Transforming the Data Center

Transcription

1 Transforming the Data Center John Scaramuzzo, Sr. Vice President & General Manager, Enterprise Storage Solutions Stifel Technology, Internet & Media Investor Conference February 9,

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 growth, market position, industry trends, product performance and product capabilities. 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 Financial Strength Trailing 4 Quarter Financials* Qualified at the 5 largest server and 4 largest storage OEMs $6.6B Revenue $2.5B Net Cash $0.8B R&D Investment Enterprise SSDs & Storage Software Patent Portfolio Patents Client SSDs Approved supplier to all leading PC manufacturers Vertically Integrated Fab Memory Cell Design Memory System Design Full Product Manufacturing Software Solutions All Leading Smartphone & Tablet Manufacturers SanDisk Ventures $75 Million for Strategic Investments use SanDisk Leading Retail Brand & Market Share * Financials as of Q4 14. Net Cash = (Cash + cash equivalents + short-term and long-term marketable securities) less (debt at maturity value) as of end of Q4 14; patents are as of Q

4 SanDisk Grows into the Data Center Strategic Intent Pursued in a Series of Enterprise Focused Acquisitions SAS attached flash Application acceleration caching software Flash-optimized database and data store solutions SATA attached flash SAS attached flash DDR attached flash PCIe attached flash Application accelerator software and appliances Establishing the Broadest Set of Solution Building Blocks in the Industry REVENUE 4

5 Enabling Flash Storage from Wafer to Solution VSL ION Database Virtualization Analytics VDI NAND TECH NAND DIE ASSEMBLY, TEST & PKG CONTROLLER FLASH MGMT SSDs & PCIe SOFTWARE & SOLUTIONS WORKLOADS ISV PARTNERS Japan China Malaysia Semiconductor Fabs Die Packaging & Test Integrated SSD Manufacturing 5

6 Broadest Portfolio of Enterprise Flash Products Solid State Drives Application Accelerators Software and Systems SAS connected PCIe connected SATA connected DDR connected VSL NVMFS ION Accelerator 6

7 Evolution of Flash in the Datacenter Flash In Periphery Flash on PCIe & Memory Bus Flash and Software Integration SSDs as super-fast HDD replacements Application Accelerators Caching Software Middleware With Flash API Flash- Aware / Optimized Applications NVMFS 7

8 Diverse Workloads Benefit from Flash Databases Big Data and Analytics Virtualized Servers and Cloud Virtual Desktop Infrastructure 8

9 Flash Transforms Applica5ons Across Tiers of Data Center TIER 0 NEW TIER 0 +DRAM Caching In-Memory Compute TIER 1 NEW TIER 1 TIER 2 Image Retrieval Exchange Server Indexing OLTP VDI/Virtual Server Web Search Analytics VOD/Media Streaming So.ware Op5miza5on NEW TIER 3 TIER 3 Data Warehouse Web Server Logs Content Repository 9

10 SanDisk So.ware Accelerates Major Applica5ons OLTP/Databases Big Data Analytics / In-Memory Compute Virtual Server / Desktop Infrastructure (VDI) MSFT SQL Server Oracle (RAC, 12C) IBM DB2 MySQL Oracle SAP HANA Hadoop MongoDB Cassandra VMWare Microsoft Citrix SanDisk Application Acceleration Platform File Systems (XFS, Ext4, Btrfs, NVMFS) Memory Management Layer Storage Virtualization Services Layer Flash Array Management Layer SanDisk SSD & PCIe HW (Differentiated) Commodity SSD & PCIe HW (Off the Shelf) Yellow = SanDisk IP 10

11 From Total Cost of Ownership (TCO) to Total Cost of Acquisi5on (TCA) Cost Total Cost of Ownership HDD SSD Flash-based systems are cheaper to operate than HDD-based systems SSD HDD Total Cost of Acquisi5on Flash-based systems are now cheaper to purchase than HDD-based systems Time Note: For 2014 assumes 15K SAS HDDs and SanDisk Optimus MAX 4TB SSDs 11

12 Lower Total Cost of Acquisi5on (TCA) Trends Towards Flash SSD solution cost is falling faster due to: Higher infrastructure overhead for HDDs (Racks, HBA s, power supplies, etc.) Hit the crossover point where SSD-based systems are less expensive than HDD-based system 4% of the power needed by mechanical solution HDD based systems are now more expensive than SSD based systems Cost Solid State Storage TCA Calculator - Cost Breakdown 20 enclosures HDDs Stagnant cost overhead allowing SSD to surpass HDD 2 enclosures SSDs Array Costs $40,000 $4,000 Drive Costs $43,200 $76,488 Totals $83,200 $80,488 Source: TCO calcula6ons based on models developed by SanDisk architects, Oct 2014 Note: Assumes 15K SAS HDDs and SanDisk Op6mus MAX 4TB SSDs 12

13 Storage TCO Example (Ra5os of Infrastructure versus Media Cost) $151K $109K We Win! 10x Performance! Source: TCO calcula6ons based on model developed by SNIA at SSS = Solid State Storage hqp:// Final- TY.pdf Note: Assumes 15K SAS HDDs and SanDisk Op6mus MAX 4TB SSDs 13

14 Every 5me an HDD dies An SSD is Born Additional SSD Growth 2TB Eco 4TB MAX 15K HDD CAGR (-20%) 8TB MAX Replaced by SSDs TAM 10K HDD CAGR (-15%) 16TB MAX 32TB MAX Source SanDisk Market Research 14

15 Enterprise SSD Revenue Coverage by Interface Revenue TAM, $M $9,000 $8,000 $7,000 $6,000 $5,000 Differentiated with SanDisk s Application Acceleration Software High Performance SATA Replacement DDR Attached PCIe and NVMe $4,000 $3,000 Enterprise SATA $2,000 $1,000 SAS $ Source: SanDisk Market Forecast based on IDC & Gartner data 15

16 Best Positioned for the Flash-Transformed Data Center Captive NAND SATA SAS PCIe Application Accelerators DDR Attached Software SanDisk!!!!!! Innovation Customer Vertical Integration Flexible Scale, Supply & Cost Comprehensive Portfolio Broadest Solutions Coverage 16

17 Follow us on the SanDisk IT Blog at ITblog.sandisk.com 2014 SanDisk Corporation. All rights reserved. SanDisk is a trademark of SanDisk Corporation, registered in the United States and other countries. FlashSoft, Lightning and Optimus are trademarks of SanDisk Enterprise IP LLC., registered in the United States and other countries. CloudSpeed, CloudSpeed Eco, CloudSpeed Ascend, CloudSpeed Ultra, Optimus Eco, Optimus Ascend, Optimus Ultra, Optimus Extreme, Optimus Max, Lightning Eco, Lighting Ascend, Lighting Ultra, Fusion iomemory, Fusion iodrive2, Fusion iodrive2 Duo, Fusion iosphere, SanDisk ION Accelerator, iovdi, ioturbine, ZetaScale and ULLtraDIMM are trademarks of SanDisk Enterprise IP LLC. All other product and company names are used for identification purposes and may be trademarks of the companies with which they are associated. 17