Driving Revenue Growth Across Multiple Markets
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1 Driving Revenue Growth Across Multiple Markets Kevin Deierling Vice President, Marketing October 24, 2014
2 Multiple Growing Market Segments Key Markets Driving Growth High-Performance Computing Web 2.0 Cloud Big Data Enterprise/ Database Business Intelligence Storage Revenue diversification and growth across a range of market segments HPC segment growing nicely, but represents smaller overall share of revenue Enterprise and storage next largest markets Cloud is fastest growing market segment 2014 Mellanox Technologies 2
3 InfiniBand Dominant in Enterprise Appliances Enterprise class fault tolerant systems have converged on InfiniBand as the core fabric Proven choice for highly available systems Major Enterprise, Cloud, & Software as a Service hosted on these platforms 2014 Mellanox Technologies 3
4 InfiniBand Dominant in Enterprise Storage SMB Direct Enterprise storage platforms have InfiniBand as their core fabric too These platforms demand the highest levels of performance, quality, and fault tolerance New enterprise storage platforms are a key revenue growth driver 2014 Mellanox Technologies 4
5 Growing Front End Storage Connectivity Elastic Storage Server Select New 2014 Storage Platforms Offering InfiniBand and RoCE Front-End Connectivity Continued growth in storage platforms with front-end connectivity Both InfiniBand and RoCE* Demand Drivers Cloud, Big Data, and Web 2.0 scale out storage Fast flash memory storage arrays * RDMA over Converged Ethernet 2014 Mellanox Technologies 5
6 Two Big Growth Drivers are Cloud & Big Data Cloud Revenue Growth: 25% Big Data Revenue Growth: 30% IDC forecast 2014 Y/Y IT spend growth of 5%* New segments such as Cloud and Big Data growing much faster than overall Precisely the market segments where we are focused :*Source: IDC/Forbes: Mellanox Technologies 6
7 Rapid Shift to the Cloud (Source: Dell Oro Group) Tremendous server growth in cloud and service provider segments Forecast cloud to grow and equal enterprise market by 2018 Largest cloud providers growing at 38% - 164% Y/Y Driving new models of compute, network, and storage connectivity Top 5 cloud providers represent ~$4 Billion annual revenue run rate 2014 Mellanox Technologies 7
8 Cloud Accelerating Adoption of High Performance Ethernet Leader in High performance 10/40/56GbE Deployed by major cloud & Web 2.0 vendors Dominant 40GbE supplier (92% of ports)* Fastest growing segment (78% Q/Q growth)* 25/50/100 Gb/s on the horizon * Source: Crehan Report, August, 2014 (Source: Dell Oro Group) Growth in high performance (>10Gb/s) driving Ethernet adapter market share Cloud vendors now moving from 10Gb/s to 40Gb/s 40Gb Ethernet with RoCE** - Significant momentum and key differentiation ** RDMA over Converged Ethernet 2014 Mellanox Technologies 8
9 Cloud is Driving Fundamental Changes in the Data Center Flash SSD Scale Up Scale Out Transition from Scale Up to Scale Out Adoption of Flash SSD storage Requires higher performance networks Cloud driving shift from 10 to 40 GbE Open Platforms: OEM/ODM Open Compute Project Clouds abandoning traditional enterprise SAN Different networking and storage models There is no Fibre Channel in the cloud Enterprises will follow cloud model Mellanox well positioned for these transitions 2014 Mellanox Technologies 9
10 Azure is Prime Example of this New Class of Cloud Storage Microsoft Keynote Albert Greenberg SDN in Azure Infrastructure To make storage cheaper we use lots more network! How do we make Azure Storage scale? RoCE (RDMA over Converged Ethernet) enabled at 40GbE for Windows Azure Storage, achieving massive COGS savings Microsoft Keynote at Open Networking Summit 2014 on RDMA RDMA at 40GbE Enables Massive Cloud Saving for Microsoft Azure 2014 Mellanox Technologies 10
11 CloudX: Optimized Turn-Key Enterprise Cloud Platform. Turn-Key Cloud Reference Architecture Mellanox interconnect technology Integrated, validated, & supported cloud solution Limitless Scalability Grow from small scale to hyper-scale on same platform Breakthrough Efficiency Higher efficiency across enterprise workloads Improved utilization of servers and storage lowers CapEx Simplicity Streamlined deployment, management, and operations lowers OpEX Performance Enables cloud providers to differentiate and provide service level agreements 2014 Mellanox Technologies 11
12 Multiple Revenue Growth Drivers High performance computing New CPU platforms need highest performing interconnects Enterprise Continued ramp of new appliances Storage New enterprise platforms now generally available Flash storage driving high performance front end connectivity Growing momentum for InfiniBand & Ethernet RDMA storage Cloud, Big Data, and Web 2.0 Scale out model driving demand for high performance networks High performance clouds on InfiniBand & RoCE CloudX End to end converged platform Transition of traditional enterprise architecture to cloud scale-out model 2014 Mellanox Technologies 12
13 Thank You
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