Intel Confidential

In Collaboration with Intel®

Data Center MegatrendsOpportunity in 2015

Jim McHughVice President, UCS and Data Center Solutions MarketingCisco

Intel Confidential

Con t inu ing co l l abo ra t ion d r i v ing da tacen te r evo lu t ion

Cloud, Big Data, DC Modernization

Fabric based Datacenter

Unified Computing System

Routers, Switches, Security Appliances, Collaboration

Networking goes IA

Verifiedfor Centrino

Business Class Wireless Suite 802.11n WiMAX OPA

& IOT

EtherChannel GigabitEthernet

InterSwitch Link

Data Center Ethernet FCoE

Wireless Connectivity

1995 2005 2012

EthernetEvolution

Intel Confidential

1.9BGlobal

Smartphones

26Apps per

Smartphone

20Daily

Transactionswith

Data Center per App

1 TrillionDaily

Data CenterTransactions

*Sources: Google: Our Mobile Planet (26 apps per phone), Intel estimates

Intel Confidential

1: Intel and 3rd party analysis2: Intel estimate based on various end user proofs of concepts

CONNECTED FACTORY TOOLS

~40 DEVICESdrives

1 SERVER2

DIGITAL SIGNS

~20 DEVICESdrives

1 SERVER2

SMARTPHONES

~400 DEVICESdrives

1 SERVER1

MEDICAL WEARABLE DEVICES

~100 DEVICESdrives

1 SERVER2

Connected Devices: Depend on Data Centers

Intel Confidential

NASDAQ Private

Amazon

6

Intel Confidential

More Capacity More Complexity

Application Growth Every

2 Years

Data Volume Every 18 Months

Operational Costs Every

8 Years

Reduction in Compute Costs Every 2 Years

2xIncrease in

Management & Administration1

50% 2x 2x 8x

Challenge - Decrease Operational Costs, with Increasing Scale and Consistent Performance

More Resources

1 – IDC Directions ‘14 - 2014Source: Worldwide and Regional Public IT Cloud Services 2013-2017 Forecast. IDC (August 2013) http://www.idc.com/getdoc.jsp?containerId=242464

Datacenter architectuesTrends and Challenges

7

Intel Confidential

Network

Compute

Storage

App App

App App

App App

Todaya

Static, Manual, Hardware Defined

Tomorrowa

Automated, Dynamic,Software Defined

EMAIL CRM ERPONLINE SALES

ORCHESTRATION LAYER

RESOURCE POOLSSOFTWARE

DEFINEDSERVERS

SOFTWARE DEFINED

STORAGE

SOFTWARE DEFINED

NETWORK

Intel Confidential

RESOURCE POOLS

SOFTWARE DEFINEDSERVERS

SOFTWARE DEFINEDSTORAGE

SOFTWARE DEFINEDNETWORK

EMAIL CRM ERPONLINE SALES

* Other names and brands may be claimed as the property of others.

ORCHESTRATION LAYER

Software Defined

Infrastructure

Applications define the resources needed

Infrastructure assures efficiency and service

levels

Intel Confidential

SOFTWARE DEFINED NETWORK & SOFTWARE DEFINED STORAGE:Reduces infrastructure HW costs

Up to 26%1

Up to 66%1

Relative cost per VM instance

ORCHESTRATION:Reduces IT admin manual costs, and optimizes infrastructure

2 Private cloud with no legacy burden in hybrid environment

Orchestrated SDI lowering TCO of Data Center

Software Defined Infrastructure TCO

IT DatacenterStarting Virtualization

Private Cloud Virtualized, automated, starting

orchestration

Private Cloud Full orchestration w/ SDI

0%

20%

40%

60%

80%

100%

120%

1 Source: Intel Finance, 2014. Individual IT mileage may vary depending on workload, IT maturity and other factors. SDI assumes future benefits. Projections are extrapolations from Intel IT data. Private cloud model based on actual datacenter operations. IT DC based on Intel finance estimation for typical enterprise costs. Hybrid cloud model based on forward looking future benefits and market cost trends. Results have been estimated based on internal Intel analysis and are provided for informational purposes only. Any difference in system hardware or software design or configuration may affect actual performance or cost.

Your Opportunity in the Evolution to SDI

1) Sell UCS & UCS storage partners: Customers plan to grow DC server and storage capacity

2) Sell10&40GbE, Cisco Virtualized Network catalog: customers will upgrade their networking to support increasingly dense virtualization footprint

3) Start engaging on ACI and UCS “trust” and “intelligent Power Management” features: All respondents said they were exploring SDN & greater automation

Datacenter & SDN strategiesInfonetics October 2014

Infonetics: New spending plans in datacenters

11

Intel Confidential

Orchestration

InfrastructureAttributes &ComposableArchitectures

Transform the network

Unleash thepotential

Software Defined Infrastructure

Re-architecting the Data Center

EMAIL CRMERPONLINE

SALES

ORCHESTRATION LAYER

RESOURCE POOLSSOFTWARE

DEFINEDSERVERS

SOFTWARE DEFINEDSTORAGE

SOFTWARE DEFINED

NETWORK

Intel Confidential

Orchestration

From manual to automated

SOFTWARE DEFINEDSERVERS

SOFTWARE DEFINEDSTORAGE

SOFTWARE DEFINEDNETWORK

EMAIL CRM ERPONLINE SALES

* Other names and brands may be claimed as the property of others.

ORCHESTRATION LAYER

Intel Confidential

Orchestration Focus : Broadest Enabled Ecosystem Policy driven workload and resource

managementto meet biz requirements

Long history of enabling joint value

EMAIL CRMERPONLINE

SALES

RESOURCE POOLS

Closing enterprise feature gaps • High Availibility, Live Migration• Capacity and Quota management• Security and Compliance• Ease of Install, Upgrade• Delivered into OpenStack core code, working with partners• Reference Architecture• Juno Release OCTOBER 2014

SOFTWARE DEFINED

SERVERSSOFTWARE

DEFINEDSTORAGE

SOFTWARE DEFINED

NETWORK

Intel Confidential

Orchestration

InfrastructureAttributes &ComposableArchitectures

Transform the network

Unleash thepotential

Software Defined Infrastructure

Re-architecting the Data Center

EMAIL CRMERPONLINE

SALES

ORCHESTRATION LAYER

RESOURCE POOLSSOFTWARE

DEFINEDSERVERS

SOFTWARE DEFINEDSTORAGE

SOFTWARE DEFINED

NETWORK

Intel Confidential

Industry Transformation to Hybrid Cloud

16

Private Cloud

Workload optimized

Control, Sensitive IP

Guaranteed

Predictable

App utilization (high)

Public Cloud

Easy app migration

Basic

Limited / No SLAs

Unpredictable

App utilization (low)

Hybrid Cloudw/ Bursting Capability

U

U

Total Datacenter Workloads

Time

Bursty workloads delivered with Public

Cloud

Base workloads delivered with

efficient Private Cloud

Base

Spikes

Desired DC utilization

50% of all enterprises will have hybrid deployments by 2017¹

30% Global Hybrid Cloud CAGR from 2013-20182

1 Source: Gartner, 20132 Source: TechNavio, 2014

Intel Confidential

Opportunity in the Journey to Hybrid Cloud

Phase 1: Standardization Consolidate storage,

network, compute

Traditional DC

Hybrid Cloud

Phase 2: Virtualization Resource pooling Server virtualization Basic automation

Phase 3: Automation Patching / maintenance Provisioning Monitoring Reporting Upgrades

Phase 4: Orchestration Policy-based workload

movement SDN / SDS / NFV Automated resource pooling

Phase 5: Real-time enterprise Service managed SLA optimized Fully composable resources

SDI

U

Private Cloud

Modernize & “load balance”

Drive Cisco UCS, storage partners, 10 & 40GbE

Automate andOptimize

Drive UCS-director, Intelligent security and power policy automation, network

virtualization, ACI/SDN

Carefully selectpartners

The hardware matters

1 2 3

17

32% of Servers are>4 Years Old1 32 %

> 4 YEARS OLD

Make up only 4% of Total Performance

Capabilities of Servers1 4%> 4 YEARS OLD

Use 65% of Total Energy Consumption1 65

> 4 YEARS OLD

%

26%

CAPEX

74 %

OPEX

Business innovation throttled to 26%2

Time to revenue

Cost of lost time, effort, opportunity

Unpredictable business cycles

74% captive in operations and maintenance2

Rigid & aging infrastructure

Application & information complexity

Inflexible business processes

1* S

ourc

e: I

ntel

ana

lysi

s, 2

012

2* S

ourc

e: G

artn

er, I

T M

etric

s: A

lign

IT In

vest

men

t Lev

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With

Stra

tegy

Usi

ng R

un, G

row

, Tra

nsfo

rm a

nd B

eyon

d (M

arch

201

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Sof

twar

e an

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oads

use

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per

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test

s m

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opt

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ed fo

r per

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ance

onl

y on

Inte

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icro

proc

esso

rs.

Per

form

ance

test

s, s

uch

as S

YSm

ark

and

Mob

ileM

ark,

are

mea

sure

d us

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com

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Any

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You

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and

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Modernize: Aging Infrastructure is Inefficient and Costly

Opportunity to help customers move to more efficient infrastructure on UCS

1

18

Intel Confidential

Modernize all of the Infrastructure!

19

Intel® Xeon® 5300 HDD 1GbE

Intel® Xeon® E5-2600v2Intel® SSD DC S3700

SeriesIntel 10GbE

Windows® Server 2003

Intel® Xeon® 5300 HDD 1GbE

Up to 1,024 active VMs5

Up to 64 virtual processors/VM5

More resilient and economical storage5

Hyper-V 3.0 w/ VM plus file migration

Intel® Xeon® E5-2600v2

Intel SSD10Gbe

Windows* Server 2012

Up to 10X2 faster encryption speedUp to 30% reduced latency3

Up to 2X more R/W bandwidth with Integrated PCIe* 3.04

up to 9.5X performance1

up to 68% lower idle power1

up to 9.8X the performance1

up to 71% lower idle power1

1 Source: Intel estimation. See next page for config and related benchmark disclaimers2 Source: Intel estimation. See next page for config and related benchmark disclaimers3 Source: Intel estimation. See next page for config and related benchmark disclaimers4 Source: Intel estimation . See next page for config and related benchmark disclaimers5 Source: Microsoft Windows Server 2012 feature set (64 virtual processors and 1024VMs). Software and workloads used in performance tests may have been optimized for performance only on Intel microprocessors. Performance tests, such as SYSmark and MobileMark, are measured using specific computer systems, components, software, operations and functions. Any change to any of those factors may cause the results to vary. You should consult other information and performance tests to assist you in fully evaluating your contemplated purchases, including the performance of that product when combined with other products. For more information go to http://www.intel.com/performance

1

19

Intel Confidential

SOFTWARE DEFINEDSERVERS

SOFTWARE DEFINEDSTORAGE

SOFTWARE DEFINEDNETWORK

EMAIL CRM ERPONLINE SALES

* Other names and brands may be claimed as the property of others.

Infrastructure AttributesPower Performance Security Thermals Utilization Location Latency

Real timeintelligence

True automation

The hardware matters

ORCHESTRATION LAYER

Intel Confidential

Automate : Intel® Intelligent Power Node ManagerHardware-based engine to report & control server power

With enabled software, monitor & control server, rack and row power

Policy Limit

Actual Usage

Pow

er

Time

Up to 40% more servers and performance per rack

Up to 30% power optimization without performance impact

Path to gradually eliminate IP power strips, saving ~$400 per rack

2015 Oppor tun i t y : C isco UCS + In te l® In te l l i gen t Power Node Manager

2

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Intel Confidential

Discrete Components,

Self-Integration

Storage

Server

Network

Pooled and disaggregated compute, network and storage resources

Hardware attributes exposed to provisioning management layer

Composable set of pooled and

disaggregated resources

NVM NVM

TODAY

Optimize: Disaggregated server architectures2

RACK SCALE ARCHITECTURE

22

Intel Confidential

Cisco UCS-M – High density 2

Intel Confidential

Carefully select partners: Hardware matters in Cloud service delivery

Source: 1) IMR Research: Base: Total using Public Cloud US n=207; PRC n=241, Germany n=90, Brazil n=81Q. What percent of these applications have you specified the hardware and/or other components to be used by the Cloud service provider as opposed to only specifying the level of service you expect? 2) Intellitrends Survey 2013 - (Comuware Report Measuring the Business Impact of Technology Performance) 3) HotCloud 2012 White Paper

1

70% Of Enterprises Specifying HW In cloud Service Selection

Application performance can vary up to 60% with up to 30% cost differenceSecurity policy enforcement audit can be a challenge

up to 65% Cost reduction1

0

10

20

30

40

50

60

70

Lower Performing Premium

Job runtime in seconds1

(lower is better)

Sec

1 NIBR, of Novartis Pharmaceuticals ran Next Gen Sequencing, Imaging & Modeling & Sim techniques (specifically Virtual Screening w/CPU bound, low mem, low IO, network, parallel Benchmarking SW ran same job many times (workload avg 32 secs on AWS cc2.8xlarge vs 1min 7 sec on AWS m1.large) revealed that best ROI was with cc2vspot instancesIntel does not control or audit the design or implementation of third party benchmark data or Web sites referenced in this document. Intel encourages all of its customers to visit the referenced Web sites or others where similar performance benchmark data are reported and confirm whether the referenced benchmark data are accurate and reflect performance of systems available for purchase.Software and workloads used in performance tests may have been optimized for performance only on Intel microprocessors. Performance tests, such as SYSmark and MobileMark, are measured using specific computer systems, components, software, operations and functions. Any change to any of those factors may cause the results to vary. You should consult other information and performance tests to assist you in fully evaluating your contemplated purchases, including the performance of that product when combined with other products. For more information go to http://www.intel.com/performance

up to 52% Decrease in run-time1

74% increase1 Encryption performance

5.2X Higher VM density2

Up to

VM Instance with Intel Xeon E5 v2-2600 vs. Intel Xeon 5500

3

Intel Confidential

Intel Cloud Strategy : Standards, Products, Acquisitions to enable a broad Ecosystem

CLOUD REQUIREMENTS& OPEN STANDARDS

Key Acquisitions

Other brands and names are the property of their respective owners

OPTIMIZEDPRODUCTS

Intel® Networking

Intel® Cloud BuildersIntel® Cloud Technology

3

Intel Confidential

Orchestration

InfrastructureAttributes &ComposableArchitectures

Transform the network

Unleash thepotential

Software Defined Infrastructure

Re-architecting the Data Center

EMAIL CRMERPONLINE

SALES

ORCHESTRATION LAYER

RESOURCE POOLSSOFTWARE

DEFINEDSERVERS

SOFTWARE DEFINEDSTORAGE

SOFTWARE DEFINED

NETWORK

Intel Confidential

Network Transformation Stages

4:1 Workload Consolidation

Speed development

Maximize flexibility

Network Functions Virtualization

Flexible deployment models and placement

Leverage virtualization

Network Virtualization

Overlays enable virtual networks on top of a physical

network

Software Defined Networking

Datacenter wide Automation&

Flexibility

Separates control and data plane

27

Intel Confidential

Cisco and Intel – Driving Open Industry Collaboration

VMVM

OpFlexAgent

OpenFlow + OVSDB

Open vSwitch

APICPolicy

Authority

OpFlex

Hypervisor

OPFLEX PROTOCOL + ECOSYSTEM

APIC

OPFLEX

OPENSTACK & OPEN DAYLIGHT GROUP POLICY PROJECT

Opflex OpenFlow Affinity …

OPEN VSWITCH & OPFLEX

Open Source Standards Open EcoSystem

28

Intel Confidential

Orchestration

InfrastructureAttributes &ComposableArchitectures

Transform the network

Unleash the potential

Software Defined Infrastructure

Re-architecting the Data Center

EMAIL CRMERPONLINE

SALES

ORCHESTRATION LAYER

RESOURCE POOLSSOFTWARE

DEFINEDSERVERS

SOFTWARE DEFINEDSTORAGE

SOFTWARE DEFINED

NETWORK

Intel Confidential

The Era of Analytics

50 Billion Devices

35 Zettabytes

2020

*Sources: Cisco Internet Business Solutions Group, IDC: The Digital Universe

Intel Confidential

Intel Big Data Analytics Platform Strategy

$2.04B (56%)

$394M (60%)

$363M (60%)

$1.25B (59%)

2015 (CAGR%)

Intel Confidential

Era of Analytics: Solving problems that matter

Personalized Healthcare

With Michael J Fox Foundation, enabled research scientists to monitor progression of Parkinson’s Disease by developing analytics platform for data collected from wearable sensors.

Smart Building

Enabled Daikin Applied to lower energy costs and predict maintenance schedule by analyzing data from HVAC rooftop units in the cloud and managing systems remotely.

Responsive Store

With Living Naturally, helped natural food retailers to optimize inventory in real-time by developing social media analytics solution on big data platform.

32

Summary

New spending plans in datacentersDatacenter & SDN strategiesInfonetics October 2014

Con t inu ing co l l abo ra t ion d r i v ing da tacen te r evo lu t ion

The datacenter and the datacenter industry are transforming

Underlying hardware matters in the transformation

Modernize across the portfolio• Sell UCS & UCS storage partners as your customers plan to grow DC server and storage capacity • Sell10&40GbE, Cisco Virtualized Network catalog as customers increase virtualization footprint• Explore high density form factors such as Cisco UCS-M

Help customers automate and optimize their cloud footprint• Start learning about the standards based approaches for SDN• Deploy UCS “trust” and “intelligent Power Management” features - high interest in greater automation• Carefully select cloud partners and premium instances - it offers your customers a better experience/ROI

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