[July 31, 2014]

VMTurbo Posts 16th Consecutive Quarter of Record Revenue

VMTurbo, creator of the only software-driven control platform for the software-defined enterprise, announced record quarterly earnings in Q2 of 2014. The second quarter was VMTurbo's 16^th consecutive record quarter, achieving 177% year-over-year growth. Additionally, VMTurbo extended its fabric and storage module control system extensions to include support for Cisco UCS and EMC (News - Alert) VNX, thereby supporting Flexpod and Vblock market options to drive application assurance and data center efficiencies, helping advanced customers fundamentally transform and future-proof their virtualized data centers.

Along with strong revenue growth and product innovation, VMTurbo now serves more than 1,000 advanced customers such as Salesforce.com (News - Alert), RBC, Tribune Media, Scripps Health, QVC and Rabobank and has launched an online social community called, "the Green Circle", where the World's most sophisticated virtualized data center customers share ideas, best practices and industry knowledge.

"It's been an exciting year at VMTurbo so far," said CEO Ben Nye. "Our team is passionate about helping our 1,000+ advanced customers monitor, automate and control their virtualized data centers to keep them in a continuously healthy state. We love showing our customers the incredible value of our control solution. In less than 15 minutes, our customers realize that defining their environments in software is only a first step towards realizing the strategic value of virtualization. Next, they must drive resiliency and efficiency by adding control over their infrastructure wherever applications need to run. We're proud to be enabling this shift to Software-Driven Data Center Control."

Market Momentum (News - Alert)

"VMTurbo has continued the strong growth we saw in 2013 with the biggest quarter we've ever seen - Q2, 2014," said VMTurbo CFO Mo Garad. "Our business is performing across all levels, enabling us to grow faster than any other company in virtualization."

Key metrics thus far for 2014 include:

• 177% year over year growth - resulting in a compounded annual growth rate of over 300% since inception
• Serving more than 1000 advanced customers - adding more customers in Q2 than any quarter before. Other notable customer additions include Manhattan Associates (News - Alert), Cablevision, Carfax, Infosys, Expedient Communications, Bloomin' Brands, and Sephora
• According to TechValidate:
  • 89% of VMTurbo customers are realizing a return on their investment (ROI) in 3 months or less with VMTurbo (TechValidate)
  • 80% of customers increased resource utilization by at least 20% since deploying VMTurbo
  • Almost 70% of customers have automated repetitive management of their virtualized environments with VMTurbo
• More than doubling the size of the VMTurbo Turbo Team and relocating to a new, larger office in downtown Boston

Technology Innovation

"To strengthen our leadership position we're announcing support for OpenStack, building instrumentation for Software-Driven Control into the OpenStack core," said VMTurbo President and CTO Shmuel Kliger. "This support of OpenStack furthers the vision for VMTurbo by expanding IT agility through reducing vendor lock-in and enabling heterogeneous control to preserve flexibility for the future."

Key technology innovations include:

• Further expanding VMTurbo's Software-Driven Control across the IT stack with new hardware support built into Control Modules for Storage and Fabric. This expanded support provides customers the ability to drive more comprehensive management of virtualized workloads in converged infrastructure such as Flexpod and Vblock, as well as in storage control, including support for EMC VNX, enabling up to 30% improvement in utilization
• New support for OpenStack, including contributions back to the community building instrumentation for Software-Driven Control into OpenStack, joining our existing support for VMWare, Microsoft, RedHat and Citrix environments
• The new ability to reserve capacity for future workloads, by enabling not only the scheduling of those workloads but for VMTurbo to reserve adequate capacity for those workloads to launch when needed - our customers asked, and we delivered
• Patents covering proprietary uses of economic principles in the management and control of IT environments
• Numerous improvements in VMTurbo's patented, award-winning Software-Driven Control including:
  • Cluster Flattening enabling vMotions across cluster boundaries
  • Broader APIs, e.g. action settings, inventory information
  • Improved support for Microsoft (News - Alert) Hyper-V HA and Maintenance mode (e.g. recognize and manage for) to assure performance of High Availability
  • Action management by accounting for cost vs. impact of actions, e.g.:
    • Location matters: Move inside cluster is cheap, across clusters expensive, across clouds very expensive
    • Size matters: much cheaper to move a small VM vs. e.g., a file sharing VM
    • Benefit matters: e.g., if benefit is marginal and cost is high, we may not want to do it
  • Storage with better representation of multiple CPU controllers, improved representation of avg cpu
  • Resource pools as VDCs enabling user to:
    • Control Resource pools, e.g. resize CPU and memory allocations
    • Visualize resource pool dependencies via nested pools hierarchy
    • Aggregate Reporting, e.g. include all the underlying VMs in the hierarchy
  • Reporting bringing existing reports into the core UI, more easily share reports and integrate with external tools, e.g. Splunk

"What's most gratifying is not only the response we've received from our advanced customers," said VMTurbo CMO Geeta Sachdev, "but the response from the larger IT community. The community has begun embracing the idea that cloud and virtual environments have grown beyond human scale in size and complexity, and needs a new approach."

Industry accolades include:

• Receiving the 2014 Tech Trailblazers first place award in the virtualization category as well as the Tech Trailblazers runner-up award in the cloud category
• Receiving numerous other awards, such as: Named #26 in Forbes Most Promising Companies, CRN's 2014 Emerging Vendors, and awarded the Bronze medal by Tech Target in their Storage Management category
• Gaining the attention of leading minds in the virtualization blogosphere who added their voices in support of VMTurbo's unique approach, such as:
  • Chris Wahl (wahlnetwork.com): "...from a UCS perspective, I'm really digging this bad boy." (http://wahlnetwork.com/2014/05/08/rockin-vmturbos-operations-manager-ucs-integration)
  • Jeff Wilson (agnosticcomputing.com): "…products like [VMTurbo] are the future of IT. VMTurbo is awesome and unique in an on-prem context as it bridges the gap between cost & operations, but it's also kind of a window into our future as IT pros. That's because if your employer is cloud-focused at all, the infrastructure-as-market-economy model is going to be in your future, like it or not. Cloud compute/storage/network, to a large extent, is all about supply, demand, consumption, production and bursting of resources against your OpEx budget. What's neat about VMTurbo is not just that it's going to help you get the most out of the CapEx you spent on your gear, but also that it helps you shift your thinking a bit, away from up/down, latency, and login times to a rationalized economic model you'll need in the years ahead." (http://agnosticcomputing.com/2014/06/11/30-days-hands-on-with-vmturbos-opsman-vfd3/)

What to expect in the second half of 2014 and beyond

"Expect more great things later this year and next as VMTurbo expands Software-Driven Control further up into the application layer, delivering control that is not only application-aware, but application-driven," concluded Kliger. "As well as a new way of imagining clusters in a Software-Defined world…"

About VMTurbo

VMTurbo's Software-Driven Control platform enables organizations to manage cloud and enterprise virtualization environments to assure application performance while maximizing infrastructure efficiency. VMTurbo's patented market-based approach dynamically adjusts configuration, resource allocation and workload placement to meet service levels and business goals, and is the only technology capable of closing the loop in IT operation by automating the decision-making process to maintain an environment in a healthy state.

The VMTurbo platform first launched in August 2010 and since that time more than 10,000 users worldwide have deployed the platform, including JP Morgan Chase, Aetna, Colgate-Palmolive and Salesforce.com. Using VMTurbo, our customers ensure that applications get the resources they need to operate reliably, while utilizing their most valuable infrastructure and human resources most efficiently.

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