Helping our Partners transform the cost, quality and delivery of patient care via the Cloud

1. Mission Helping our Partners transform the cost, quality and delivery of patient care via the Cloud

2. Market Factors – Executive Summary $51 Billion Business Issues How VMware Addresses Hospitals must meet 2015 federally mandated EHR Meaningful Use targets or face significant penalties Safely accelerate critical EHR projects: Rationalize, consolidate and modernize infrastructure via the Cloud. Comply with new federally mandated HITECH regulatory compliance guidelines. Centralize and secure critical data and systems while increasing the availability and recoverability of EHR systems. ISV’s straining to deliver net new EHR product to an increasingly IT savvy, educated and competitive market place Reduce TTM & TCO of ISV products and enable delivery via Cloud Low clinical adoption rates for new EMR systems. Meaningful Use reimbursements as risk. Provide an exceptionally better end user experience that is simple, secure and increases mobility. Must transform the cost, quality and delivery of patient care Clinical Infrastructure Rationalization; Improve Clinician Workflow; ITaaS

3. Industry in Cloud ContextHealthcare Cloud = Connected Care

4. Who Really Cares About the Cloud? –Healthcare • Top Drivers to the Cloud • Speed to Implement • Higher IT utilization • Cost reduction • Deployment flexibility • Agility • Scalability across locations

5. VMware Healthcare Cloud = Connected Healthcare Providers Patient Life Sciences Payers

6. Healthcare Forced to Accelerate/Skip Timeline/Journey 2015 -17 Cloud Computing Today Web PC / Client-Server 1980 Mainframe Existing legacy applications and data must be brought safely forward with little to no disruption to the clinical staff’s workflow. Our solutions can provide a path forward that is….both non-disruptive (evolutionary) and transformational (revolutionary)

7. The Virtualization Journey – Healthcare Providers COST EFFICIENCY QUALITY OF SERVICE BUSINESS AGILITY Phase IT as a Service Business Production IT Production Ownership/ Sponsorship IT CIO IT / Clinicians Healthcare Today CAPEX OPEX Availability Responsiveness Compliance CAPEX OPEX Availability Responsiveness CAPEX OPEX Business Value Planned 2011 Investments • Zero-touch infrastructure • Increased control + service assurance • Service definition • Self-service • Chargeback • Shared resource pools • Elastic capacity Key Capabilities Strategic Impact of Healthcare Transformation Proactive Selective Approach Reactive Stages of Adoption and Maturity

8. Significant Obstacles for Healthcare IT Leaders • Meaningful Use, ARRA/HITECH, HIPAA/Breach….. • Time to delivery, Complexity, Compliance, Skilled Staff - Visibility • Clinician Productivity & Satisfaction • Access, Experience, Mobility, Management • Application Support and Rationalization • Performance and Reliability • Inflexible & Fragile Datacenter Infrastructures • Overwhelming Complexity & Costs • Enforcement of IT Standards and Security • Disaster Recovery – Expensive, Complex & Unreliable • How to Prepare for and Leverage Cloud Computing • Affiliated Physicians, Telemedicine, Rural/Remote Facilities • Health Information Exchanges, Mergers/Acquisitions * HIMSS & VMware National Healthcare Virtualization Focus Groups

9. The Status Quo Will No Longer Do "We can’t solve problems by using the same kind of thinking we used when we created them.....” Albert Einstein

10. Private Cloud Clinical Infrastructure Rationalization

11. Clinical Application Deployment. Today # of Servers*: Annual Energy Cost*: 3 $2,421.00 6 $4,842.00 15 $12,105.00 Typical HIS Application 18 $14,526.00 Test Citrix Dev • Typically 2x’s Server count for “better” availability • Increased complexity, lower availability, expensive • Test / Dev typically matches production 1:1 • Infrastructure sits idle most of the time, expensive …and this is only one small application! * Based on VMware Green Calculator

12. Healthcare IT: Complex Infrastructure of “One-Off’s” “…the number of applications we have to support is staggering…and not getting smaller anytime soon….” Focus Group Feedback Citrix Production Test Development Development Production Vendor C Citrix Vendor B Citrix Production Test Development Vendor A

13. Healthcare IT: Complex Infrastructure of “One-Off’s” TS-Citrix App-Prod App - Test App - Dev Test/Dev App-Prod This “thinking” is no longer sustainable Vendor C • Infrastructure of Application Silo’s and One-Offs’ • Bloated, Expensive Siloed Terminal Server Farms • So much Variance Increases Risk and Support Costs • This complexity stifles investment, innovation and drains resources from more strategic patient care investments TS-Citrix Vendor B TS-Citrix App-Prod App - Dev App - Test Vendor A

14. Clinical Applications Too Complex, Large Server Footprint Reduce Complexity & Footprint Clinical Application HA and Clustering Hardware, Software Procedures Integrated HA and Clustering VMware vSphere High Availability Disaster Recovery Server Consolidation Totally Separate Architecture Silos for Client Application Deployment Virtualized Desktops Cloud Infrastructure Little to no Automation Automation Compliance Development Disaster Recovery Almost Impossible Increase Quality & Supportability Security / Compliance Fat, Thin, Web & Legacy Support Alternative to MSTS/Citrix Cloud Delivery Platform Reliable Disaster Recovery

15. The Journey to the Private Healthcare Cloud The Private Cloud VMware vSphere EMR, CPOE RIS/PACS Clients Network Storage Compute Applications

16. The Journey to the Private Healthcare Cloud The Private Cloud VMware vSphere EMR, CPOE RIS/PACS Clients Network Storage Compute Applications HIT Datacenter Engine

17. The Best Platform for your Clinical Applications • Reduce Costs by Consolidating Datacenters, Rationalizing & “Archiving” Applications • 7x24x365 EHR systems require Robust, Highly Available Compute Platforms for Patient Safety • Reliable Disaster Recovery is No Longer a “nice to have” • Increase Compliance while Reducing Variance & Complexity The Private Cloud VMware vSphere Modular HIT Datacenter Engine

18. End User Computing Become an assistant in better patient care. Spend more time with the patient.

19. The Desktop in Healthcare Is Changing… • PC is viewed as less strategic… • Hard to manage • Resource drain • Low levels of service • Expensive • Not secure • Compute model moving to End User Centric By the end of 2012, 60% of all enterprise PC configurations will use at least one technology that is considered desktop virtualization* *Predicts 2010: PC End-User Issues, Gartner – Dec. 2009

20. The Cost of Desktop Management Is Staggering For every $1 spent on hardware, companies spend $3 to manage Increasing IT Costs $3 $3 $1 CAPEX OPEX Are the needs of IT and end-users being met? Source: IDC Study 2009

21. The Clinical Desktop Needs And Requirements Different • IT : • Simplify management • Quickly roll out new applications or services EMR/EHR • Maintain compliance and protect sensitive data • Satisfy end users • Reduce costs • Users: • Fast access to applications and data from any terminal • Ability to roam their session as they move • High availability • Familiar look and feel • Secure remote access

22. Virtualization Breaks Down the Desktop Components Persona Applications Operating System

23. Modernizing the Desktop – A Managed Service Model Centralized Management Persona Modern Desktop Applications Operating System Desktop Delivery

24. Improve Workflows Follow Me Desktop – Example with SSO • Streamline Workflow – Tap and Go • User taps badge or swipes finger to reconnect to desktop • Single click SSO to all Clinical Applications • User disconnects from desktop with card tap • Desktop maintained on server as user roams Laptop Remote Physicians Office Nurses Station Desktop Wireless WOW Thin Client Also Includes • Password Management/Reset • Automatic Compliance Reporting • Support for various authentication modalities • Reauthentication support – i.e. drug dispensing

25. Meets the Needs of the Provider

26. And the Needs of Healthcare IT

27. Reduce Costs Breakthrough TCO and Acquisition Cost Acquisition Cost Per User Traditional PC vs VMware View TCO Comparison $1450 40% less TCO $585 lessper user per year - IDC $1200 $1000 $865 $800 sub-$500 Average Corporate PC $600 $400 Acquisition cost sub $500 per user $200 $250 Time 2010 Datacenter Infrastructure Cost Source: IDC White Paper 2009

28. Cloud Services Reach out and extend the reach of your care organizations

29. Physicians Practices- Offering Multi-Tenant Hosting Service Requirements VMware Cloud Director • Host potentially hundreds or thousands of tenants in shared infrastructure with: • Traffic Isolation between the tenants • Complete protection and confidentiality of tenant apps and data • Integration with enterprise directory services (e.g. Active Directory) • Complying with various audit requirements Company A Company B Company C VMware vSphere + vCenter + vShield Solution – vShield Edge, VMware vCloud Director • Guarantee full confidentiality and protection of tenant apps and data with built-in firewall and VPN • Use enterprise directory services for security policies • Accelerate compliance by logging all traffic information on per-tenant basis • Lower cost of security by 100+% by eliminating purpose built appliances and by increasing utilization and VM density Practice B Practice A Practice C

30. The Cloud: Extending Services and Care Remote Radiologist Remote Radiologist 2 Hour Drive VMware View PC-o-IP Private Cloud Internal Radiologist Hospital Hospital - Datacenter

31. Final Thoughts

32. Healthcare Cloud Solutions Private Cloud Desktop Cloud Services Rationalize Consolidate Improve Workflow Secured Mobility Extend/Share Serve • Improve clinician efficiency, satisfaction and quality of patient care with "follow me" desktops. • Provide standardized desktops as managed service while providing a superior clinician experience over traditional methods. • Leverage the power of cloud computing while retaining the flexibility and open standards to support your existing IT infrastructure. • Package and provide clinical applications and services to the market. Quicker, cheaper and more secure. • Deliver IT infrastructure as a service over a private cloud to build a flexible and efficient virtual infrastructure. • Deploy applications and resources when and where you need them for the ultimate control over service levels. EHR/HIS SaaS

33. Healthcare Partner Growth Opportunities • HIT/CPEHR Certifications • HIMSS • Best Practice for HC Providers $1M/year per Provider – Maintenance/Service/Support $10K/year per Physician – Maintenance/Service/Support • TechMed Alliance • Value Added Programs & Support • Solution Sell • $55K VMware Licenses + $560K Other Product Drag = $615K Total • Cloud Services = Managed Monthly Recurring Revenue Services

34. Thank You! Helping our partners transform the cost, quality and delivery of patient care via the Cloud