1. Storage Systems Market Analysis Dec 04

3. Storage Market & Technologies

4. World Wide Disk Storage Systems Market Analysis

5. External Storage Systems Market Structure

6. External Storage Revenue growth projections

7. High Capacity Low Cost Drive Summary

9. Long Term Trends for RAID Technology Raid Commoditization Basic function well understood RAID, Failover / Fail Back, Drive rebuild, Cache Several low cost vendors with “Good Enough Solutions” Prices and Costs falling steadily Raid Offload Basic feature function being pushed into silicon Single chip solutions coming from several vendors Ivivity, Istor, Aristos Removes RAID engine as bottleneck Firmware features now in silicon Huge improvement in I/O rates Performance under failure None shipping in Volume yet Large Disk Drive RAID rebuild issues – RAID 6 & RAIDn Rebuild times on failure can be measured in days Probability of a second failure relatively high Two failures with traditional RAID protection loses whole data set New Algorithms required

10. RAID Algorithms

11. Market Overview and Trends Forecasted SCSI to SAS transition drivers Ability to use SATA or SAS depending upon need Parallel vs Serial Architecture Cable Length and bulk Low cost infrastructure Performance 2Gb to 4 Gb transition drivers Ease of Migration (2Gb / 4Gb interchange Performance increase Faster Controllers Faster drives Enclosure trends 2U 3.5” and 2.5” High density Long Term Trends RAID commoditization Raid offload AS and new architectures

12. SCSI to SAS Transition Internal DrivesInternal ArraysMainstreamEntry RAID IDC View:  Gradual take up of SAS in a low cost server environment.  Adoption into arrays by late 05 in direct attach environments.  Entry RAID systems emerge Q4 2006  SAS becomes the mainstream by Q2 2007, with SCSI still commanding a presence.  Very gradual and cautious take up of SAS Drive Vendor View:  SAS drives begin to ramp in Q4 2004.  By Q1/2 2005, SAS drives are common in internal arrays and driving a rapid take up.  Entry RAID systems are implemented in volume by late 2005  SAS becomes the mainstream by early 2006  A rapid adoption of SAS due to the performance and cost saving benefits over Parallel SCSI. Internal Drives Mainstream Internal Arrays Entry RAID

13. FC trends – 2Gb to 4Gb Total FC Numbers 2002 – 2007 from IDC. Volumes for total year not per QTR eg: 4GB FC 2004 is Zero 2005 is 4,625 Breakdown by FC Interface speed Xyratex view EarlyMidLate ?

14. Enclosures 2U Enclosures Will likely be the standard for 3.5” SAS enclosures Lower cost per unit Lower increment of capacity Similar to 14/16 on a per slot cost basis Expected to be the standard for 2.5” enterprise systems Very high I/O density (5 to 6k I/Ops) Very low cost per slot (Similar overall cost to 3U wit 2x the slot count) High storage density, With 144GB drives over 4TB in 2U Internal Rack JBOD 2.5” will be 1U with 10 or 12 drives High Density Enclosures coming from several vendors All have design compromise Top Loader (Xyratex, ATA Beast) Front loader (multiple drives per carrier) Power issue for non-SATA drives for greater than 40 drives High density for storage Some cost per slot savings

15. Emerging 1U / 2U Storage Appliance Market Integrated Server / Storage Products Network attachment GbE Block and File Management Systems 1U Enclosures 4 SATA Drives, ATX (P4) Motherboard, IPMI, GbE, Dual Inlet Power. 1/2 TB storage solution 2U Enclosures 12 SATA Drives, E-ATX (Dual Xeon) Motherboard, IPMI, GbE, Dual redundant Power 4/6TB storage solution Over 25 bids in progress 2005 Revenue and Investment Opportunity

16. Storage Sub Systems Classes 3.5in Drives SATA via SAS or FC 8, 12, 14 & 16 3.5in FC/SATA/SAS/SCSI 2.5in Drives SAS & FC Traditional General Purpose High Performance Bulk Storage “Not All Data Is Equal” Storage Systems can now be tailored to the Application

17. Capacity SCSI SSA FCAL SATA SAS Connectivity Capability SCSI SSA FC iSCSI SAS Management RAID HA Compression Encryption STRATEGY 1: Move along X-axis Best of Breed Disk Enclosures STRATEGY 2: Move along Y-axis Best of Breed Interconnectivity STRATEGY 3: Move along Z-axis Best of Breed Capabilities C3 Strategy: Capacity, Connectivity and Capability Modular Design Strategy: Capacity, Connectivity, Capabilities; C3

19. “The Box” is changing to meet new requirements Basic IT Infrastructure Lots of different boxes often connected together Multiple interconnect fabrics to develop, install and manage

20. Basic IT infrastructure Dedicated Processor Systems, External Dedicated Fabrics, Networked Storage “The Box” is changing to meet new requirements

21. Next Generation IT infrastructure Blade Processor Systems, Internal fabrics, High Density Networked Storage High Density Networked Storage System Shared I/O To LAN, WAN & Storage High Bandwidth Interconnect High Density Processor Blades

22. A New Type of Box – Integrated System Issues Blade Server Utility Computing Modules Shared I/O & Clustering Switch Shared IO Modules High Density Storage Sub Systems Power Density 2KW to 10KW per Rack Thermal Management Increased Device Density Server Systems to Blades 3.5” to 2.5” Disk Drives EMI / RFI Constraints High Density Ultra High Speed Devices 10 - 30 Gb/sec channels for blades 4 -10 Gb/sec for Disk Drives 3 -10 Gb/sec for I/O

23. A New Type of Box – Integrated System  Scalable ‘in the box’ storage and servers  Highly integrated solutions  Emerging new middleware  Repurposing of processor tasks  Low Latency requirements  High Performance Interconnect  Shared storage I/O & Storage  Resiliency versus Redundancy options  New Distributed Storage Environments  Information Life Cycle Management  Object Based Storage  Grid Architectures Blade Server Utility Computing Modules Shared I/O & Clustering Switch Shared IO Modules High Density Storage Sub Systems

25. RS-1600 Current Module Options 2Gb FC-AL JBOD I/O 2 loops of 8 Drives SFP Connections Enclosure Management SES 1Gb FC-AL JBOD I/O 1 loop of 16 Drives DB9 Connections Enclosure Management SES 1Gb FC-FC RAID FFx 128-512MB Cache Dual Host SFP DB9 Expansion RS232 RAID Mgt Encl Management SES 2Gb FC-FC RAID FFx2 128-512MB Cache 2 Host SFP Expansion SFP RS232 RAID Mgt Ethernet RAID Mgt* Encl Management SES Battery Cache Backup 2Gb FC-FC RAID X24 128-512MB Cache 2 Host SFP 2 Expansion SFP RS232 RAID Mgt Ethernet RAID Mgt Encl Management SES Battery Cache Backup 2Gb FC-FC RAID IFT 5251F 128-512MB Cache 2 Host SFP Expansion SFP RS232 RAID Mgt Ethernet RAID Mgt Encl Management SES Battery Cache Backup

26. The Xyratex X24 Controller