Assure predictable control with policy driven app templates – Frictionless automation – Accelerate developer productivity with technology integrations – Futureproof Evolution – Boost IT agility with app modernization across bare metal, VM and containers

a00060155enw For HPE and Channel Partner internal use only 38 OneSphere Positioning against Morpheus

Acknowledge the Strengths Pitch the Weaknesses – Instant visibility of public cloud costs – Delivered as software for enterprise – Custom tiers and pricing for provisioned instances – Customer installs and manages – Guide users to balance cost, capacity, performance – Diagnostics on utilization, usage and cost with machine learning powered How OneSphere wins remediation; resize app components – SaaS delivered; just log in and get going and power schedules – Simple user experience – Track services from cradle to grave; – Managed private cloud kickoff request in ServiceNow (or – Compliance checks for AWS built-in, HPE services for advanced Morpheus ITSM) with approval and expiration policies compliance – Best in class technology integrations for frictionless automation from code to deployment and beyond; CI/CD and Continuous Optimization with advanced networking, logging, monitoring and incident handling – Multi-tenant; MSP friendly; white label possible

a00060155enw For HPE and Channel Partner internal use only 39 Turbonomic https://www.turbonomic.com/

a00060155enw For HPE and Channel Partner internal use only 40 Turbonomic

– Turbonomic makes workloads SMART (Self Managing & Real time) for Hybrid Cloud environments by simultaneously optimizing performance, cost, and compliance in real-time – It provides workloads the exact resources they need, at the right time, and always in accordance with policies

Features

– Assess on-premises estate – Quickly and accurately compare public cloud providers to determine the best cloud for your workloads – Utilize consumption based planning to build a migration plan in hours – Cost visibility and accounting; Visualize your entire cloud estate and fully understand your cloud bill – Continuous Cloud Optimization – Take action on un/under-utilized infrastructure – Scaling of VMs, DbaaS to right size infra – Reserved instances recommendations to optimize spending

a00060155enw For HPE and Channel Partner internal use only 41 OneSphere Positioning against Turbonomic

Acknowledge the Strengths Pitch the Weaknesses – Installed on-premises or in public cloud; VM – Software only delivered as VM image; no SaaS appliance based installation on multiple – Customer managed s/w installation and management hypervisors (vSphere, XenServer, RHEV, Hyper-V, Nutanix Acropolis) and public clouds – No private cloud or container offering (AWS, Azure) – Integration with spectrum of hypervisors, cloud managers, app and database servers, load balancers, storage and fabric managers; How OneSphere wins includes HPE OneView and 3PAR – Installation can be scaled across VMs each – SaaS delivered handling a different set of targets. Aggregating – Provisioning enterprise-grade Kubernetes included VM displays combined data for all target – Managed private cloud instances – What-if planning tool to analyze workload – Catalog of virtualization, cloud and container services migrations, hardware deployment/retirement, peak demand, optimal workload distribution – Placement policies to define workload placement; affinity, anti-affinity, licensing rules etc. – Automation policies for taking action: recommend, manual, automated – Customizable dashboards; tagged resources

a00060155enw For HPE and Channel Partner internal use only 42 Apptio https://www.apptio.com/

a00060155enw For HPE and Channel Partner internal use only 43 Apptio

– System of record for Technology Business Management (TBM); equiv. to CRM or ERP or HCM but for IT domain – Positioned as a non-operational, non-service management system targeted to CIO needs – Delivered as a suite of modular SaaS applications. Apptio Cloud Cost Management (CCM) equivalent to OneSphere Insights Features of Apptio CCM – Align to a standard IT cost model; ingest multi-cloud billing data and auto-map to standard IT services classification – Quantify accurate total cloud spend by incorporating costs of labor, security, and more – Monitor cloud cost and usage with real-time spend analysis and forecasting – Manage consumption by infra, app, and business units to make better decisions; tagging strategy – Analyze potential cost savings from underutilized or inefficiently deployed resources. Recommend AWS Reserved Instances (RI) based on actual usage

a00060155enw For HPE and Channel Partner internal use only 44 OneSphere Positioning against Apptio

Acknowledge the Strengths Pitch the Weaknesses – Point solution for cloud cost management only – Flexible deployment strategy; – Add on module to core TBM service containerized so can be run anywhere – No private cloud or container offering – No provisioning – Breadth of technology business – No consumption options for multi-cloud; no catalog management targeted towards CIOs – Holistic cost allocation to consuming apps and services inclusive of How OneSphere wins provider costs, labor etc. – Multi-cloud consumption & lifecycle management of VMs and containers – Spend analysis and forecasting – Resource utilization and cost monitoring capability – Managed private cloud – Analyzes utilization and provides – Manage consumption by service, app, business unit with resource tagging recommendations to use cost strategy effective Reserved Instances in public cloud

a00060155enw For HPE and Channel Partner internal use only 45 Summary

– Delivered as a service; no version lock-in – Subscription model – No hardware lock in

– Cloud enabling on-premises hypervisors like Multi Hypervisor VMware vSphere and KVM

– Kubernetes provisioning on both AWS Container as a Service and on-premises VMware

Service Catalog – Easy to use; no training $$$ required

Insights & Cost Analytics – Cost show back and analytics across apps & clouds

a00060155enw For HPE and Channel Partner internal use only 46 Thank you

a00060155enw For HPE and Channel Partner internal use only 47