This business/market-focused webcast delivers a high-level overview of: · How service providers are deploying all-flash storage systems and where flash is the best fit. · Real-world examples of how NetApp® SolidFire® service provider customers have productized, priced, and positioned their all-flash storage · The associated ROI and margin delivered by those services

1. ​To Flash or Not to Flash?
Go to Market Insights for Service Providers
Deploying NetApp SolidFire Flash Storage
Stuart Oliver
Global Consulting Director
NetApp SolidFire

2. Agenda
1) Introduction
2) The industry is changing
3) This presentation is about storage deployment data (not a sales pitch)
4) Data Insights: How service providers are deploying NetApp SolidFire flash
5) Take-aways
6) Summary
7) Q & A
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only

3. Today's Presenter
The de facto flash block storage for service providers worldwide
Global Consulting Director
Fueled by SolidFire | Global
Stuart Oliver
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only

4. Announcements
As a thank you for attending today's webinar, we will be
drawing one name for a copy of the Technology-as-a-Service
Playbook.
Listen until the end and you may win!
The de facto flash block storage for service providers worldwide
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only

5. Introduction
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only

6. ‘Build’ Trends
77%
43%
67%
57%
49% 49%
Traditional Virtualized
On-premise
private cloud
2018
2015
*McKinsey & Company 2016
Fundamental Shift from ‘Build’ to ‘Consume’
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only

7. ‘Consume’ Trends
38% 34%
54%
25%
37%
Dedicated
Private
Cloud
Virtual
Private
Cloud
Public
IaaS
2018
2015
*McKinsey & Company 2016
57%
Fundamental Shift from ‘Build’ to ‘Consume’
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only

8. 2018
2015
On-Premise
Traditional
54%37%
71%63%
Large
Enterprise
Midsized
Enterprise
Small &
Medium
Business
83%80%
24% 46% 32% 24% 10%
51%
57%41% 57%58%68%74% 48% 48% 39% 35% 28% 40%
58%45% 49%56%65%79%
53% 51% 38% 33% 23% 33%
On-Premise
Virtualized
On-Premise
Private
Cloud
Dedicated
Private
Cloud
Virtual
Private
Cloud
Public IaaS
Build Consume
*McKinsey & Company 2016
Fundamental Shift from ‘Build’ to ‘Consume’
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only

9. The Industry is Changing
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only

10. Changing Market Landscape
Service Provider Market Trends
www.451research.com SP Trends 2016 Report
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only

11. Changing Market Landscape
Service Provider Market Trends
$82B
2019
$20B
2019
IaaS
From $8B in 2015
Managed Cloud Hosting
From $42B in 2015
By 2019 total market size will be
$20B with AWS owning over 64%
market share
While not growing as fast the total
market opportunity is greater at
$82B by 2019
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only

12. Changing Market Landscape
Service Provider Market Trends
Source: Rackspace.com - 2016
Public Cloud
Private Cloud
Hybrid Cloud
Microsoft Azure
Microsoft Private Cloud
Office 365
AWS Navigator
AWS Aviator
AWS Consulting Partner
Dedicated Servers
VMware
Managed Hosting
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only

13. Changing Market Landscape
Service Provider Market Trends
Public Cloud
Private Cloud
Hybrid Cloud
Microsoft Azure
Microsoft Private Cloud
Office 365
AWS Navigator
AWS Aviator
AWS Consulting Partner
Dedicated Servers
VMware
Managed Hosting
Source: Rackspace.com - 2016
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only

14. Changing Market Landscape
Service Provider Market Trends
Breadth of Services
Value
Public Cloud
Private Cloud
Hybrid Cloud
Microsoft Azure
Microsoft Private Cloud
Office 365
AWS Navigator
AWS Aviator
AWS Consulting Partner
Dedicated Servers
VMware
Managed Hosting
Source: Rackspace.com - 2016
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only

15. Changing Market Landscape
Service Provider Flash Deployment
Breadth of Services
Value
Public Cloud
Private Cloud
Hybrid Cloud
Microsoft Azure
Microsoft Private Cloud
Office 365
AWS Navigator
AWS Aviator
AWS Consulting Partner
Dedicated Servers
VMware
Managed Hosting
Source: Rackspace.com - 2016
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only

16. Changing Market Landscape
Service Provider Flash Deployment
Breadth of Services
Value
Public Cloud
Private Cloud
Hybrid Cloud
Microsoft Azure
Microsoft Private Cloud
Office 365
AWS Navigator
AWS Aviator
AWS Consulting Partner
Dedicated Servers
VMware
Managed Hosting
Source: Rackspace.com - 2016
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only

17. Global Service Provider Market Trends
The de facto flash block storage for service providers worldwide
1
6X More Growth Than
Traditional IT
IDC 2014
6X
2
89% of Enterprises
are Using Flash
ESG 2014
89%
3
68% of Applications
Remain Behind the
Enterprise Firewall
451 Research 2015
68%
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only

18. Block Storage Market Overview
Service Provider Service Delivery
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only

19. Block Storage Market Overview
Service Provider Service Delivery
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only

20. Block Storage Market Overview
Service Provider Service Delivery
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only

21. Block Storage Market Overview
Service Provider Service Delivery
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only

22. Block Storage Market Overview
Service Provider Service Delivery
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only

23. Managed
Servers
Public
Cloud
Private
Cloud
Hybrid
Cloud
Back
Office
HP AppsDBaaSDaaS
Managed Service 2
Managed Service 1 Most service providers offer a variations on
the “big 4” hosting services with separate
islands of storage
1
SolidFire’s performance virtualization delivers true
storage quality of service (QoS) enabling application
level performance profiles
2
QoS allows you to run multiple storage
services and types of infrastructure all from
one storage system
3
Streamlined operations support more efficient
delivery of higher margin managed services
4
Streamline Operations
Service Provider Service Delivery
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only

24. How Service Providers are Deploying Flash
Data Insights
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only

25. What was the original use case for your SolidFire purchase
56%
51%
35%
30%
28%
21%
16%
Distribution
Public Cloud Hosted Private Cloud Managed Hosting/SAN Hybrid Cloud
Virtual Private Servers Virtual Desktop Servers App Hosting Services Other
2%
Service Provider Flash Deployment
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only

26. Key Take Away
• Replacing legacy storage systems
• Cloud hosting followed by managed hosting is the trajectory
• Address biggest storage issues first
• Solve pain then expand into new opportunities
• Test the waters (VDI, Apps, Mode2, 3rd Platform)
Lessons Learned
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only

27. What Additional Use Cases are Planned for your SolidFire
Platform?
39%
37%
37%
34%
34%
32%
26%
Distribution
Hybrid Cloud Private Cloud App Hosting Services Hosted Private Cloud Virtual Private Servers Managed Hosting/SAN Virtual Desktop Servers Other
Service Provider Flash Deployment
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only
3%

28. • Moving to add SSD to alternate platforms
• Still uncertainty of where to invest technology budget
• Test the waters on many offerings looking to find a new and profitable service
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only
Key Take Away
Lessons Learned

29. How much of your Storage Operations are Automated Today?
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only
Service Provider Flash Deployment
27%
29%
24%
20%
Distribution
0 - 25% 26 - 50% 51 - 75% 76 - 100%

30. • Majority of SPs still have little or limited storage automation
• Opportunity to drive costs lower/margins higher with increased automation
• Need to drive for higher levels of automation to appeal to Mode 2 and 3rd platform
prospects
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only
Key Take Away
Lessons Learned

31. What is the Primary Orchestration Platform you are using Today?
Service Provider Flash Deployment
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only
8%
69%
20%
16%
Distribution
Other:

32. • VMware is still largest orchestration platform
• Large number of SP’s looking at OpenStack as an alternative to VMware ($$$$)
• Many SP’s fixing orchestration issues with custom integrations requiring deeper
automation capabilities
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only
Key Take Away
Lessons Learned

33. How do you Differentiate your Cloud/Hosting Services Today?
49%
49%
45%
43%
32%
19%
6%
Distribution
SLAs Pricing White Glove Support Workload Specific Services Consulting Services Vertical Focus other
Service Provider Flash Deployment
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only

34. • Enterprises still like SLAs
• Many SPs still using price instead of value as a differentiator
• Specific application support to deliver vertical value
• What are you good at supporting?
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only
Key Take Away
Lessons Learned

35. What Storage Issues Have Been or are Anticipated to be Eliminated
by Deploying NetApp SolidFire Flash?
70%
65%
47%
33%
26%
21%
19%
Distribution
Performance Issues Scaling Challenges Management Complexity Lack of Automation
Array Sprawl Forklift Upgrades Lack of integration High TCO
Required Over Provisioning Long Deployment Times Other
Service Provider Flash Deployment
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only
19%
19%
14%
14%

36. • Reduced performance issues = lower churn
• Hosting is 24x7 – no maintenance window storage scaling
• More automation and integration
• Cost of migration is lowered saving many $$$
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only
Key Take Away
Lessons Learned

37. What is the Greatest Impact Flash has had on your Business?
12%
10%
14%
37%
12%
14%
Distribution
Increased Revenue/GB & Lower Costs Faster/Easier Capacity Planning Better infrastructure Consolidation
Faster Performance / Fewer Tickets Reduced Administrative Time Greater Customer Satisfaction
Service Provider Flash Deployment
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only

38. • Reduced support tickets means less customer issues = reduced churn
• Revenues/margins maintained with significant operational benefits
• Happier customers = more revenue
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only
Key Take Away
Lessons Learned

39. • Infrastructure as a Service (IaaS) is no longer enough.
• Service providers are differentiating themselves and generating revenue through new
workload or application-specific services
• It will be advantageous for service providers to deploy infrastructure that can handle
application-specific needs
• Flash technology does provide greater performance, but alone does not solve for
inconsistent performance problems or those caused by noisy neighbors.
• Service providers deploying new storage services, such as performance SLAs and
IOPS tiers are creating new profit centers and differentiating services.
• Flash is a core requirement for the next generation data center architectures
Lessons Learned from the Data
Service Provider Flash Deployment
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only

40. Congratulations!
As a thank you for attending todays webinar, we will be
drawing for a copy of the Technology as a Service Playbook.
The winner will be contacted separately
for address and shipping information
The de facto flash block storage for service providers worldwide
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only

41. NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only
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Stuart Oliver
@stuart_oliver
@NetApp
LinkedIn – Stuart_Oliver
Q&A

42. Thank You