Creating a Competitive Advantage with Cloud Daniel Corry TAR, Seagate CSS

Agenda Market Trends Observations Key Takeaways

Data Growth Is a Major Headache Need more capacity & capabilities; e.g., compliance, monetization, analytics, preservation, and collaboration Non-traditional/cloud-storage solutions from new vendors to fill these gaps: Commodity hardware Open-source software Extreme automation Ruthless standardization

IT Top Priorities 32% increase use of virtualization 32% information security initiatives 29% improve backup/recovery Source:2014 IT Spending Intentions Survey, Enterprise Strategy Group, Inc.

IT Top Priorities 25% manage data growth 23% use more cloud services 21% disaster recovery initiatives Source:2014 IT Spending Intentions Survey, Enterprise Strategy Group, Inc.

Key Investments 72% cloud services 52% storage infrastructure 52% virtualization software Source:2014 IT Spending Intentions, Enterprise Strategy Group, Inc.

Virtualization Trends 66% x86 workloads are virtualized 59% vmware share, 21% growth 25% hyper-v share, 62% growth 15% deploy multiple hypervisors 100% projected increase by next year Source: December, 2013 IDC

Cloud Trends 70% use cloud services today 20% 13% spike from 2013 use cloud services today 20% 11% drop from 2013 plan to use cloud services cloud adoption is moving faster than expected Source:2014 IT Spending Intentions, Enterprise Strategy Group, Inc.

Cloud Trends Source:2014 IT Spending Intentions, Enterprise Strategy Group, Inc.

Observations

What is Evolution?

Evolution

Efficiency & Performance 1985 Camaro IROC-Z28 (5.0L TPI) 0-60 mph 6.9 Quarter mile 15.0 2014 Chevrolet Impala LT (3.6L) 0-60 mph 6.1 Quarter Mile 14.6 2014 Chevrolet Spark EV 0-60 mph 7.8 Quarter Mile 16.1 Nostalgia doesn’t help compete with newer, faster technologies

Cloud Revolution The New Deal for Storage Cloud Storage is where virtualization was 5 years ago Today over 70% of x86 platforms are virtualized “Time to work with the server huggers” -January 7, 2010, Mark Bowker, ESG

The Classic IT Problem 1 2 3 Many objectives with shrinking budgets Be seen as a revenue generator, not a cost center 1 2 Do more Maintain Compliance and NEVER go down 3

The Classic IT Constraint 80% to 90% of today’s IT budget is devoted to keeping the lights on: Classic solutions lock managers into proprietary architectures for years Married to your storage architecture Increasing need to keep everything online all the time

The Classic Cloud Constraint Access Security Control

The Classic Cloud Constraint 2008-2011: Top 3 barriers of entry Cloud solutions have matured Concerns have been relieved Nearly 90% using or plan Access Security Control

Competing With a Modern Strategy

Main Aspects to Cloud Features Elastic Reliable Virtual Availability Security Types IaaS PaaS SaaS Modes Private Public Hybrid Technology Virtualization Deduplication Monitoring Replication Storage Tiering Expanded Svcs Monetizing data New XaaS offerings Secured Data Anywhere Service Options Backup as a Service DR as a Service Data Tiering Service File Sync/Share Source: EU CORDIS © 2010 Quantum Corporation. Company Confidential. Forward-looking information is based upon multiple assumptions and uncertainties, does not necessarily represent the company’s outlook and is for planning purposes only. © 2010 Quantum Corporation. Company Confidential. Forward-looking information is based upon multiple assumptions and uncertainties, does not necessarily represent the company’s outlook and is for planning purposes only. 20 20 © 2007 Quantum Corporation Confidential 20

Competitive Advantage Backup, Recovery, DR, and Data Tiering Time to results Eliminating Down-time: “Point-and-click loyalty” Ubiquitous data access Recovery v. System Readiness Application ready on prem or in the cloud Improve customer satisfaction Responsive v. Reactive

Value of Cloud Systems & Solutions OPEX v. CAPEX Optimize budget spend Eliminate costly maintenance Extension of IT staff DR Validation Testing Assessments Virtualization flexibility Physical to Virtual Quickly and efficiently ‘spin up’ servers/applications Data Center Certification SSAE 16, SOC 2

Reality Check April 13, 1992 DATA protection, recovery and resumption Chicago River Underground Flood shuts down businesses for weeks Actual physical losses estimated at $1.95B Chicago Mercantile Exch shutdown lost an estimated $25B in trading Hundreds of small businesses never reopened. “Two out of five business experiencing a disaster, go out of business within five years. Business continuity plans and disaster recovery services ensure continuing viability” –Gartner DATA protection, recovery and resumption Critical to IT centric recovery solution Business may place this secondary on its list (Forrester Report)

312 twisters, 7 states, 226 occurred within a 24-hour period Tornado: 4/25/11 ~$11 Billion in Damages 312 twisters, 7 states, 226 occurred within a 24-hour period National Weather Service tracked in that 3-day period tornadoes across 7 states including Alabama, Arkansas, Georgia, Mississippi, Tennessee, Virginia, New York and Canada.

$20 Billion Hurricane Sandy: 10/29/12 Affected 24 states Estimated insured losses Second only to Hurricane Katrina Hurricane Sandy For One/Fourth of the United States --- Hurricane Sandy Was Not a Dress Rehearsal Almost a week prior, the National Weather Service was projecting major flooding along the eastern seaboard Federal, state and local officials readied their emergency preparedness plans Businesses and Residents in low-lying flood areas were advised to evacuate And still no one truly EXPECTED the amount of damage that was left in the wake of Hurricane Sandy According to the Wall Street Journal (3days ago) The estimates Hurricane Sandy may cost the insurance industry up to $20 billion, a tally that would put last week's devastating storm second only to 2005's Katrina for insured losses, according to a new damage estimate. (CLICK) Wall Street Journal, Nov. 2, 2012

Power What about my critical applications if the power is out for longer than 12-24 hours?

What if my IT team can’t get to the Data Center? Staff What if my IT team can’t get to the Data Center? Arleen: “Every Disaster Recovery Testing exercise I’ve ever read about…involved the IT staff coming in on a weekend and shutting down a few “non-essential” servers and networks. When you were managing

Tape Storage Where are my Tape Backups stored? How quickly can I access them?

Business Needs Businesses Demand Sub 24-Hour Recovery Backup alone, will not achieve sub-24 hour recovery Source: Gartner Group Gartner survey results Today more than ever faster recovery times are required to keep businesses profitable and compliant with industry regulations. The results of a survey conducted by Gartner uncovered the following results: Roughly 60% of all companies responded that they require 24 hours of less recovery times for their key systems, applications and data These increasingly aggressive recovery time requirements are the catalyst behind the evolution in data protection and disaster recovery technology

The Cloud Can Help Choosing the right type of cloud can help mitigate your risks! Infrastructure as a Service (IaaS) can only solve part of problem Disaster Recovery as a Service (DRaaS) Addresses all the challenges Economies of scale All DR resources are provided Offsite team to manage your recovery

Cloud v. Legacy Strategies $$$$ Hot site Warm site Cost Cold site $ Seconds Hours Days Weeks KEY TAKEAWAY: The cost of fast recovery has been drastically reduced for me Key points:   Hot sites and warm sites used to require duplicate equipment, secondary sites, and more manpower Businesses could do DR really cheap if they used tape and a cold site. But cold site recovery is very slow – timing that does not meet the needs of most organizations today When companies use cloud for DR, they can take advantage of shared infrastructure and virtualization technologies. A hot site or warm site in the cloud is much more affordable Recovery Time

Cloud v. Legacy Strategies Yours, Theirs, or Ours $$$$ Hot site Shared Infrastructure Warm site Cost and/or Private Infrastructure Cold site $ Seconds Hours Days Weeks KEY TAKEAWAY: The cost of fast recovery has been drastically reduced for me Key points:   Hot sites and warm sites used to require duplicate equipment, secondary sites, and more manpower Businesses could do DR really cheap if they used tape and a cold site. But cold site recovery is very slow – timing that does not meet the needs of most organizations today When companies use cloud for DR, they can take advantage of shared infrastructure and virtualization technologies. A hot site or warm site in the cloud is much more affordable

Key Takeaways

Creating Value With Cloud Identify Workloads Data Protection File Share Data Tiering CRM/Office Support

Creating Value With Cloud Security Concerns Physical Access Encryption Geographic data dispersion Yours, Theirs, or Ours Private, Public or Hybrid

Creating Value With Cloud DIY v. Converged Solutions Open source v. Proprietary Hybrid approach, on/off prem, federated

Seagate CSS group Seagate Cloud Systems and Solutions provides the tools to compete in today’s marketplace: Private Cloud Public Cloud High Performance Computing Components and Services

CSS Competitive Advantage Truly Unique Combination! + + Majority of cost = disk & systems Disk drive innovation opportunity > 2,000 petabytes of storage shipped in 2013 Cloud Storage Expertise 43,000+ cloud storage customers

Seagate CSS Systems and Solutions Private Cloud Solutions installed in Customer data center Operated by Customer or by Seagate Flexible financing / ownership options Object/File Storage Appliances and Hardware Reference Designs Solutions for DIY Customers High quality building blocks Services Disk based storage Flash storage StrataStor Racks Modular Enclosures Embedded Storage Platforms Disks and Flash Embedded Application Platforms StrataStor Enclosures Hybrid eVault Cloud Services Lustre Based Solutions CS-1500 CS-6000 & CS-9000/T Secure Data Appliance Hadoop on Lustre Connector Components for custom HPC solutions StratoStor OneStor Public Cloud Services provided over the Internet Solutions are installed in Seagate’s data centers Performance Computing Market Leading Solutions High Quality Components ClusterStor Bottomless and Forever Object Storage Service Plug ‘n Play NAS Gateway

Thank you!