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

2. © Copyright 2014. Seagate Technology. All rights reserved. 2 Market Trends Observations Key Takeaways Agenda

3. © Copyright 2014. Seagate Technology. All rights reserved. 3 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 Data Growth Is a Major Headache

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

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

6. © Copyright 2014. Seagate Technology. All rights reserved. 6 52% storage infrastructure 72% cloud services 52% virtualization software Source:2014 IT Spending Intentions, Enterprise Strategy Group, Inc. Key Investments

7. © Copyright 2014. Seagate Technology. All rights reserved. 7 59% vmware share, 21% growth 66% x86 workloads are virtualized 25% hyper-v share, 62% growth 15% deploy multiple hypervisors 100% projected increase by next year Source: December, 2013 IDC Virtualization Trends

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

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

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. © Copyright 2014. Seagate Technology. All rights reserved. 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. © Copyright 2014. Seagate Technology. All rights reserved. The Classic IT Problem 1 2 3 Be seen as a revenue generator, not a cost center Do more Maintain Compliance and NEVER go down

16. © Copyright 2014. Seagate Technology. All rights reserved. The Classic IT Constraint Classic solutions lock managers into proprietary architectures for years Married to your storage architecture Increasing need to keep everything online all the time

17. © Copyright 2014. Seagate Technology. All rights reserved. 17 Access Security Control The Classic Cloud Constraint

18. © Copyright 2014. Seagate Technology. All rights reserved. 18 Access Security Control 2008-2011: Top 3 barriers of entry Cloud solutions have matured Concerns have been relieved Nearly 90% using or plan The Classic Cloud Constraint

19. Competing With a Modern Strategy

20. © Copyright 2014. Seagate Technology. All rights reserved. 20 Main Aspects to Cloud Technology Virtualization Deduplication Monitoring Replication Storage Tiering Expanded Svcs Monetizing data New XaaS offerings Secured Data Anywhere Types IaaS PaaS SaaS Features Elastic Reliable Virtual Availability Security Modes Private Public Hybrid Source: EU CORDIS Service Options Backup as a Service DR as a Service Data Tiering Service File Sync/Share

21. © Copyright 2014. Seagate Technology. All rights reserved. 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. © Copyright 2014. Seagate Technology. All rights reserved. 22 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 Value of Cloud Systems & Solutions

23. © Copyright 2014. Seagate Technology. All rights reserved. 23 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) Reality Check

24. © Copyright 2014. Seagate Technology. All rights reserved. 24 ~$11 Billion in Damages 312 twisters, 7 states, 226 occurred within a 24-hour period Tornado: 4/25/11

25. © Copyright 2014. Seagate Technology. All rights reserved. 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. © Copyright 2014. Seagate Technology. All rights reserved. 26 Power What about my critical applications if the power is out for longer than 12-24 hours?

27. © Copyright 2014. Seagate Technology. All rights reserved. 27 Staff What if my IT team can’t get to the Data Center?

28. © Copyright 2014. Seagate Technology. All rights reserved. 28 Tape Storage Where are my Tape Backups stored? How quickly can I access them?

29. © Copyright 2014. Seagate Technology. All rights reserved. 29 Business Needs Source: Gartner Group Backup alone, will not achieve sub-24 hour recovery Businesses Demand Sub 24-Hour Recovery

30. © Copyright 2014. Seagate Technology. All rights reserved. 30 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 The Cloud Can Help

31. © Copyright 2014. Seagate Technology. All rights reserved. 31 Recovery Time Cost $ $$$$ WeeksSeconds Cold site Warm site Hot site Cloud v. Legacy Strategies HoursDays

32. © Copyright 2014. Seagate Technology. All rights reserved. 32 Cost $ $$$ $ WeeksSeconds Cold site Warm site Hot site Yours, Theirs, or Ours Cloud v. Legacy Strategies HoursDays Shared Infrastructure Private Infrastructure and/or

33. Key Takeaways

34. © Copyright 2014. Seagate Technology. All rights reserved. 34 Identify Workloads -Data Protection -File Share -Data Tiering -CRM/Office Support Creating Value With Cloud

35. © Copyright 2014. Seagate Technology. All rights reserved. 35 Security Concerns -Physical Access -Encryption -Geographic data dispersion Yours, Theirs, or Ours -Private, Public or Hybrid Creating Value With Cloud

36. © Copyright 2014. Seagate Technology. All rights reserved. 36 DIY v. Converged Solutions Open source v. Proprietary Hybrid approach, on/off prem, federated Creating Value With Cloud

37. © Copyright 2014. Seagate Technology. All rights reserved. 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. © Copyright 2014. Seagate Technology. All rights reserved. 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 Object/File Storage Appliances and Hardware Reference Designs ClusterStor Lustre Based Solutions CS-1500 CS-6000 & CS-9000/T Secure Data Appliance Hadoop on Lustre Connector Components for custom HPC solutions StratoStor OneStor Modular Enclosures Embedded Storage Platforms Embedded Application Platforms StrataStor Enclosures StrataStor Racks Disks and Flash Public Cloud Services provided over the Internet Solutions are installed in Seagate’s data centers eVault Cloud Services Plug ‘n Play NAS Gateway Bottomless and Forever Object Storage Service Hybrid

40. Thank you!