NVMe Markets: Rising at Breakneck Speed with Even Better Days Ahead Eric Burgener, Research Vice President Infrastructure Systems, Platforms and Technologies Group August 2019 © IDC

Enterprise Storage Market Forecast, 2017 - 2022 CAGR NAFA+ 67.2% SAFA -0.4% HFA -1.8% HDD -13.2% * NVMe-based All Flash Array © IDC

The Transition to NVMe “By 2021, NAFAs will drive over 50% of all primary external storage revenues” A transition that is hitting performance-sensitive primary workloads over the next 3-5 years “By 2023, AFAs will account for 53.2% of the external storage market” © IDC

Drivers of NVMe Deployment MATURING STANDARDS EXTERNAL STORAGE Higher capacity Better capacity utilization Enterprise data services High availability NVMe over FABRICS WORKLOAD REQ’TS VENDOR PRICING STRATEGIES Sub 100 microsec latencies Real-time NGAs* AI/ML-driven workloads Social media platforms High performance DBs SERVER-BASED STORAGE Lower latencies than SCSI Higher throughput density Predictable performance BROADER AVAILABILITY * Next generation applications © IDC

The NAFA System Solution NVMe storage controllers NVMe storage devices Available in different storage architectures Some support legacy SANs while others support only NVMe-oF THE ARRAY THE HOST Some with mandatory client side footprints, some without Optional hardware acceleration HOST CONNECTIONS SCSI or NVMe switched fabric SANs SCSI: FC, Ethernet NVMe-oF: FC, Ethernet, Infiniband NVMe-oF Ethernet: RoCE, iWARP, TCP, NoE NVMe-oF can support RDMA but doesn’t have to (FC, TCP, InfiniBand etc.) © IDC

NAFAs Are Widely Available Pure Performance NAFAs Data Services NAFAs Dell EMC PowerMax HPE Primera Huawei OceanStor Dorado V3 IBM 9100 Kaminario K2.N NetApp A800 Pure Storage FlashArray//X Violin Systems XVS8 Western Digital N-Series Other established providers Apeiron Data E8 Storage Excelero EXTEN Pavilion Data Other startups THESE TEND TO ONLY SUPPORT NVMe-oF HOST CONNECTIONS © IDC

NVMe Purchase Drivers Source: IDC, 2018 Sample Size N = 401 © IDC

The Key NVMe Purchase Driver: Performance What aspect of “NVMe performance” was most important to you? Source: IDC, 2018 Sample Size N = 401 © IDC

Key Drivers of NAFA Platform Selection Source: IDC, 2018 Sample Size N = 401 © IDC

Broad Production Use of NVMe Are you using NVMe technology for production workloads? Source: IDC, 2018 Sample Size N = 401 This refers to NVMe in any storage architecture, not just NAFAs © IDC

High Satisfaction with NVMe How satisfied are you with your experiences with NVMe so far? Source: IDC, 2018 Sample Size N = 401 This refers to NVMe in any storage architecture, not just NAFAs © IDC

Two Deployment Models DEDICATED WORKLOAD MIXED WORKLOADS Multi-tenant management Enterprise data services Proven, mature OS DEDICATED WORKLOAD Lowest latencies Fewer data services © IDC

Factors Impacting NVMe Deployments Relative to SCSI Equal or lower pricing driving faster installed base penetration Some vendors still maintain a price premium for NVMe NVMe/TCP NVMe performance with no custom content This will be the volume NVMe-oF deployment platform Evolving Workloads Real-time nature and scale of NGAs will demand NVMe more often Workload consolidation to drive better infrastructure efficiencies © IDC

Workloads Driving NVMe Deployments “By 2021, 70% of IT organizations will have at least one real-time big data analytics workload that they ALSO consider mission-critical” Eric Burgener Research VP IDC Source: IDC, 2018 Sample Size N = 401 © IDC

Developments in Enterprise Storage Slow move towards more server-based storage architectures Benefits of software-defined storage largely driving this both on-prem and in the cloud NVMe/TCP Will be the volume leader due to its “off the shelf” nature Will enable HCI to go after a broader set of enterprise workloads Availability of persistent memory and storage-class memory (SCM) options on data services-based NAFAs Will develop further over the next 12 to 18 months Artificial intelligence/machine learning Internal to systems as well as cloud-based predictive analytics A change in deployment models for unified storage Driven by NVMe performance and better multi-tenant management functionality for “peer protocol” implementations © IDC

Trends of Note with NVMe Digital transformation is driving infrastructure modernization investments High rate of Next Generation Application (NGA) deployment a driver of NVMe growth Hyperscalars are deploying a lot of server-based NVMe storage ODM Direct is the highest growth enterprise storage systems segment with an 8.9% CAGR (5 years) and will hit $20B in 2023 (26.5% of overall enterprise storage) Storage-class and persistent memory options still limited due to device availability and pricing But vendors starting to support the capability © IDC

Key Take Aways FOR VENDORS FOR END USERS Workload requirements are the key purchase criteria NVMe performance will be a short term differentiator Established vendors need both SAFAs and NAFAs At least consider a “parity” pricing approach (NVMe and SCSI) FOR END USERS Plan your transition to NVMe for primary workloads over the next 3 years Plan carefully for NVMe power consumption Consider how best to leverage NVMe/TCP Match storage architectures to workload requirements © IDC

Recent IDC Research Publications on NVMe Transition to NVMe Should Include a Review of System-Level Power Consumption, (IDC #US45151919, June 2019) IDC Innovators: NVMe/TCP, 2019 (IDC #US45088519, June 2019) Violin Systems Drives Compelling Value for Enterprises with Its Extreme Performance Storage Platforms (IDC #US44974419, April 2019) IDC TechBrief: Persistent Memory and Storage-Class Memory (IDC #US44891819, March 2019) Enterprise NVMe Growth and Use Cases (IDC #DR2019_BS2_EB, March 2019) Enterprise NVMe Market Developing Quickly with Offerings from Start-Ups and Established Players Alike (IDC #US44852719, February 2019) © IDC

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