What Would Happen if Your Customers Never Purchased Another Network? Brocade Network Subscription – Partner Enablement

Legal Disclaimer All or some of the products detailed in this presentation may still be under development and certain specifications, including but not limited to, release dates, prices, and product features, may change. The products may not function as intended and a production version of the products may never be released. Even if a production version is released, it may be materially different from the pre-release version discussed in this presentation. Nothing in this presentation shall be deemed to create a warranty of any kind, either express or implied, statutory or otherwise, including but not limited to, any implied warranties of merchantability, fitness for a particular purpose, or non-infringement of third-party rights with respect to any products and services referenced herein. ADX, Brocade, Brocade Assurance, Brocade One, the B-wing symbol, DCX, Fabric OS, ICX, MLX, SAN Health, VCS, and VDX are registered trademarks, and AnyIO, HyperEdge, MyBrocade, NET Health, OpenScript, and The Effortless Network are trademarks of Brocade Communications Systems, Inc., in the United States and/or in other countries. Other brands, products, or service names mentioned may be trademarks of their respective owners. © 2012 Brocade Communications Systems, Inc. Proprietary Information

By 2015, at least 50% of new managed LAN deals will be delivered on a utility (price- per-port) basis. © 2013 Brocade Communications Systems, Inc. Neil Rickard, Gartner December 2, 2012 Utility Managed-LAN Services Give LANs Cloudlike Flexibility

© 2013 Brocade Communications Systems, Inc. Reseller is paid in full upon:  Submission of a Signed Contract  Installation of Brocade IP Equipment Eligible for all Brocade channel incentives – same as cash 2013 VAR Compensation

Repeat Orders  VAR Sets Customer Price  VAR Gets Brocade Network Subscription Quote from Brocade Capital  Append Contract with a New BNS Schedule  Order via Tech Data just like initial order © 2013 Brocade Communications Systems, Inc.  83% of our Network Subscription customers have come back for additional products and services  Brocade Network Subscription deals are 4X larger than cash deals  Repeat orders exceed initial installation

Operations & Processes 66 © 2013 Brocade Communications Systems, Inc. Submit End-User Price to Brocade Capital for Network Subscription Quote Place the order with Tech Data & Invoice Brocade Capital for the Total Sales Amount  Identify and close opportunity  Brocade will buy back the BNS receivable from the VAR at an agreed upon cash price  Brocade will contract directly with the customer for monthly payments Obtain Price Quote From Tech Data

The "pay as you grow" model supported in the VDX family allows customers to pay for only the required capacity, either through port-based licensing or a monthly subscription, which provides additional differentiation and enhances Brocade's data center vision. © 2013 Brocade Communications Systems, Inc. Magic Quadrant, Data Center Network Infrastructure February 11, 2013 Brocade Network Subscription Identified as a Core Strength of Brocade’s Portfolio

Service Providers Corp Datacenters Managed Services © 2013 Brocade Communications Systems, Inc. Vertical Market – Target Alignments Government HealthcareEducation

Flat Markets Pay-for-use and predictable budgeting Refresh technology without additional capital Down Markets Ability to flex down in part or in whole without penalty Close Sales Regardless of Economic Conditions Brocade Network Subscription Simply Works Down MarketsFlat Markets Growth Markets Ability to quickly expand capacity without financial constraints or concerns Rapid provisioning © 2012 Brocade Communications Systems, Inc. Proprietary Information Growth Markets

 Bridge the chasm between the desire and the decision to purchase with Brocade’s industry- leading financial portfolio of products  Maximize account control  Win customers with financial incentive packages that retain profitability and promote early adoption © 2013 Brocade Communications Systems, Inc. CONFIDENTIAL—For Internal Use Only Never Leave Money on the Table Leverage the Benefits of Brocade Financing 67% of customers prefer dealing with vendors who offer financing options --IT Leasing and Financing Survey, IDC, March, 2012

SIMPLY CALL BROCADE CAPITAL We have industry-leading financing plans that let you control the future! (800) or (408) EMEA +44 (0) The Next Time You’re Looking to Open Doors and Increase Order Size… © 2013 Brocade Communications Systems, Inc.