Enabling the Flash-Transformed Data Center

Brian Cox

Enabling the Flash-Transformed Data Center

Senior Director, Marketing, Enterprise Storage Solutions

Forward-Looking Statements

During our meeting today we will make forward-looking statements.

Any statement that refers to expectations, projections or other characterizations of future events or circumstances is a forward-looking statement, including those relating to market position, market growth, product sales, industry trends, supply chain, future memory technology, production capacity, production costs, technology transitions and future products. This presentation also contains forward-looking statements attributed to third parties, which reflect their projections as of the date of issuance.

Actual results may differ materially from those expressed in these forward-looking statements due to a number of risks and uncertainties, including the factors

detailed under the caption “Risk Factors” and elsewhere in the documents we file from time to time with the SEC, including our annual and quarterly reports.

We undertake no obligation to update these forward-looking statements, which speak only as of the date hereof or as of the date of issuance by a third party, as the case may be.

A Global Leader in Flash Storage Solutions

*_{Financials as of Q1, ‘14. Net Cash = [Cash + cash equivalents + short-term & long-term marketable securities] less [debt at maturity value] as of the end of Q1. †Headcount as of Jan., ‘14.} _NPD

Estimate, Feb., ‘14. _{Estimates of the memory card & USB markets from NPD (Feb.. ‘14) and GfK Retail and Technology}

Rankings Trailing 4 Qtr Financials* Global Operations Leading Retail Brand°

$6.3B Revenue $3.8B Net Cash* $0.8B R&D Investment 5,900+ Employees† #1 Global Retail Revenue Share All Leading Smartphone & Tablet Manufacturers use SanDisk SanDisk Client & Retail SSDs Approved Supplier to All Leading PC Manufacturers Qualified at

6 of the Top 7

Server & Storage OEMs

Enabling Flash Storage from Wafer to Software

Close to Half of Industry Bit Output Together with manufacturing partner Toshiba

Fabs: World class NAND capacity CONTROLLER SCALE ASSY, TEST & PKG SSDs SANDISK SOFTWARE NAND TECH NAND DIE FLASH MGMT

World-Leading Innovator

4,900

Widening

Performance Gap

1990

1995

2000

2005

2010

2015

Server CPU Performance

Challenge: Legacy Storage I/O Bottleneck

Source: StorageIOblog; Sep 2009; http://storageioblog.com/data-center-io-bottlenecks-performance-issues-and-impacts/

Aligning

Performance

Vertical Integration Matters:

SanDisk Path to the Flash Transformed Data Center

Memory Design

Advanced System Design

Software Design

19nm 1Ynm

1Ynm 1Znm

3D NAND 



Designed for high performance



Workload optimized



Mission-critical endurance



Runs applications faster



Enables larger in-memory datasets

Leading Memory Cell Design Is Not Enough

Need for Advanced Flash Management

Bit Error Retry Rate High Low

Early Life End of Life

Data Integrity Threshold

Guardian Technology

™

_Platform

Enhances NAND Physics to Meet Enterprise Standards

Bit Error Retry Rate High Low

Early Life End of Life

• Aggregated Flash Management • Advanced Signal Processing

Data Integrity Threshold

Flash Transforms Applications

Across the Tiers of the Data Center

TIER 3 TIER 0 TIER 1 TIER 2  DRAM  Short-stroked 15K HDDs  DRAM  15K rpm HDDs

Legacy Storage

Leading Edge Storage

Data Warehouse Web Server Logs Analytics OLTP Indexing Image Retrieval Exchange Server Caching In-Memory Compute VDI/ Virtual Server VOD/ Media Streaming Content Repository Web Search

SanDisk Offering Covers a Broad Set of Applications

SAS

DDR

Tier 1/2

Tier 0/1

SATA

Tier 2

PCIe

Tier 0/1

Latency Matters

Ultra Low Latency for Tiers 0 & 1

100’s

IOPS

La

te

nc

y

(

m

ic

ros

ec

ond)

10,000 Virtual Machine Deployment

ULLtraDIMM

PCIe

Virtual Desktop Consolidation Example

Tier 0 & 1 — Metrics: Faster IOPS and $/Transaction

200 VMs/ Server  4x ULLtraDIMM 400GB  64GB DRAM

$99 per VM

57% reduction in Total Cost of Acquisition

of servers and DRAM investment

$

232 per VM

978 29 21 200GB 2.5" SAS eMLC SSD 146GB 2.5" SAS 15K HDD 1200 2.5" SAS 10K HDD 0.09 0.55 2.03 200GB 2.5" SAS eMLC SSD 146GB 2.5" SAS 15K HDD 1200 2.5" SAS 10K HDD

SSDs Maximize Data Center Efficiency

Source: www.dell.com/downloads/global/products/pvaul/en/enterprise-hdd-sdd-specification.pdf

Density Matters

Tier 2: Beyond just faster, cooler, and more power efficient SSDs

Capacity 16TB 8TB 4TB 0.9 TB 1.2 TB 1.6 TB

SanDisk Enterprise SSDs continue to deliver density growth

Today’s World’s highest capacity SAS SSD

100 TB of Database Storage

with

>150K IOPS

_SSDs

HDDs

Database Management System Example

Tier 2 — Metrics: $/IOPS and TCO

1875K IOPS

 25 SSDs @ 4TB

$0.07 per IOPS

TCA $104,214 (w/o SW) TCO $124,609 over 3 years

60% reduction in Total Cost of Acquisition

58% reduction in Total Cost of Ownership

 685 HDDs @ 146GB

151K IOPS

$1.98 per IOPS

TCA $257,484 (w/o SW) TCO $298,587 over 3 years

Microsoft SQL Microsoft SQL

Source: Based on Dell PowerEdge pricing www.dell.com/us/business/p/poweredge-r720/fs along with HDD studies “Failure Trends in a Large Disk Drive Population” and “Disk failures in the real world”: proceedings of 5th USENIX Conference on File and Storage Technologies and incorporated into TCO model developed by SanDisk architect Fritz Kruger—December 2013

4U of Rack space 85U of Rack space

Response Time Matters

—

With TCA/TCO

Tier 3: Active Content Repository System Example

Smaller Footprint

Response Time

FlashSoft

Software



Shares “hot data”

on shared SSD

caches across

server nodes



Compensates

for slower tier of

direct-attached &

networked storage

ZetaScale

Software

Uses object

technology to

group storage

bits together



Key value store

shortens access

time to manipulate

files & speeds up

DB performance

Software Defined Storage

cache cache cache Storage Storage Storage AVAILABLE MID 2014

How SanDisk Will Accelerate Software Defined Storage



In-Memory Compute



NoSQL Databases

Cassandra

MongoDB



Hadoop

–

Spark/Shark



Object Storage Servers

0.7

5.0

16.0

HDD SSD SSD + ZetaScale

TPS per Server in Thousands

Software Application Acceleration

20x

Improvement

ZetaScale

_Software

3x

Parity Cost SSD

Costs Are Converging: HDDs and SSDs

Enabling the Data Center Transformation

$1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00 2010 2011 2012 2013 2014 2015 2016 2017

Dollars per Gigabyte ASP/Gigabyte (US$)

19nm 1Y 1Z BiCS

Lower Cost SSD Higher Cost SSD

Enterprise-Grade Storage SSD Revenue Enterprise-Grade Server SSD Revenue Mission Critical HDD Revenue

Business Critical HDD Revenue



Vertical Integration matters –

enables optimized solutions



Low latency matters – high

performance economics



Density matters – Total Acquisition Cost



Software matters – removing the

final bottlenecks

SanDisk

Is Leading

the Way to

the Flash

Transformed

Data Center

Thank you!

© 2014 SanDisk Corporation. All rights reserved. SanDisk is a trademark of SanDisk Corporation, registered in the United States and other countries. ULLtraDIMM is a trademark of SanDisk Enterprise IP LLC. Lightning is a U.S. registered trademark of SanDisk Enterprise IP, LLC. Cloudspeed, CloudSpeed Ascend, CloudSpeed Eco, CloudSpeed Extreme, CloudSpeed Ultra and Cloudspeed logo are trademarks of SanDisk Enterprise IP LLC. Optimus, Optimus Ascend, Optimus Eco, Optimus Extreme, Optimus Max and Optimus Ultra are trademarks of SanDisk Enterprise IP LLC. Other brand names mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s).