UPGRADE YOUR ENTERPRISE

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1 UPGRADE YOUR ENTERPRISE JOHN HARKER, SENIOR PRODUCT MARKETING MANAGER JUSTIN AUGAT, SENIOR PRODUCT MARKETING MANAGER DECEMBER 4, Hitachi Data Systems Corporation All Rights Reserved.

2 WEBTECH EDUCATIONAL SERIES UPGRADE YOUR ENTERPRISE WITH HITACHI DATA SYSTEMS Experience has shown that the total cost of storage is much higher than just its purchase price, and paid for does not mean budget free. As an industry leader in proven, cost-efficient storage virtualization platforms, Hitachi Data Systems has a long history of helping customers save money by designing, deploying, and leveraging economically superior storage architectures across the data center. For customers with existing Hitachi enterprise storage systems who may be facing increasing maintenance costs and possibly performance or media availability issues, the good news is that it is possible to reduce costs and improve performance by leveraging the capabilities of a new Hitachi Unified Storage VM (HUS VM) or Virtual Storage Platform (VSP). This WebTech examines 4 key areas of benefits from upgrading consolidation, virtualization, automation, and private cloud and how they can enable IT organizations to reduce costs, improve service, and deliver new capabilities to the enterprise. By attending this webcast, you'll learn how to: Consolidate your existing infrastructure and dramatically reduce your storage footprint. Virtualize your environment and leverage the benefits of industry-leading capacity efficiency. Automate your data center and reduce operational costs associated with storage management.

3 Cost Reduction and Agility UPGRADE YOUR ENTERPRISE UPGRADE YOUR SYSTEM = LOWER COSTS It May Cost Less To Upgrade Your System Than To Keep Using Your Current One Realize Measurable Benefits

4 Cost Reduction and Agility UPGRADE YOUR ENTERPRISE UPGRADE YOUR SYSTEM = LOWER COSTS Private Cloud IAAS More Efficient More Agile More Productive What Makes Sense for You? Pick Your Choice Realize Measurable Benefits

5 PAID FOR DOES NOT MEAN IT IS NOT COSTING YOU HOW TO MEASURE THE TOTAL COST OF STORAGE Hardware and Software TCO Storage Management Identify Cost Elements Environmental Maintenance Establish TCO Baseline Hardware and Software Storage Management Environmental Data Migration Maintenance Data Migration

6 STORAGE ECONOMICS: COST REDUCTION BENEFITS OF UPGRADE PROGRAM ESTABLISHING A BASELINE 1. Establish current storage array parameters: What is the existing solution? USP 1 = 100TB of Tier 1 disk USP 2 = 50TB of Tier 1 disk Competitive array 1 = 50 TB Tier 2 disk What is the annual growth rate? 25% What is the average age of storage assets? (We use depreciated value in baseline) 3.5 years 2. Establish general modeling assumptions Allocated capacity = 80% Used (written) = 40% Depreciation = 4 years Useful life = 5 years TCO modeling = 3 years 3. Establish cost parameters: Acquisition cost Tier0 Tier1 Tier2 Tier3 Tier4 $/GB $90 $11 $7 $3 $1 Price erosion 15% 10% 10% 10% 10% Storage management Full heads

7 STORAGE ECONOMICS: COST REDUCTION BENEFITS OF UPGRADE PROGRAM ESTABLISHING A BASELINE (CONT) 4. Calculate out existing array costs for TCO duration (3 years) Establish set parameters for operational costs labor, power, cooling, floor space, maintenance, etc 5. Establish proposed array parameters: What is the proposed solution? VSP contains 6TB Flash, 144TB 10k SAS and 100TB NL-SAS. Asume that the HDT license ($ ) is for unlimited capacity Floor space = $15/sqft 6. Calculate out proposed array costs for TCO duration (3 years) 7. Introduce technology in stages Consolidation benefit (fewer disks, higher capacity) Virtualization Thin provisioning Dynamic Tiering Common management 8. Account for capacity efficiency (reclamation and deferral) 9. Extrapolate capacity efficiency savings to operational costs labor, power, cooling, floor space, maintenance, etc 10. Report on net difference

8 Cost Reduction and Agility UPGRADE YOUR ENTERPRISE UPGRADE YOUR SYSTEM = LOWER COSTS More efficient Should You Consolidate More? Realize Measurable Benefits

9 CONSOLIDATE MORE CONSOLIDATE SIMPLIFICATION AND COST SAVINGS CLIENTS WEB SERVER EXCHANGE SERVER FILE SERVER APPLICATION SERVER SQL SERVER FILE SERVER Capabilities Industry-leading performance and 3-D scaling Advanced drive technologies Dynamic provisioning and tiering at block and file level Add NAS and object Architect efficient storage environment Benefits Reduced costs Simplified operations Agility

10 HITACHI ACCELERATED FLASH (HAF) IMPROVES APPLICATION PERFORMANCE WHERE IT S NEEDED HEAVY OLTP TRANSACTION RESPONSE VSP ms VSP ms 220% IOPS Independently Audited Benchmark Results: COMPARISON TO OTHER MLC FLASH 4x Sustained Performance 46% Lower Bit cost 4x Capacity in 2U

11 COMPARE ENVIRONMENTAL COSTS SIGNIFICANT SAVINGS IN COST OF POWER, COOLING, AND SPACE $400,000 $350,000 $300,000 $250,000 $200,000 Power and Cooling Space $150,000 $100,000 $50,000 $0 EMC VMAX Hitachi USP Hitachi VSP 3-Year Total Cost of Power, Cooling, and Space (~ Two Thousand 600GB drives) Source: Wikibon

12 DEPLOY APPLICATIONS MORE EFFECTIVELY SIMPLIFIED OPERATIONS Provision and monitor from VMware vcenter VMware, Microsoft, and Oracle integration adapters Enable backup, recovery, and data protection from their management frameworks

13 SAVE MORE WITH NAS CONSOLIDATION $ 2X NFS IOPS 90% RECLAMATION Backup Time and Costs 30% TCO SAVINGS POWER EFFICIENCY 65% Xx\\ ECONOMICS Faster Access to Information; Process More and Diverse Workloads Faster Up to 90% Capacity Saving Through Reclamation and Deduplication Lower TCO for File Share Environments; Reduce Opex and Capex

14 CONSOLIDATION ECONOMICS Cost-Saving Actions Consolidate USP to VSP (2 to 1) Capture disk-drive size reduction and capacity increase Implement Hitachi NAS Platform (HNAS) via VSP Streamline architecture and management Savings Dashboard $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 50% TCO Reduction $1,000,000 $0 Baseline Consolidated Data Migration Maintenance Environmental Storage Management Hardware and Software

15 Cost Reduction and Agility UPGRADE YOUR ENTERPRISE UPGRADE YOUR SYSTEM = LOWER COSTS More Agile Can You Simplify and Save by Virtualizing Your Storage? Realize Measurable Benefits

16 UPGRADE AND VIRTUALIZE VIRTUALIZE WITH NEW VSP OR HUS VM Upgrade and move to a virtualized environment Transforms legacy silos to virtualized resources Storage Virtualization Solve migration problems Reclaim capacity Add advanced application support Add performance Separae data management from hardware layer Improve ROI on existing assets

17 OR UPGRADE YOUR CURRENT SYSTEM GAIN NEW CAPABILITIES FROM EXISTING STORAGE BEHIND HUS VM Leverage existing assets Front End With HUS VM Improve ROI Advanced application support Add Accelerated Flash Add HDP and HDT Migrate without any impact to the business Transform legacy silos to virtualized resources

18 STORAGE VIRTUALIZATION EXAMPLE Virtualization lowered cost per terabyte per year from $9,000 to $4,000 No additional staff needed despite 12X storage growth Users were never aware of the effects of the data migration We realized that with storage virtualization we would get access to a number of useful functions and be able to drive savings. The results exceed our expectations Robin Trottier Manager, data storage

19 VIRTUALIZATION ECONOMICS Cost-Saving Actions Dynamically provision the environment and reduce capacity waste (HDP) and overprovisioning Virtualize existing NetApp behind VSP for growth capacity requirements Savings Dashboard $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 50% TCO Reduction 40% TCO Reduction $0 Baseline Consolidated Virtualized Data Migration Maintenance Environmental Storage Management Hardware and Software

20 Cost Reduction and Agility UPGRADE YOUR ENTERPRISE UPGRADE YOUR SYSTEM = LOWER COSTS More Productive Can You Increase Efficiencies and Reduce Risk With Automation? Realize Measurable Benefits

21 AUTOMATION = PATH TO LOW-TOUCH MANAGEMENT AND OPERATIONS AUTOMATE SIMPLIFIED MANAGEMENT AND OPERATIONS RESOURCE DISCOVERY AND PROVISIONING 1 2 DYNAMIC TIERING AND AUTOMATED MANAGEMENT Service Level Delivery HEALTH CHECKING 4 3 DATA PROTECTION

22 AUTOMATION WITH HITACHI DYNAMIC TIERING

23 AUTOMATION: HDT + FLASH STORAGE = EFFICIENCY MEDIA COST PHYSICAL MEDIA SINGLE TIER HDT 30% 87% 1,000 x 146GB 15K 224 x 600GB 10K 8 x 1,600GB FMD CONFIGURATION = 144TB and 400,000 IOPS

24 AUTOMATION: SERVICE-LEVEL MANAGEMENT HOW WE DO IT Define storage performance and capacity objectives by business application Global storage service level dashboard to monitor compliance 24/7 and identify applications at risk Monitor application service levels and storage system health from virtually anywhere Investigate service level violations to quickly identify and resolve potential bottlenecks

25 AUTOMATION RESULTS FLASH + VIRTUALIZATION AT TURKCELL THIRD LARGEST GSM OPERATOR IN EUROPE; 34.7 MILLION SUBSCRIBERS Number of Spindles 37% 3.5X IOPS Increase Response Time 5X Service Quality for Fraud Application

26 AUTOMATION ECONOMICS Cost-Saving Actions Add Hitachi Command Director to provide single- pane-of-glass management Dynamically tier data across disk types and to external, older arrays $7,000,000 $6,000,000 $5,000,000 $4,000,000 50% TCO Reduction Savings Dashboard 40% TCO Reduction 15% TCO Reduction $3,000,000 $2,000,000 $1,000,000 $0 Baseline Consolidated Virtualized Automated Data Migration Maintenance Environmental Storage Management Hardware and Software

27 Cost Reduction and Agility UPGRADE YOUR ENTERPRISE UPGRADE YOUR SYSTEM = LOWER COSTS IAAS More Efficient More Agile More Productive Complete the Journey to the Private Cloud Realize Measurable Benefits

28 TRANSFORM TO PRIVATE CLOUD PRIVATE CLOUD MANAGE SERVICE LEVELS AND GOVERNANCE Information Cloud Information Virtualization and Big Data Content Cloud Content Virtualization Infrastructure Cloud Data, Storage and Network Virtualization Rationalized hardware and operating environment Reduced operations expense Chargeback and self-provisioning Move from managing assets and operations to managing service levels and governance

29 INFRASTRUCTURE DEPLOYMENT CHALLENGES IT Infrastructure IT Development Plan Support Buy Deploy Integrate Test Code Too Many Handoffs Too Many Tools Too Many Vendors Too Much Time Costs Too Much IT Organizations Spend 23.3% of Staff Time and Resources on This Type of Pre-system Deployment

30 OTHER DRIVERS OF CONVERGED INFRASTRUCTURE Converged Infrastructure One purchase order One solution stack One orchestration management software One-source support High availability Fast deployment in less than a week

31 OPEN BEST-IN-CLASS ARCHITECTURE: HITACHI UNIFIED COMPUTE PLATFORM (UCP) Application Hitachi Unified Compute Platform Converged Validated Hypervisor Server Network Storage

32 UCP ENABLES OPEX COST REDUCTION Benefit Area Items Impacted by UCP Reduction Test and development Resources for integration, configuration, test, and support of new systems 35-55% Deployment Time and resources for implementation for mission-critical workloads 18-43% Staff productivity Ongoing activities such as provisioning, monitoring, and troubleshooting 22-48% Asset utilization Overprovisioning and overloading of storage, network, and server 23-45% Environmental Savings on power, space and cooling 15-28%

33 WHAT IS OBJECT STORAGE? AGGREGATE, MANAGE, PROTECT, AND USE CONTENT Just as we move photos from devices to a PC Hard to use on the device Software organizes, protects, and shares photos... Organizations use object stores for similar reasons Consolidate and organize Protect and preserve Manage and search HCP = Hitachi Content Platform

34 HITACHI CONTENT PLATFORM: CUSTOMER EXAMPLE KLINIKUM WELS Ingest and consolidate data from 37 departments, 26 specialties Health Portal The environment Metadata Robot (CDA, PDF, and XML) Adds Metadata and Custom Metadata to Create Context (information and Intelligence) METADATA-BASED REPOSITORY Consolidate content from 37 departments 30-year compliant preservation Aggregation, search, and metadata mining REPLICATION How they use big data Intelligent data management Improving patient care, research, and education capabilities Reduce cost and complexity of backups Make data independent of applications Primary Site 8 HCP Nodes 2 Search Nodes 2 HDDS Nodes USP V Secondary Site 4 HCP Nodes 1 Search Node USP V

35 OBJECT STORAGE FROM HITACHI DATA SYSTEMS HCP, HITACHI DATA INGESTOR, AND HITACHI CONTENT PLATFORM ANYWHERE Multitenancy and scalability Reliable enterprise architecture Active data protection Easy to set up and manage Unique metadata gathering and intelligence tools Support for legacy, contemporary, and emerging protocols Integrated with Hitachi Data Ingestor to connect remote and branch offices CORPORATE CONTENT CORE 1st Integrated File Sync and Share for Enterprise HCP ANYWHERE REMOTE EDGE STORAGE 60% Less Total Cost of Ownership $

36 36 UPGRADE YOUR ENTERPRISE YOUR OPTIONS

37 UPGRADE YOUR USP OR NSC SEE WHAT YOU CAN GET Consolidate and Reduce Virtualize and Optimize Automate Private Cloud Space, power, and cooling savings Reduced hardware and software maintenance costs Advanced drive technologies Simplified management Future proof Accelerated Flash Encryption NAS consolidation Advanced replication External virtualization Advanced VMware and application support Reclaim capacity with Dynamic Provisioning Further simplified management NAS virtualization Simplify and Improve BC/DR Accelerate and Automate with Dynamic Tiering Storage service level management with Command Director NAS automation HCP HDI HCP Anywhere UCP Black Comes with VSP and HUS VM Teal Optional Add-On

38 UPGRADE YOUR USP V OR USP VM - SEE WHAT YOU CAN GET Consolidate More and Reduce Virtualize and Optimize Automate Private Cloud Space, power, and cooling Advanced drive technology Further simplified management Accelerated Flash NAS consolidation Advanced replication External storage virtualization Advanced VMware and application support Further simplify management NAS virtualization Simplify and Improve BC/DR Dynamic Tiering Command Director NAS automation HCP HDI HCP Anywhere UCP Black Comes With VSP and HUS VM Teal Optional Add-On

39 IMPROVE YOUR VSP SEE WHAT YOU CAN GET Consolidate more and Reduce Virtualize and Optimize Automate Private Cloud Further capacity savings Further simplify management Accelerate performance with Accelerated Flash NAS consolidation External storage virtualization Further simplify management Accelerate existing storage with HDT and Accelerated Flash Simplify and Improve BC/DR Dynamic Tiering Command Director NAS automation HCP HDI HCP Anywhere UCP NAS virtualization Black Comes With VSP Teal Optional Add-On

40 SERVICES OPTIONS TO HELP TRANSFORM I.T. AND YOUR BUSINESS Measureable Gain Analysis Infrastructure Assessment and Architecture Services Installation and configuration Consolidation deployment Online migrations Storage as a service Storage Operational Services Virtualization Assessment and Architecture Elastic Computing Deployments Physical-to- Virtual/Virtualto-Virtual Migration Service Catalog Development Automation deployments and integration Service Level Management Deployment and integration Cloud Services Private Cloud as a Service Self-Serve More Productive More Agile More Efficient Governance Business People Content Technology Process

41 UPGRADE YOUR ENTERPRISE PROMOTIONS Or Or 41

42 UPGRADE YOUR ENTERPRISE APPLICABLE PROMOTIONS Install Base Upgrade Promotion A significant credit will be applied to reduce the buy price for each new Qualified Hitachi Storage Hardware product purchased. Also as part of an installed base depending on the size of the VSP purchased there is an additional discount for larger systems. For VSP only a New System discount (25%) will apply for the Hitachi software ordered as well as the Multi-Product Discount (3-9%). This provides significant reduction in acquisition cost when more software licenses are ordered on the VSP. Software migration credits, credits for HDS software on old machine going onto the new system, can be applied where applicable for significant price reductions. Warranty can be delayed on a new system during initial Migration. This program can be combined with other available Data Network programs. Can be applied for a VSP or HUS that is part of the UCP VMware vsphere solution. GFS Financing promotion (Converting existing leases or leasing to bridge N to N-2 gap) Provides a 5% discount on deals where HDS bundles HDSCC financial services as part of the solution sale. Financing upgrades through Hitachi Global Financial Services (GFS) will allow you to upgrade to Qualified Hitachi Products while your current monthly run rate at or near their existing lease or monthly maintenance charge on equipment you own. Storage Express There are now new easy to order and discounted Storage Express configurations for the HUS VM.

43 UPGRADE YOUR ENTERPRISE APPLICABLE PROMOTIONS Install Base Upgrade Promotion A significant credit will be applied to reduce the buy price for each new Qualified Hitachi Storage Hardware product purchased. Also as part of an installed base depending on the size of the VSP purchased there is an additional discount for larger systems. For VSP only a New System discount (25%) will apply for the Hitachi software ordered as well as the Multi-Product Discount (3-9%). This provides significant reduction in acquisition cost when more software licenses are ordered on the VSP. Software migration credits, credits for HDS software on old machine going onto the new system, can be applied where applicable for significant price reductions. Leveraging this program through Global Financial Services (GFS) will allow you to offer your customer a technology refreshment that will enable them to upgrade to Qualified Hitachi Products while keeping their current monthly run rate at or near their existing lease or monthly maintenance charge on equipment they own. Work with your local GFS representative to construct these options for your customers. Warranty can be delayed on a new system during initial Migration. This program can be combined with other available Data Network programs. Can be applied for a VSP or HUS that is part of the UCP VMware vsphere solution. Storage Express use the HUS VM configurations Hitachi Dynamic Tiering (HDT) Promotion this is now automatically priced into the system GFS Financing promotion and GFS COMMISSION UPLIFT (Converting existing leases or leasing to bridge N to N-2 gap) - provides a 5% discount on deals where HDS bundles HDSCC financial services as part of the solution sale, along with a commission uplift.

44 QUESTIONS AND DISCUSSION

45 UPCOMING WEBTECHS WebTechs Cloud Economics: Demystifying the Total Cost of Various Storage Delivery Methods, Jan 15, 9 a.m. PT, noon ET Best Practices for Virtualizing Exchange for Microsoft Private Cloud, Jan 29, 9 a.m. PT, noon ET Check for Links to the recording, the presentation, and Q&A (available next week) Schedule and registration for upcoming WebTech sessions Questions will be posted in the HDS Community:

46 THANK YOU

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