ACCELERATING OUR JOURNEY TO THE CLOUD TONY PAGLIARULO, EMC CORPORATION

2 © Copyright 2011 EMC Corporation. All rights reserved. ACCELERATING OUR JOURNEY TO THE CLOUD Tony Pagliarulo Vice President, Business Technology & Service Delivery EMC Global IT AkamaiEdge 2011

3 © Copyright 2011 EMC Corporation. All rights reserved. I.T. BUDGET DILEMMA Source: Forrester Research, Inc., IT Budget Allocations: Planning For 2011, December 3, 2010

4 © Copyright 2011 EMC Corporation. All rights reserved. Today’s Realities IT Budget Dilemma Dramatic Information Growth Dedicated Customized Infrastructure Stacks Rapidly Changing Business Aging Data Centers ~100% Allocated-Under Utilized Information Security Solution Delivery Time Complex Monolithic Apps

5 © Copyright 2011 EMC Corporation. All rights reserved. IN A DECADE THE DIGITAL UNIVERSE WILL BE 35 ZETTABYTES 35,000,000,000,000,000,000,000 Source: 2010 IDC Digital Universe Study

6 © Copyright 2011 EMC Corporation. All rights reserved. In 2010… 88% OF FORTUNE 500 HAD BOTNET ACTIVITY ASSOCIATED WITH THEIR DOMAINS Source: Panda Labs Research

Enter The Cloud.

8 © Copyright 2011 EMC Corporation. All rights reserved. Cloud Attributes Elasticity Agility Mobility Self service Metered Usage 100% Virtualized Multi tenancy Cost Transparency

9 © Copyright 2011 EMC Corporation. All rights reserved. Waves Of Change Cloud Computin g Minicomputer Mainframe PC/ Microprocessor Networked/ Distributed Computing

10 © Copyright 2011 EMC Corporation. All rights reserved. EMC’s Mission To Lead Customers On Their Journey To Hybrid Cloud Computing And Transforming IT … By Enabling Them To Store, Manage, Protect, And Analyze Their Information Assets In A More Agile, Trusted, And Cost-efficient Way.

11 © Copyright 2011 EMC Corporation. All rights reserved. Private Cloud Is The First Step “35% Have Implemented A Private Cloud 30% More Will In 2011” GARTNER DATA CENTER CONFERENCE 2010 Enterprise ITPrivate Cloud Infrastructure Transformation 123

12 © Copyright 2011 EMC Corporation. All rights reserved. Private CloudEnterprise ITPublic Cloud Service Providers Create New Options Infrastructure Transformation

13 © Copyright 2011 EMC Corporation. All rights reserved. Hybrid Cloud Is The Destination Infrastructure Transformation

14 © Copyright 2011 EMC Corporation. All rights reserved. Hybrid Clouds Require Hybrid Technologies Infrastructure Transformation Managemen t Federatio n Trus t

15 © Copyright 2011 EMC Corporation. All rights reserved. Virtualize Mission Critical Applications Application Transformation Infrastructure Transformation

16 © Copyright 2011 EMC Corporation. All rights reserved. Build New Business Applications Application Transformation Infrastructure Transformation

17 © Copyright 2011 EMC Corporation. All rights reserved. Big Data Applications Have Arrived Application Transformation Infrastructure Transformation

18 © Copyright 2011 EMC Corporation. All rights reserved. CLOUD TRANSFORMS IT BIG DATA TRANSFORMS BUSINESS

19 © Copyright 2011 EMC Corporation. All rights reserved. !!! “Big Data Is Less About Size, And More About Freedom” ―Techcrunch !!! “Findings: ‘Big Data’ Is More Extreme Than Volume” ― Gartner “Big Data! It’s Real, It’s Real-time, and It’s Already Changing Your World” ―IDB “Total data: ‘bigger’ than big data” ― 451 Group THE ERA OF BIG DATA IS HERE…

20 © Copyright 2011 EMC Corporation. All rights reserved. Big Data: Not Just For Google and Facebook “Just as search engines have transformed how we access information, other forms of big data computing can and will transform the activities of companies, scientific researchers, medical practitioners, and our nation’s defense and intelligence operations.” Randy H. Katz UC Berkeley Edward D. Lazowska University of Washington Randal E. Bryant Carnegie Mellon University

21 © Copyright 2011 EMC Corporation. All rights reserved. Access Application From Any Device End User Provisioning Transformation Application Transformation Infrastructure Transformation

22 © Copyright 2011 EMC Corporation. All rights reserved. S E C U R I T Y A U T O M A T I O N A New Layering Of IT End User Provisioning Transformation Application Transformation Infrastructure Transformation

23 © Copyright 2011 EMC Corporation. All rights reserved. EMC IT’s Cloud Vision Traditional Apps SaaS “Next-Gen” Cloud Apps Privat e Cloud Public Cloud Integration and Federation Virtualization Information Security Virtual Clients

24 © Copyright 2011 EMC Corporation. All rights reserved. Built on EMC’s Cloud Portfolio Isilon Greenplum Data Domain, Avamar, Networker VNX VMAX View Next-Gen Cloud Applications Ionix VPLEX Traditional Applications Big Data

25 © Copyright 2011 EMC Corporation. All rights reserved. The EMC Services Portfolio Big Data Acceleration Enterprise Applications Business Continuity & Resiliency VMware Cloud Acceleration Organizational Transformation Governance, Risk & Compliance Application Transformation Big Data Applications

26 © Copyright 2011 EMC Corporation. All rights reserved. Three Cloud Models Are Emerging Storage PoolCPU PoolNetwork Verticalization Virtual Infrastructure VirtualizationÜber-Cloud Applications Database Operating System Middleware Server Storage Applications Database Operating System Middleware Network

27 © Copyright 2011 EMC Corporation. All rights reserved. EMC Cumulative 8 Year Technology Investment R&D $10.5B M&A $14B Our Journey To The Cloud/Big Data 2003 AND BEFORE

28 © Copyright 2011 EMC Corporation. All rights reserved. The Financial Strength To Invest Heavily All data for calendar year 2010 except 2011 Fortune 500 ranking and market capitalization, which is as of 21 April Fortune 500 Rank Revenues$17B 2010 R&D Investment$1.9B 2010 R&D As A Percentage Of Revenues  Free Cash Flow$3.4B 2010 Total Cash And Investments$9.5B Market Value$59B

29 © Copyright 2011 EMC Corporation. All rights reserved. Why EMC For Your Journey? Compelling Vision And Strategy. Market-leading Technology, Products, Services & Support. World-class Partner Ecosystem. Record Financial Strength.

30 © Copyright 2011 EMC Corporation. All rights reserved. EMC IT at a Glance User Profiles24,000 “internal” users50,000 “internal” users IT Environment 70,000 customers and partners 5 data centers, 960TB storage 400,000+ customers and partners 5 data centers, 10 PB storage Business Applications ~ 400 applications and tools~500 applications and tools Virtualization2,000 physical servers ~ 6,000 OS images (worldwide) 80% of all servers virtualized Global Support50+ countries and 15 languages80+ countries and 20 languages

31 © Copyright 2011 EMC Corporation. All rights reserved. EMC IT’s Journey to the Cloud % Virtualized 86% 100% 80% 40% 30% 15% Run IT as a business Virtualize Mission Critical applications Development, test, and IT-owned applications WE ARE HERE IT PRODUCTION Efficiency BUSINESS PRODUCTION Quality of Service IT AS A SERVICE Agility

32 © Copyright 2011 EMC Corporation. All rights reserved. IT Production Approach Consolidated infrastructure Tiered storage Standardized on x86 architecture Introduced server virtualization Transitioned to disk based backup Optimized data center

33 © Copyright 2011 EMC Corporation. All rights reserved. EMC IT’s Journey to the Cloud % Virtualized 86% 100% 80% 40% 30% 15% Run IT as a business Virtualize Mission Critical applications Development, test, and IT-owned applications WE ARE HERE IT PRODUCTION Efficiency BUSINESS PRODUCTION Quality of Service IT AS A SERVICE Agility

34 © Copyright 2011 EMC Corporation. All rights reserved. Business Production Approach Swept the floor of legacy stacks Created virtualized, tiered, shared platforms Integrated management and security De-duplicated backup Planned next generation data center

35 © Copyright 2011 EMC Corporation. All rights reserved. Mission Critical Applications Virtualized Exchange 2007 EMC.com eServices Electronic License Management Business Intelligence/ Enterprise Reporting eBusiness Suite Product Lifecycle Management Knowledge Management Document Management System Active Directory DNS

36 © Copyright 2011 EMC Corporation. All rights reserved. Socialize with internal customers and gain executive buy-in Standardize for efficiency and simplify for savings Define new measures and baseline performance Embrace a virtual-first policy – and don’t turn back Invest in skills and education Lessons Learned

37 © Copyright 2011 EMC Corporation. All rights reserved. Benefits Along the Journey % Virtualized 86% 100% 80% 40% 30% 15% Run IT as a business Virtualize Mission Critical applications Development, test, and IT-owned applications WE ARE HERE IT PRODUCTION Efficiency BUSINESS PRODUCTION Quality of Service IT AS A SERVICE Agility $11M $6M Data Center Equipment Savings 55% of OS Images Virtualized 60% of Mission Critical Apps Virtualized 30M Pounds of CO 2 Reduced OpEx Savings $12M $74M Data Center Equipment Savings 170% Storage Admin Productivity Up 34% Increase in Energy Efficiency 60M Pounds of CO 2 Reduced Power and Space Savings $$ OpEx Savings t Time to Provision  Customer Sat  Cost Transparency

38 © Copyright 2011 EMC Corporation. All rights reserved. IT as a Service Increased IT agility Service consumption mindset Service-based pricing Service level expectations Integrated cloud architecture Integrated GRC Optimizing IT Production for Business Consumption

39 © Copyright 2011 EMC Corporation. All rights reserved. IT as a Service Framework User Interface as a Service Software as a Service Platform as a Service NetworkComputeStorage and Backup Converged Infrastructure Infrastructure as a Service Security Integration Layer Application/Web Servers Development Tools Content Management Business Intelligence Business Applications Virtual Desktops Choice ComputingMobility Service Management Standardization Simplification Management and Automation Database Platforms GRC

40 © Copyright 2011 EMC Corporation. All rights reserved. An Organizational Evolution Is Underway Imperative Business and financial management IT Service Management New focus area Cloud service operations management Infrastructur e as a Service Platform as a Service Virtual Desktop as a Service Enterprise Applications as a Service New roles emerging Cloud Architect, Cloud Admin Cloud Capacity Planner IT Automation Engineer Virtual Infrastructure Architecture Virtual Infrastructure Management SecuritySystemsStorage Backup and Recover y Data Center Network s Traditional roles are still essential

41 © Copyright 2011 EMC Corporation. All rights reserved. Takeaways Cloud Computing presents an incredible opportunity Competitive pressures will force IT organizations to evolve towards a service-provider business model “Front office” business roles are becoming necessary and integral to enable this transformation Technology convergence, virtualization and automation are creating new, high value IT roles It’s a journey

42 © Copyright 2011 EMC Corporation. All rights reserved.

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