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SaaS and SubscriptionCommerce EnablementTanzu ObservabilityDecember 3, 2021Confidential 2021 VMware, Inc.

AgendaLeadership Message – Paul MobladSaaS and Subscription Commerce (SSC) Overview - Malar VelappanOverview of the Configure, Price, Quote (CPQ) tool – Dave SloanDemo - CPQ Scenarios - Jake HassettSupport Plan and Key ResourcesNext StepsPolling -Confidential 2021 VMware, Inc.2

Leadership MessagePaul Moblad – Director of Global Sales, Tanzu ObservabilityConfidential 2021 VMware, Inc.3

SaaS and Subscription Commerce(SSC) OverviewMalar Velappan– SSC Senior Product Line ManagerConfidential 2021 VMware, Inc.4

SaaS and Subscription Commerce (SSC)Introduction to SSC and ObjectivesWhat is SSC?Simplifying, standardizing, and automating SaaS/Subscription business processes, policies andsystems by implementing a holistic Offer-to-Cash ecosystem supporting VMware’s transition to SaaSand Subscription .Establish integrated Offer-to-Cash capabilities for VMware’sevolving SaaS/Sub business modelsAutomate and optimize SaaS/Sub Offer-to-Cash processes foroperational efficienciesIntegrate CSP, CPN/VCP, CPQ, SAP BRIM, & Unified Data to buildseamless customer and partner experienceEnable integrated and optimized SaaS and Subscription businessoperations modelConfidential 2021 VMware, Inc.5

SaaS and Subscription Commerce - ScopeCustomerexperience inCSEPConfigure, Price & Quotein CPQ Partnerexperience in CPNSSC is a next gen platform aimed to build an end-to-end Offer-toCash SaaS and Subscription commerce experience.To achieve this, multiple components and focus areas must fit intogether like pieces in Jigsaw Puzzle.Subscription & Billing in SAPBRIMSupply Chainin SAP SDData services in Unified Data ProgramBusiness standards in SummitConfidential 2021 VMware, Inc.6

SaaS and Subscription Commerce – Key BenefitsEnhanced customer experience due toupgrade features in CSPRobust VMware SaaS and subscriptionstandards, policies and governanceSimplified pricing and packaging processand reduction of SKUEnhanced SaaS features in CPQImproved partner experience withenhanced CPNDramatically improved new serviceintroduction timeIntegrated end-to-end subscriptionlifecycle managementFlexible and automated pricing anddiscounting modelSimplified Billing and SubscriptionProcessConfidential 2021 VMware, Inc.7

SaaS and Subscription Commerce Integrated NorthStar LandscapePersonasPartnerSalesPCS (BUs)Business OpsCSPCPNCPQ AllAllSelf-ServiceN-TierMSPOEMFedRAMP Customer/Partner ExperienceAttribute it ContractsStaggeredDeploymentHybrid BundlesAutomated Try toBuyAdvanced QuotingPre-paid &Recurring iple PaymentMethodsStandardized P&DFlexibleSubscriptionPartner MobilityCapabilitiesVideo tour of overall VMW Common Cloud Service ExperienceConfidential 2021 VMware, Inc.Integrated PlatformRoutes to MarketEnd 009/playlist/6405578

* Midas R1 with 14 services live – Direct (Self-service), MSP RTM for on-demand/commit modelSSC - Roadmap (Latest - Revised 11/29/2021)Features that apply to Tanzu ObservabilityQ3 FY22 - Live Direct (Self-service) MSP EUC FedRAMP n-Tier Channel (Sales-led) n-Tier Channel (Partner selfservice) Mktplace Integration(transitioned to URTM) Legacy customers /partners – align to std RTM Direct Customer MSP (Managed service provider) EUC FedRAMP - Channel PartnerMSP Tenant EUC FedRAMP End customerOffer Flavors Channel Partner Channel Partner End customer of Channel Partner End customer of Channel Partner Internal stakeholders Internal stakeholders Internal stakeholders Internal stakeholders Attribute driven offer Pricebook publishing, NSI automation Pricebook, NSI automation FedRAMP offersTerm subscriptions with/withoutoverage Fixed bundles On-Prem Subscriptions User-device ratio (EUC only) Configurable Bundles P H offers (EUC only) International Pricing One-time charges Lifecycle EpicsDirect CustomerVolume tiersBacklogQ2 FY23 - proposed Direct (Sales-led) PersonaQ1 FY23 - proposed New RTM focus (transitionedto URTM) Hardware SaaS offers Sales-led initial purchase Flex term Subscription Upgrade (SUP) Unified Commerce Ph1, Ph2 Sales-led expansions (add-ons) Ramp Sales-led Renewals (RSO) Service swapSales-led renewals (via MSO forwardco-term) Channel enablement for ondemand/commit modelCo-term, Renewal for ondemand/commit models Full upgrades (no inbuilt add-oncredit) Hardware swap Partner-led renewal Hardware SaaS offer transactions Partner-led expansion FedRAMP transactions Trial to paid conversion P H transactions Upgrades - inbuilt add-on credit MSP transactions (trials, initialpurchase, expansion)User-device ratio transactionalimpacts MSP transactions (renewals) Migration – incremental features Mixed billing models M&A Migration Multiple commit contracts,inclusion/exclusion rules, Partnermobility (transitioned to URTM) Unified Commerce – Design only Auto renewals Suspend, Terminate, Cancel Prepaid, Recurring billingConfidential 2021 VMware, Inc. Partner-led transactions (trials,initial purchase)Self-service transactions (initialpurchase, add-ons) Prepaid, Recurring billing Consistent Config experience Customer segment Migration – Foundation, WFservice-specific features Oct release UAT priorities – pricemis-match, overage proforma, linecancel notification, etc. CPQ UX enhancementsX RTM FocusQ4 FY22

SSCP October Release Capabilities Manage attribute-based offer and pricing instead of thousands of proliferated SKUs Have the ability to manage unified access to Cloud services BU portals for customers with a single set of login credentials Have the ability to manage single unified access to Cloud services self-service purchase experience Track all commerce interactions with customers/partners with streamlined CSP APIs Listen to all commerce events (renewals, cancelations, etc.) & make necessary provisioning changesBU/Service owner Have a single interface to interact with all of SSC commerce via CSP APIs (provisioning, event notifications, etc.) Flexibility to send service-specific notifications with custom messages to customers Manage all SaaS, Subscription and hybrid offers in one integrated E2E commerce (Q2C) infrastructure Manage attribute-based offer and pricing instead of thousands of proliferated SKUs Have an attribute-based configurator to manage Sales-led purchases for customers & partners Have access to purchase history to track existing entitlements for a customerBiz Ops Have the ability to proactively monitor and measure business performance – transaction cycle time, exceptions, errors etc. Read-only CSP access to view active customer entitlements and invoices for billing issue resolution Fiori UI/SAP Admin Portal to view active customer subscriptions, billable items, billing documents, and manage clarification casesConfidential 2021 VMware, Inc.10

SSCP October Release Capabilities Purchase SaaS services that are purely commit-based, or commit-based with overage charges Onboard a single unified portal (CSP) for all of VMWare SaaS Cloud services experience Expand SaaS service portfolio by purchasing incremental quantity or related add-on services with co-term (Short/Forward) Have a standardized discounting framework volume tiers enablementCustomer Renew services via Sales-led or auto-renewal option, change renewal preferences on CSP Request cancelation of service, wherever applicable per VMW policy Have flexibility to be billed for committed services on a prepaid or recurring basis, and for overage Purchase SaaS services for a customer Expand SaaS services portfolio for the customer Renew services via Sales-led process Onboard CPN to view end customers, and their orders and active subscriptions Have flexibility to be billed for committed services on a prepaid or recurring basis, and for overagePartner No more proforma invoices for prepaid scenarios No more “quote value does not match invoice” pain points Ability to have exact value of any purchases, add-ons for the prorated duration of serviceVideo tour of overall VMW Common Cloud Service ExperienceConfidential 2021 VMware, playlist/64055711

Overview of the Configure, Price, Quote (CPQ) ToolDave Sloan – Senior Manager, Configuration OperationsConfidential 2021 VMware, Inc.12

CPQ BenefitsProvide guidedconfiguration UXIncrease deal velocityIncrease quoteaccuracyGenerate CustomerInsightsEnable ”OneVMware”Issue:Model N has lowestglobal ranking of anyIssue:Frustration in time and effortto provide quotes, renewals,Issue:Customer-facing timecompromised by longtool at VMwareand IB dataapproval timesIssue:Lack of Relevantaccurate purchasehistory dataIssue:Increased portfoliocomplexity, SaaS, &acquisitions make ithard to scaleConfidential 2021 VMware, Inc.13

Demo – CPQ ScenariosJake Hassett – Manager, GTM Ops PMOConfidential 2021 VMware, Inc.14

Support Plan and Key ResourcesVish VachaniSSC Service Onboarding, Group Product Line ManagerConfidential 2021 VMware, Inc.15

Hyper Care, War Room Support & TimelineJan 2022Dec 2021Nov 2021Week 1Week 2Week 3Week 4Week 1Week 2Week 3Week 4Week 1815222961320273Testing and system dry run withSupport TeamsOffice hoursWar RoomWar Room9 – 5 PM PST3 – 5 PM PSTEPIC WeekEmail / ChatSKUs Loadedto ProdGo Live Dec week 1: Heightened Support with Email and Chat Support via Slack Dec week 2: Virtual War Room with SME’s (Dial in) Email Chat Support via Slack Dec week 3: Virtual War Room with SME’s (Dial in) Email Chat Support via Slack (Shared with other Services) War room s resource coverage: 8 x 5 coverage on week 2, and 14 x 5 on Week 3 Dec Week 4: EPIC Days off Jan Week 1: Heightened Support with Office Hours and New schedule will be publishedConfidential 2021 VMware, Inc.16

Support Room Support ApproachVirtual support rooms Starting Live on Dec 13th, 2021Virtual War Room Support DetailsWe will have 2 weeks of 14x5 coverage between 03:00 – 17:00PST hours starting on Dec 13th to assist users with any queriesrelated to the Dec Roadmap release: Dec 13th – 24th (Excluding PST Hours Dec 24th due toU.S. Public Holiday)ResourcesVirtual War Room SupportSFDCsupport@vmware.comPlease include the words “Wavefront”, “SCCP” or“CPQ”Participants: IT BAS, Sales - CPQ, DMT, Pricing Ops, Engg, OM,Revenue Booking, Disti APO, CSBU, EUC BU, NSBU & Sales OpsShared Services.Virtual Support Room Schedule#ssc wavefront liveClick here to Join the channelEntry CriteriaZoom link: Meeting ID: 927 6506 6175 SKUs Loaded to Prod & Pricebook PublishedPassword: 506751 Process & Systems are Reviewed & Signed offWeek1 – 9 AM – 5 PM PSTWeek 2- 3 AM – 5 PM PSTConfidential 2021 VMware, Inc. Applicable trainings and access in place No gaps in support processes17

IT BAS - SLASteady state and ongoing support model SLAsPriority IDP1P2P3/P4Priority LevelPriority DescriptionResponse TimeResolutionTime1 - CriticalCritical, serious problems, production system work is limited or stops.Technical or operational workaround exists. Any issue that causes loss ofsome major functionality and prevents some users from their productivityactivity. Within 4 hours of turnaround time, a critical issue needs to beaddressed/fixed.1 hr.4 hrs.2 – HighFunctional defect but system is operational, or performance is degradedand acceptable. Customer workaround exists. Problem causes loss of aminor function for some users which could be reproducible. An acceptableworkaround exists. Within 8 hours of turnaround time, a high priority issueneeds to be addressed/fixed.4 hrs.8 hrs.3 – MediumSmall impact problem, a specific function is interrupted. The impact is notsevere or noticeable. Problem which are cosmetic can be medium defined.Enhancements which minimize potential business problem and end userconfusions. Within 3 business days of turnaround time, a med priority issueneeds to be addressed/fixed.1 day3 daysNote: SLAs may be subject to other support teams when involvedConfidential 2021 VMware, Inc.