1. © 2006 Hitachi Data Systems So Where Were You When Storage Grew Up? Claus Mikkelsen Chief Scientist Hitachi Data Systems

2. 2 © 2006 Hitachi Data Systems Opportunities Exposures The Business Environment Mergers, acquisitions, consolidation Global expansion of markets New services and technology enablers Cross selling and up selling Operational risk –Fraud, Terrorism, over runs, disaster Regulations and Corporate Governance –Tighter controls, audits, transparency Economic uncertainty –Rising interest rates –Rising Energy Costs - $80/BBL Oil –Wide scale disasters, Global Warming Budgets are always under close scrutiny

3. 3 © 2006 Hitachi Data Systems Applications Are the Link Applications are the critical driver of business process and decision making, impacting organizational growth, risk, and profitability Applications have unique performance, access, protection, and retention requirements Performanc Databases Imaging Content Management ERP Archiving Backup / DR Therefore, it’s imperative that businesses optimize their storage infrastructure and management to address application requirements Messaging

4. 4 © 2006 Hitachi Data Systems The Dynamics of Storage Growth Storage growth rate is compounding Regulations and disaster recovery drive longer retention, with redundant copies Transaction access rates growing faster than capacity for operational data Technology changes faster than capitalization rate Utilization of storage is still fairly low Many companies are approaching the knee of the growth curve Are we approaching an era where capacity is free and we keep everything forever? Capacity Growth Rate

5. 5 © 2006 Hitachi Data Systems Storage Capacity Will Continue to Increase What if the Price Erosion of 30% to 35% per year Starts to level off?

6. 6 © 2006 Hitachi Data Systems Recording Technology Roadmap Time Areal Density Longitudinal Recording 100-130 500-800 1,000-3,000 2,000-15,000 Perpendicular Recording Patterned Media (PM) Thermally Assisted Recording (TAR) 200620102014 50 Years >50 Million increase in areal density 10,000 Gb/in 2 = 10 Tb/in 2 50 TB 3.5-inch drive 12 TB 2.5-inch drive 1 TB 1-inch drive New Technologies will increase Densities Will Prices decline at the same rate?

7. 7 © 2006 Hitachi Data Systems A CIO’s Problem Statement Storage Growth has become Irrational – it does not track Business Performance –Grew 113% in 2004 – will grow 150% in 2005 –78% is Mirrored, Tier 1 storage which is twice as costly as Tier 2 –Running out of Data Center floor space, power, cooling –Has Peta bytes at 20% utilization The problem –Buying too much storage –Paying too much (Tier 1, mirrored) –Low utilization –Out running the Data Centers

8. 8 © 2006 Hitachi Data Systems Throwing More Storage at the Problem is Leading to Costly Consequences Storage is oversubscribed and underutilized Cheaper to buy storage than hire people to manage storage Vendors add to the problem by building higher capacity storage arrays or multiple niche products Business units drive piece meal acquisition of storage – no body wants to share Multi vendor storage keeps price competitive but adds to management costs

9. 9 © 2006 Hitachi Data Systems EMEA data centre market to grow by 30m sq ft by 2010, with storage shipments to quadruple Source: IDC Server Installed Base Tracker and HDS metrics Assumptions: IDC estimate that there will be 35million servers worldwide by 2009 EMEA Data Centre Growth Vs Green Storage Systems US Senate Commenced Study of Data Centre Efficiency Green Grid Formed UK Data Centres Reach Operational Criticality Climate Savers Computer Formed Eco Data Centre Analytic Service USP V ReleasedUSP Next Released Eco Data Centre Build Service Eco Data Centre Design Service EuP EcoProducts 1 st Phase Starts INDUSTRY TRENDS AND PREDICTIONS HITACHI ECO DATA CENTRE OFFERINGS 100% of IT product tenders demand Eco-Labelling (prediction) Worldwide spending on business continuity and IT security solutions surpassed $70 billion in 2003 and will reach $118 billion by 2007. Data Center 2006 survey reported 53 % percent of companies expect to expand or relocate their data center operations by 2010 Average FTSE 100 company surveyed has between 3-4 DCS and studies report that the majority are planning data center expansions, with 75% planning to expand in at least two locations. With a potential 10-15x increase in power and cooling requirements over the next 2+ years, most legacy data centers just cannot cope. DATA CENTRE SPACE OVERVIEW Sources: Data Center Institute, IDC, CB Richard Ellis, Campos Research & Analysis LLC 50% of FTSE CIOs adopted green strategy (Gartner) UK announced Climate Change Bill Greenpeace protest at HP HQ Google Carbon Neutral Target HSBC Carbon Neutral Target New Data Centre Efficiency Standards

10. 10 © 2006 Hitachi Data Systems Power and cooling exceeds server Spending – IDC 2006 Power and Cooling Inexpensive dense computing and increasing power costs are shifting requirements and spending What is the greatest facility problem with your primary data center? Gartner, Best Practices in Data Center Facilities, Michael Bell, October 2006 Excessive Heat Insufficient Raised Floor Insufficient Power Poor Location Excess Facility Cost None of the above 29% 21% 29% 6% 3% 13% N = 112 Cost of power = cost of purchase for servers (2007), = 40% cost of purchase for storage Power and cooling will be a top 3 issue with all CIOs in the next 6-12 months” - Michael Bell – Gartner Increasing Expense of Power and Cooling

11. 11 © 2006 Hitachi Data Systems Components of Data Center Power Consumption Storage Power Consumption/GB Data Center Storage Usage External PB Shipped Data Center Storage Power Growth Expected Storage Power Growth

12. 12 © 2006 Hitachi Data Systems Where Storage is Going Separation of Storage Controller from the Disk Array Control UnitCommodity Media Control Unit INTELLIGENT Cheap SATA Disk Other High End Arrays Hitachi has changed the playing field by separating the commodity media (disks) from the innovation (Universal Storage Platform intelligent control unit) required to provide storage, data, and content services, providing TOTAL FLEXIBILITY.

13. 13 © 2006 Hitachi Data Systems The Storage Industry: The Future View A Virtual storage infrastructure to match dynamic business growth Consolidation of management through one common interface without vendor lock-in Add storage as business requires without giving up functionality and without over buying Extend the life of current assets and enable easy technology upgrades Dynamically move data to the appropriate tier of storage as required.

14. 14 © 2006 Hitachi Data Systems All Storage Controllers Do Virtualization Mainframe CKD (Count Key Data) formats are mapped” to Fixed Block Architecture (FBA) Disks Storage Controllers create a Logical Volume from a Redundant Array of Independent Disks (RAID) Controllers have years of proven data mobility functions like snap copies, remote replication, Copy on Write The storage control unit is the best vehicle for virtualization of external storage

15. 15 © 2006 Hitachi Data Systems Services Oriented Storage Solutions Data Replication Non-Disruptive Data Migration Volume Management I/O Load Balancing Dynamic Provisioning Data De-Duplication Data Classification Business Continuity Content Management File Management Services Applies service-oriented architecture (SOA) concepts to storage Enables storage to be provisioned and managed according to business needs, not technology constraints

16. 16 © 2006 Hitachi Data Systems Drivers of Storage Capacity Drivers of Storage Capacity Spending in 2004 by Company Size Data protection and Disaster recovery E-mail Archiving of data File sharing Data warehousing/ Business intelligence Data imaging (e.g., photos, x-rays, video) Website/ecommerce ERP Regulatory mandates Source: InfoWorld Storage Survey, 2004 (% of respondents) 100-999 employees 1,000-9,999 employees 10,000+ employees 01020304050 n = 599 Notes: Data only includes those items that were selected by more than 10% of respondents. Multiple responses were allowed.

17. 17 © 2006 Hitachi Data Systems Open Systems and z/OS support Source Copy + 3 Target Copies: 10 Copies Total … Open Systems also support SIX Cascade Copies: Copies can be used for: Backup Backup Restore Restore Queries Queries Testing Testing Development Development … Without disrupting the primary DBS! 4 Copies Total Cascade Copy 1 Cascade Copy 2 Cascade Copy 3 Cascade Copy 4 Cascade Copy 5 Cascade Copy 6 Target Copy 1 Target Copy 1 Target Copy 3 SourceCopy Hitachi ShadowImage- Full Cascade 4 Copies 4 Copies Total Cascade Copy 1 Cascade Copy 2 Cascade Copy 3 Cascade Copy 4 Cascade Copy 5 Cascade Copy 6 Target Copy 1 Target Copy 2 Target Copy 3 SourceCopy

18. 18 © 2006 Hitachi Data Systems Synchronous Replication The remote I/O is not posted “complete” to the application until it is written to a remote system The remote copy is always a “mirror” image Provides fast recovery with no data loss Limited distance – response-time impact 2 2 3 3 1 1 P-Vol S-Vol 4 4

19. 19 © 2006 Hitachi Data Systems Asynchronous Replication: Long Distance Remote Copy The local I/O is disconnected from the remote I/O Very little impact to response time over any distance Data integrity and update sequence maintained over any distance Fast restart/recovery DWDM / ATM / IP Any Distance Fibre Channel ExtenderExtender P-Vol S-Vol 1 1 2 2 3 3

20. 20 © 2006 Hitachi Data Systems Asynchronous Replication – Journal Based Lowers resource consumption on production system Lowers bandwidth costs Journal supports consistency across multiple volumes Mitigates the impact of unplanned outages Primary site Secondary site Universal Storage Platform WRT Read journal asynchronously JNL Application Volume JNL Application Volume Universal Storage Platform

21. 21 © 2006 Hitachi Data Systems 3 DC configurations Summary PrimarySecondary Sync Cascade Sync Multi- Target Intermediate Secondary Primary Intermediate Asynchronous

22. 22 © 2006 Hitachi Data Systems Thin Provisioning Hitachi USP-V Thin Provisioning is a powerful form of internal storage virtualization A 2 TB Volume is Created Traditional Provisioning will allocate the entire 2 TB Even though there is only 300 GB of actual data With Thin provisioning… A 2 TB Volume is Created And only 300 GB is consumed and allocated The other 1.7 TB is available for other applications The other unused 1.7 TB is unavailable to other applications

23. 23 © 2006 Hitachi Data Systems Mainframe Virtual Tape Software application resident on mainframe Transparently redirects tape data to any ESCON/FICON connected disk Eliminates tape issues Allows parallel access to tape Enhances disaster recovery 23 Storage Subsystem Mainframe Server ESCON or FICON Remote Mirroring Storage Subsystem

24. 24 © 2006 Hitachi Data Systems Fixed Content The Largest Source of Data Growth

25. 25 © 2006 Hitachi Data Systems The Challenges of Fixed Content Archives Meta Data: Tiger Woods 17 th hole 2005 Masters Records Management Challenges –Content in archives must be searchable and retrievable across all data types and applications –Archives must be immutable –Meta data to search and access data –Archived content increasingly needs to be accessed more frequently and at a lesser cost IT Challenges –Archives must be maintained across generations of technology –Disk based active archive is required to meet today’s business requirements –Current archiving applications do not scale –Policies to manage retention

26. 26 © 2006 Hitachi Data Systems Home Grown Application PACS Content Archive Platform: How it Works Single platform supporting multiple applications simultaneously Common archive functions across content types –Data and metadata ingest –Authentication and policies Embedded full-text indexing and search –All content in the archive –Retrieve content produced by different applications High performance, scalable and secure storage File SystemDocument management E-mail Archive Software Result Set

27. 27 © 2006 Hitachi Data Systems Intelligent Controllers Can Help Address The Problem of Irrational Storage Growth Eliminate the need to buy too much storage –Unbundling Tier 1 storage eliminates the need to buy excess capacity –Ease of migration and provisioning enables incremental growth –Logical partitioning can maintain safe multi-tenancy and QoS Eliminate the need to pay too much –Change the ratio from 78% tier 1 to 78% tier 2 and reduce HW costs by 28% –Use price erosion to advantage Adopt “green” initiatives –Reduce/delay storage purchases Claim back the data centers –Consolidation and Multi tiers will help to remove Frames, collapse SANs, decrease footprint, power, and cooling, and extend the life of data centers

28. 28 © 2006 Hitachi Data Systems Adopt Intelligent Storage Function Replication for creating clones –Non-disruptive copies –Checkpoint DB’s prior to batch processing Replication for disaster recovery –Many tools available from the major vendors –Map RPO/RTO requirements to application requirements Workload balancing to (non-disruptively) eliminate “hot spots” Leverage tiered storage to further reduce costs

29. © 2006 Hitachi Data Systems Thank You claus.mikkelsen@hds.com