Welcome to Oracle’s ZFS Storage Appliance: Market Trends and drivers module.

Intended for Sales Representatives and

S l C
Sales Consultants,
lt t this
thi llesson provides
id llearners with
ith th
the ttargett market,
k t related
l t d iindustries,
d t i kkey bbusiness,
i market
k t ddrivers,
i
and Oracle's strategy in the market, top customer issues, customer requirements, businesses and market needs for the
Oracle ZFS Storage Appliance.

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The Market Trends and Drivers module contains two chapters. Audience agnostic information in chapter one is applicable
to both Sales Reps and Sales Consultants, after completion of chapter one Sales Reps may continue on to chapter two, but
it is not mandatory. Sales Consultants must take chapter two which has a technical emphasis designed for the Sales
Consultant audience.

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Objectives for Sales Reps and Sales Consultants.
Aft completing
After l ti chapter
h t one off thi
this module,
d l you willill bbe able
bl tto:
•Identify the target market, its size and related industries.
•List key business and market drivers for each industry.
•Recognize the market need for the ZFS Storage Appliance and Oracle's strategy in the market.
•Identify the top customer issues in this market and explain how customers deal with them today.
•List customer requirements and match with the business needs that drive them.
•Describe how the Oracle's ZFS Storage Appliance addresses the market needs.

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As we look to market trends affecting CIOs, CEOs and IT managers today you’ll hear a lot about these 5 trends – Social,
Cl d Big
Cloud, Bi D
Data,
t M
Mobile,
bil IInternet
t t off Thi
Things
Social media’s impact on consumer behavior is both an opportunity and a challenge for business
• Shoppers who come to a website from a social network spend more. Pinterest users spend the most ($81 average
order value), followed by shoppers from Facebook ($71 average order value) and Twitter ($70 average order value)
• But, a bad customer experience drives 26% of consumers to post negative comments and 86% to stop doing business
with a brand.
Cloud computing is growing 5X faster than overall IT.
IT
Big Data is driving unprecedented growth in data volumes. 90% of the world’s data has been created in the last two years
and is projected to grow 50X by 2020.
Mobile data is also increasing at a rapid pace, with a 78% compound annual growth rate. Smart mobile subscriptions are
expected to reach 5.3B by 2018.

Internet of Things is driving growth in internet devices,

devices from 9 billion in 2012 to 50 billion expected by 2020
These trends are driving customers today and driving what businesses will need to look like tomorrow
It’s up to you to lead your customers through these changes. Take a look at the four links in the notes tab.

1 http://allfacebook.com/monetate-social-commerce-study_b118109
2 http://www.forbes.com/sites/louiscolumbus/2013/02/19/gartner-predicts-infrastructure-services-will-accelerate-cloud-
computing-growth/ , http://www.novelaspect.com/cloud-computing-and-quickbooks-hosting-infographic/
3 http://visual.ly/what-big-data
http://visual ly/what big data
4 http://www.ericsson.com/TET/trafficView/loadBasicEditor.ericsson

>>CLICK<<

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It seems like everyday customers are inundated with a new vendor-generated buzzword that promises to solve all of your IT
challenges
h ll

Software defined networks, storage, even data centers…..

Do you build a private cloud, go public or hybrid? And which pieces of the “as a service” do you adopt
Flash – fast but expensive – all flash or hybrid
Big data is promising, but do I need to hire a bunch of data scientists?
Facebook, Twitter, LinkedIn am I getting closer to my customers through the right social vehicles at the right time?...
Everyone has two or three mobile devices which can be used at work, should they?...
Potentially thousands of VMs to manage…
Consumers are in many ways leading the IT revolution, do you follow?

Most of you have the real challenge of meeting business objectives with a mostly flat budget. And given all these trends and
buzz words - where do you go from here? How do you weed out the noise?

Meanwhile…
Especially when making the wrong choice has far reaching consequences.
D t is
Data i growing
i exponentially.
ti ll An
A IDC reportt ffrom D
Dec. 2012 th
the ttotal
t l amountt off digital
di it l d
data
t generated
t d will
ill reachh 40
zettabytes by 2020, doubling every two years. By any scale that’s a lot of data.
A majority of the information in the digital universe, 68% in 2012, is created and consumed by consumers — watching
digital TV, interacting with social media, sending camera phone images and videos between devices and around the
Internet, and so on.
Yet enterprises have liability or responsibility for nearly 80% of the information in the digital universe.
And the proportions are simply out of whack – the amount of data needing to be protected is growing faster than the digital
universe itself from less than a third in 2010 to more than 40% in 2020, and significant proportion needs to preserved
for ever longer periods of time, including healthcare and financial records.

There’s also the potential for further increases in data accumulation as the internet of things, estimated at some 50
billion devices by 2020, and machine-to-machine communications accelerates.

[Click]

In total, that’s 50x growth in managed data over this time span.
Clearly, the IT professional population cannot grow at the same rate. In fact, it’s growing 1.5x over the same time period.
The same is true for storage budgets which for most organizations are flat or down.
It’s not hard to imagine data doubling every two years and your headcount and budget only growing 1.5x in the same period
– this massive tension is highly tenuous and makes storage decisions critical for your organization.

This my friends and colleagues is the new normal that we storage vendors and customers alike have to come up with new
strategies for coping with.

[Note: for more information on the digital universe in 2020, download the IDC report (sponsored by EMC)
http://www.emc.com/collateral/analyst-reports/idc-the-digital-universe-in-2020.pdf]

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Storage systems have not kept up with the increasing demands of the data explosion. Not only has disk capacity growth
slowed
l d ddown, lleading
di tto many more didisks
k bbeing
i neededd d tto cope with
ith th
the ddata
t explosion,
l i bbutt storage
t systems
t overallll llackk
application awareness. Storage systems are essentially blind to diverging application requirements.
Applications do not generally see or directly control data storage. That’s usually accomplished via the operating system,
hypervisor, or file system, although there are exceptions such as relational databases. In all cases that relationship is fixed
or predetermined meaning that the storage does what it’s told to do in a very narrow set of pre-configured parameters. It
serves up capacity in the amount that has been allocated. It provides RAID-based data protection on pre-arranged
parameters. It delivers performance based on what was set up. In other words it is an inflexible relationship that can
only be altered with admin intervention. Consider that application performance has peaks and valley. And yet, data
storage cannot for the most part read or anticipate those peaks and valleys. It knows the IO and/or throughput
demands at any given moment in time and will respond to them based on the performance pre-sets and other application
demands being placed on the data storage system at that moment in time. There is no integration of application and
storage, no cooperative processing or communication, no dynamic adaptation to unexpected application needs,
and no flexibility.
Storage is not customarily designed to allocate capacity and performance resources on-demand. Resources are typically
manually allocated in advance. As those storage resources are consumed and more are required, the storage admin will
then manually allocate more. It’s not a dynamic automated process for the vast majority of storage systems.
At the same time, there is a lack of skills to keep storage tuned to applications. Application and hypervisor
administrators have become more specialized and narrower in their scope and depth. Storage knowledge is viewed
through the lens of the application or hypervisor and is nominal at best. These admins commonly lack both the basic
storage knowledge and the experience to set up, configure, manage, and operate data storage optimally for their
applications, servers, or virtual machines.
Storage admins on the other hand are generalists with a dearth of application and/or hypervisor knowledge. They know
how to tweak their storage to get the best performance or utilization out of it, but not optimized for every application, server,
and VM that connects to that storage.
g Theyy commonlyy lack specific
p application
pp tuningg knowledge,
g , skills,, and experience.
p
Even when they do have them for a specific application, their cycles are way too limited to constantly tune the storage for
optimum application performance.
How are you going to address these issues?

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Faced with all this industry buzz-word bingo, one reaction we see is companies taking on the DIY model to “custom fit” a
storage
t system
t tto th
theiri specific
ifi needs.
d Yet,
Y t then
th theth IT consumer (the
(th data
d t center
t manager)) needs d tto bbecome th
the
application expert, network expert, disk expert, tape expert and so on. They built it, they run it, they fix it because no one
else really knows how – change is a very slow process as the burden of testing, tuning, interoperating, breaking-in all lies
on the shoulder of the IT team.

Yet it amazes me how many companies do the DIY model. Brokering deals with numerous companies, piecing together
complex systems ideally suited for their custom environment. Yet the degrees of separation between the application and
the storage significantly increase, requiring companies to spend more time on manual storage management. The results is
this, upwards of 60% of all enterprise storage costs are related to management. So when it comes to upgrading,
maintaining, tuning, or troubleshooting, customers actually took storage vendor responsibilities upon themselves. And the
time to focus on the elements that bring value to the business becomes greatly diminished.

The alternative – is to leave the foundational product expertise to companies with deep experience in it and let
them do the heavy lifting – delivering to you proven architectures or enterprise-grade services.

So the trade off is you can spend your time building storage or you can spend your time generating business
value from storage pre-engineered with critical business apps to obtain maximum performance and efficiency
from the application.

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Especially in light of all the data growth and dynamic changes we face each day – rigid infrastructures and lengthy
i t ll ti
installations with
ith complex
l managementt are ruining
i i th
the agility
ilit off ddata
t centers
t ttoday.
d A
As we’ve
’ seen across many
customers, skyrocketing data growth in this DIY model has led to inefficient data silos, storage sprawl, and resulting
complex, costly, hard to manage storage infrastructures. Getting ahead of issues like these requires re-thinking the storage
platforms and storage strategies that your business runs on.

With hardware and software, engineered to work together from the storage layer up through the database and application
stack, can help you:

• optimize performance
• improve efficiencies
• reduce risk
• lower costs

Let’s see how we do this.

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And this is exactly what Oracle is uniquely able to do….

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Therefore, Oracle’s strategy is to deliver best of breed components for multi-vendor environments and to take full
advantage
d t off th
the unique
i opportunity
t it we hhave tto engineer
i hhardware
d andd software
ft ttogether.
th ONLY O
Oracle
l can IIntegrate,
t t
some can optimize, only Oracle can engineer.
More specifically – this amounts to our Application Engineered Storage Strategy – where the storage is DB and app-aware
andd the
th DB/apps
DB/ are storage-aware.
t Thi
This ttype off iintegration
t ti andd co-engineering
i i across th
the stack
t k ddelivers
li advantages
d t
unobtainable by other vendors. Ultimately – only Oracle storage has speed dial to the Oracle DB.
And the strength of this strategy is being recognized today…

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According to IDC, the combined storage systems, storage networking and software markets in 2013 reached just over $62B
WW.
WW

IDC and other firms like Frost and Sullivan have stating the fact that the global storage market has accelerated its growth
after gradual recovery from the economic crisis. Due to the increasing demand of big data storage and continued mobile
and social proliferation, the market is expected to maintain growth in the next few years. That said, cloud storage is having
an impact in the capacity of storage shipped – with more companies adopting some public cloud services so that is slowing
the overall growth.

SAN and network attached storage (NAS) represent the two fastest growing material installation segments of the worldwide
enterprise storage systems market from both revenue and terabyte perspectives. With network attached storage outpacing
FC growth.

Ultimately, purchasing decisions are largely tied to enterprise software decisions with #1 being Oracle, #2 being VMWare
and #3 being Microsoft.

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Given the fact that Oracle s/w is the #1 driver for storage purchasing decisions and equates to a growing market from 4.8B
i 2012 up to
in t $6
$6.6B
6B by
b 2016.
2016 ThisThi presents t a huge
h opportunity
t it for
f th
the ZFS St
Storage A
Appliance
li – given
i our placement
l t
within Oracle, some of the opportunities.

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Take a look at the revenue projections from 2.4B 2012 to 4.3B in 2016, the opportunities are pretty straight forward along
with
ith why
h we will
ill win.
i

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Another great opportunity, simply replacing older NAS filers, look at the revenue projections from 1.1B 2012 to 1.4B in
2016.
2016

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With the ZFS storage appliance you have plenty of opportunities to increase the attach rate to oracle servers, again look at
th revenue, WOW 1
the 1.0B
0B iin 2012 tto 1
1.7B
7B iin 2016
2016.

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Diving deeper into the market…
1 The
1. Th market
k t ddemandd iincludes.
l d
2. Top industries to date (although we see adoption actually very spread across all industries indicating a use case fit as
opposed to an industry fit)
3. Top Use Cases where we win in the market today

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We deliver on this strategy with unique differentiation that gives us a track record of success in the following 6 areas by
providing
idi solutions
l ti to
t address
dd these
th market
k t ddrivers…
i

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Now let’s look at our customers and potential customers and the challenges they face in their IT environments and how
th are addressing
they dd i th
them ttoday….
d

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And we should also always consider the business drivers that are motivating our customers and potential customers today
as wellll as the
th requirements
i t andd business
b i demands
d d they
th hhave tto meet.t

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As the strategy comes together it equates to real end-user customer advantages…directly addressing those requirements laid out
b f
before.

Customer can buy less storage – saving customers up to 40%

Customers get higher performance – up to 2x better performance than the competition

Customers get management efficiencies – with things like Dtrace and deep Oracle integrations alleviating a significant amount of
management burden.

These benefits are delivered while risks are reduced using Oracle on Oracle

These are great reasons for Why Oracle

Overall – the ZS3 Series can double productivity of your data center with differentiated
software designed for extreme efficiency such as Hybrid Storage Pools, Advanced Data
Optimization, Oracle Intelligent Storage Protocol and Hybrid Columnar Compression (HCC)
to name a few.
It also delivers up to 2x higher performance for mixed workloads and up to 5x for
Oracle environments through architectural advantages, Oracle-only software
optimizations and industry leading SPC-2 AND SPECsfs benchmark results, one fast piece
of engineering.
The ZS3 reduces management up to 65% through unique and superior Oracle co-
engineering (OISP), advanced DTrace Analytics and proven consolidation will help any IT
shop excel.
Also proven to run, manage and support Oracle applications and Databases faster
and more efficiently with hardware and software engineered to work together, only Oracle
can.
With the
th ideal
id l architecture
hit t andd ample
l resources for
f heavily
h il virtualized
i t li d environments
i t
ZS3 will meet any challenges thrown at it.
Proven to be Faster, more reliable, and less expensive than Data Domain and NetApp
at protecting data from Oracle Engineered Systems, again only Oracle can!!!!

26
Conclusion, The following topics were covered:
M k t ttrends
•Market d affecting
ff ti CIO
CIOs, CEO
CEOs andd IT managers ttoday
d
•Oracle’s Application Engineered Storage
•Market Overview
•Disk Storage Opportunities
•Oracle ZFS Storage Market Trends
•ZS3 Storage Business and Market Drivers
•Customer Pain Points & Current Solutions
•Value Proposition

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After completion of chapter one Sales Reps may continue on to chapter two, but it is not mandatory. Sales Consultant must
t k chapter
take h t ttwo which
hi h hhas a ttechnical
h i l emphasis
h i ddesigned
i d ffor th
the S
Sales
l C Consultant
lt t audience.
di

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Objectives for Sales Consultants .
Aft completing
After l ti chapter
h t twot off thi
this module,
d l you willill be
b able
bl to:
t
•Explain emerging technologies for this market.
•Explain Oracle ZFS Storage Appliance technology differentiators and their advantages in the market

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Emerging technologies, according to IDC, the emerging trends and technologies for 2014 and beyond are as follows. Take
some time and review the slide.

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Emerging technologies continued.

Flash, with Application performance demands and the decreasing price of SSDs driving wide adoption in host-
based, hybrid and all-flash arrays, flash is positioned to take off. As far as the future is concerned, longer-term
economic efficiencies and gains with cloud services incorporating flash, all storage providers offer some flash
version now and will well into the future.

Next , Software defined storage , consisting of a software stack placed on commodity hardware offering full
storage services and federation across and between resources. Currently a buzz-word and a EMC focus area.
Software defined storage places the full burden on the customer into a “build-your-own” infrastructure and
forces them to take on the role of product, implementation, integration and support experts, customers in many
cases don’t have the expertise. The future possibly provides greater capabilities, not vendor specific but in
many ways that allow the software to reach across hardware implementations, another buzz-word used is
graveyard , meaning it’s not customer viable.

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Our advantage in the marketplace is clear….first our Application Engineered Storage (AES) Differentiators.

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And the areas where we have unique architectural advantages to achieve the performance, efficiency and management
advantage
d t we hhave iin th
the market
k t ttoday….
d

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34
Conclusion, The following topics were covered:
E i Technologies
•Emerging T h l i
•Application Engineered Storage Differentiators Data Reduction
•Oracle ZFS Storage Appliance Architectural Differentiators

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