1. IBM Systems and Technology Group © 2009 IBM Corporation IBM System Storage – Tape Part 1 This document is for IBM and IBM Business Partner use only. It is not intended for customer distribution or use with customers.

2. IBM Systems and Technology Group © 2009 IBM Corporation Sales Conference 2 Agenda  IT challenges  Where does Tape fit?  IBM’s position and strategy for tape  Hot topics for tape  IBM Tape product portfolio overview  Competitive view  Review questions

3. IBM Systems and Technology Group © 2009 IBM Corporation Sales Conference 3 Today’s IT Environment  Massive Data Growth - By 2011, users will install almost 6.5 times the amount of terabytes that they installed in 2007.  Daunting Compliance and Data Security Requirements  Significant TCO and Energy Consumption Challenges

4. IBM Systems and Technology Group © 2009 IBM Corporation Sales Conference 4 TCO and Energy Costs  Long term storage costs must be optimized –Categorize (backup, archive)  Use the most cost effective storage to meet a variety of SLAs  Energy consumption must be controlled –Driven by a combination of forces: Energy Costs Regulations Limits of data center designs Energy scarcity Societal pressures Impact on the environment “Estimate that for every dollar spent on computer hardware, another 50 cents is spent on energy.”* *Source: IDC What is the greatest facilities problem with your primary data center? None of the above Poor location Excessive facility cost Insufficient raised floor Insufficient power Excessive heat 0%5%10%15%20%25%30%35% Gartner 2006

5. IBM Systems and Technology Group © 2009 IBM Corporation Sales Conference 5 TCO leadership still belongs to Tape  Cost Ratio to store long-term data on SATA Disk versus Tape is 23:1* –5 year TCO to store 2.4 PB of archive data –Including hardware, energy, and space costs –SATA disk system versus LTO-4 tape library –Energy costs of disk system was 290 times more than tape  A VTL with 20X data deduplication is still about 5X more costly than tape 23X 5X “Tape continues to provide the fiscal responsibility and functional value that enterprises require in the twenty-first century.” The Clipper Group The Cost Ratio for a Terabyte Stored Long-Term on SATA Disk versus LTO-4 Tape is about 23:1 For energy cost, it is about 290:1 *Source: The Clipper Group, “Disk and Tape Square Off Again” Report #TCG2008009LI, Feb 2008 290X

6. IBM Systems and Technology Group © 2009 IBM Corporation Sales Conference 6 Tape and Disk are Complementary for Optimal Performance, Archive, Data Protection and TCO Storage Manager Survey Results* 68% of current disk-only users plan to start using tape for long-term archiving 58% of current disk-only users plan to start using tape for short-term storage Virtual Tape Library Tape Library “Wikibon community favors hybrid solutions that combine disk with tape“ Bert Latamore, Wikibon, Sept. 6, 2007 Application Servers Backup Server VTLTape Library *Source: Fleishman-Hillard Research Nov. 2007

7. IBM Systems and Technology Group © 2009 IBM Corporation Sales Conference 7 Total Branded Tape Storage Revenue Share (Drives, Automation, Enterprise VT) Branded Tape Drive Revenue Share Branded Tape Automation Revenue Share IBM is #1 in the world for branded total tape revenue share 5 3/4 years running! #1 IBM continues as world wide tape revenue share leader for nearly 6 years running IBM is share leader in total drives and total automation Source: IDC, Worldwide Branded Tape Vendor Analysis, Jan 2009

8. IBM Systems and Technology Group © 2009 IBM Corporation Sales Conference 8 IBM Tape Systems Strategy  Tape Drives –Set the pace for the tape industry –Aggressively pursue information density  Tape Automation –Provide a comprehensive product line – entry to enterprise –Support client choice, co-existence, consolidation (3494-TS3500) –Incorporate emerging capabilities into the TS3500 architecture (e.g. Self managing archive, higher density frames)  Virtual Tape –Capitalize on ten years of tape virtualization experience to lead the next generation of exploitation –Provide the most comprehensive solution for both open and mainframe environments Implement a highly flexible architecture to offer scalability Add unique functionality to address pressing customer pain points –Restore and Recovery Times, Data Growth and Backup Window, Reliability Challenges, Regulatory and Legal Requirements, and Offsite Copy –Exploit new tape virtualization opportunities by adding new application functions (object storage, archive, data de-duplication) Any statements regarding IBM's future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only.

9. IBM Systems and Technology Group © 2009 IBM Corporation Sales Conference 9 What drives the tape business?  The primary focus for tape is business continuity / archive Backing up to tape is proven, dependable and cost effective –For some clients, tape is part of their electronic vaulting solution Advances in SAN and WAN technologies are removing inhibitors Virtual Tape is emerging as the preferred method of electronic vaulting 9

10. IBM Systems and Technology Group © 2009 IBM Corporation Sales Conference 10 By Providing a Comprehensive Tape Portfolio So how can IBM Tape help customers ? EntryMidrangeEnterprise LTO 3 & 4 TS1100 (3592) 3494 TS3200 (3573) TS3100 (3573) TS3310 (3576) TS7500 (open) Tape automation Tape virtualization TS3400 TS3500 (3584) Tape Drives LTO 3 & 4 HH LTO Media 3592 Media + TS2900 (3572) TS7650G (Dedup) TS7700 (mainframe)

11. IBM Systems and Technology Group © 2009 IBM Corporation Sales Conference 11 Trends and Hot Topics for Tape Virtual tape De-duplication Encryption Denser Tape Libraries Multi-site backup and recovery Customers want to simplify while lowering cost