Driving Datacenter Change

Transcription

1 Driving Datacenter Change Storage Opportunities in the Cloud Mike Cordano President, HGST, a Western Digital company September 13, 2012

2 SAFE HARBOR Forward Looking Statements These presentations contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements concerning growth opportunities in the storage industry, including growth in units shipped, areal density and content stored, our expected financial results, our business model and financial goals and our capital allocation strategy. These forward-looking statements are based on management s current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including the impact of continued uncertainty and volatility in global economic conditions; supply and demand conditions in the hard drive industry; uncertainties concerning the availability and cost of commodity materials and specialized product components; actions by competitors; unexpected advances in competing technologies; uncertainties related to the development and introduction of products based on new technologies and expansion into new data storage markets; business conditions and growth in the various hard drive markets; pricing trends and fluctuations in average selling prices; and compliance with regulatory conditions imposed on us by the Chinese Ministry of Commerce. More information about the other risks and uncertainties that could affect our business are listed in our filings with the Securities and Exchange Commission (the SEC ) and available on the SEC s website at including our Annual Report on Form 10-K filed with the SEC on August 17, 2012, to which your attention is directed. In addition, our long-term financial goals included in this presentation are based upon a variety of estimates and assumptions which may not be realized and, in addition to the risks identified above, are inherently subject to business, economic, competitive, industry, regulatory, market and financial uncertainties, many of which are beyond our control. There can be no assurance that the assumptions made in preparing our long-term financial goals will prove accurate or will be achieved. The assumptions our management used as a basis for the long-term financial goals are not facts and should not be relied upon as being necessarily indicative of future results, and investors are cautioned not to place undue reliance on the these long-term financial goals. The forward-looking statements, including the long-term financial goals included in this presentation, speak only as of the date hereof. We do not intend, and we undertake no duty, to update these forward-looking statements to reflect subsequent events or circumstances; however, we may update our business outlook or long-term financial goals or any portion thereof at any time in our discretion. 2

3 STORAGE GROWTH Sizing the Cloud Opportunity Exabyte Forecast by Application Exabyte Shipments Personal CE / Client PC Cloud Tablet Smartphone Cloud Personal CE / Client PC Source: Western Digital analysis Source: Domo.com

4 OUR POSITION How We See the Cloud Most anything you can access across a network using a browser or app Services Infrastructure Storage Things you build with Things you use 4

5 CHANGE = OPPORTUNITY Cloud Infrastructure Trends No longer just a Wintel ecosystem In-house customized open source hardware and software Tectonic changes from the cloud Datacenter gear moving from general purpose to optimized DIY datacenters, servers, networking, software Total cost of ownership has become critical RAID > replication > and beyond 5

6 PRODUCT INFLUENCERS Cloud Pain Points Cloud Datacenter Pain Points Device reliability Power consumption and cooling costs Equipment acquisition costs Bandwidth in the datacenter Security Server and storage density vs. floor space costs Need bulk storage solutions for content, backup, disaster recovery Cloud User Pain Points Slow upload speeds Security and privacy Data and application portability Vendor permanence Lack of control Latency and performance 6

7 MIXED MODEL Best of Both Worlds Enterprise-Scale: Fortune 1000 Inside the firewall Capacity planning challenge Pay-up-front Web-scale / Hyper-scale Outside the firewall: off premise Security, latency, uptime concerns Pay-by-use Hybrid Use Model Users put what they want where they want to balance costs and concerns Storage growth opportunity Data replication across facilities, geographies and clouds 7

8 THE NEW TIERING Applications and Storage < 1ms Few ms 10 ms HF Trading Big Data Analytics User Databases Database / OLTP Content Serving Cloud Gaming Cloud Storage (Objects) Cloud Computing / Virtualized Server Social Networks Big Data Storage Long-Tail Content Storage Cold Storage Archiving Min Hrs Gigabytes Latency Source: Western Digital analysis 8 Terabytes Petabytes Exabytes

9 THE NEW TIERING Applications and Storage < 1ms Few ms 10 ms HF Trading Big Data Analytics User Databases Database / OLTP Content Serving Cloud Gaming Cloud Computing / Virtualized Server Cloud Storage (Objects) Social Networks Big Data Storage Long-Tail Content Storage Cold Storage Archiving Min Hrs Gigabytes Latency Source: Western Digital analysis 9 Terabytes Petabytes Exabytes

10 THE NEW TIERING Applications and Storage < 1ms Few ms 10 ms HF Trading Growth Area High Performance SSD / NVM PCIe Solutions Highest performance Big Data Analytics SLC and MLC NAND SSD User Databases Best IOPS/$, IOPS/Watt SAS and FCAL choice Database / OLTP 10K and Cloud 15K SAS HDD Balances Gaming capacity and Content performance Serving Cloud Storage (Objects) Cloud Computing / Virtualized Server 7200 RPM SAS and SATA HDD Social Networks Best mainstream Big Data $/TB value Storage Highest capacities Long-Tail Content Storage Cold Storage Archiving Min Hrs Gigabytes Latency Source: Western Digital analysis 10 Terabytes Petabytes Exabytes

11 PROOF POINT Big Data s 3 V s Drive Storage Tiering Three V s of Big Data Variety Data sources Data types Applications Volume Data collected Analysis & meta data creation Velocity Data acquisition Analysis & action Trends Structured Unstructured, Semi- Structured & Structured Terabytes Petabytes & Exabytes Batch Real-Time & Streaming Creating Opportunities Fast SSDs for analytics High-capacity HDDs for data volume and access time Hardware and software optimization New architectures 11

12 THE NEW TIERING Applications and Storage < 1ms Few ms 10 ms HF Trading PCIe Solutions Highest performance Big Data Analytics SLC and MLC NAND SSD User Databases Best IOPS/$, IOPS/Watt SAS and FCAL choice Database / OLTP 10K and Cloud 15K SAS HDD Balances Gaming capacity and Content performance Serving Cloud Storage (Objects) Cloud Computing / Virtualized Server 7200 RPM SAS and SATA HDD Social Networks Best mainstream Big Data $/TB value Storage Highest capacities Long-Tail Content Storage Growth Area Cold Storage and Archiving Cold Storage Cold Solutions Storage New storage class Lowest $/TB and Archiving TCO Min Hrs Gigabytes Latency Source: Western Digital analysis 12 Terabytes Petabytes Exabytes

13 MULTIPLE PROFILES Cold Storage Use Cases High IOPs 0 IOPs Media Access Profile for Archiving Time (Days, Weeks, Months to Years Cold Storage Targets archive, backup, temporary snapshots Write once, read never or seldom Active or powered-on infrequently Relaxed performance Requirements: Lowest $/GB, reduced power, high spin-up/spin-down cycles Media Access Profile for Long Tail Content High IOPs 0 IOPs Month 1 Month 2 Month N Cooling Storage Content and social media characterized by high media access when content is fresh, then lower accesses as content ages HDDs never be completely idle someone could always be about to access content Requirements: Reduce especially power, reasonable performance, lowest $/GB 13

14 COLD STORAGE POTENTIAL Tape Replacement Unstored Data With dramatically lower $/GB yet much faster access times, cold storage drives could capture Exabyte share from tape Exabyte Shipments 62 Over 4x+ more content is created than is stored on digital media. Capturing only 5% of the unstored data equals all of the Exabytes shipped on enterprise disk and tape combined Exabytes Tape Enterprise Disk 60 All Other Storage Media Enterprise Disk and Tape Created Content Source: IDC and Western Digital analysis

15 PROOF POINT HDD Cold Storage, Not Tape Redefines Backup and Archiving Changes Cost and Value Equations Replaces Tape 15

16 EVOLVING INFLUENCE Becoming a Trusted Advisor Server Application File System OS Drivers Hardware Controller HDD Interface HDD Storage Application File System OS Drivers Hardware Controller HDD Interface HDD Cloud Application File System OS Drivers Hardware Controller HDD Interface HDD Research, consultation and collaboration: Helping solve customer system architecture challenges through pain-point identification and analysis Taking an active role in defining the next phase of storage architecture evolution Moving up the stack creates value and differentiation 16

17 CUSTOMER RELATIONSHIPS Evolving Capabilities New Capabilities Infrastructure and architecture focus Technology leverage Enhanced market making capability Selective differentiation Brand development Capabilities Today SCSI legacy and product features Customer relationships and support Supply management Quality and reliability Product portfolio 17

18 OPEN COMPUTE Driving Innovation with Our Customers The next evolution in open source: Hardware OPEN VAULT System value continues to move to software Creates new opportunities for Western Digital Server Designing vanity free, low cost compute nodes Open Compute Projects Storage Designing low cost building block storage Datacenter Designing energy efficient datacenters 18

19 PRODUCT INNOVATIONS Solving Datacenter TCO Challenges Industry s Highest Reliability Higher reliability = less down -time and intervention 1 st purpose-built cloud HDD platform Ground -up 5-disk design with high design margin redefines cloud storage Server & Storage Power & Cooling Facility Bandwidth Networking Admin. 1 st 12 Gb SAS SSD Market leader in SAS SSD Boosting performance while balancing cost 1 st Sealed Drive New platform an enabler for the next decade, solving multiple datacenter challenges Average Monthly Datacenter Spending (%) 19

20 EVOLUTION, VARIETY AND COMPLEXITY Storage Central to Evolving Ecosystem New Applications Customer Complexity Big Data Storage Cloud Computing Cold Storage Big Data Analytics Storage is at the Center Ecosystem Trends New Measures: TCO 20

21 Thank you