Don't Sell Yourself Short in the Telco/NEP Market

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Don't Sell Yourself Short in the Telco/NEP Market

• Presented by
• Warren T. Sheffield

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What We are Here to Discuss

• Sizing the Market Opportunity
• Network Equipment Providers (NEP)
• Overview, trends requirements
• Telecommunication
• Overview trends
• NEP Telco buying criteria
• Selling into the Telco market
• Signals to look for questions to ask
• How Dot Hill's portfolio address these needs
• Measuring up against the competition
• Customer Wins

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Explosive Network Growth
30 Billion packages shipped per year 2
Billion text messages on a peak day 390
Gigabytes of data created every second 50 New
data growth each year
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Network Participation is Happening Everywhere
Enterprise Consumers Developers Public Sector
Collaborative Industry Networks Outsourcing New
Business Models
Blogs Instant Messaging MySpace Itunes Flickr Onli
ne Gaming
Java Open Source Linux OpenSolaris Windows
Inter-Agency Collaboration Healthcare
Networks Political Campaigning
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IP-led Convergence Changes The Game
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Strategy Needs to Address a Broad Spectrum
Innovate the World's Best Technology
Address Our Customer's Biggest Challenges
Grow Communities, Increase Participation
Opportunity
Sharing Creates Communities, Communities Create
Value
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NEP Overview
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NEP Storage Market Trends 2006

• Growth Drivers
• SMS IMS services messaging, caller
• info, caller ID, network connectivity
• Others 3G, IPTV/video
• IP Telephony (VoIP) storage usage
• impact between NEPs vs. Telco operators
• Regulatory Compliance
• Any impact to NEPs from data retention
• compliance requirements for Telco
• operators (EU first, followed by ROW)
• between 6 months to 2 years
• Storage Usage Models
• Local DAS to consolidate storage (ie.
• Adoption of bladed servers)
• Tiered storage local backup apps
• Geo-redundancy (backup) and distributed
• storage (central office vs. data center)

• Competition
• New NEPs emerging (Hauwei ZTE)
• push for lower cost
• DC storage
• Strong Telco push by EMC
• Market Dynamics
• Price erosion 10 15 per year
• NEP consolidation in response to the
• carrier consolidation
• Technology substitution (VoIP, wireless,
• etc.)

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NEP Storage RequirementsProviding the right
product with the right features
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NEP Storage RequirementsProviding the right
product with the right features
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Telco Overview
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Telco Storage Market Trends 2006

• Customer Power
• Increasing as Telcos consolidate
• Price erosion is 10 -15 per year
• Technology Substitution
• PC based VoIP impacting wireless
• wireline Telcos
• WiFi WiMax could hurt Telcos if
• Internet content companies
• municipalities manage to provide free
• Internet access
• Supplier Power
• NEPs consolidation (Lucent/Alcatel)
• DC a requirement

• Competitive Structure
• Indirect competition increasing from
• every direction even Yahoo offers
• voice at 2c per minute cable
• companies, wireless/wireline Telcos,
• Internet companies all in the mix
• Consolidation in EU and US Telcos
• continue and could reduce direct
• competition
• Growth Drivers
• IPTV for Telco's (e.g. ATT/SBC
• Lightspeed in US)
• IP Multimedia Subsystems (IMS)
• includes storage intensive services
• such as Find-me-Follow-me, address
• book sharing, on screen caller ID, multi-
• network connectivity (cell to WiFi/VoIP)

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Listening to Customers

• Why do customers continue tovote with their
  purchase orders?
• Quality of service support
• Open systems choice
• Commitment to mainframe customers
• Storage expertise sales competence
• Product features, quality reliability
• Technical support
• Customer overall satisfaction
• Customers are looking for suppliers to deliver
  end-to-end data management, data protection
  security

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Telco/NEP Buy Criteria for Block Storage
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Selling into the Telco Market

• NEBS Level 3 complete solutions not just
  servers
• Storage solutions must address both physical,
  proximity as well as data service requirements
• Understanding the customer's comfort level on
  technology
• Listening to what they say as well as hearing
  what they don't

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Selling into the Telco Market

• Being committed to provide a higher level of
  supply as well as support in the field
• Understanding how they outsource certain
  functions especially in service
• Telco customers require a longer lead time in
  product changes as well as extended availability
  options
• Change is slow but when you win, you are in for
  even more opportunities
• Being prepared to support their extended product
  life cycle requirements

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Recognizing an Opportunity

• When a customer needs
• Task-critical application storage
• Single Dedicated Apps
• Workgroup applications
• Rack space utilization
• High port count/simplified SAN solutions
• Cost effective storage solutions
• Ability to grow modularly
• A consolidated boot solution
• Telco(NEBS)
• Gov't (MIL-STD-810F)

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Questions to Ask Potential Customers

• How are they addressing Sarbanes-Oxley their
  needs for data retention
• Do they have a plan in place to address the
  compliance regulations
• How are they addressing the continued entrants
  into the marketplace
• Are they working on reducing environmental issues
  like BPU and/or power consumption

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Questions to Ask Potential Customers

• Would they be interested in solutions that
• Cut their operating costs (to preserve margins)
• Reduce churn to minimize revenue loss
• Open opportunities to increase average revenue
  per unit
• Attract new customers
• Provide the opportunity for new revenue inside
  as well as outside the telco market

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Who is Effect By the EU Data Retention Directive?

• Telephone operators both hardwire and mobile
  Lucent, Ericsson, Nortel, etc
• Network providers ISP AOL Wanadoo, Terra,
  Tiscali, etc.
• Service providers Skype, MSN Messenger, Yahoo,
  Gmail, etc
• And the Directive is spreading!

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What Communications must be retained?

• Phone calls to/from both Fixed as well as
  Mobile
• VoIP services
• Instant messaging like SMS and MMS
• Internet connections both dialup as well as
  others
• Emails

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What Data must be retained?

• Caller , name address
• Number called, name address
• Date, time duration
• Internet access IP address assigned, calling ,
  DSL id
• Mobile call- IMSI IMEI of calling called
  parties as well as Cell ID GEO location
• Mobile-prepaid anonymous date cell-ID of
  initial activation of the card

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Why are these products easy to Sell?

• High port-count less infrastructure cost
  complexity
• Simplified deployment, configuration monitoring
• Heterogeneous support
• Price/performance
• Pay-as-you-grow, server centric, flexible

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Innovation With the SANnet II FC
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Example Switchless SAN

• Customers love this highly efficient architecture
• Industry-leading high port count eliminates the
  need for switches
• Greatly reduces costs
• Simplifies administration
• Saves space
• No production-level NEBS Fibre Channel external
  switch is available today

4 Hosts connected to entry array EMC
145,000 Dot Hill 100,000 Savings 45,000
Incremental cost from 2 redundant FC switches
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Example Traditional Telco Storage Deployment
Internet

• Current Environment
• Sun Netra servers (1280s, 480s, 440s, etc.)
• Most DAS, 25 utilized
• Solaris and Linux
• Storage SANnet II SSCI arrays used
• Multi- TB installed growing at 30-50
• Multimedia messaging service (MMS) applications

MMS Server
MMS Server
MMS Server
...
SCSI
SCSI
SCSI

• Challenges/ Requirements
• Lower TCO
• Migrate to SAN (no NEBs based switches?)
• Storage requirements from IP telephony, demand
  from emerging 3G and 4G cellular networks

SANnet II SCSI
SANnet II SCSI
SANnet II SCSI
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New Telco Deployment
Internet

• New Environment
• ATCA bladed server platform with built in SAS
  connectivity (no external HBAs/SIOM
  modules)
• 14 dual ported usable slots 28 ports
• Combination of multi-port SAS and iSCSI
  connectivity to two Next Generation arrays
• SAS for performance intensive workloads, iSCSI
  for other (boot, low access applications)

iSCSI
SAS
Next Gen iSCSI
Next Gen SAS
Rack and Stack w/ SAS
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Why are these products easy to Sell?

• High port-count less infrastructure cost
  complexity
• Simplified deployment, configuration ,monitoring
• Heterogeneous support
• Price/performance
• Pay-as-you-grow, server centric, flexible

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Enormous Revenue Opportunity
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Why are these products easy to Sell?

• High port-count less infrastructure cost
  complexity
• Simplified deployment, configuration ,monitoring
• Heterogeneous support
• Price/performance
• Pay-as-you-grow, server centric, flexible

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Screaming Performance, Low Price

• SPC-1, February 2006
• Best price performance with 11,648 SPC IOPs,
  3.71 per SPC-1 IOP
• Conducted with mirrored cache for full data
  protection
• SPC-2, December 2005
• Best price performance and performance in its
  category
• http//www.storageperformance.org/results/

following 2/7/2006 reprice of SE3510
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Why are these products easy to Sell?

• High port-count less infrastructure cost
  complexity
• Simplified deployment, configuration ,monitoring
• Heterogeneous support
• Price/performance
• Pay-as-you-grow, server centric, flexible

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Flexibility Can be a Vague Concept

• There are numerous differing opinions about what
  exactly pay-as-you-grow means or what it
  should mean.
• Despite vagueness, several items are understood
• Customers wish to spend as little as possible for
  their initial capacity.
• Customers seek simple painless ways to add even
  minimal amounts of storage to existing volume
  groups and arrays.
• Customers desire a relatively painless way to
  increase over all performance of their system if
  they require it.

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Example of Tiered Storage
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IP PBX / Centrex
End User Services
Network Enablers
IP Transport Network
OSS
Access Networks
DSL /Cable
GGSNPDSN
WiFi /802.16
2/3G Wireless
MSC
PSTN
Access Point
HSDPA
PBX
End User Devices
2/3G Voice / WiFi(SIP) Handsets
SIP, MGCP, H.323 Endpoints
POTS Phones
Video Data Endpoints
ISDN Phones
SmartPhones Data Game Devices
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Why are these products easy to Sell?

• High port-count less infrastructure cost
  complexity
• Simplified deployment, configuration ,monitoring
• Create a low cost switchless SAN with up to 12
  servers
• Broad heterogeneous support
• Microsoft, Linux, HP-UX, IBM AIX, Novell
  Solaris Certified
• Pay-as-you-grow, server centric flexible
• Incremental building block approach (1U/2U)
• Scalability from as low as 73GB to 32TB or more
• Price/performance
• World record price/performance on SPC benchmarks
  (SUN Branded)
• SPC-1 (3.71 per SPC-1 IOP) February 2006
• SPC-2 December 2005
• http//www.storageperformance.org/results

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Dot Hill Portfolio OverviewA Segment Leading
Portfolio

• High Performance Tier 1 Storage - Industry
  Leading price/performance

• SANnet II FC G

• Ideal for Tier 2 storage - Scalable, low-cost
  SATA storage (54TB)

• SANnet II FC-SATA

• Cost Effective External Direct Attached Storage

• SANnet II 320

• Thin Storage Universal Boot Device for high end
  servers

• SANnet II Blade

• High Performance Tier 1 and Scalable, low-Cost
  Tier 2 with Industry Leading Features

• NEPTUNE

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Do We have the Requirements Covered for the NEPs
Telco markets?
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Competitive Landscape

• EMC/Dell
• Entry Products (Clariion CX300/300i, AX100/100i)
  
• Recent August refresh
• FC/SATA and 2Gb connectivity
• Simple, customer installable (AX100)

HP MSA1500
HP MSA500 G2

• HP
• Entry Products (MSA1500, MSA500)
• Modular controller shelf, SCSI or SATA storage
• Unified server/storage management
• Preconfigured SAN kits, investment protection

EMC/Dell Clariion CX-300
EMC/Dell Clariion AX-100

• IBM (LSI-based and Adaptec products)
• Entry Products (DS4300, DS300/400)
• Refresh expected next spring
• On-Demand Express offerings

IBM DS4300
IBM DS400/300
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SANnet II SATA Competitive Details
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SANnet II FC Competitive Details
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Neptune Competitive Details
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Neptune Competitive Details
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Some Quotes On EMC CLARiiON

• EMC CLARiiON, which was the only product to
  finish in the bottom half of every category,
• EMC had the lowest ranked product in both the
  enterprise and midrange array surveys.
• Theyre very aggressive in their sales approach,
  and some of the things they promise dont
  necessarily pan out after the product is on the
  floor.

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Customer Win!

• Applications
• Mobile Soft switch (MSS)
• Push to Talk over Cellular (PPT/PoC)
• Primary Storage Use
• Using SANnet for Quorum Disk in Cluster
• Clustered Intel NEBS Servers attached to SANnet
  II SCSI
• Storing Provisioning Billing Records
• Lost Data Lost

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Why Did We Win?

• Organizational Responsiveness
• Seamless Evaluation, etc
• Trusted Advisors
• Telcos do not understand storage
• OEM Support Capabilities
• Ability to Manage Product Life Cycles and
  Firmware
• NEBS Level 3 Certification
• DHS has Unfair Advantage in Carrier Class Storage

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Customer Win!

• Applications
• Next Generation Message Systems (NGMS)
• Message and Video application
• Primary Storage Use
• High availability Telco compliant message/video
  center

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Why Did We Win?

• Why did we win at Glenayre?
• NEBS
• DHS has Advantage in Carrier Class Storage
• High availability documented at five nines
  reliability
• Organizational Alignment
• Alignment of Peers throughout the organization
• Telco requirements
• Understanding Telco restrictions
• Dot Hill product specs (Depth, Height, Weight)
• OEM Capabilities
• Ability to Manage Product Life Cycles Firmware

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Design Wins Spiff

• Timeline
• October 1 to March 31, 2007
• Goals
• Grow Storage sales to 2 million
• Average 18 new customers at 11 units each
• Generate awareness with current customers for
  storage
• Spiff
• 18 Design Wins, 9000
• Account Identification/First Order Shipped -
  200
• Design Win once 25,000 Shipped - 300
• One Win per Customer
• 4 Success Stories, 1000
• First 4 Success Story get 250

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Call to Action

• Sell everything on the table dont leave money
  on the table by not including storage in every
  server sale
• Remember key differences you have YOU WILL WIN
• Ruggedness design to satisfy both customers
  needing NEBS Level 3 Certification as well as
  MIL-STD-810F for military applications
• Over 100,000 delivered in less then 4 years
• Higher port count means less complexity
  management overhead
• Broadest operating system support in the industry
• 3rd Party audited performance EMC doesnt have
  it
• Tiered storage with common management
• Pay as you grow buy just what you need when you
  need it