1. Q3/Q4 Update and Go-to-Market Message
John Hanlon
November 2016

2. GOALS FOR THE NEXT TWO DAYS
Understand…
The Opportunity
Our Message
Selling Motion (TCO)

3. “Cloud is an operating model for IT, not a place.” - Michael Dell

4. Digital transformation requires transforming three key areas Workforce
Security
So digital transformation is not trivial, but it is essential. The opportunity for business is to transform their industry and gain competitive advantage. But IT has to behave fundamentally different.
In order to become a digital business, IT must look at transformation in three distinct areas. These are:
IT transformation, where IT organizations create a modern infrastructure to enable digital transformation,
Workforce transformation, where IT creates a truly digital work environment for employees, and
Security transformation is needed to create a new kind of security strategy for IT, the workforce, and the entire organization.

5. UNDERSTAND THE OPPORTUNITY

6. SPENDING SHIFT TO NEWER SEGMENTS
WW External Storage Systems HW Market Forecast (US$B)

7. MARKET SIZE – CONVERGED SYSTEMS
While Integrated Infrastructure will remain the largest addressable market segment, Hyperconverged Systems will emerge as the growth driver
WW CPSD TAM – Converged Systems ($B)
CAGR
9.6%
1.0%
5.4%
52.0%
Total Addressable Market ($B)
Traditional Converged Infra.
(CI)
Hyper Converged Infra.
(HCI)*
Sources: IDC Worldwide Black Book; IDC Worldwide Converged Systems Forecast, 2016–2019 (Feb 2016); EMC TAM 2015; CPSD TAM

8. CONVERGED SYSTEMS COMPTETITIVE LANDSCAPE
Dell EMC is #1 player in overall Converged Systems market as well as in Integrated Infrastructure Segment while Nutanix leads Hyperconverged Systems Segment
Converged Systems Market Segments (2015)
HPE
Others
Oracle
EMC
Integrated Platforms
Integrated Infrastructure
Dell
HPE
IBM
Hitachi
Lenovo
Others
Dell
Hitachi
Hyper-converged Systems
EMC
Nutanix
Integrated Reference Systems
Others
NetApp
Source: IDC Quarterly Converged Systems Tracker, Q1 2016

9. KEY ADOPTION DRIVERS OF CI/HCI
CI significantly reduces time to market as it only takes days (7 for HCI, 45 for CI) from order to deployment whereas DIY takes 6-9 months
CI makes environment much faster to react to by treating infra. as pool of resources which can be easily commissioned or decommissioned to or from apps as required
SIMPLER
OPERATIONS
REDUCTION
RISK
TCO
AGILITY
KEY DRIVERS
CI simplifies infra. acquisition, management & upgrading, thereby, freeing up IT resources to focus on innovation & more value-added, strategic activities rather than on racking and stacking
With CI 41% less IT time is spent on keeping the lights on
CI needs 36% lesser personnel as it simplifies infra. mgt. & upgrades
CI reduces the need to buy new infra with growing workloads by improving asset utilization
CI lowers operational footprint as it needs 52% lesser real estate & 26% lesser power
With HCI, organizations can incrementally buy small sized appliances as needed
CI provides infrastructure resiliency & High Availability, thereby, reducing business risk & minimizing disruptions to users & customers
CI reduces downtime by 96% & time to resolve them by 61% as it is engineered, managed & upgraded as a system
Sources: Gartner Data Center, Infrastructure & Operations Management Conference, Dec 2015
Gartner Market Trends: Hyperconverged Integrated Systems Will Be Key to Enter Emerging Markets, Jul 2015
Keystone Strategy Research – CPSD CI Growth Diagnostics Study, Mar 2016
SDx Central – The Future Of Converged Data Center, 2016
IDC Whitepaper: The Business Value of CPSD Vblock Systems: Leveraging Convergence to Drive Business Agility, May 2015
IDC Converged Systems End-User Survey, Aug 2015

10. OUR MESSAGE

11. 4 COMMON THEMES 3 Common Challenges
Budgets for infrastructure and people are flat or down, business demands higher SLAs.
IT must generate revenue but spending 75% of budget keeping the lights on.
Cloud has become a reality for many workloads, IT needs to embrace & provide viable alternatives.
Data Center is going through a transformation

12. 41% 4.6x 96% 4.4x VBlock, VxRack, VxRail MODERN DATA CENTER
Faster Time To Market For New Services
41%
Less Keeping
The Lights On
4.6x
More Applications Deployed
96%
Reduction in Down Time
4.4x
Budgets are flat, business demanding higher SLAs
IT Must Generate Revenue
75% Spent on “Lights”
Cloud is providing customers w/ choice
Infrastructure-as-a-Service Platform-as-a-Service Data Fabric-as-a-Service On Prem or Off Prem Capex or Opex You Run It or We Run It
Engineered
Manufactured
Managed
Sustained
Supported
As ONE Solution
Change the 75/25% Paradigm
ModernizeAutomateTransform
Converged
Virtualization
Server
Network
Storage
Backup
Disaster Recovery
As ONE Solution
Business
Projects
Business Applications
Feature Releases
Touch Points
Markets/Locations
Reporting
IT Projects
Migrations
Tech Refresh
Capacity Upgrades
App Decomm
Consolidation
D.C. Moves
VBlock, VxRack, VxRail
ALL FLASH
SCALE OUT
SW Defined
Cloud Enabled
TRUSTED
Outages
Product Outages
User Errors
Vendor Errors
Environmental Issues
Maintenance
SW/Firmware Current
Patches / Hot Fixes
Field Change Orders (FCO’s)
MODERN DATA CENTER

13. Scale Why Now? Relevance Portfolio
So digital transformation is not trivial, but it is essential. The opportunity for business is to transform their industry and gain competitive advantage. But IT has to behave fundamentally different.
In order to become a digital business, IT must look at transformation in three distinct areas. These are:
IT transformation, where IT organizations create a modern infrastructure to enable digital transformation,
Workforce transformation, where IT creates a truly digital work environment for employees, and
Security transformation is needed to create a new kind of security strategy for IT, the workforce, and the entire organization.

14. HISTORICAL PRODUCT REVENUE
1800 Inside & 1000 Field Sellers
20k+ accounts w/o Legacy EMC
*Forecast

15. CREATING A MARKET

16. RELEVANCE
Largest IT Provider in the industry, CIO’s want to hear from you
Supply chain will give us a cost advantage
Portfolio, Strategy, & Message has never been more aligned to market

17. TODAY’S DATA CENTER Data Warehouse / Splunk Test Dev SQL VMWare HP HP
Compute HP
Compute
ED-DCX-4S-B
ED-DCX-4S-B
ED-DCX-4S-B
ED-DCX-4S-B
Vblock
540 HP
DAS
3 Vblock Systems
15 VNX Arrays
HP 3PAR

18. Data Center Evolution Data Warehouse / Test Dev SQL Splunk/Analytics
VMWare HP
Compute HP
Compute
ED-DCX-4S-B
ED-DCX-4S-B
ED-DCX-4S-B
ED-DCX-4S-B
Vblock
540 HP
DAS
3 Vblock Systems
15 VNX Arrays
HP 3PAR

19. FUTURE DATA CENTER Splunk / Analytics Data Warehouse / Test Dev SQL
VMWare

20. “Hyper Converged + Hyper Consolidation = Simplicity”