The hyper converged infrastructure (HCI) market is entering a new phase of maturity. A modern HCI solution requires a private cloud platform that integrates with public clouds to create a consistent hybrid multi-cloud experience. During this webinar, NetApp and an IDC guest speaker covered what led to the next generation of hyper converged infrastructure and which five capabilities are required to go from hyper converged to hybrid cloud infrastructure.

1. The Evolution of Hyperconvergence
Following the Drivers Leading to HCI Adoption to
Date & How it is Expected to Change Going Forward
© IDC
Eric Sheppard
Research VP, Enterprise Infrastructure

2. Organizations around the world are digitally transforming to create new value and competitive
advantages through new offerings, new business models, and new customer relationships.
2
Critical Factors Changing Needed D.C. Infrastructure
Infrastructure Investments are increasingly…
2) Aligning with Top Business Priorities1) Strategic in Nature
Top Business Priorities Rank of Mean Score
#1
#7
#3
#4
#5
#6
#2
#8
Source: IDC Business Consulting Client Value Survey, 2017 N=1334

3. Investing in new types of infrastructure that drive
down cost and time of managing infrastructure
© IDC
IT Departments Align with Shifting Business Needs
Data Center Teams Spend Little Time on InnovationSteady Increase to the Cost of Managing Infrastructure
Every $1 CAPEX for Physical Server Drives $4 on OPEX
Operational Simplicity & Agility are Critical Needs

4. 4
New Investments Targeting Operational Efficiency
0% 20% 40% 60% 80%
Enterprise Storage
Enterprise Servers
Software Defined Storage (HW & SW)
Public Cloud IaaS (Compute & Storage)
All Flash Storage Systems
Hyperconverged Infrastructure
Compounded Annual Spending Growth – Last Three Years
Public & Private Cloud SDIHyperconverged All Flash Systems

5. Elimination of SAN-based solutions in favor of industry standard servers that offer fully virtualized
compute and data services. Scale-out architecture of hyperconverged solutions further lowers capital
costs reducing overprovisioning, by starting small and scaling as needed.
Lower CAPEX
HCI Solutions: Rising to the Challenge
HCI removes the need to managing physical SANs & LUN-level policies. Staff are able to manage virtual
machines, applications, and services. Reduced overprovisioning and increased density helps to drive
down costs of power, cooling and D.C. floor space.
Reduced OPEX
The highly automated nature of HCI solutions helps to reduce risk of downtime associated with
common lifecycle management tasks (e.g., firmware upgrades, system refresh). The scale-out, software-
defined nature of HCI solutions help to eliminate the need for complex and risky forklift upgrades.
Reduced Risk

6. 6
Hyperconverged is Providing Real World Benefits
Top Benefits Realized Through HCI Deployments
0% 10% 20% 30% 40% 50%
Improve IT staff productivity
Improved utilization of storage resources
Reduced cost of data center facilities, power and cooling
Reduced downtime and improved application availability
Faster time to market
Faster infrastructure/application provisioning
Improved utilization of compute resources
Reduced capital spending on storage systems
Improved application performance and response times
Reduced capital spending on storage networking
Q. Which of the following best describes how your organization has benefitted from the use of HCI?
N: 300 HCI Users

7. Historical Spending on Converged Systems
7© IDC
$0B
$5B
$10B
$15B
$20B
2013 2014 2015 2016 2017 2018
Annualized Quarterly Spending on Converged Systems
§ Virtual Machine Sprawl
§ DC Resource Utilization
§ Simplify Purchase & Support
§ Reduced Downtime
§ Productivity & Agility
§ Productivity & Agility
§ IT Credibility/Biz Alignment
§ Lower Cost DP & DR
§ Productivity & Agility
§ Enterprise Features
§ Platform for Hybrid Clouds
Traditional CI
HCI

8. Comparing HCI Spending by Workload with Total Server Market
0% 10% 20% 30% 40%
Media streaming
Traditional IT Infra.
Web serving
Unstructured Content / Data…
VDI
App Dev & Testing
Engineering & Technical Apps
Structured Data Mgt.
Structured Data Analytics
Content Apps
Collaborative Apps
Business Apps
8
HCI Spending by Workload
8
0% 5% 10% 15% 20% 25%
Tradional IT Infra.
Business Apps
Web Serving
Structured Data Mgt.
Media Streaming
Collaborative Apps
Engineering/Technical Apps
App Dev & Testing
Structured Data Analytics
Content Apps
Unstructured Data Analytics
VDI
HCI Spending as a Share of Total
Server Spending

9. 9
§ Predictable performance under heavy loads
§ Support sub-millisecond response times
§ Support hundreds of thousands of IOPs
§ Provide a private cloud platform that can easily tie into public clouds
§ Create a seamless hybrid, multi-cloud experience for on & off prem. workloads
§ HCI should be thought of as a platform for on-prem, private cloud
§ “Lingua Franca” needed to ensure data can be leveraged no matter location
§ Essential to preventing/eliminating silos of private & public clouds
§ Support consolidation of D.C. roles
§ Horizontal view of staff skills to allow cross responsibility
§ Help the business drive innovative and new revenue streams
Integratewith
PublicClouds
SupportCommon
DataServices
EnableDigital
Transformation
Requirements of HCI Solutions Going Forward
§ Few data centers scale infrastructure linearly
§ Must support independent scale of compute and storage
IndependentScaling

10. NetApp HCI
Hybrid Multicloud
ExperienceBuild Clouds to Accelerate Services
© 2018 NetApp, Inc. All rights reserved. — NETAPP CONFIDENTIAL —
Robert Klusman
Director WW Marketing HCI

11. Deliver a Cloud Consumption Experience in Your Data Center
Simplify consumption of IT for your users
11 © 2018 NetApp, Inc. All rights reserved. — NETAPP CONFIDENTIAL —
Cloud
Volumes
Cloud
Insights
Cloud
Sync
SaaS
Backup
Cloud
Orchestrator
Cloud
Sentry
Cloud
Tiering
Kubernetes
Service
The cloud experience must be:
• Low-friction
• Self-service
• Automated
• Consistent across all your public and
private clouds
Your users are demanding more.

12. NetApp HCI as an Extension of Public Cloud
Automate management complexity to eliminate constraints in hybrid
clouds
12 © 2018 NetApp, Inc. All rights reserved. — NETAPP CONFIDENTIAL —
Cloud service management and orchestration
Extend public cloud into your data center
Containers, VMware, private, local to you
Right cloud,
right
workload
Cloud
Volumes
Cloud
Insights
Cloud
Sync
SaaS
Backup
Cloud
Orchestrator
Cloud
Sentry
Cloud
Tiering
Kubernetes
Service
ServiceProviders
CloudDataServices
DataFabric
NetApp HCI

13. Tap into Innovation from All Your Clouds
Deliver new business faster
13 © 2018 NetApp, Inc. All rights reserved. — NETAPP CONFIDENTIAL —
New clouds, new services,
new opportunities.
Access to the best-in-class
microservices allows you to
outpace competition.

14. 14 © 2018 NetApp, Inc. All rights reserved. — NETAPP CONFIDENTIAL —
Enterprise design
§ High-performance, scalable hybrid cloud infrastructure
§ Guaranteed service levels through built-in quality-of-
service (QoS) controls
Automated
§ Heavily automated system, deep APIs
§ Optimal for enterprise and cloud-native applications
Elastic infrastructure
§ Get seamless resource scalability
§ Align infrastructure with business needs
Hybrid multicloud experience
§ Only NetApp offers public cloud architectures for private
clouds
§ Integrated application flexibility, operations,
and protection
NetApp® HCI fast adoption
§ Less than 12 months on the market
§ 350+ customers with 200PB+ deployed
NetApp
HCI