1. ENTERPRISE TIER 1 SAN STORAGE UPGRADE March 2014

2. Executive Summary Business Problem: The primary goals of the project are to upgrade the existing EOSL Enterprise Tier 1 SAN Storage Infrastructure, to reduce the operating expenses (M&R) and to satisfy the demand for additional capacity in the Enterprise. This project will achieve these goals by phasing out the EOSL Storage Infrastructure and migrating to the latest Tier 1 Storage Technology. Currently, mission critical application data within SPE such as SAP, GPMS, TAAS, SPIRITWorld, ITSM/C2C, PRISM, Disaster Recovery and many others are stored on Enterprise Tier 1 SAN storage. The Tier 1 SAN storage provides the highest SLA in availability, reliability, and serviceability for SPE’s mission critical application requirements. Issues with the current Enterprise Tier 1 SAN Storage environment are: -End of Support Life (EOSL) Issue -The Tier 1 Storage array in the Chandler datacenter is 6 years old and it will be EOSL by 2015 (we need time to migrate data prior to 2015) -The existing technology is becoming obsolete by advances in new storage technology that offers greater performance and higher efficiency (SSD * support & high density SAS ** disk support) -High M&R (Maintenance and Repair) Cost Issue -Total $1.9M for 3 years M&R cost with the existing environment -FY14 - $600K, FY15 - $640K(due in March 31 2014), FY16 - $670K -Datacenter Space and Power Saving (annual $140K saving) *Appendix -35% datacenter space savings with the new solution ($60K annual) -30% power savings with the new solution ($80K annual) 2 * SSD (Solid State Drive) **SAS (Serial-Attached SCSI)

3. Proposed Solution Implement new Tier 1 SAN storage (1PB new SAN for the Enterprise) – Additional capacity for 1 year based on historical growth  Chandler: Total new 668TB (the existing capacity is 444TB)  El Segundo: Total new 346TB (the existing capacity is 232TB) – Roughly 240 Servers with a total of 688TB live data in both datacenters need to be migrated – Estimated Project duration is 6 months – 5 Year Total Operating Expenses (M&R) saving is $2.57M *Appendix Corporate Procurement and IT evaluated proposals from HDS(Hitachi Data Systems), EMC, and IBM solutions. Of these three, HDS was selected. HDS Virtual Storage Platform (VSP) was selected for the reasons below – Least disruptive data migration  Minimal outage required for the migration due to the existing system footprint  Lowest risk of data loss during the migration – 85% HW/SW discount – $200K additional savings in gap coverage during the migration period.  6 months existing Tier 1 storage maintenance due in March 31 2014 is waived during the migration period – Requires minimal Internal Labor cost for the project 3

4. Financial Summary 4

5. Benefits Category$ BenefitDescription Cost Avoidance$0 Year 1 Benefits 5 Year Benefits Cost Efficiencies$2.6M Year 1 Benefits 5 Year Benefits Risk Mitigation$0 Year 1 Benefits 5 Year Benefits 5

6. Timeline FY14FY15 NovDecJanFebMarAprMayJuneJulAugSepOctNovDecJan Migration & Validation Decommissio n and Project Closure Select Vendor Partner Obtain Funds Project Planning & Migration Strategy 6

7. Appendix 7

8. 5 Year Operating Expense Savings 8 5 Year Operating Cost SavingsFY14FY15FY16FY17FY18 Existing Tier 1 SAN Storage M&R$600,000$640,000$670,000$690,100$710,803 New Proposed Tier 1 SAN Storage M&R$210,000 $400,000$412,000 Total Datacenter Space Saving ($1,031/Month and 5 Rack Space Saving) $ 61,860 Power Saving (Avg.08 cent/kW between both Chandler and El Segundo) $ 80,000 Yearly Savings $ 531,860 $ 571,860 $ 601,860 $ 431,960 $ 440,663 5 Years Total Savings $ 2,578,203

9. Tier 1 Storage Allocation at Chandler DC 9 As of Feb 2014 Information List of applications running on Tier 1 HDS SAN Primarily supports Open Systems (Legacy Sun Solaris & New IBM AIX servers) Enterprise ERP and Database are the main usage Most new Intel x86 (Windows & Linux) apps are running on vBlock Storage (EMC VMAX) Total 380TB space used in 440TB usable space configuration (87% utilized)

10. Tier 1 Storage Allocation at El Segundo DC 10 Primarily supports SAP non- production environment and Disaster Recovery List of applications running on Tier 1 HDS SAN NVR (Network Video Recorder) can’t be virtualized and requires block storage (SAN) due to IO requirements (transcoding) About 45TB of DR data being replicated asynchronously in real time (10 minutes RPO) Total 235TB space used in 245TB usable space configuration (96% utilized)