What s happening in the DataCenter? Chuck Smith, Vice President & GM Data Center & Hybrid Cloud March 2017
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1 What s happening in the DataCenter? Chuck Smith, Vice President & GM Data Center & Hybrid Cloud March 2017
2 Agenda HPE Market Viewpoint Datacenter Update and Portfolio Overview DCHC Org structure & priorities Q&A
3 Digital disruption is driving the idea economy Digital all around us anywhere, every day, everyone connected Every business is a digital business Changing every industry
4 Inside Forces Are Pushing Customers to Evolve IT Technology is a business strategy Developers are the new kingmakers DevOps is driving culture shifts Shadow IT is everywhere 4
5 To keep pace, IT must transform into a value creator Traditional IT Hosting workloads & applications Cloud Enabled, Mobile Ready Hybrid Infrastructure Rapidly creating and brokering new services Providing hardened systems & networks Predicting threats and managing risk Managing data Providing real-time insight & understanding Responding and reacting Delivering continuously Contain Cost Accelerate the velocity of positive change Create Outcomes
6 Demand for data center infrastructure is growing Massive data explosion Need for analytics expanding Compute end points exploding Technology and consumption shift Emerging applications
7 What about Data Centers themselves? DC Square Footage and Mix 1 : Total DC Sq. Footage growing at 3-4% annually, primarily driven by SP buildout, but flat growth through Total Global DC spending in 2017 alone estimated to be $87B, not including IT equipment. NA 42% Share. New Enterprise IT DC builds declining at 2.6% CAGR by 2021, still more than all Cloud DC s. Enterprise IT DC Sq footage crossover with SPs in 2020, primarily driven by Mega SP DC s at > 50% of total SP DC capacity. New SP DC builds growing at 16% CAGR by 2021, but growth rate declining after 2019, suggesting drop in SP/Cloud DC buildout. Total number of DC s will peak in 2019 with the primary growth being new mega SP DC s. Investment in existing DC s will continue. DC Infrastructure and Power 2 : Overall DC Power & infrastructure market growing at 10% CAGR through 2021 North America still largest share, growing at 7% CAGR, APAC at 15.4% through 2021 Enterprise and mid-size DC infrastructure investment will continue to grow at high single digit CAGRs through 2021 Significant investment in power efficiency, density and redundancy will continue to occur. Modular DC s and renovation will continue to drive investment. Key Verticals: Service Providers Telco s and Enterprise IT Government and Defense 1. IDC, Worldwide Datacenter Installation Census and Construction Forecast, , Jan Markets & Markets, WW Datacenter Infrastructure Forecast, Feb 2017 HPE Confidential Copyright 2016 Hewlett Packard Enterprise. The information contained herein is subject to change without notice. Hewlett Packard Enterprise Confidential 7
8 What s happening inside the DataCenter? Compute - Virtualized instances still growing fast, total virtualization flat to declining - Composable systems now adopted by industry. - Containers ramping fast in test & dev environments, primarily SP & Cloud. - Hyperconverged and object storage driving interesting optics for compute market. - HPC continues to grow at high single digits - MCS is GROWING at low single digits Storage - Shifting quickly to All Flash and growing rapidly - Most external storage growth in mid-range and low-end. - HyperConverged and Object driving technical crossroads. - Entry storage continues to evolve given above HC dynamics and direct attach growth - Cloud growth primarily from direct attach and overall data growth Networking - Software Defined architectures and API s driving the growth - Open systems and NOS platforms gaining traction outside of SP s and Telcos - Rapid shift to 25 and 100GB core infrastructure in bids and core DC fabrics - Silicon photonics still in its infancy but interest is strong SW Defined - Moving rapidly to open source in Test & Dev environments - Development environments (Jenkins, etc.) driving adoption - Open API s and architectures key to go forward DC plans - Composable the new industry moniker and capability HPE Confidential 8
9 We are innovating and leading across the industry Leader Leader Leader Leader Servers Disk Arrays Wired/Wireless Networks Integrated Systems This Magic Quadrant graphic was published by Gartner Inc. as part of a larger research note and should be evaluated in the context of the entire report. The Gartner report is available upon request from HP. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
10 Composable Infrastructure Defined (for Hybrid IT) Fluid Resource Pools Single infrastructure of disaggregated pools of compute, storage and fabric that boots-up ready for any workload Physical, virtual and containers Auto-integrating of resource capacity Software-Defined Intelligence Template-driven workload composition Frictionless operations Unified API Single line of code to abstract every element of infrastructure for full infrastructure programmability Bare metal interface for Infrastructure as a Service Unified API Software Defined Intelligence Fluid Resource Pools Composable Infrastructure
11 HPE Synergy A single platform architected for Composable Infrastructure Composable Compute Composable Storage Composable Fabric Composer
12 Accelerate the pace on HPE Storage Much to do but much to be proud of! Veeam 2016 partner of year! January ANNOUNCE! Enterprise 3PAR Midrange StoreVirtual 4335 Gartner Critical Capabilities #1 Overall Consolidation OLTP Server Virtualization & VDI Analytics Cloud Copyright 2016 Hewlett Packard Enterprise. The information contained herein is HPE Confidential and subject to change without notice. This document contains sensitive information and is intended for internal use only. Do not distribute externally. And JUST ANNOUNCED.. Compression All Inclusive licensing 3PAR to StoreVirtual VSA replication Ideal for ROBO & Test/Dev Online Import for EMC DMX 7 Year SSD Warranty (up from 5) And HPE so Confidential much more
13 A common management foundation is needed across infrastructure Accelerate customers transformation to hybrid IT VM Vending Private Cloud Hybrid Cloud Virtualize & Automate Private Clouds Traditional IT Global Public Clouds Converge & Virtualize Automate & Orchestrate Transform App & Service Delivery HPE OneView 13
14 HPE hyper converged user experience Hyper Converged for Hybrid IT Rapid Automated installation Unified Management Experience Distributed Environments Proactive Care Non Disruptive Automated Scaling Integrated Data Services (Compute, Storage, Backup) Scale Aligned Pricing Hybrid Cloud Integrated 14
15 Why HPE and SimpliVity? Together, we offer: The most complete, enterprise-class hyperconverged infrastructure in the industry + Expansive go-to-market capability, partner ecosystem, and consumption model offerings Powerful leadership in the growing Hybrid IT industry Confidential Internal Use Only 15
16 Hyperconverged category Strategic Priorities Combine SimpliVity s enterprise-class data services with HPE s industry leading user experience Integrate SimpliVity technology into HPE platforms and convert architecture to SW only Provide cloud-like agility and low TCO on prem Market Outlook $5.6B $4.7B $3.6B $150M $223M FY17 FY18 Rev $311M FY19 TAM Rev CAGR TAM 44% 25% Gross margin expected to increase from 51% in FY17 to 63% in FY19 Note: revenue includes services Innovation Roadmap HPE + SimpliVity HC HC380 HC250 1H FY17 2H FY17 FY18 SimpliVity for DL380 Gen 9 Update 3: Install improvements VMWare MSFT Azure SimpliVity for DL380 Gen 10 HC 380 with HCOE 2.0 SimpliVity with Composable SimpliVity with HCOE 2.0 on Gen 10 appliance SimpliVity transition Innovation Spotlight HC 380 DEPLOY at cloud speed SIMPLIFY IT Operations REDUCE CAPEX costs Simple experience with 5 clicks deployment Cloud and composableready VM & app vending New HPE SimpliVity HyperConverged World-class simple user experience and data services Global Unified Mgmt Accelerated Data Efficiency Industry leading data services SimpliVity Built-in Data Protection 16
17 Combines the best user experience with rich data services Now Now HPE Hyper Converged 380 Intuitive user experience Self-service VM vending portal Deploy VMs at cloud speeds Operate with cloud efficiency #1 in CRN usability Built-in enterprise data protection and resiliency Automated storage utilization and efficiency Always-on compression and deduplication Policy-based VM-centric management Scores 4.9 out of 5 in Gartner Peer Insights HPE SimpliVity Confidential Internal Use Only 17
18 Integration Framework to support unified selling motion 1H 2017 Jan 2017 Feb 2017 Mar 2017 Apr 2017 May H 2017 (Q4) Product Roadmap HPE SimpliVity 380 with OmniStack ORDERS HPE SimpliVity 380 with OmniStack SHIPMENT HPE SimpliVity 380 with OmniStack 2.0 SimpliVity Sales/SA SimpliVity Sales Lead SimpliVity IB and new customer pursuit with HPE SimpliVity 380 with OmniStack Manage OmniCube existing customer commitments SimpliVity Sales aligned to region teams Lead SimpliVity IB and new customer pursuit with HPE SimpliVity 380 with OmniStack SimpliVity Sales integrated with incubation teams in regions Partner with EG account teams to drive HPE SimpliVity 380 with OmniStack and HC 380 HPE Sales and Incubation Continue selling HC 380 and Synergy in HPE systems and partner with SimpliVity and incubation sales on HPE SimpliVity 380 with OmniStack HPE sells HPE SimpliVity 380 with OmniStack, HC 380 and Synergy (Fully integrated selling motion and product launch) * Dates may vary by region/ be accelerated For those countries that require consultation with works councils or other employee representatives, this is not intended to provide country-specific complete information and in no way reflects that final decisions have been made at a country level. With respect to such countries, final decisions are subject to prior consultation with works councils and other employee representatives, as required, and in compliance with local laws. Confidential Internal Use Only 18
19 Campus Organization Approach Positioning for success in the Idea Economy Edgeline Networking Communication s Solutions Storage Servers Converged Datacenter Helion Infrastructure Software Aruba/Edge Data Center Infrastructure Group Software-Defined & Cloud Group MicroFocus Region Data Center & Hybrid Cloud
20 Enterprise Group Data Center & Hybrid Cloud Group - North America Region CHUCK SMITH NA Data Center & Hybrid Cloud REGINA MARES Executive Assistant A A A Group lead Direct report Secondary report A Indirect report LESLIE MAHER Enterprise Servers & Converged Systems PETER BRENNAN Storage & HyperConverged BU DAVID GASTON ProLiant Servers and Software TOM TYLER High Performance Compute JAS SOOD Planning & Operations SCOTT WIEST Data Center Technology & Architecture HITENDRA SONNY SONI Data Center Networking MARTY SANDERS Simplivity & Hyperconverged Sales HPE Confidential Internal Use only Do not forward
21 Priority Summary Core Business Drive 3PAR Storage across SLED ISS Core+Entry Storage Transactional High Performance Compute Mission Critical Servers New Products/Markets: Synergy Arista Simplivity/Hyperconverged SGI/New SLED
22 Why HPE wins Organized and aligned for today s environment Best in class Hybrid IT Portfolio Flexible acquisition and consumption models Strongest Partnerships in the industry
23 Thank You!
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