EMC & VMWARE STRATEGIC FORUM NEW YORK MARCH David Goulden President & COO. Copyright 2013 EMC Corporation. All rights reserved.

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1 1 EMC & VMWARE STRATEGIC FORUM NEW YORK MARCH David Goulden President & COO

2 2 The Business Drivers Increase Revenue Lower Operational Costs Reduce Risk

3 3 CLOUD TRANSFORMS IT Lower Operational Costs

4 4 The Software-Defined Data Center Abstract, Pool And Automate Virtualization Software Software Defined Compute Software Defined Storage Software Defined Network Software Defined Security LEVERAGE INTELLIGENCE Server Storage Network Security Physical Hardware

5 5 Software-Defined Storage Software Defined Compute Software Defined Storage Software Defined Network Software Defined Security? WHAT IS DRIVING INNOVATION IN ARRAYS AND STORAGE SOFTWARE? VMAX VNX Isilon 3 rd Party Commodity

6 6 Workloads Will Drive Storage Innovation Consistently Good Performance Eventual Consistency Of Data Data Loss Not A Disaster Performance Great Performance Consistent Data Data Loss A Disaster Consistently Good Performance Consistent Data Data Loss A Disaster No Service High Service Performance Good Enough Capacity Optimized ($/GB) Data Loss Not A Disaster Performance Good Enough Capacity Optimized ($/GB) Data Loss A Disaster Capacity

7 7 Workloads Will Drive Storage Innovation Performance No Service Motion Video Tech Apps HPC Home Directories Decision Support App Dev Transaction Processing VM Infrastructure THE BLUE ZONE High Service Online Archive Web Content IT Content Mgmt. Capacity

8 8 Workloads Will Migrate To Private Clouds Performance Hybrid Cloud Enterprise SaaS THE BLUE ZONE No Service Private Cloud Virtual Private Cloud High Service Private Cloud Virtual Private Cloud Capacity

9 9 Our Strategy : Best Of Breed Storage Performance VMAX THE BLUE ZONE VNX No Service High Service Isilon Capacity

10 10 Storage Infrastructure Management Two Suites, One Add-On Pack, One UI Service Assurance Suite Storage Operations Pack Isilon VNX VMAX 3 RD PARTY SRM Suite

11 11 Integrates With VMware For End-To-End Management Of Infrastructure & Applications vcenter Operations Manager Service Assurance Suite Storage Operations Pack Isilon VNX VMAX 3 RD PARTY SRM Suite

12 12 Seek New Workloads & Leave No Gaps Performance VMAX THE BLUE ZONE No Service VNX VNX High Service Isilon Isilon Capacity

13 13 The EMC Portfolio vs. The Competition Performance VMAX THE BLUE ZONE No Service VNX High Service Isilon Capacity

14 14 Best-Of-Breed And Backup To Match Performance LEADER HIGH-END STORAGE VMAX THE BLUE ZONE No Service LEADER SCALE-OUT NAS STORAGE LEADER MIDRANGE STORAGE Isilon VNX LEADER PURPOSE BUILT BACKUP APPLIANCE High Service Capacity

15 This Strategy Has Served Us Well! Worldwide External Storage Revenue Share 50% 45% 40% 35% 30% 25% 20% 28% 30% 26% 28% 23% 26% 23% 30% EMC 15% 10% 5% 0% Other Suppliers IBM NetApp HP Hitachi Dell Sun/Oracle Source: IDC, March 2013 Copyright 2013 EMC Corporation. All rights reserved. 15

16 16 Traditional Apps : Growth Performance Traditional Applications No Service M M 70% High Service Block / File Storage Transactional Consistency Little Tolerance For Data Loss Hardware-Based Resiliency Sources: IDC, Gartner, AWS Workload Estimates* Capacity

17 17 Traditional Apps : Deployment In 2016 Performance No Service 4% 10% 86% High Service Public Cloud Virtual Private Cloud Private Cloud Sources: IDC, Gartner, AWS Workload Estimates* Capacity

18 18 Blue Zone Strategy : VMAX Cloud Edition PLATINUM PLATINUM GOLD SILVER BRONZE GOLD SILVER Service Catalog Aligned With Cloud Operating Models Simple Linear Pricing Buy In Smaller Blocks Without Price Penalties Pre-Deploy & Pay As You Consume Faster Time To Deployment BRONZE

19 19 Then Cloud-ify Everything Else SP s : First Mover Advantage Jumpstart Storage Automation Prospects : New Conversation Dramatically Simplify The Purchase PLATINUM SILVER GOLD BRONZE VMAX VNX RECOVER POINT VPLEX DATA DOMAIN AVAMAR

20 20 Workloads Will Grow In Public Clouds Performance Hybrid Cloud Enterprise SaaS No Service Private Cloud Virtual Private Cloud High Service Public Cloud Storage As-A-Service Online Archive Web Content Capacity

21 21 EMC Atmos : Public Cloud Storage Performance VMAX THE BLUE ZONE No Service VNX High Service Isilon Atmos Capacity

22 22 Today : Atmos 2.0 Globally Distributed Architecture Amazon S3 API Compatibility Dense, Commodity Hardware 100 S OF PETABYTES BILLIONS OF OBJECTS

23 23 Public Cloud Is Not Standing Still! Performance No Service High Service Private Cloud Virtual Private Cloud Public Cloud Capacity

24 Workload Growth Performance Next Gen Cloud Applications Traditional Applications No Service M M 700% M M 70% High Service HDFS / Object Storage Eventual Consistency Tolerance For Data Loss Software-Based Resiliency Block / File Storage Transactional Consistency Little Tolerance For Data Loss Hardware-Based Resiliency Sources: IDC, Gartner, AWS Workload Estimates* Capacity

25 25 Next Gen Cloud App Deployment In 2016 Performance No Service 39% 12% 49% High Service Public Cloud New Architecture Virtual Private Cloud Existing & New Architecture Private Cloud Existing & New Architecture Sources: IDC, Gartner, AWS Workload Estimates* Capacity

26 26 New Applications, New Architecture The Basics Native HDFS & Amazon S3 API Built For Service Providers Enterprise Ready Globally Distributed Architecture Self-Provisioning & Managing Commodity Compute Commodity Storage

27 27 Objects Run Against Existing Arrays And We Offer Choice : EMC & Non-EMC Arrays! VMAX VNX Isilon 3 rd Party Commodity

28 28 What About File Access? Abstract The Intelligence From Isilon! VMAX VNX Isilon 3 rd Party Commodity

29 29 What About Block Access? Abstract The Intelligence From VNX & VMAX! VMAX VNX Isilon 3 rd Party Commodity

30 30 Foundation Of Software Defined Storage Block, File & Object Access Constitute The Data Plane Software Defined Storage Data Plane VMAX VNX Isilon 3 rd Party Commodity

31 31 Control Plane Manages & Automates Virtualization & Management Of Storage Drives Efficiency Software Defined Storage Control Plane Data Plane VMAX VNX Isilon 3 rd Party Commodity

32 32 Manages Data Plane And Arrays Directly Standardize Management Across Existing & New Architectures Software Defined Storage Control Plane VMAX VNX Isilon 3 rd Party Commodity

33 33 Integrates With OpenStack & Hyper-V Software Defined Storage Control Plane Data Plane VMAX VNX Isilon 3 rd Party Commodity

34 34 VMware : Integrated Control Plane vcloud Automation Center vcenter Ops Manager Software Defined Storage vsphere Virtual SAN Control Plane Data Plane VMAX VNX Isilon 3 rd Party Commodity

35 35 Layer On Higher Data Services vcloud Automation Center vcenter Ops Manager Software Defined Storage Control Plane Data Plane VMAX VNX Isilon 3 rd Party Commodity

36 36 Or Put Another Way Our Customers Will Be Able To Build A Web Scale Data Center Without Hiring 1000 PhDs

37 37 Total Workload Deployments In 2016 Performance Existing Architecture : $32BN (4% CAGR) New Architecture : $8BN (24% CAGR) No Service 12% 10% 78% High Service Public Cloud New Architecture Virtual Private Cloud Existing & New Architecture Private Cloud Existing & New Architecture Capacity Source: IDC, Gartner, AWS Workload Estimates IDC Worldwide Enterprise Storage Systems , IDC Worldwide Enterprise Storage for Public and Private Cloud , IDC Worldwide Quarterly Disk Storage Systems Forecast, IDC Storage Workloads 2012, EMC Analysis

38 Economics Of Cloud : TCO By Workload 41.3 ERP ($K/MONTH) Compute Network Storage 16.6 Admin Public Cloud++ Public Cloud On Premise >99.85% 99.85% % Source: AWS Pricing, Forrester, Customer Interviews, EMC IT, internal Analysis Excludes Cost Of SW Licenses, Except OS; Power, Cooling / Floor Space Cost Allocation Included In Compute, Storage, & Network For On-Premise Copyright 2013 EMC Corporation. All rights reserved. 38

39 Economics Of Cloud : TCO By Workload 41.3 ERP ($K/MONTH) TIER4 STORAGE ($K/MONTH) 8.2 Compute Network Storage 16.6 Admin Public Cloud++ Public Cloud On Premise >99.85% 99.85% % Public Cloud On Prem VNX On Prem Isilon Does not include cost of network equipment required to support cloud storage. Based on 3/4/2013 pricing & 100 TB storage Cost optimized version of VNX5300. Based on 200 TB of raw & 105 TB of usable capacity Isilon NL400 with 4 TB drives. Based on 144TB of raw and 115TB usable capacity Source: AWS pricing, Forrester, customer interviews, EMC pricing, EMC IT, internal analysis Copyright 2013 EMC Corporation. All rights reserved. 39

40 Economics Of Cloud : TCO By Workload ERP ($K/MONTH) 28.0 TIER4 STORAGE ($K/MONTH) ASSUMES 40% CPU UTILIZATION ON PREMISE HADOOP ($K/MONTH) 70.2 Public Cloud++ Public Cloud On Premise >99.85% 99.85% % Public Cloud On Prem VNX On Prem Isilon Public On Cloud Premise Storage Intensive Public On Cloud Premise Compute Intensive Power, cooling and floor space cost allocation included in compute, storage, and network for On-Prem. Exclude Sales Tax on AWS Services; EMR and GP HD licenses included in AWS and On-Prem computes. Source: AWS pricing, Greenplum team, internal Analysis Copyright 2013 EMC Corporation. All rights reserved. 40

41 41 Economics Of Cloud : TCO By Workload ERP ON PREMISE ($K/MONTH) 16-32% 41.3 LOWER COST TIER4 STORAGE ON PREMISE ($K/MONTH) 40-63% LOWER COST ASSUMES 40% CPU UTILIZATION ON PREMISE ON PREMISE 13% LOWER COST 36.4 HADOOP ON PREMISE ($K/MONTH) 15% 70.2 HIGHER 60.9 COST Public Cloud++ Public Cloud On Premise >99.85% 99.85% % Public Cloud On Prem VNX On Prem Isilon Public On Cloud Premise Storage Intensive Public On Cloud Premise Compute Intensive

42 Availability Copyright 2013 EMC Corporation. All rights reserved. 42 Service Of Cloud Enterprise Needs Public Cloud Provides Storage <30 Mins / Month Mins / Year Compute <30 Mins / Month 43.8 Mins / Month Data Loss Defined SLA No SLA Performance Std. Benchmark No SLA RTO <24 Hours No SLA Source: Amazon Web Services: In-Depth Assessment, Gartner, 1/17/2013

43 43 This Is A Programmable Platform Infrastructure & Application Software Vendors Will Add Value! REST API s Software Defined Storage REST API s Control Plane Data Plane VMAX VNX Isilon 3 rd Party Commodity

44 On-Premise 44 Use Case : EMC Syncplicity COMPANY A COMPANY B PUBLIC CLOUD ORCHESTRATION ISILON Storage EMC SOFTWARE DEFINED STORAGE ATMOS Storage Off-Premise CLOUD STORAGE SP PARTNER

45 45 New Performance-Intensive Workloads Performance 100μS 500μS No Service 1mS High Service 5mS Capacity

46 46 New Performance-Intensive Workloads Performance Web Scale Applications 100μS Financial Modeling Seismic Research 500μS 1mS Database Consolidation VDI No Service 2mS High Service

47 47 Flash Characteristics Flash Hard Disk Drives PCIe Card SSD Performance Capacity Latency 100μS 200μS 2mS 6mS IOPS 100,000 20, $/GB 30-40X 30-40X 4X X $/IOPS 50X 10X X 1.6X

48 48 Flash Reduces Latency, Increases IOPS Performance Web Scale Applications 100μS Financial Modeling Seismic Research 500μS 1mS Database Consolidation VDI No Service 2mS High Service

49 49 XtremSF Flash Cards Four PCIe Cards With Industry-Leading Performance XtremSW Suite XtremSW Cache Software & Roadmap For Suite XtremIO Array Directed Availability Customer Shipments Server Storage

50 50 The XtremSF Family All Cards Are HHHL Highest Density In The Industry XtremSF TB XtremSF TB XtremSF GB XtremSF GB

51 Latency (ms) Copyright 2013 EMC Corporation. All rights reserved. Latency (ms) 51 XtremSF : Leading Performance 2X The IOPS With Half The Latency Of Brand F 4KB Random 70/30 Mixed Latency vs. IOPS 2.5 8KB Random 70/30 Mixed Latency vs. IOPS IOPS (000s) IOPS (000s) Source: EMC Internal Testing.

52 52 XtremSF : 58% Lower TCO Than Brand F 8KB Block Size, Mixed Workload Requiring 1M IOPS Number Of Cards % Cost Of Cards $110K $236K 53% Cost of CPU $3K $12K 75% Cost Of Power $18K $37K 51% Support Cost $18K $74K 76% Total Cost $149K $359K 58% Note: TCO Analysis comparing 10x 1.4TB XtremSF with 1.2TB Brand F PCIe Flash cards; 2 cards installed per server 1 Based on single device, random 70/30 Read/Write IOPS test results 2 Assumes utility rate of $0.15/KWHr & Power Utilization Efficiency of 1.5; each card consumes 25W, each server consumes 600W; Power savings calculated over 3 years

53 53 XtremSW Suite Future Direction Data Services For Flash As Cache, DAS Or Memory Caching Direct Attached Storage (DAS) High Availability Pooling

54 54 XtremIO RETHINKING CORE DESIGN CRITERIA Software-Defined Commercial Off The Shelf Hardware Inherently Balanced Linear Scale-Out Architecture Designed For Flash Always On Data Services

55 55 XtremIO vs. The Leading Startup Leading All Flash Array Startup Scale-Out Architecture Yes No Linear Scalability Yes No Predictable Performance Yes No Inline Deduplication Yes Limited Thin Provisioning Yes Yes Space Efficient RAID Protection Yes No Snapshots Yes No VAAI Support Yes Limited iscsi Support Yes No

56 56 Flash Reduces Latency, Increases IOPS Performance 100μS XtremSF 500μS 1mS XtremIO Isilon VNX VMAX No Service 2mS High Service

57 57 Hybrid Arrays Automatically Tier Data Cost-Optimizing Performance And Capacity PERFORMANCE CAPACITY ACTIVE DATA INACTIVE DATA 5% FLASH 95% DISK FAST Dynamically And Automatically Optimizes Storage Pools Based On Actual Data Activity

58 58 A Little Flash Goes A Long Way Hybrid Array An Incredibly Cost-Effective Way To Deploy Flash TRANSACTION DISTRIBUTION CAPACITY DISTRIBUTION 47% Of IOPs Serviced By 1% Of Capacity

59 59 Hybrid Arrays Lower Costs K DRIVES 70 DRIVES FAST Cache & FAST VP GB SSDs GB 15K SAS 24 3TB NL-SAS Media 0% Flash 5% Flash IOPS 33K IOPS 74K IOPS 125% Footprint 45 RU 18 RU 60% Power 3938w 990w 75% Cost $374,324 $180,292 52%

60 $/GB Copyright 2013 EMC Corporation. All rights reserved. 60 Flash vs HDD : Industry Cost Trends MLC 8X More Expensive Than Performance HDD Through X 10X 40X 8X MLC Flash Performance HDD Nearline HDD

61 61 Hybrid Array : SSD Retrofit Model Adding SSDs To A Traditional HDD Array Controller Reduces Cost, Power And Footprint Low $/GB Controller/Software Designed For Flash HDDs $/IOPS Increases With Scale SSDs

62 Response Time Copyright 2013 EMC Corporation. All rights reserved. 62 Flash-Optimized Controllers Re-Written To Take Full Advantage Of Intel Multicore Processors Source: SPEC.ORG NFS Results MCx Controller Comparison % FASTER & 7 6 4X BETTER , , , ,000 1,000,000 8K Transactions / Second

63 63 How It All Fits Together Server Storage Hot Edge Hybrid Arrays Make The Hot Edge Hotter! XtremSW Suite XtremSW Suite XtremSW Suite XtremSW Suite DAS Or Memory XtremSF Or XtremSF 3 rd Party Or XtremSF 3 rd Party Or 3 rd Party DAS Or Memory XtremSF Or 3 rd Party DAS Or Memory DAS Or Memory XtremIO DEDUPE, THIN, XtremIO DEDUPE, THIN, SNAPS, XtremIO REPLICATION DEDUPE, THIN, XtremIO SNAPS, REPLICATION SNAPS, REPLICATION DEDUPE, THIN, SNAPS, REPLICATION SAN SAN SAN SAN SSD FC SATA Fully Automated Storage Tiering (FAST)

64 64 How It All Fits Together Server Storage Hot Edge Hybrid Arrays Make The Cold Core Cooler! Cold Core XtremSW Suite XtremSW Suite XtremSW Suite XtremSW Suite DAS Or Memory XtremSF Or XtremSF 3 rd Party Or XtremSF 3 rd Party Or 3 rd Party DAS Or Memory XtremSF Or 3 rd Party DAS Or Memory DAS Or Memory XtremIO DEDUPE, THIN, XtremIO DEDUPE, THIN, SNAPS, XtremIO REPLICATION DEDUPE, THIN, XtremIO SNAPS, REPLICATION SNAPS, REPLICATION DEDUPE, THIN, SNAPS, REPLICATION SAN SAN SAN SAN CAPACITY OPTIMIZED STORAGE POOL SSD FC SATA Fully Automated Storage Tiering (FAST)

65 65 The Business Drivers Increase Revenue Lower Operational Costs Reduce Risk

66 66 Trusted IT Means Ensuring Availability Of Applications, Systems & Data Continuous Availability Protecting Data Integrated Backup & Recovery Identifying & Repelling Threats Advanced Security

67 67 Summary Cloud Storage Infrastructure Workloads Drive Storage Choice, One Size Does Not Fit All Public Cloud & New Workloads Require A New Architecture EMC Software-Defined Storage Is Coming (Very) Soon! We Intend To Lead In Server Flash & All Flash Arrays Hybrid Arrays Are The Most Economic Way To Deploy Storage Trusted IT

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