© 2014 IBM Corporation 1 Flash Landscape and Market Overview © 2014 IBM Corporation 1 Title of presentation goes here FlashSystem family 2014 Flash Landscape and Market Overview November 2014

© 2014 IBM Corporation 2 Flash Landscape and Market Overview IT infrastructure challenges Performance Gap CPU performance up 10x this last decade Storage has grown capacity but unable to keep up in performance Systems are now typically Latency & IO bound resulting in significant performance gap From 1980 to 2010, CPU performance has grown 60% per year * …and yet, disk performance has grown ~5% per year during that same period **

© 2014 IBM Corporation 3 Flash Landscape and Market Overview Client responses to performance gap Most Costly & Volatile Time Consuming, Very Expensive & Risky Wasteful, Expensive & Ineffective with Storage Latency Issues Expensive & Ineffective for Storage Performance Issues Typical Performance Mitigation Tactics Add CPUs HDD Performance Enhancement Add More Memory Tune & Modify Application

© 2014 IBM Corporation 4 Flash Landscape and Market Overview These factors are responsible for most IT woes Countless SW Licenses Complicated SW Slow or Unstable Applications Loss of Business Opportunity Expensive and Bloated Infrastructure Dissatisfied Users and Customers

© 2014 IBM Corporation 5 Flash Landscape and Market Overview The way IT should be…balanced Fewer software licenses Fewer servers Energy efficient data centers Satisfied repeat customers Faster, stable applications Feature rich software Predictable performance Balanced architectures A growing and viable business with satisfied customers…

© 2014 IBM Corporation 6 Flash Landscape and Market Overview Flash is a compelling solution! However, a single flash chip… Cannot hold enough data Writes & erases slowly Is not reliable enough IBM uses tools and technologies to drive a robust solution… Array the flash chips IBM MicroLatency™ Variable Stripe RAID™ System-level RAID/Two-dimensional RAID Redundant components Serviceable components Concurrent code load (CCL) Physically small and design flexible Very fast (low latency) Non volatile Very low power Inherently rugged Flash Memory

© 2014 IBM Corporation 7 Flash Landscape and Market Overview The Four Key Differentiators of IBM FlashSystem™ Powered by IBM MicroLatency™ Macro Efficiency driven by consolidation of hardware and software, deployment speed, efficient use of IT staff as well as power and cooling savings Enterprise Reliability durable and reliable designs that use enterprise class flash and patented data protection technology IBM MicroLatency™ deliver a microsecond response time to accelerate critical applications to achieve competitive advantages Extreme Performance enable business to unleash the power of performance, scale, and insight to drive services and products to market faster

© 2014 IBM Corporation 8 Flash Landscape and Market Overview Macro Efficiency driven by consolidation of hardware and software, deployment speed, efficient use of IT staff as well as power and cooling savings 98% Reduction in Application Processing Time 50% Reduction in TCO 97% Reduction in Physical Footprint 95% Reduction in Power Consumption Source: IBM Client Experiences The data below are based on average operating conditions that may or may not be representative of a particular customer’s operating environment. The use case measurements are from TMS customers using the flash technology that has been integrated into IBM’s systems. Boost IT efficiency

© 2014 IBM Corporation 9 Flash Landscape and Market Overview Enterprise Reliability durable and reliable designs that use enterprise class flash and patented data protection technology Improve business uptime Superior protection with multiple RAID layers Advanced wear leveling and over-provisioned space Non disruptive maintenance and current code load Superior Protection: Beyond Disk RAID Self-Recovering Flash Modules Avoid system rebuilds Protection Within And Across Flash Modules Variable Stripe Sizes Read Disturb Mitigation Automatic Read Sweeper High-Speed Clock Recovery Advanced Engineering = Less Maintenance

© 2014 IBM Corporation 10 Flash Landscape and Market Overview The IBM MicroLatency™ advantage 1 microsecond : 1 second :: 1 second : 11.5 days MicroLatency deliver a microsecond response time to accelerate critical applications to achieve competitive advantages Faster decision making Increase revenue Accelerate cost savings Eliminate wait time Scale performance with capacity I/O Time Network Time CPU Time I/O Time Network Time CPU Time Time Recovered Disk-Based FlashSystem

© 2014 IBM Corporation 11 Flash Landscape and Market Overview Extreme Performance enable business to unleash the power of performance, scale, and insight to drive services and products to market faster Improved end-user experience Faster insights into critical applications The value of performance A 1-SECOND DELAY IN PAGE LOAD TIME = 7% LOSS IN CONVERSIONS 11% FEWER PAGE VIEWS 16% DECREASE IN CUSTOMER SATISFACTION In dollar terms, this means that if your site typically earns $100,000 a day, this year you could lose $2.5 million in sales. Source: Aberdeen Group

© 2014 IBM Corporation 12 Flash Landscape and Market Overview Comprehensive flash offerings strategy IBM FlashSystem addresses the two primary segmentations of the flash market as defined by IDC: Absolute Performance for extreme performance of throughput, IO, and latency. Enterprise for full featured enterprise features sets married to flash performance Standalone all flash array Also a building block Eschew features that increase latency, bottleneck IOPS or cap bandwidth Promote use of application-level services IBM FlashSystem Software defined storage FlashSystem V840 FlashSystem as a storage enclosure Promote use of SAN services IBM Software Defined Solutions

© 2014 IBM Corporation 13 Flash Landscape and Market Overview 1.1M IOPS 8 GB/s Bandwidth Multiple connectivity interfaces -16Gb/8Gb Fibre Channel -40Gb QDR InfiniBand -10Gb FCoE -10Gb iSCSI Fully redundant and hot swappable architecture: - Flash modules, power supplies, batteries, interfaces, fans AES 256, HW based encryption Maintain business continuity: - Concurrent code load, highly serviceable design 2U form factor- minimal footprint for best of breed ROI Low power, Energy Star Certified, 625 watts Field upgradeable, granular capacity: -2, 4, 6, 8, 10, 12, 16, 20, 24, 32, 40 Intuitive standardized GUI Low Latency 135/90 µs R/W Purpose-built, highly parallel design Maximize host CPU efficiency and productivity Macro Efficiency MicroLatency ™ Enterprise Reliability Extreme Performance IBM FlashSystem enhancements: 10Gb iSCSI 1TB modules OEM enablement Data center optimized to deliver extreme performance, flexible capacity and total system protection

© 2014 IBM Corporation 14 Flash Landscape and Market Overview IBM FlashSystem 840 specifications Minimum latency Write90 µs Read135 µs Maximum IOPS 4 KB Read (100%, random)1,100,000 Read/write (70%/30%, random)775,000 Write (100%, random)600,000 Maximum bandwidth 256 KB Read (100%, sequential)8 GB/s Write (100%, sequential)4 GB/s Capacity Options 4 x 1TB6 x 1TB8 x 1TB10 x 1TB12 x 1TB8 x 2TB10 x 2TB12 x 2TB8 x 4TB10 x 4TB12 x 4TB Raw5 TB7.5 TB10 TB12.5 TB15 TB 21 TB 25 TB 32 TB 42 TB 50 TB 65 TB RAID 52 TB4 TB6 TB8 TB10 TB 12 TB 16 TB 20 TB 24 TB 32 TB 40 TB Performance at-a-glance Data center optimized to deliver extreme performance, flexible capacity and total system protection Small Medium Large

© 2014 IBM Corporation 15 Flash Landscape and Market Overview Enterprise Reliability Macro Efficiency IBM MicroLatency™ Extreme Performance IBM FlashSystem V840 Scalable to 2.5 million IOPS Scalable to 19.2 GB/s Mixed Workload Consolidation Advanced Data Services Copy Services, mirroring, replication, external virtualization, VAAI Concurrent code load Hot swappable architecture AES 256, HW-based encryption Fully redundant controllers Scale up to 40TB usable and up to 200TB effective capacity in only 6U Scale up to 320TB usable and up to 1.6PB effective capacity in only 36U Effective capacity possible with optional Real-time Compression IBM Real-time Compression IBM Easy Tier® Thin provisioning Copy services Data Virtualization Highly available configuration Accelerate applications with enterprise-class, advanced storage capabilities 200 µs response time Flash-optimized design

© 2014 IBM Corporation 16 Flash Landscape and Market Overview Thin provisioning Purchase only the storage you need Dynamic growth Software Defined Storage Services High availability configurations Enable continuous data availability Copy Services Eliminate application downtime for backup Test disaster recovery plans Validate business continuity strategy Software Defined Services

© 2014 IBM Corporation 17 Flash Landscape and Market Overview Scalable with Flexible Deployments Grow capacity and performance as needed Toggle compression on specific data sets Customize automated tiering options on data sets Extend advanced software functions to third party storage Performance Capacity Scale-up & Scale-out

© 2014 IBM Corporation 18 Flash Landscape and Market Overview Virtualizes IBM and 3rd Party Storage Preserve your existing investment in storage Manage Tier Protect Compress with Real-time Compression Optimized performance at lower overall cost IBM Easy Tier ® flash storage management Improve What You Have IBM & non-IBM Flash HDDs

© 2014 IBM Corporation 19 Flash Landscape and Market Overview When to sell 840 vs. V840 For lowest price point, lead with 840: Provides highest performance available (lowest latency) Perfect for application acceleration, mission critical workloads Customers who do not need advanced software features or already have existing storage virtualization (SVC/V7K) For a feature-rich solution, lead with V840: Provides advanced software features: thin-provisioning, compression, snapshots, replication, tiering Perfect for mixed workloads, virtual machines Ability to virtualize IBM and 3 rd party arrays

© 2014 IBM Corporation 20 Flash Landscape and Market Overview When to sell V840 vs. SVC V840 not targeted to: Existing SVC customers Customers who are considering SVC Customers planning to build a fully virtualized data center V840 ideal for: Customers with no IBM storage Customer who are not interested in SVC Customers evaluating software-rich competitive offerings May benefit from simplified licensing

© 2014 IBM Corporation 21 Flash Landscape and Market Overview FlashSystem V840 Improves Your Business Drive new business opportunities with IBM FlashSystem Accelerate Infrastructure Lower the Cost of Flash Protect your Investment Simplified Management Enable Datacenter Consolidation Run Mixed Workloads Accelerate Applications Improve Workforce Productivity Drive New Business Opportunities

© 2014 IBM Corporation 22 Flash Landscape and Market Overview Is your IT infrastructure adding COST, COMPLEXITY & RISK to your business?  Is your infrastructure performance limiting your business goals?  Are your end users constantly complaining about missed SLAs?  Are your data center economics keeping you awake at night?  Are your software licensing costs ballooning beyond control?  Do you have armies of consultants tuning slow applications? How to start a conversation on Flash?

© 2014 IBM Corporation 23 Flash Landscape and Market Overview © 2014 IBM Corporation 23 Title of presentation goes here FlashSystem family 2014 For more information visit ibm.com/storage/flashibm.com/storage/flash Questions

© 2014 IBM Corporation 24 Flash Landscape and Market Overview For more information Website: ibm.com/storage/flash/ ibm.com/storage/flash/ Product Pages: –FlashSystem 840 Product PageFlashSystem 840 Product Page –FlashSystem V840 Product PageFlashSystem V840 Product Page –FlashSystem EcosystemFlashSystem Ecosystem Resources: ibm.com/storage/flash/resources ibm.com/storage/flash/resources References: RedBooks: uery=FlashSystem&SearchOrder=1&SearchFuzzy=FALSE uery=FlashSystem&SearchOrder=1&SearchFuzzy=FALSE FindIT: Know on the Go: Sales Kit - IBM | PWIBMPW IBM Flash YouTube Channel : V7gh-X V7gh-X FlashSystem Sales Team Contacts: