Go-to-Market Insights for Service Providers Deploying Flash Storage

To Flash or Not to Flash? Go to Market Insights for Service Providers Deploying NetApp SolidFire Flash Storage

Stuart OliverGlobal Consulting DirectorNetApp SolidFire

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

Today's PresenterThe de facto flash block storage for service providers worldwide

Global Consulting Director Fueled by SolidFire | Global

Stuart Oliver


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


Introduction


‘Build’ Trends

77%

43%

67%57%

49% 49%

Traditional VirtualizedOn-premise private cloud

2018

2015

*McKinsey & Company 2016

Fundamental Shift from ‘Build’ to ‘Consume’


‘Consume’ Trends

38% 34%

54%

25%37%

Dedicated Private Cloud

VirtualPrivate Cloud

Public IaaS

2018

2015


57%



2018

2015

On-PremiseTraditional

54%37%71%63%

Large Enterprise

MidsizedEnterprise

Small & MediumBusiness

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-PremiseVirtualized

On-PremisePrivateCloud

DedicatedPrivateCloud

VirtualPrivateCloud

Public IaaS

Build Consume




The Industry is Changing


Changing Market LandscapeService Provider Market Trends

www.451research.com SP Trends 2016 Report



$82B2019

$20B2019

IaaSFrom $8B in 2015

Managed Cloud HostingFrom $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



Source: Rackspace.com - 2016

Public CloudPrivate CloudHybrid Cloud

Microsoft AzureMicrosoft Private Cloud

Office 365

AWS NavigatorAWS Aviator

AWS Consulting Partner

Dedicated ServersVMware

Managed Hosting





Office 365




Managed Hosting




Breadth of Services

Valu

e



Office 365




Managed Hosting



Changing Market LandscapeService Provider Flash Deployment

Breadth of Services

Valu

e



Office 365




Managed Hosting



Global Service Provider Market Trends The de facto flash block storage for service providers worldwide

1

6X More Growth Than Traditional IT

IDC 2014

6X2

89% of Enterprises are Using Flash

ESG 2014

89%3

68% of Applications Remain Behind the Enterprise Firewall

451 Research 2015

68%


Block Storage Market OverviewService Provider Service Delivery


Managed Servers

PublicCloud

PrivateCloud

Hybrid Cloud

Back OfficeHP 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 services4

Streamline OperationsService Provider Service Delivery


How Service Providers are Deploying FlashData Insights


What was the original use case for your SolidFire purchase

56%51%

35%30%

28%21%

16%

Distribution

PublicCloud HostedPrivateCloud ManagedHosting/SAN HybridCloud

VirtualPrivateServers VirtualDesktopServers AppHostingServices Other

2%

Service Provider Flash Deployment


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


What Additional Use Cases are Planned for your SolidFire Platform?

39%37%37%

34%34%

32%26%

Distribution

HybridCloud PrivateCloud AppHostingServices HostedPrivateCloud VirtualPrivateServers ManagedHosting/SAN VirtualDesktopServers Other



3%

• 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


Key Take AwayLessons Learned

How much of your Storage Operations are Automated Today?



27%

29%

24%

20%

Distribution

0 - 25% 26 - 50% 51 - 75% 76 - 100%

• 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



What is the Primary Orchestration Platform you are using Today?Service Provider Flash Deployment


8%

69%

20%

16%

Distribution

Other:

• 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 deeperautomation capabilities



How do you Differentiate your Cloud/Hosting Services Today?

49%

49%

45%

43%

32%

19%

6%

Distribution

SLAs Pricing WhiteGloveSupport WorkloadSpecificServices ConsultingServices VerticalFocus other



• 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?



What Storage Issues Have Been or are Anticipated to be Eliminatedby Deploying NetApp SolidFire Flash?

70%65%

47%33%

26%21%

19%Distribution

PerformanceIssues ScalingChallenges ManagementComplexity LackofAutomation

ArraySprawl ForkliftUpgrades Lackofintegration HighTCO

RequiredOverProvisioning LongDeploymentTimes Other



19%19%

14%14%

• Reduced performance issues = lower churn

• Hosting is 24x7 – no maintenance window storage scaling

• More automation and integration

• Cost of migration is lowered saving many $$$



What is the Greatest Impact Flash has had on your Business?

12%

10%

14%

37%

12%

14%

Distribution

IncreasedRevenue/GB&LowerCosts Faster/EasierCapacityPlanning BetterinfrastructureConsolidation

FasterPerformance/FewerTickets ReducedAdministrativeTime GreaterCustomerSatisfaction



• Reduced support tickets means less customer issues = reduced churn

• Revenues/margins maintained with significant operational benefits

• Happier customers = more revenue



• 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 DataService Provider Flash Deployment


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



Stay ConnectedFollow NetApp and Stuart Oliver on LinkedIn and Twitter

Stuart Oliver

@stuart_oliver@NetApp

LinkedIn – Stuart_Oliver Q&A

Thank You

Go-to-Market Insights for Service Providers Deploying Flash Storage

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