Creating a Competitive Advantage with Cloud

1. Creating a Competitive Advantage with Cloud Daniel Corry TAR, Seagate CSS

2. Agenda • Market Trends • Observations • Key Takeaways

3. Data Growth Is a Major Headache • Need more capacity & capabilities; e.g., compliance, monetization, analytics, preservation, and collaboration • Non-traditional/cloud-storage solutions from new vendors to fill these gaps: • Commodity hardware • Open-source software • Extreme automation • Ruthless standardization

4. IT Top Priorities 32% increase use of virtualization 32% information security initiatives 29% improve backup/recovery Source:2014 IT Spending Intentions Survey, Enterprise Strategy Group, Inc.

5. IT Top Priorities 25% manage data growth 23% use more cloud services 21% disaster recovery initiatives Source:2014 IT Spending Intentions Survey, Enterprise Strategy Group, Inc.

6. Key Investments 72% cloud services 52% storage infrastructure 52% virtualization software Source:2014 IT Spending Intentions, Enterprise Strategy Group, Inc.

7. Virtualization Trends 66% x86 workloads are virtualized 59% vmware share, 21% growth 25% hyper-v share, 62% growth 15% deploy multiple hypervisors 100% projected increase by next year Source: December, 2013 IDC

8. Cloud Trends 70% 13% spike from 2013 use cloud services today 20% 11% drop from 2013 plan to use cloud services cloud adoption is moving faster than expected Source:2014 IT Spending Intentions, Enterprise Strategy Group, Inc.

9. Cloud Trends Source:2014 IT Spending Intentions, Enterprise Strategy Group, Inc.

10. Observations

11. What is Evolution?

12. Evolution

13. Efficiency & Performance 1985 Camaro IROC-Z28 (5.0L TPI) 0-60 mph 6.9 Quarter mile 15.0 2014 Chevrolet Impala LT (3.6L) 0-60 mph 6.1 Quarter Mile 14.6 2014 Chevrolet Spark EV 0-60 mph 7.8 Quarter Mile 16.1 Nostalgia doesn’t help compete with newer, faster technologies

14. Cloud Revolution • The New Deal for Storage • Cloud Storage is where virtualization was 5 years ago • Today over 70% of x86 platforms are virtualized • “Time to work with the server huggers” • -January 7, 2010, Mark Bowker, ESG

15. The Classic IT Problem Many objectives with shrinking budgets Be seen as a revenue generator, not a cost center 1 2 Do more Maintain Compliance and NEVER go down 3

16. The Classic IT Constraint 80% to 90% of today’s IT budget is devoted to keeping the lights on: • Classic solutions lock managers into proprietary architectures for years • Married to your storage architecture • Increasing need to keep everything online all the time

17. The Classic Cloud Constraint Security Access Control

18. The Classic Cloud Constraint 2008-2011: Top 3 barriers of entry • Cloud solutions have matured • Concerns have been relieved • Nearly 90% using or plan Security Access Control

19. Competing With a Modern Strategy

20. Main Aspects to Cloud • Features • Elastic • Reliable • Virtual • Availability • Security • Types • IaaS • PaaS • SaaS • Modes • Private • Public • Hybrid • Technology • Virtualization • Deduplication • Monitoring • Replication • Storage Tiering • Expanded Svcs • Monetizing data • New XaaS offerings • Secured Data Anywhere • Service Options • Backup as a Service • DR as a Service • Data Tiering Service • File Sync/Share Source: EU CORDIS

21. Competitive Advantage • Backup, Recovery, DR, and Data Tiering • Time to results • Eliminating Down-time: “Point-and-click loyalty” • Ubiquitous data access • Recovery v. System Readiness • Application ready on prem or in the cloud • Improve customer satisfaction • Responsive v. Reactive

22. Value of Cloud Systems & Solutions • OPEX v. CAPEX • Optimize budget spend • Eliminate costly maintenance • Extension of IT staff • DR Validation • Testing • Assessments • Virtualization flexibility • Physical to Virtual • Quickly and efficiently ‘spin up’ servers/applications • Data Center Certification • SSAE 16, SOC 2

23. Reality Check • April 13, 1992 • Chicago River Underground Flood shuts down businesses for weeks • Actual physical losses estimated at $1.95B • Chicago Mercantile Exch shutdown lost an estimated $25B in trading • Hundreds of small businesses never reopened. “Two out of five business experiencing a disaster, go out of business within five years. Business continuity plans and disaster recovery services ensure continuing viability” –Gartner • DATA protection, recovery and resumption • Critical to IT centric recovery solution • Business may place this secondary on its list (Forrester Report)

24. Tornado: 4/25/11 ~$11 Billion in Damages 312 twisters, 7 states, 226 occurred within a 24-hour period

25. Hurricane Sandy: 10/29/12 $20 Billion Affected 24 states Estimated insured losses Second only to Hurricane Katrina Wall Street Journal, Nov. 2, 2012

26. Power What about my critical applications if the power is out for longer than 12-24 hours?

27. Staff What if my IT team can’t get to the Data Center?

28. Tape Storage Where are my Tape Backups stored? How quickly can I access them?

29. Business Needs Businesses Demand Sub 24-Hour Recovery Backup alone, will not achieve sub-24 hour recovery Source: Gartner Group

30. The Cloud Can Help • Choosing the right type of cloud can help mitigate your risks! • Infrastructure as a Service (IaaS) can only solve part of problem • Disaster Recovery as a Service (DRaaS) • Addresses all the challenges • Economies of scale • All DR resources are provided • Offsite team to manage your recovery

31. Cloud v. Legacy Strategies $$$$ Hot site Warm site Cost Cold site $ Seconds Hours Days Weeks Recovery Time

32. Cloud v. Legacy Strategies • Yours, Theirs, or Ours $$$$ Hot site Shared Infrastructure Warm site and/or Cost Private Infrastructure Cold site $ Seconds Hours Days Weeks

33. Key Takeaways

34. Creating Value With Cloud • Identify Workloads • Data Protection • File Share • Data Tiering • CRM/Office Support

35. Creating Value With Cloud • Security Concerns • Physical Access • Encryption • Geographic data dispersion • Yours, Theirs, or Ours • Private, Public or Hybrid

36. Creating Value With Cloud • DIY v. Converged Solutions • Open source v. Proprietary • Hybrid approach, on/off prem, federated

37. Seagate CSS group • Seagate Cloud Systems and Solutions provides the tools to compete in today’s marketplace: • Private Cloud • Public Cloud • High Performance Computing • Components and Services

38. Truly Unique Combination! CSS Competitive Advantage + + Majority of cost = disk & systems Disk drive innovation opportunity > 2,000 petabytes of storage shipped in 2013 Cloud Storage Expertise 43,000+ cloud storage customers

39. Seagate CSS Systems and Solutions Private Cloud • Solutions installed in Customer data center • Operated by Customer or by Seagate • Flexible financing / ownership options Performance Computing • Market Leading Solutions • High Quality Components • Solutions for DIY Customers • High quality building blocks • Services • Disk based storage • Flash storage • Public Cloud • Services provided over the Internet • Solutions are installed in Seagate’s data centers StrataStor Racks Object/File Storage Appliances and Hardware Reference Designs eVault Cloud Services Modular Enclosures Embedded StoragePlatforms Disks and Flash StrataStor Enclosures Embedded Application Platforms Hybrid • Lustre Based Solutions • CS-1500 • CS-6000 & • CS-9000/T • Secure Data Appliance • Hadoop on Lustre Connector • Components for custom HPC solutions • StratoStor • OneStor ClusterStor Bottomless and Forever Object Storage Service Plug ‘n Play NAS Gateway

40. Thank you!