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1 The Evolving Cloud and dit its impact on storage Wes Perdue Seagate Technology LLC

2 Journey Through the Evolving Cloud The Cloud is a Seagate strategic imperative. Cloud storage business is strong, disruptive and growing Pro-active engagement and support are key success factors The Cloud uses Seagate s entire enterprise portfolio while also reinventing hard drive requirements. The Cloud is reinventing business models and architectures 2

3 The WW Cloud Market WW Cloud Services Revenue in $Billions Source: Gartner, April 2011 $58.6 $68.3 $86.5 $102.1 $122.5 $ Cloud Services: $ 68.3B (2010) $148.8B (2014) IaaS: $ 3.7B (2011) $10.5B (2014) 100% Y O Y Growth in Public Cloud Storage Services The next 5 years represent a significant revenue opportunity and a critical ii period dfor vendors to lay their foundations for the future. 3

4 2011 Cloud Market by Geo % of Cloud Services 57% US 19% EMEA 13% China 10% Japan Source: Various Gartner, CRN, Seagate April % Rest of World 4

5 Connected Devices Need Servers Source: Intel Investor Relations Meeting 2011 and servers need storage 5

6 Enterprise Cloud Storage Growth 23% Today (2011), the cloud accounts for 23% of the total enterprise drive capacity shipped Exabytes WW Capacity Shipped as a % of Total EC Capacity Shipped Cloud All EC % OF All EC 45,0% 40,0% 35,0% 30,0% 25,0% 20,0% 15,0% 10,0% 5,0% 0,0% Source: IDC Worldwide Enterprise Storage for Public and Private Cloud Forecast: Enabling Public Cloud Service Providers and Private Clouds, Seagate LLC Market Research 6

7 This Shift is Highly Dependent on Storage Millions of Units The Market for Storage Devices CY00 CY05 CY10 CY15 CY20 By 2020 HDD: 1 billion units and SSDs: 200 million units HDD Units SDD Units *Source: Seagate Technology LLC projection 7

8 Seagate Cloud Strategy Market & Technology Leader Strategic Partnerships BIC Product Fit & Tech Support Customer Focused Storage Innovation 8

9 Engagement to Understand Requirements is Critical Data Center Infrastructure Trends Data Center Environment D t C t E i t Massive Scale out Architecture Data Protection Model Simplicity/Efficiency/Automation Storage Security Cold Storage Requirement New Business Models SSeagate Actively Engages the Cloud Ecosystem to t A ti l E th Cl d E t t Improve Design and Delivery of Storage Devices 2011 Seagate Technology LLC. All rights reserved. 9

10 Data Center Infrastructure Drive requirements are not based upon data center type but on application and architecture 10

11 Data Center Environment With free (fresh) air and evaporative cooling, drives could be working in harsher environments 11

12 Pushing the Workload Utilization Envelope With architectural t changes, key components (processors & drives) could be working harder 12

13 Pushing the Efficiency Envelope Results in System Design Evolution and Requires Flexibility & Responsiveness by System Builders 13

14 Data Protection Model is Different replication i Architectural Model with CommodityHardware Changes Requirements Less Rebuild or Hot Plug, etc. 14

15 Storage Security Requirements Instant Secure Erase Required Before Drives Leave the Data Center Already Secured in the DC Access Control Security Management Full Disk Encryption Seagate DriveTrust Security Platform Secure Erase Seagate Responded with Secure Erase to Instantly Erase Data Before Leaving the Data Center 15

16 Customer Driven Cold Storage Devices Archival Storage Demand Increasing in the Cloud 16

17 The Cloud Providers (IDCs) Want Cost Containment Address competitive pressure Manage unpredictable demand Demand is consumption based Deals are price sensitive and bid driven Design Flexibility Application customization and more control Chassis standardization Open platform serviceability Dedicated support Dedicated Support Local technical support Design assistance Application use models Competitive differentiation Storage education to become more competitive in delivering Cloud services 17

18 Keys to Success Strategic Partnership & Technical Support is Critical to Success High touch h service orientation BIC responsiveness to business, supply and technical support Local proximity to the end customer Integrated, local, value added technical services & field support 18

19 The Enterprise Storage Cloud Stack Tier 0 Performance Optimized For applications demanding the highest performance for real time data transactions Tier 1 Optimized Balance For everyday mission critical applications demanding fast online access to data Tier 2 Capacity Optimized For applications that require nearline access to large amounts of data Tier 3 Archival Optimized For archival applications that require sequential writing and infrequent access Cloud service providers require solutions across all storage tiers. 19

20 Seagate s Enterprise Portfolio for the Cloud Application Workload Performance Demand Capacity Requirements What drive to use? Seagate Seagate Seagate Seagate Seagate Pulsar Savvio 15K Savvio 10K Constellation Constellation ES Performance Optimized Performance Optimized Optimized Balance Capacity Optimized Capacity Optimized Enterprise 15,000RPM 10,000RPM 7,200RPM 7,200RPM 2.5 inch SSD 2.5 inch HDD 2.5 inch HDD 2.5 inch HDD 3.5 inch HDD Tier 0 Tier 1 Tier 2 Cloud Compute Cloud Storage Seagate Collaborates With Customers to Determine therightstoragedevice BasedUpontheApplication 20

21 Seagate s Total Cloud Storage Portfolio Dt Data Center Business Home Pocket Enable partners to deliver the cloud. Enable SMBs to adopt tthe cloud. Enable users to create their own cloud. Enable users to take their cloud anywhere. Cloud Compute Cloud Storage Cloud Storage Personal Cloud Mobile Cloud Pulsar XT Constellation BlackArmor Home Satellite Pulsar Savvio 15K Constellation ES BlackArmor Rackmount Access Savvio 10K Seagate Confidential Biz Dev 21

22 Summary 1. The Cloud is a Seagate strategic t imperative. 2. Cloud storage business is strong and growing g 3. The Cloud is reinventing business models, architectures and infrastructure. 4. The Cloud market is pushing the envelope on ways to reduce DC acquisition iti and operating costs. 5. Applications in the Cloud leverage Seagate s entire portfolio while also reinventing hard drive requirements. 22

23 Thank You Wes Perdue Seagate Technology LLC 23 Seagate Confidential Special Handling 23

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