Kevin Conley SVP and GM, Client Storage Solutions
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1 Kevin Conley SVP and GM, Client Storage Solutions 1
2 Forward Looking Statements During our meeting today we may make forward looking statements. Any statement that refers to expectations, projections or other characterizations of future events or circumstances is a forward looking statement, including those relating to revenue, market share, market growth, product sales, industry trends, future memory technology, production capacity and technology transitions and future products. This presentation contains information from third parties which reflect their projections as of the date of issuance. Actual results may differ materially from those expressed in these forward looking statements due to factors detailed under the caption Risk Factors and elsewhere in the documents we file from time-to-time with the SEC, including our annual and quarterly reports. 2
3 The Smart Digital Lifestyle 3
4 Key Secular Trends Content Mobility Connectivity PC SSD Demand in Consumer Applications 2.7ZB of Content In 2012* More Powerful Mobile Devices More Responsive Data Centers Growth to 319GB Average Per Device By 2016 * IDC research data as appeared in New York Times Article Cloud Computing as a Threat to Older Tech Companies, December, SanDisk estimates and Gartner forecast: analysis NAND Flash Update, 1Q 12, March,
5 Key Secular Trends Content Mobility Connectivity PC SSD Demand in Consumer Applications 2.7ZB of Content In 2012* More Powerful Mobile Devices More Responsive Data Centers Growth to 319GB Average Per Device By 2016 * IDC research data as appeared in New York Times Article Cloud Computing as a Threat to Older Tech Companies, December, SanDisk estimates and Gartner forecast: analysis NAND Flash Update, 1Q 12, March,
6 Increased SSD Adoption UNITS (Millions) ENTERPRISE SSD UNIT SHIPMENTS UNITS (Millions) CLIENT SSD UNIT SHIPMENTS OEM Manufacturers Gamers, Enthusiasts, DIY & IT Managers ,248GB average capacity by GB average capacity by 2016 Source: Forward Insights, 1Q12, March
7 Today s Mobile Connected World Enterprise Servers & Storage Data Networks Client Devices MAXIMUM PERFORMANCE First Node MAXIMUM MOBILITY Last Node 7
8 SSDs Transforming The First Node The First Node 8
9 MEETING ENTERPRISEREQUIREMENTS High Performance High Reliability Small Footprint Low Power Low Total Cost of Ownership 9
10 Flash in Data Centers HP DL580 G5* Aug 19 th 2008 HP DL380 G7** May 4 th 2011 $1.10/TPM $0.65/ TPM Metric Improvement Storage Capacity (Terabytes) +74% Number of Users +65% Performance (Transactions Per Minute, TPM) +61% Drive Power (Watts) -79% Footprint (Enclosures) -77% System Cost -5% HP ProLiant DL 580 G5, 2.67 GHz, 16MB L2, TPC Report, Hewlett Packard Company. HP ProLiant DL 380 G7, 3.46 GHz, 12MB Cache, TPC Report, Hewlett Packard Company.
11 New Approach to the Data Center Low Power and Small Form Factor Traditional HDD-Based Legacy Server Innovative SSD-Based Calxeda Server VS. 92% less energy 83% less space 40% lower costs 6 racks 240 servers 55 kilowatts 1 rack 720 servers 4.4 kilowatts Calxeda Corporation data.
12 SSDS TRANSFORMING THE LAST NODE 12
13 MEETING CLIENTREQUIREMENTS High Performance High Reliability Small/Custom Form Factor Low Power Affordable Cost 13
14 Key Segment Drivers of Client SSDs Speed Productivity TCO Reliability $/GB Form Factor Power Typical SSD Type Gamers & Enthusiasts High performance standalone SSD Do-it-Yourself (DIY) Standalone SSD, Caching IT Managers Standalone SSD OEM Manufacturers SSDor cachessd w/ caching SW 14
15 SSDs inconsumer Applications Usage Models Gamers & Enthusiasts Do-it-Yourself (DIY) Very high system responsiveness Faster game& level map loading Cost is not a main concern Mid to high levels of system responsiveness Mainly interested in extending the life of legacy hardware Budget conscious IT Managers Requirements vary depending upon enterprise or client use scenarios Improving TCO and reliability are key across all market segments, regardless of budget OEM Manufacturers Form factor and power consumption are key concerns Price sensitivity is greatest amongst this audience 15
16 SSDs Bring Performance Gains PERFORMANCE OVER HDD 11X 10X 9X 8X 7X 6X 5X 4X 3X 2X 1X Dual Drive Solutions: Source: SanDisk internal testing; PCMark Vantage, January 2012 Platform: Intel Z68 -i7 irst Win7 32bit 4GB RAM Storage: SanDisk SSD 32GB, 128GB, Seagate GB Pricing: Based on Forward Insights, SSD Insights, 4Q11, December X HDD Performance 500GB HDD 16GB SSD 500GB HDD 32GB SSD isrt STORAGE PRICE 11X SSD Solutions: HDD Performance 128GB SSD $30 $45 $60 $75 $90 $105 $120 $135 $150
17 Inflection Point: Client SSD Capacity Dynamics Cloud Infrastructure $ per GB Reduced Need for TB Capacity HDDs 17
18 Addressing OEM Power Challenges INDUSTRY LEADING POWER SOLUTION 70 [mw] POWER CONSUMPTION Already Market Leader Slumber Power DevSleep Power 10 <10mW (Now) 0 <5mW* (w/devsleep ) DevSleep has to be supported by host platform. DevSleep wake up latency target is less than 30mS. 18
19 Examples of OEM Adoption ASUS Zenbook UX31 Series 256GB SSD No Hard disk drive Sleek Fujitsu LifeBook U772, UH772 & UH572 32GB issd Integrated caching software Hard disk drive More responsive boot, resume and apps Longer battery life Lenovo ThinkPad Edge E530 16GB msata SSD Integrated caching software Hard disk drive With caching software, faster access to frequently used data 19
20 Example OEM Requirements for SSDs: Ultrabook ULTRABOOK GOALS Sleek thin design All day computing Enhanced user exp. AOAC instant on 2012 Pricing <$799 STORAGE CHALLENGES Form factor flexibility Power Performance $/GB HURON RIVER CHIEF RIVER HASWELL INTEL PLATFORMS ~20-40W ~15W Power reduction enables fanless designs ~20mm ~10mm Drives thinner ultraportable devices with thinner storage 20
21 Rich Diversity of SSD Solutions FOR ENTERPRISE PCIe Gen2 K2 2.5-inch 2x 6Gb SAS Everest + CBC 2.5/1.8-inch 6Gb SATA N100 FOR CLIENT OEMs Std. 2.5 X100 Std. 2.5 U100 MO-297 U100 msata X100 & U100 FOR CONSUMERs msata mini U100 SanDisk issd i100 Std. 2.5 SanDisk Extreme SSD Std. 2.5 SanDisk Ultra SSD 21
22 The Smart Digital Lifestyle 22
23 2012 SanDisk Corporation. All rights reserved. SanDisk, SanDisk Ultra and SanDisk Extreme are trademarks of SanDisk Corporation, registered in the United States and other countries. SanDisk issdis a trademark of SanDisk Corporation. All other brand names mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s). *1 gigabyte (GB)=1 billion bytes. Some capacity not available for data storage. 23
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