Tech Talk on HPC. Ken Claffey. VP, Cloud Systems. May 2016
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1 Tech Talk on HPC Ken Claffey VP, Cloud Systems May 2016
2 Safe Harbor Statement This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended, including, in particular, statements about the Company s plans, strategies and prospects and estimates of industry growth for the fiscal quarter ended July 1, 2016 and beyond as well as our plans with respect to future dividend payments. These statements identify prospective information and may include words such as expects, intends, plans, anticipates, believes, estimates, predicts, projects and similar expressions. These forward-looking statements are based on information available to the Company as of the date of this document and are based on management s current views and assumptions. These forward-looking statements are conditioned upon and also involve a number of known and unknown risks, uncertainties, and other factors that could cause actual results, performance or events to differ materially from those anticipated by these forward-looking statements. Such risks, uncertainties, and other factors may be beyond the Company s control and may pose a risk to the Company s operating and financial condition. Such risks and uncertainties include, but are not limited to: the uncertainty in global economic conditions; the impact of the variable demand and adverse pricing environment for disk drives, particularly in view of current business and economic conditions; the Company s ability to successfully qualify, manufacture and sell its disk drive products in increasing volumes on a cost-effective basis and with acceptable quality, particularly the new disk drive products with lower cost structures; the impact of competitive product announcements; currency fluctuations that may impact the Company s margins and international sales; possible excess industry supply with respect to particular disk drive products; disruptions to its supply chain or production capabilities; unexpected advances in competing technologies; the development and introduction of products based on new technologies and expansion into new data storage markets; our ability to comply with certain covenants in our credit facilities with respect to financial ratios and financial condition tests; cyber-attacks or other data breaches that disrupt its operations or results in the dissemination of proprietary or confidential information; and the Company s ability to achieve projected cost savings in connection with restructuring plans and fluctuations in interest rates. Information concerning risks, uncertainties and other factors that could cause results to differ materially from the expectations described in this report is contained in the Company s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on August 11, 2015, the Risk Factors section of which is incorporated into this report by reference, and other documents filed with or furnished to the Securities and Exchange Commission. These forwardlooking statements should not be relied upon as representing the Company s views as of any subsequent date and the Company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made. 2
3 The Changing Storage Landscape: Market Disruption Services Big Data Software Cloud Systems Software Defined Storage Devices Open Source Components 3
4 Building The Seagate Systems Portfolio March 2014 Sep 2014 Oct 2015 CSSG Modular storage enclosures Application controllers Engineered HPC systems World-class flash and controller technologies #2 PCIe flash supplier NAND partnerships for innovation, cost benefits Fully vertically integrated RAID systems (controller, backplane design etc.) IP across platforms, software & systems 9th generation RAID Driving storage technology INNOVATION with and through OEM partners to address the new requirements of the Data Deluge and SDS era 4
5 The Data Centric Future Of IT What will it look like? HPC Cloud Cloud Enterprise Data Center Future 5
6 Seagate and HPC Why Seagate cares about HPC Attractive high growth market >$4B TAM Moving up the stack...with our OEM partners Seeing the future working with leading edge pioneer users to understand and influence future architectures 6
7 HPC Market Transition A Fundamental Change in HPC Market Transition Compute Centric Data Centric The need to manage, analyze, and extract useful information from the tremendous amounts of data they [HPC systems] ingest and produce becomes commensurate and co-equal in importance to their computational power -- Govt report on a Task Force on High Performance Computing reported to the US Department of Energy 7
8 ClusterStor Engineered End-to-End Solution Providing Productivity Critical Efficiency and Reliability The Products The Business Model 100% Seagate HDD/SSD Content ClusterStor Manager Professional Services Value $/GBs Support Models- Hardware & Software support contracts Open Source, 3 rd Party and Proprietary Software Content Growing Portfolio of Rack Scale Engineered Storage Solution High Value Solution with Accretive Gross Margins 8
9 ClusterStor HPC Drive: Performance Leadership (GBs) HPC Industry First; The Best Mixed Application Workload Value Performance Leader World-beating performance over other 3.5in HDDs: Speeding data ingest, extraction and access Capacity Strong 4TB of storage for big data applications Reliable Workhorse 2M hour MTBF and 750TB/year ratings for reliability under the toughest workloads your users throw at it Power Efficient Seagate s PowerBalance feature provides significant power benefits for minimal performance tradeoffs 9
10 National Nuclear Security Administration Ensures Safety and Security of U.S. Nuclear Stockpile 1.6 TB/sec Lustre File System Insert names in the Photo Cray XC40 Trinity Supercomputing Solution The Storage: Performance Tier 36 racks each 216 SSUs (216 total) Over 80 PB useable capacity 17,712 6TB Nearline SAS drives 432 High Performance SAS SSDs >1.6 TB/sec aggregate bandwidth Capacity Tier More than 40 PB Capacity of Object Storage based on 8TB SATA SMR drives 10
11 HPC I/O Storage Stack is Transitioning Adoption of Flash and Object Storage Expands The I/O stack The Trinity System at LANL is leading the way 1-2 PB/sec Residence hours Overwritten continuous Memory 3PB DRAM Host server based memory architectures- DRAM, 3D Xpoint 4-6 TB/sec Residence hours Overwritten hours Burst Buffer 6-8PB Host based PCIe cards moving to Shared NVME 1-2 TB/sec Residence days/weeks Flushed weeks Parallel File System PB PFS based systems with high performance SAS disk GB/sec Residence months-year Flushed months-year Campaign Storage PB Object based high capacity systems/disks (SATA) Active Archive 10s GB/sec (parallel tape) Residence forever Tape Archive 10EB Ratio of Disk:Flash by $ is 10:1 New TAM Expansion Opportunity 11
12 Seagate Cloud Systems and Solutions Addressing the Challenges of HPC and Big Data Trusted to help ensure National Security Trusted to enable continuous exploration, extraction, and production Trusted to deliver accurate weather forecast when seconds count Trusted cloud backup and archiving for large scale Service Providers Trusted to enable Healthcare insights towards personalised medicine Trusted for large scale, storage solutions for Financial Services 12
13 The Changing Storage Landscape: Market Disruption = Seagate Opportunity Services Software Systems Devices Components 13
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