Enabling the Flash-Transformed Data Center

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1 Enabling the Flash-Transformed Data Center Brian Cox Senior Director, Marketing, Enterprise Storage Solutions HP APJ Storage Summit June

2 Forward-Looking Statements During our meeting today we will 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 market position, market growth, product sales, industry trends, supply chain, future memory technology, production capacity, production costs, technology transitions and future products. This presentation also contains forward-looking statements attributed to 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 a number of risks and uncertainties, including the 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. We undertake no obligation to update these forward-looking statements, which speak only as of the date hereof or as of the date of issuance by a third party, as the case may be. 2

3 A Global Leader in Flash Storage Solutions Rankings Trailing 4 Qtr Financials* Global Operations Leading Retail Brand $6.3B $3.8B $0.8B Revenue Net Cash* R&D Investment 5,900+ Employees #1 Global Retail Revenue Share SanDisk Client & Retail SSDs Approved Supplier to All Leading PC Manufacturers Qualified at 6 of the Top 7 Server & Storage OEMs All Leading Smartphone & Tablet Manufacturers use SanDisk Enterprise SSDs and Storage Software *Financials as of Q1, 14. Net Cash = [Cash + cash equivalents + short-term & long-term marketable securities] less [debt at maturity value] as of the end of Q1. Headcount as of Jan., 14. NPD Estimate, Feb., 14. Estimates of the memory card & USB markets from NPD (Feb.. 14) and GfK Retail and Technology 3

4 Enabling Flash Storage from Wafer to Software NAND TECH NAND DIE SCALE ASSY, TEST & PKG CONTROLLER FLASH MGMT SSDs SANDISK SOFTWARE ISV PARTNERS Close to Half of Industry Bit Output Together with manufacturing partner Toshiba Fabs: World class NAND capacity World-Leading Innovator 4,900 + Patents Source: Patents as of Q12014; NPD Estimate, Feb., 14. Gartner: NAND Flash Supply & Demand, WW 1Q 13-4Q 15, Mar.,

5 Challenge: Legacy Storage I/O Bottleneck Server CPU Performance SSD Performance Aligning Widening Performance Gap HDD Performance Source: StorageIOblog; Sep 2009; 5

6 Vertical Integration Matters: SanDisk Path to the Flash Transformed Data Center Software Design Runs applications faster Enables larger in-memory datasets Optimizes hardware efficiency Advanced System Design Designed for high performance Workload optimized Mission-critical endurance 19nm 1Ynm Memory Design 1Ynm 1Znm 3D NAND 6

7 Leading Memory Cell Design Is Not Enough Need for Advanced Flash Management High Data Integrity Threshold Bit Error Retry Rate Enterprise Performance Threshold Low Early Life End of Life 7

8 Guardian Technology Platform Enhances NAND Physics to Meet Enterprise Standards High Data Integrity Threshold Bit Error Retry Rate Enterprise Performance Threshold Aggregated Flash Management Advanced Signal Processing Low Early Life End of Life 8

9 Flash Transforms Applications Across the Tiers of the Data Center Legacy Storage Leading Edge Storage TIER 0 DRAM Short-stroked 15K HDDs Caching In-Memory Compute TIER 1 DRAM 15K rpm HDDs Indexing OLTP VDI/ Virtual Server TIER 2 Image Retrieval Exchange Server Web Search Analytics VOD/ Media Streaming TIER 3 Data Warehouse Web Server Logs Content Repository 9

10 SanDisk Offering Covers a Broad Set of Applications DDR PCIe SAS SATA Tier 0/1 Tier 0/1 Tier 1/2 Tier 2 IN DEVELOPMENT 10

11 Latency Matters Ultra Low Latency for Tiers 0 & 1 Latency (microsecond) 1 s 10 s 100 s 1000 s SAS/SATA/FC PCIe DDR L1/L2 Cache DRAM Memory Breaking the DRAM Barrier ,000 1,000,000 IOPS 11

12 Virtual Desktop Consolidation Example Tier 0 & 1 Metrics: Faster IOPS and $/Transaction 10,000 Virtual Machine Deployment PCIe ULLtraDIMM VMware ESXi* VMware ESXi* 700GB PCIe 384GB DRAM 4x ULLtraDIMM 400GB 64GB DRAM 100 VMs/ Server 57% reduction in Total Cost of Acquisition of servers and DRAM investment 200 VMs/ Server $232 per VM 100 Physical Servers $2,328,548 TCA Pricing based on quote for IBM x3650m4 from reseller General Microsystems Nov 2013 *Full name: VMware vsphere ESXi $99 per VM 50 Physical Servers $986,950 TCA 12

13 SSDs Maximize Data Center Efficiency Dollars per IOPS IOPS per Watt capacity) GB 2.5" SAS emlc SSD 146GB 2.5" SAS 15K HDD " SAS 10K HDD 200GB 2.5" SAS emlc SSD 146GB 2.5" SAS 15K HDD " SAS 10K HDD Source: 13

14 Density Matters Tier 2: Beyond just faster, cooler, and more power efficient SSDs Capacity Today s World s highest capacity SAS SSD 8TB 16TB 4TB 0.9 TB 1.2 TB 10K SAS HDDs 1.6 TB SanDisk Enterprise SSDs continue to deliver density growth while Mission Critical HDD density hits a wall 14

15 Database Management System Example Tier 2 Metrics: $/IOPS and TCO HDDs 100 TB of Database Storage with >150K IOPS SSDs 85U of Rack space Microsoft SQL GB Microsoft SQL 25 4TB 4U of Rack space 151K IOPS 60% reduction in Total Cost of Acquisition 58% reduction in Total Cost of Ownership 1875K IOPS $1.98 per IOPS TCA $257,484 (w/o SW) TCO $298,587 over 3 years Source: Based on Dell PowerEdge pricing along with HDD studies Failure Trends in a Large Disk Drive Population and Disk failures in the real world : proceedings of 5th USENIX Conference on File and Storage Technologies and incorporated into TCO model developed by SanDisk architect Fritz Kruger December 2013 $0.07 per IOPS TCA $104,214 (w/o SW) TCO $124,609 over 3 years 15

16 Response Time Matters With TCA/TCO Tier 3: Active Content Repository System Example Low TCA Smaller Footprint Response Time Lower Power Less Cooling 16

17 How SanDisk Will Accelerate Software Defined Storage Increasing ROI for Application Performance ZetaScale Software Uses object technology to group storage bits together Key value store shortens access time to manipulate files & speeds up DB performance cache Storage cache Storage cache Storage FlashSoft Software Shares hot data on shared SSD caches across server nodes Compensates for slower tier of direct-attached & networked storage AVAILABLE MID 2014 Software Defined Storage 17

18 Software Application Acceleration 0.7 ZetaScale Software TPS per Server in Thousands 20x Improvement 3x Improvement In-Memory Compute NoSQL Databases Cassandra MongoDB Hadoop Spark/Shark Object Storage Servers HDD SSD SSD + ZetaScale 128GB 1K data 24 core Westmere, 96GB DRAM, 8 x 128GB 1K data YCSB measurements performed by SanDisk 18

19 $10.00 $9.00 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 Costs Are Converging: HDDs and SSDs Enabling the Data Center Transformation $- Dollars per Gigabyte ASP/Gigabyte (US$) nm 1Y 1Z BiCS Higher Cost SSD Lower Cost SSD Source: Gartner, Market Trends: Evolving HDD and SSD Storage Landscapes (October 2013) Enterprise-Grade Storage SSD Revenue Enterprise-Grade Server SSD Revenue Mission Critical HDD Revenue Business Critical HDD Revenue Parity Cost SSD 19

20 SanDisk Is Leading the Way to the Flash Transformed Data Center Vertical Integration matters enables optimized solutions Low latency matters high performance economics Density matters Total Acquisition Cost Software matters removing the final bottlenecks 20

21 Thank you! 2014 SanDisk Corporation. All rights reserved. SanDisk is a trademark of SanDisk Corporation, registered in the United States and other countries. ULLtraDIMM is a trademark of SanDisk Enterprise IP LLC. Lightning is a U.S. registered trademark of SanDisk Enterprise IP, LLC. Cloudspeed, CloudSpeed Ascend, CloudSpeed Eco, CloudSpeed Extreme, CloudSpeed Ultra and Cloudspeed logo are trademarks of SanDisk Enterprise IP LLC. Optimus, Optimus Ascend, Optimus Eco, Optimus Extreme, Optimus Max and Optimus Ultra are trademarks of SanDisk Enterprise IP LLC. Other brand names mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s). 21

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