introduction to centaur partners it storage market update

2017, Centaur Partners Confidential

Centaur PartnersStorage Market Overview

Centaur PartnersMergers & Acquisitions, Private Placement Advisory, and Transaction Consulting

1

2017 Centaur Partners Confidential

Source: CapIQ 8/1/2017Cybersecurity Index: SPLK, AVG, SYMC, CHKP, FTNT, PANW, FIRE, IMPV, VDSI, PFPT, FEYE, QLYS, VRSN, MANT, CYBRSaaS Horizontal Index: CRM, N, ULTI, JCOM, TRAK, APPF, BCOV, DWRE, LOGM, CTCT, CSOD, LPSN, MKTG, IL, TNGO, SPSC, SQI, ZIXI, NOW, WDAY, LOCK, QLYS, NEWRCARB, TNET, CALD, BOX, PCTY, BV, ZEN, RNG, FIVN, ECOM, AMBR, UP, XTLYSaaS Vertical Index: ATHN, MODN, VEEV, GWRE, RP, FLTX, ELLI, MDSO, RP, SHOP, BSFT, BNFT, TEAM, TWOU, ATHN, CSLT, CSGP, MRIN,RMD, ECOM, JKHY, MTLS, ECOM, INST, EBIX, MB, OMCLBig Data Index: TDC, INFA, MSTR, SPLK, DWCH, ATTUF, NTAP, DATA, FIO, FALC, IBM, NEWR, INTU, HDP, RHT, AKAMInfrastructure Index: VMW, NTAP, CA, RHT, SWI, OTEX, CVLT, CPWR, QLIK, PEGA, MVSN, PRGS, NTCT, BLOX, GUID, MGIC, FALC, FIO, GIMO, SSNI, CYNI

Annualized Sector Growth by Market Capitalization

12%

24%Infrastructure

30%

SaaS (Horizontal)

30%

Big Data

21%

Cybersecurity

22%

SaaS (Vertical)

34%

2

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug$70

$90

$110

$130

$150Annualized Sector Growth by Market Capitalization

Cybersecurity SaaS (Vertical) Infrastructure BigData SaaS (Horizontal)

(In Billions)


Storage Index Component Returns (6/6/16 8/2/17)

3Source: CapIQ 8/2/17Note: HP Enterprise, Pure Storage, and Box were not public as of 6/05/15, but are components of the Storage Index

65%

71%

73%

126%

126%

134%

0% 20% 40% 60% 80% 100% 120% 140%

NTAP

BOX

PSTG

QTM

WDC

MU

Stock Return


Projected Revenue Growth (2016 2017E)Medians

25%

EBIT

DA M

argi

n (2

016E

)

>25%

Median EV/Rev: 3.6xMedian EV/EBITDA: 11.6x

5 companiesCA , CTXS , MSTR, PRGS , VMW


5 companiesAKAM, CHKP , FFIV, QLYS, ZIXI


2 companiesELLI, UPLD

Median EV/Rev: 5xMedian EV/EBITDA: 14.6x

4 companiesANET, JCOM, LOGM, OTEX

4.3 EV/Rev14.2 EV/EBITDA

15%

-25

% Median EV/Rev: 1.5xMedian EV/EBITDA: 8.5x

3 companyGIMO, NTAP, TDC

Median EV/Rev: 5xMedian EV/EBITDA: 25.6x

2 companiesATHN, SYMC


12 companiesALRM, CARB, CYBR, FTNT, GDDY,

GWRE, MDSO, NTCT , PEGA , RP, RHT , ULTI


4 companiesPANW, PCTY, NOW, VEEV

5.3 EV/Rev24.4 EV/EBITDA


IPO Date Company Company Abstract Shares ( in millions) Offer Price1st Day Closing

PriceCurrent Price(as

of 8/3)

% Return (On Offer Price as of

8/3)

6/29/17 Uses building blocks similar to public cloudto simply manage enterprise and cloud native applications 8.57 $7.00 $7.27 $6.15 -12.14%

4/28/17 Provides Apache Hadoop-based software, support and services, and training to business customers 15 $15 $18.10 $17.26 15.07%

4/28/17 An online-only used car dealer that allows customers to shop, finance, and trade in cars through their website. 15 $15.00 $11.10 17.47 16.47%

04/13/17 Helps businesses facilitate face-to-face and digital interactions that boost brand awareness, drive foot traffic, and increase sales 10.5 $11.00 $13.41 $12.76 16.00%

04/07/17 A provider of identity for the enterprise 11.0 $17.00 $23.51 $22.92 34.82%

03/24/17Self-service data analytics that allows analysts to easily prep, blend, and analyze

all their data 9.0 $14.00 $15.50 $17.48 24.86%

03/18/17 Enterprise application integration platform for building application networks 13.0 $17.00 $24.75 $20.90 22.94%

10/06/16 Offers a fully unified suite of financial applications for business spend management 7.4 $18.00 $25.90 $30.60 70.00%

09/30/16 A virtualized datacenter platform that provides disruptive datacenter infrastructure solutions for implementing enterprise-class 14.9 $16.00 $37.00 $21.19 32.44%

Recent Tech IPOs and Aftermarket Performance

Source: Crunchbase, Yahoo Finance 8/3/2017 5

2017 Centaur Partners Confidential

4.7x3.7x

2.1x2.9x

5.8x

4.2x

2.3x

4.0x

0.0x1.0x2.0x3.0x4.0x5.0x6.0x

SaaS Security Big Data Infrastructure

Median EV/2016 Revenue Median EV/2015 Revenue

Technology Sector Forward Revenue Valuation Analysis

Forward revenue valuation levels are lower today than a year ago

22% 21% 22% 23%27%

16%

29%26%

0%

10%

20%

30%

SaaS Security Big Data Infrastructure

Median 2016 Revenue Growth Median 2015 Revenue Growth

Source: Software Equity and Bessemer Venture Partners as of 8/2/17

6


Storage Market Valuation 2016Mean 3.3x

Median 18.7% Median 17.8%

Median 2.4x

Source: Capital IQ 8/2/17 7

-0.5x

1.5x

3.5x

5.5x

7.5x

TEV / Revenue

EV / 2016 Revenue Multiple Mean EV / 2016 Revenue Multiple Median EV / 2016 Revenue Multiple

0%10%20%30%40%50%

Revenue Growth & EBITDA Margin

'15-'16 Revenue Growth 2016 EBITDA Margin Median '15-'16 Revenue Growth Median 2016 EBITDA Margin


Storage Market Valuation 2017

Source: Capital IQ 8/2/17

Mean 2.5x

Median 11.6% Median 17.8%

Median 2.0x

8

0.0x1.0x2.0x3.0x4.0x5.0x6.0x7.0x

TEV / Revenue

EV / 2017 Revenue Multiple Mean EV / 2017 Revenue Multiple Median EV / 2017 Revenue Multiple

0%10%20%30%40%50%60%70%

Revenue Growth & EBITDA Margin

16-'17 Revenue Growth 2017 EBITDA Margin Median '16-'17 Revenue Growth Median '2017 EBITDA Margin


Mega-players Mid-Market Vendors New Age Vendors

`

Storage Market Landscape - 2017

9Companies in golden box represent business combinations.As of 8/2/17


Software Defined Networking(1)

Software Defined Storage(1)

Software Defined Data Centers(2)

Vendors Include Vendors Include Vendors Include

Software Defined Infrastructure Market Segments - 2017

10

Network Virtualization

Monitoring

Security

Storage Virtualization

Data Lifecycle Management

Provisioning & De-provisioning

Security

(1) Centaur Partners Research(2) Forrester : The Software-Defined Data Center Is The Future Of

Infrastructure Architecture, Nov 2012

Server/Storage/Network Virtualization

Performance Monitoring

Managing hybrid cloud environments

Security

As of 8/2/17

11 2017, Centaur Partners Confidential

Companies Announcements Qlogic was acquired by Cavium in August of 2016 for $1.36B in a cash, debt and stock deal Cavium has continue to grown its data-center and storage business with the acquisition

Violin memory declared chapter 11 bankruptcy in December 2016 Company operations ceased after January 23rd, 2017

Joyent was acquired by Samsung in June of 2016 Joyent remains a standalone unit under Samsung Mobile Communication Unit even after transaction completion

Nutanix went public on September 30th, 2016 at $16.0 and experienced a 130% increase in share price at the end of the 1st trading day ending at 37$ Nutanix shares have since fallen to ~20$ a share (as of 3/14/17) Q117 growth was strong, evidenced by 90% growth in revenue YOY as well as 86.9% growth in billings YOY

Brocade*s Ruckus wireless business unit and Intersection announced partnership to bring high speed connectivity to cities and transit hubs across the globe Announced industry's first Gen 6 Fibre Channel directors for mission-critical storage connectivity and business resiliency solutions designed for the all-flash data center.

Sandisk was acquired by Western Digital in 2016 for an approximate total of $19B The deal closed in May 2016 and gives Western Digital a stronghold in retail based products where Sandisk excelled with 44% of the HDD market followed by Seagate at

40% Sandisk was offered a 15% premium over the previous day of trading prior to announcing the transaction for the deal or roughly $86.5 a share

Acquired Nimble Storage, which is a flash-optimized storage solution that provides backup storage and data protection for business data, for $1.09B in all cash HP is looking to expand its presence in the fast-growing flash storage business with the acquisition

Acquired Sanovi Technologies, a business continuity and IT recovery software company enabling continuity for enterprises and cloud service providers, in October 2016. Introduced new cloud object storage service that redefines the security, availability and economics of storing, managing and accessing massive amounts of digital

information across hybrid clouds New IBM Cloud Object Storage offering derives from IBM's acquisition of Cleversafe and its significant portfolio of patents which are designed to deliver clients better value

with industry-leading security

Recent Notable Announcements Storage

Source: Company websites, Capital IQ 8/2/17*$ Figures in Millions


Section II - A

Storage M&A Market


Technology M&A Trends

Key M&A FactsTechnology M&A Transactions Since 2015

Select Largest Technology Transactions 2016:

(1) PWC US technology deals insights(2) JEGI Q1 2017 M&A Overview

Buyer Microsoft Oracle Micro Focus Salesforce Vista Equity Cisco

Target LinkedIn NetSuite HPESoftware Demandware Marketo Jasper

Value $26B $9.3B $8.8B $2.8B $1.8B $1.4B

2016 M&A ActivityThrough Q3 technology deal value in 2016 was $227.5BQ3s volume of $102.5B was a 24% increase from Q2 2016, and an 89%increase from Q3 2015Increasing activity from non-digital businesses picked pace in 2016,representing $66.7B in transaction value. While buyers have coveredthe gamut of industries, Retail & Consumer, Automotive and Healthcarestand out as particularly focused on technology acquisitions that canhelp speed their transition into more digital business modelsSoftware and Semiconductor public company revenue and EBITDAmultiples increased through Q3 2016, while the Internet, Services andHardware sectors remained stable

13

2017 Q1 M&A ActivityQ1 technology deal value in 2017 was $31.8B, down from $39.7B in Q12016M&A activity for the b2b media and technology sector saw stronggrowth in deal value in the first quarter of 2017, totaling $899 million vs.$262 million in Q1 2016Deal volume in the consumer media and technology sector jumped to66 transactions in Q1 2017 vs. 54 deals in Q1 2016. Deal value for thequarter rose exponentially to $3.5 billion, up from $939 million in Q12016, due to several large transaction announcements, including theAmazon acquisition of Souq.com for $650M.The tech-enabled services sector led the quarter in terms of deal value,totaling $10.2 billion, although this was an 8% decline vs. Q1 2016s$11.1 billion.

518 510 468

422

380

414

347

472

486

-100

100

300

500

700

900

1100

1300

1500

$-

$50

$100

$150

$200

$250

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017Deal Value ($ Billions) Deal Volume


Date Acquirer Target Target Business Description Deal Value ($M)

10/12/15 Manufactures information management and storage software systems 67,000.0

10/21/15 Designs, develops and manufactures flash memory storage solutions and software 19,000.0

08/11/15 Delivers backup and recovery, business continuity, information governance, and storage management solutions 7,000.0

11/02/16 Virtual and physical product suite that enable data and network storage solutions 5,900.0

06/15/16 Manufacturer of networking server and storage networking connectivity and application acceleration solutions 1360.0

12/21/15 Provides a scale-out all-flash storage platform to deliver storage performance for various application workloads 870.0

2/25/15 Provides network connectivity, monitoring, and management products for networks 768.2

08/18/15Storage solutions consist of integrated hardware, firmware, and software products that allow end-users to add various protocol, performance, capacity, or data protection schemes

607.8

10/19/15 Provides infrastructure as a service solutions including middleware server management and database management 575.0

3/2/2015 Provides networking solutions enabling mobile service providers to deliver IP-based voice, video and messaging services. 546.6

($ in millions)

Source: CapitalIQ 8/2/17

Top 10 Recent Storage M&A Transactions by Deal Size


Number of Acquisitions since 2015

M&A Activity of Selected Large Storage Vendors

Selected Recent Acquisitions

Source: CapitalIQ, Crunchbase 8/2/17

Amazon

Air Tranport Services Group, EMVANTAGE Payments, NICE, Westland, Colis Prive, Safaba Translation Solutions, Elemental Technologies, Orbeus, Appthwack, Clusterk, Shoefitr, 2lemetry, Annapurna Labs, GoodGame Agency

Cisco

Synata, Leaba Semiconductor, CliQr Technologies, Jasper, Acano, 1 Mainstream, Lancope, ParStream, Portcullis Computer Security, Pawaa Software, MaintenanceNet, OpenDNS, Piston Cloud Computing, Tropo, Embrane,

Neophapsis, Memoir Systems

DellVMware, EMC, StatSoft, enstratius, CREDANT Technologies, Gale Technologies, Kitenga, Quest Software, MAKE

Technologies, Clerity SolutionsEMC

Slice of Lime, CloudCredo, Boxer, Quickstep Technologies, Virtustream, CloudLink Technologies, Maginatics, Cloudscaling, Spanning Cloud, VCE Co., TwinStrata, DSSD, Third Sky, Sky Socket, Xtreme Labs, Passban, ScaleIO,

Aveska, Virsto Software, iWave SoftwareHP Enterprise

Trilead AG, ActiveState's Stackato Unit, NetCam Systems, ConteXtream, Mind Pirate, Aruba Networks, Voltage Security, Eucalyptus Systems, Shunra Software, Digital Risk, HIFLEX GmbH, H3C

Hitachi Data Systems

oXya Sas, Pentaho, Sepaton, Cofio Software, Shoden Data Systems, BlueArc, Parascale

IBMOptevia, Resilient Systems, Resource Ventures, Ustream, Ecx.io, Truven Health Analytics, Aperto, IRIS Analytics,

Clearleap, Gravitant, The Weather Company's Product Unit, Cleversafe, Deloitte's Revisionsaktieselskab, Meteorix, Advanced Application

MicrosoftSolair, Xamarin, Vexcel Imaging, Zikera, TouchType, Metanautix, Secure Islands, Mobile Data Labs, Telekinesys

Research, Adxstudio, Double Labs, Adallom, VoloMetrixSeagate

Dot Hill, LSI Corporation Accelerated Solutions Division, Xyratex, LaCie, Samsung's Hard DriveWestern Digital

SanDisk, Amplidata, Skyera, Virident, VeloBit, STEC, Arkeia Software, Toshiba Storage Device

15

0 5 10 15 20 25 30 35 40

WesternDigital

Seagate

Microsoft

IBM

Hitachi

HP

Dell

Cisco

Amazon

2015 2016 2017


Section II - B

Storage Financings Market


Top Storage Private Placements 2017

17Source: Crunchbase

$90M

Series C Financing

April 4, 2017

$180M

Series D Financing

April 28, 2017


VC Financings(2005-2015)

Source:2016 Venture Capital Report (WilmerHale) 18

The number of financings have generally been trending upward with very strong growth in 2015 across all industries


Technology Financing Overview (2005-2015)

* = Software, Communications & Networking, Other Tech

0

10

20

30

40

50

60

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

$ in

Mill

ions

Median Pre-Money Valuation in the US Venture Capital Financings - Technology* 2005-2015

Source: 2016 Venture Capital Report(Wilmerhale)

Median pre money valuation increased 36% within the technology sector from $36.8M in 2014 to $50M in 2015.

0

1

2

3

4

5

6

7

8

9

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

$ in

Mill

ions

Median Size of US Venture Capital Financings - Technology* 2005-2015

The general decline in median financing size for technology companies is partly attributable to technological advances that have enabled startups to grow their operations with a lower level of funding than historically required

19


2005-2015 IPO/Exit Trends

Source: 2016 Venture Capital Report(Wilmerhale)

IPOs for VC backed market share within the technology vertical fell from 49% in 2013 to 34% in 2014 and 30% in 2015.

Aside from 2012, the median time from initial funding to acquisition has declined for 8 years in a row from 6.5 years in 2007 to 4.6 years in 2015

0

50

100

150

200

250

300

350

400

450

500

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

$ in

Mill

ions

Median Amount Raised Prior to IPO and Median Pre-IPO Valuation - 2005-2015

Median amount raised prior to IPO Median pre-IPO valuation

0

10

20

30

40

50

60

70

80

90

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

$ in

Mill

ions

Median Amount Raised Prior to Acquistion and Median Acquistion Price - 2005-2015

Median amount raised prior to acquisition Median acquisition price

20


Number of Private Placements since 2015

21

Recent Private Placement Activity of Most Active Corporate VCs

Selected Recent Private Placements


CiscoAdbrain, Veniam, ActionPacked Networks, eSentire, Kii Corporation, Kumu Networks, VelocCloud,

Innovid, Platfora, WorldSensing S.L.N.E., Sensity Systems, 6Wind, Qwilt, Evrthng Limited, Piston Cloud Computing, MuleSoft, Bit Stew Systems, Flashpoint Global, One Mobikwik Systems, HyTrust,

Innovid, CloudVelox, Team8, Alchemist Accelerator, Shanghai Ketong, Stratoscale, Loggly, eSentire, ActionPacked Networks,Bolt

GoogleMAPR,Gusto,LendingClub,Armo Biosciences, Oscar Insurance, Uber, Cloudera, Flurish, Plexxi,

Shape Security, Alector, Nest, One Medical Group, Jet.com, Tiny RX, Udacity, ClassPass, HiveMapper, SOCOMO Technologies, CollectiveHealth, Mobvoi, EmergentVR, Niantic, Symphony

Communication Services, Thumbtack,Intel

Inpria, Reflektion, MariaDB, IP Commerce, GigaSpace Technologies, Savioke, TrigenceSemiconductor, NextInput, SBA Materials, Eyefluence, Schoology, JBF Interlude, LISNR,

What3Words, Chargifi, Prieto Battery, Perfant Technology, Microprogram Information, Sckipio, Parrallel Machines, Two Bit Circus, Arrayent

MicrosoftSnapLogic, Teambition, Uber, Cloudflare, Turbodealer,Nokia Teamkey, Innomedia, Kurerra,

SponsorByuro, FitnessClubs.Pro, Labrika,Tekhnovizor, Turbodealer, Otkrytoe kladbishe, InsideSales.com, Unify Square, Reveal Chat, Playtabase, Wallflowr, ISI Technology,

Qualcomm63Ideas InfoLabs,99 iFuture Systems, Airspan, Swift Navigation, MindTickle Interactive, Attune

Technologies, Bracket Computing, SJ Semiconductor, Kaleo Software, Reverie Language Technologies, Loggi Tecnologia, Siklu Communication, YourStory Media, MyPoolin, Workspot, Matterport, Curbside, WorldVu Satellites, MangoPlate, Meus Pedidos Software, Mantis Vision,

Cohesity, Bitbar Technologies, Zeek MobileSalesforce

Augment, QuBit Digital, Goodpatch, Crunchbase, Bloomreach, NewVoiceMedia, Buidscale, Hottolink, FinanceApp, San San, Pierry, Fluidio, MapAnything, Full Circle Insights, BrightFunnel, Toreta, Gainsight, Cogito, BizGround, Moneytree, FollowAnalytics, Uhuru, SteelBrick, Pendo.io,

Optimizely, Tectonic, Wrap Media

0 50 100 150 200

2015 2016 2017


Number of Private Placements since 2013

Recent Private Placement Activity of Other Corporate VCsSelected Recent Private Placements


AmazonQwikCilver Solutions, Musaic, Rachio, Who What Wear, A & A Dukaan Financial, Dragon Innovation, alottazs labs, QwikCilver Solutions, Wikia, Shanghai Yummy77, Acquia, ColisPrive, The Talk Market, Songza Media, LivingSocial, WhoSay, Cirtas Systems, ParAccel,

Cicekspeti Internet Hizmetleri, Foxit Software, Yieldex, Animoto, Luma

DellCylance, DocuSign, Exablox, Nexenta, Lastline, Invincea, CorrelSense, Skyera, Mirantis,

Qliance Medical ManagementEMC

Cenx, Zscaler, Blue Medora, HyTrust, Adallom, Jfrog, Puppet Labs, Vorstack, Crittercism, Aria Systems, MongoDB, HyTrust, Maginatics, FeedHenry, Terascala, Silver

Spring Networks, Intalio, Net One Systems, Futong Technology, FatWire Corporation, Varonis Systems, Pivotal

IBMApply.Property, WayBlazer, Pathway Genomics, Modernizing Medicine, Welltok,

Sellpoints, FluidHP

SafeBreach, VenueNext, Hortonworks, Clique IntelligenceSAP

Table 8, TableNow, Alminder, Visage Mobile, Virtuestream, StayNTouch, Trove, Yapta, Room 77, Nor1, Evature, getTalent, buuteeq, Vivanda, MindTouch

VmwareBlue Medora, Pivotal, HyTrust, Jfrog, Puppet Labs, Crittercism, Aria Systems,

Maginatics, FeedHenry, Workday

Wavefront, MediaCore, Tidemark Systems, Anaplan, Datameer

22

0 5 10 15 20 25 30

2015 2016 2017


Appendix A

Additional Market Data


Why are the incumbents struggling

Enterprise datacenters are changing

New components (such as flash, faster processors)

Shift to virtual infrastructure (compute, storage and network virtualization)

Private cloud adoption (Elastic hyperconverged infrastructure, Openstack, etc)

Value/intelligence moving from hardware to software

Shift to Public cloud infrastructure

IaaS (Infrastructure as a service)

Rapid adoption by SMBs and some enterprise applications

Not suitable for regulatory compliance and tight control of data

24


Storage - Trends

25

Advanced data-services (snapshot and backup virtualization) are replacing legacy Backup vendors Actifio, Veeam, Druva, Zerto

New Infrastructure software / accelerators are replacing traditional storage management Cloudbyte, Intigua, Maxta, Starwind

Private cloud can scale with Openstack But difficult to implement without supporting vendor/integrator

Public cloud: $20B TAM today growing at ~20% CAGR But most have negative operating margins at this time

Big 3 have more than 60% of market, but room for specialized/vertical cloud

End state / economics most likely similar to Retail Industry

Hybrid cloud management software is accelerating the cloudification of enterprise IT Nasuni, Panzura, SnapLogic

Big SSDs Samsung and others have announced roadmaps that will deliver up 100 TB 2.5 inch SSDs in 2017

SSDs vastly reduce the number of drives needed, drastically cutting cluster costs and also supporting the trend of merging primary and bulk secondary storage into the same hyper-converged appliance

Super-fast SSDs Entering an era where 10 gigabytes-per-second transfer rates will be standard for top-end SSDs

These units further boost server performance and reduce the server count required.

Source: Gartner, Forbes, NetworkComputing


Storage - Trends

26

Still an attractive market

Operating margins: 15% - 20%

All-flash-arrays Designed from the ground up with flash in mind

Pure Storage, Violin Memory, Kaminario, Nimbus, XtremIO (EMC)

Will continue to be a growth market in competition with flash as a software-defined tier

Hybrid configurations with a mix of SSDs and HDDs represent a bigger sector for a while

Hybrid arrays new architectures

NMBL, Tegile, Tintri, Infinidat

Hyperconverged systems storage, compute & network

Pivot3, Nutanix, Simplivity, Scale Computing, HyperGrid

Growth will continue in the adoption of hyper-converged storage for scalability, cost and storage efficiency

Object store is mostly in software now on commodity hardware

Scality, Swiftstack

Hadoop implementation is deflationary to existing storage systems

Cloudera, Hortonworks, MapR

Source: Gartner, Forbes, NetworkComputing


Comparable Analysis Valuation Multiples

(US$ in millions, except per share values)Comparable Company Valuation Multiples Dominant Storage Companies

Source: CapitalIQ 8/2/17N/M = Not meaningful/multiple outside of relevant rangeN/A = Not applicable

(US$ in millions, except per share values)Comparable Company Valuation Multiples Pure Play Storage Companies

27

% 52-wk Dil Shares Market Cap

Cash & ST

Ent. Val EV/Rev EV/EBITDA P/ECompany FYE Price High Debt (Diluted) 2015A 2016E 2017E 2015A 2016E 2017E 2015A 2016E 2017EDominant Storage CompaniesAmazon.com, Inc. 12/2016 $996.19 91% 489 $478,549 $21,451 $23,619 $480,717 4.5x 3.5x 2.8x NM NM NM NM NM NMInternational Business Machines Corp. 12/2016 $145.30 79% 949 $135,411 $12,297 $45,676 $168,915 2.1x 2.1x 2.2x 8.3x 9.1x 9.1x 10.8x 11.7x 10.6xHewlett-Packard Enterprise 10/2016 $17.55 70% 1,689 $28,828 $8,101 $14,036 $34,799 0.7x 0.7x 1.0x 4.5x 4.4x 5.8x 12.9x 9.5x 12.4xMicron Technology, Inc. 09/2016 $28.34 86% 1,116 $31,459 $4,330 $11,671 $39,648 2.4x 3.2x 2.0x 7.0x 12.3x 4.1x 10.5x NM 6.0xSymantec Corp. 03/2017 $31.19 93% 618 $19,057 $4,256 $8,186 $22,987 5.8x 6.4x 5.7x NM NM NM 24.5x 8.4x NMBrocade Communications Systems, Inc. 10/2016 $12.61 99% 415 $5,171 $1,300 $1,549 $5,423 2.4x 2.3x 2.3x 9.3x 11.0x 13.0x 15.6x 24.1x 20.2xBarracuda Networks Inc. 02/2017 $22.89 84% 54 $1,212 $207 $4 $1,009 3.6x 3.2x 2.9x NM NM NM NM NM NM

Mean: 3.1x 3.1x 2.7x 7.3x 9.2x 8.0x 14.8x 13.4x 12.3xMedian: 2.4x 3.2x 2.3x 7.7x 10.0x 7.5x 12.9x 10.6x 11.5x

% 52-wk Dil Shares Market Cap

Cash & ST

Ent. Val EV/Rev Price/FCF P/ECompany FYE Price High Debt (Diluted) 2015A 2016E 2017E 2015A 2016E 2017E 2015A 2016E 2017EPure Play Storage CompaniesWestern Digital Corp. 06/2017 $85.67 88% 296 $24,951 $6,378 $13,151 $31,724 2.2x 2.4x 1.7x 11.0x 14.9x 7.2x 13.6x NM NMSeagate Technology Plc 06/2017 $33.37 65% 299 $9,744 $2,539 $5,021 $12,226 0.9x 1.1x 1.1x 5.4x 8.6x 6.0x 6.2x 40.2x 12.8xNetApp, Inc. 04/2017 $43.55 96% 281 $11,834 $4,928 $2,123 $9,029 1.5x 1.6x 1.6x 9.4x 14.3x 10.0x 24.6x NM 23.5xPure Storage 01/2017 $12.39 81% 199 $2,586 $536 $0 $2,050 11.8x 4.7x 2.8x NM NM NM NM NM NMCommVault Systems, Inc. 03/2017 $60.40 93% 47 $2,749 $481 $0 $2,268 3.7x 3.8x 3.5x NM NM NM NM NM NMBox, Inc. 01/2017 $19.01 89% 129 $2,569 $184 $80 $2,466 11.4x 8.1x 6.2x NM NM NM NM NM NMQuantum Corp. 03/2017 $8.13 88% 34 $280 $13 $128 $395 0.7x 0.8x 0.8x 14.6x NM 20.1x 15.1x NM NM

Mean: 4.6x 3.2x 2.5x 10.1x 12.6x 10.8x 14.9x 40.2x 18.2xMedian: 2.2x 2.4x 1.7x 10.2x 14.3x 8.6x 14.4x 40.2x 18.2x


Comparable Analysis Operating Metrics

(US$ in millions, except per share values)Comparable Company Operating Metrics Dominant Storage Companies

(US$ in millions, except per share values)Comparable Company Operating Metrics Pure Play Storage Companies


28

Revenue Growth MRQ Gross EBITDA Margin FCF MarginCompany 14-'15 15-'16 16-'17 Margin 2015A 2016E 2017E 2015A 2016E 2017EDominant Storage CompaniesAmazon.com, Inc. 20% 27% 24% 38% 7% 9% 11% 6% 8% 6%International Business Machines Corp. NA NA NA 46% 25% 23% 24% 11% 11% 15%Hewlett-Packard Enterprise NA NA NA 34% 15% 16% 18% 10% 11% NAMicron Technology, Inc. NA NA 62% 48% 35% 26% 48% 5% NA 16%Symantec Corp. NA NA 12% 77% 17% 25% 18% 3% 30% 1%Brocade Communications Systems, Inc. 2% 4% NA 62% 26% 21% 18% 16% 19% 11%Barracuda Networks Inc. 19% 15% 10% 75% 3% 3% 11% 25% 20% 12%

Mean: 14% 15% 27% 54% 18% 17% 21% 11% 17% 10%Median: 19% 15% 18% 48% 17% 21% 18% 10% 15% 11%

Revenue Growth MRQ Gross EBITDA Margin FCF MarginCompany 14-'15 15-'16 16-'17 Margin 2015A 2016E 2017E 2015A 2016E 2017EPure Play Storage CompaniesWestern Digital Corp. -4% -11% 47% 35% 20% 16% 23% 9% 8% 17%Seagate Technology Plc 0% -19% -3% 28% 16% 13% 19% 8% 10% 12%NetApp, Inc. -3% -9% 0% 62% 16% 11% 16% 14% 18% 9%Pure Storage 308% 152% 65% 65% NA NA NA NA NA NACommVault Systems, Inc. 4% -2% 9% 87% 8% 2% 2% 9% 14% 12%Box, Inc. 74% 40% 32% 72% NA NA NA NA NA 12%Quantum Corp. 0% -14% 6% 43% 5% NA 4% 2% 0% 2%

Mean: 54% 20% 22% 56% 13% 11% 13% 8% 10% 11%Median: 0% -9% 9% 62% 16% 12% 16% 9% 10% 12%


Comparable Analysis Company Estimates

(US$ in millions, except per share values)Comparable Company Estimates Dominant Storage Companies

(US$ in millions, except per share values)Comparable Company Estimates Pure Play Storage Companies


29

Revenue EBITDA EPS EPS FCF MRQ

Company 2014A 2015A 2016E 2017E 2015A 2016E 2017E 2015A 2016E 2017E LTG 2015A 2016E 2017E End Revenue Gross Profit

Dominant Storage Companies

Amazon.com, Inc. $88,988 $107,006 $135,987 $168,751 $7,879 $11,668 $18,048 $1.28 $5.00 $3.83 39% $6,915 $10,834 $9,879 06/17 $37,955 $14,504 International Business Machines Corp. $92,793 $81,741 $79,919 $77,899 $20,372 $18,552 $18,522 $13.48 $12.43 $13.74 4% $8,747 $9,139 $11,775 06/17 $19,289 $8,793

Hewlett-Packard Enterprise $55,123 $52,107 $50,123 $33,506 $7,671 $7,834 $5,985 $1.36 $1.84 $1.41 3% $5,244 $5,600 ($1,804) 04/17 $7,445 $2,518

Micron Technology, Inc. $16,358 $16,192 $12,399 $20,123 $5,651 $3,211 $9,662 $2.71 ($0.27) $4.69 10% $864 ($1,408) $3,222 06/17 $5,566 $2,645

Symantec Corp. $4,183 $3,956 $3,600 $4,019 $673 $897 $727 $1.27 $3.71 ($0.17) 10% $136 $1,075 $38 03/17 $1,115 $856 Brocade Communications Systems, Inc. $2,211 $2,263 $2,346 $2,335 $586 $495 $416 $0.81 $0.52 $0.62 5% $360 $449 $252 04/17 $553 $343

Barracuda Networks Inc. $234 $277 $320 $353 $8 $8 $38 ($1.30) ($0.08) $0.20 11% $70 $64 $41 05/17 $94 $71

Revenue EBITDA EPS EPS FCF MRQ

Company 2014A 2015A 2016E 2017E 2015A 2016E 2017E 2015A 2016E 2017E LTG 2015A 2016E 2017E End Revenue Gross Profit

Pure Play Storage Companies

Western Digital Corp. $15,130 $14,572 $12,994 $19,093 $2,879 $2,124 $4,400 $6.31 $1.01 $1.38 17% $1,250 $998 $3,162 06/17 $4,842 $1,705

Seagate Technology Plc $13,724 $13,739 $11,160 $10,771 $2,261 $1,420 $2,025 $5.38 $0.83 $2.61 12% $1,143 $1,163 $1,323 06/17 $2,406 $666

NetApp, Inc. $6,325 $6,123 $5,546 $5,519 $960 $631 $904 $1.77 $0.78 $1.85 10% $851 $996 $474 04/17 $1,481 $913

Pure Storage $43 $174 $440 $728 ($166) ($167) ($166) ($6.56) ($2.59) ($1.26) 35% ($123) ($40) ($7) 04/17 $183 $119

CommVault Systems, Inc. $586 $608 $595 $651 $51 $13 $10 $0.56 $0.00 $0.01 22% $55 $82 $80 06/17 $166 $144

Box, Inc. $124 $216 $303 $399 ($137) ($164) ($115) ($11.48) ($1.67) ($1.19) 26% ($44) ($54) $47 04/17 $117 $84

Quantum Corp. $553 $553 $476 $505 $27 ($2) $20 $0.54 ($2.33) $0.11 - $12 $1 $10 03/17 $121 $52


Recent Storage M&A Transactions

30

($ in millions)

Source: CapitalIQ, Crunchbase, CapIQ 8/28/17

Date Acquirer Target Target Business Description Deal Value

8/28/2017 Western Digital Tegile Systems Provides hybrid flash storage arrays for virtualized server and virtual desktop environments NA

8/21/2017 Cisco Springpath Provides an enterprise-grade storage and data management software that provides storage services and runs on various standard servers 320.00

7/11/2017 Arcserve Zetta Provides cloud data protection for enterprises & SMBs NA

7/2/2017 ADVA Optical Networking MRV Communications A leading worldwide supplier of communications equipment and services to carriers, governments and enterprises NA

5/31/2017 Masstech Group SGL Provider of content archive and storage management software NA

5/29/2017 NetApp Plexistor In-Memory storage and compute platform powered by Software Defined Memory 20.00

4/12/2017 Vmware Wavefront Hosted platform for ingesting, storing, visualizing, and alerting on time series data. NA

3/6/2017 Thermo Fisher Scientific Core Informatics Delivers scineitic platforms by providing data management solutions like LIMS, ELN, SDMS, and platform for science NA

1/23/2017 Imation Corp. Nexsan Enables business and government organizations to own and control their own private cloud service NA

7/28/2016 Blockchain GreenAddress Leading bitcoin wallet software provider in a move to accelerate sidechains development NA

10/21/2015 Western Digital SanDisk Designs, develops and manufactures flash memory storage solutions and software 19000.00

10/11/2015 Dell EMC Manufactures information management and storage software systems 67000.00

8/20/2015 Vonage iCore Networks Fully managed & integrated hosted Microsoft Exchange, Sharepoint & Lync; BroadSoft (BroadWorks) virtual hosted communications, video & contact center platform services 92.00

8/18/2015 Seagate Dot Hill Systems Provides software and hardware solutions for storing, sharing, protecting and managing data 694.00

8/11/2015 The Carlyle Group Veritas Software Provides storage and infrastructure software products and services 8000.00

7/23/2015 IBM Compose Its managed platform that is used by developers to deploy, host, and scale databases NA

7/7/2015 Skyview Capital Syncplicity (EMC) Provides cloud-based file synchronization, mobile access, backup, file sharing, collaboration, and storage NA

6/3/2015 IBM Blue Box Group Provides cloud hosting and managed services to enterprises and applications NA

4/29/2015 Amazon Clusterk Offers the ability to lower total cost of ownership by utilizing AWS Spot Market for computing capacity 50.00

3/24/2015 Apple Foundation DB Develops and delivers data storage technology that helps developers to create applications NA

3/16/2015 Vonage SightSpeed SimpleSignal is a hosted PBX and cloud-based Unified Communications service provider, delivering IP phone applications and cloud-based collaboration services 25.30

3/12/2015 Docker Kitematic Kitematic's one click install gets Docker running on your Mac and lets you control your app containers from a graphical user interface (GUI) NA


Recent Storage M&A Transactions (cont.)

31

($ in millions)

3/10/2015 Bain Capital Blue Coat Systems Provides the users with secure and optimized information flow in any network 2400.00

3/5/2015 Western Digital Amplidata (Quantum) Provides object-based software defined storage solution for enterprise, private cloud, and public cloud implementations N/A

3/4/2015 Docker SocketPlane Its an open source software company that is changing the landscape of computer networking NA

3/2/2015 Akamai Technologies Xerocole Smart DNS technology for each network connection and its devices that helps users select the right websites NA

3/2/2015 Mitel Networks Mavenir Systems Provides networking solutions enabling mobile service providers to deliver IP-based voice, video and messaging services 560.00

3/2/2015 HP Aruba Networks Provides access management, network infrastructure and mobility application solutions for mobile enterprise networks 3000.00

2/25/2015 Emulex Avago Technologies Engages in the development and supply of storage networking infrastructure solutions that connect storage, servers and networks 725.89

2/16/2015 Hitachi Data Systems oXya SAS Provides IT deployment, administration, and management services for SAP N/A

2/10/2015 Hitachi Data Systems Pentaho Provides data integration and business analytics platforms N/A

2/5/2015 Brocade Riverbed's SteelApp Business Unit Provides virtual application delivery controller ND

2/3/2015 Silicon Laboratories Bluegiga Design and delivers easy-to-use, wireless connectivity solutions for OEMs 61.00

1/23/2015 Microsoft Revolution Analytics Provides software and support for the open source R statistics language users ND

1/21/2015 Dropbox CloudOn Solution enables users to create, review, share and store files ND

1/14/2015 Zayo Latisys It offers hybrid cloud hosting services; IaaS solutions, enterprise cloud services; managed hosting services 675.00

1/13/2015 Teradata Appoxee Develops and delivers software for mobile applications. It offers push notifications management tools that allow the client to send out push notifications with special parameters, 25.00

1/8/2015 Facebook QuickFire Networks Provides disruptive Service Provider Traffic Processing Platforms for network traffic N/A

1/5/2015 Facebook Wit.ai Provides natural language solutions. The company enables developers to add a natural language interface to their applicationsor devices N/A




Recent Storage M&A Transactions (cont.)

32

($ in millions)

12/17/2014 Snapchat Vergence Labs Web design platform focused on advertising and monetization. N/A

12/17/2014 Snapchat Scan Develops offline-to-online apps using QR code, beacon, and other mobile technologies. N/A

12/15/2014 Thoma Bravo Riverbed Technology Its solution addresses problems associated with IT performance across wide area networks. N/A

12/15/2014 Western Digital Skyera Provides enterprise solid state storage systems N/A

12/11/2014 Silicom Fiberblaze Provider of application acceleration solutions for the telecommunications and financial industries worldwide N/A

12/11/2014 Adobe Systems Fotolia Offers a crowdsourced library of images, vectors, illustrations and video clips that are for sale. 800.00

7/29/2014 Quantum Symform is a secure cloud backup service that provides users with unlimited cloud storage and backup free-of-charge. N/A

7/23/2014 SanDisk Fusion IO Developer of flash-based PCIe hardware and software 1100.00

7/8/2014 EMC Twinstrata Its platform move their data client data into clouds N/A

5/29/2014 Seagate LSI's Flash Businesses Accelerated Solutions and Flash Components units 450.00

1/30/2014 CISCO Whiptail Provides solid-state memory systems 415.00

12/23/2013 Seagate Xyratex Provider of data storage technology 374.00

10/17/2013 Western Digital Virident A provider of server-side flash storage solutions 685.00

9/12/2013 Western Digital sTec Vendor of enterprise solid-state drives (SSDs) 340.00

7/11/2013 EMC ScaleIO Its solution streamlines and converges data storage operations at scale 200.00

7/10/2013 Western Digital Vellobit Provides storage I/O optimization software N/A

7/2/2013 SanDisk Smart Storage Provides SATA and SAS SSDs 307.00




Recent Storage Private Placements ($ in millions)

Source: CapitalIQ, Crunchbase, CapIQ 8/2/17*=Denotes Debt Financing**Denotes Secondary Market Raise

Announced Target Investors Target Abstract Total Amount Raised

4/11/17 Tegile Systems Western Digital, Cross Creek Advisors, Meritech Capital Partners Provides hybrid and all flash storage arrays for a wide range of enterprise applications 33.0

4/5/17 Portworx Sapphire Ventures, GE Ventures, Mayfield Fund Creates software-defined infrastructure and storage for containerized applications 20.0

4/4/17 Cohesity Google Ventures, Sequoia Capital, Cisco Investments, Accel Partners Delivers industrys first hyper converged secondary storage for backup, test/dev, file services, and analytic datasets. 90.0

3/20/17 Reduxio C5 Capital, Intel Capital, Carmel Ventures Develops hybrid flash and disk storage technologies 22.5

3/4/17 Qumolo Northern Light Ventures, Kleiner Perkins Caufield & Byers, Tyche Partners Develops simple, scalable, and efficient enterprise data storage systems 30.0

2/28/17 Avere Systems Norwest Venture Partners, Google Ventures, Lightspeed Venture Partners Helps enterprises establish a system that blends-on premises and public cloud data storage/ 14.0

5/10/16 E8 Storage Accel, Magma Venture Partners, Vertex Venture Capital Provides flash storage with a rack-scale architecture 12.0

4/12/16 Datera Khosla Ventures, Samsung Ventures, Andy Bechtolsheim, Pradeep SindhuBlock storage systems divide data into uniformly-sized chunks that are accessed by servers via common protocols 40.0

12/16/15 Seven10 Storage Software McCarthy Capital Provider of enterprise software-defined-storage solutions and fully automated file migrations NA

11/1715 Datto, Inc. Technology Crossover Ventures Provides data backup, recovery, and business continuity solutions 75.0

9/17/15 Mangstor New Science Ventures Develops high-performance PCI-express and networked solid state storage solutions from enterprise flash technology. 10.2

8/26/15 Crossbar Tyche Group Ltd., Oriza Holdings, Cheerful Link Ventures Develops and licenses resistive RAM technology capable of storing up to one terabyte of data on a single 200mm2 chip 35.0

8/26/15 Velostrata 83 North, Norwest Venture Partners Develops a real-time hybrid cloud software solution that streams workloads to and from the cloud while keeping the storage and boot images on-premises 14.0

7/22/15 VoltDB Kepha Partners, Sigma Prime Ventures Provides an in-memory relational database management system capable of supporting a large number of database operations per second 9.8

7/20/15 Tintri SharesPost Investment Management Develops an appliance that increases the performance of virtual servers + desktop. NA**

7/8/15 DigitalOcean Access Industries, Andreessen Horowitz Is a cloud hosting service built for developers. 83.0

6/25/15 Dragon Innovation Amazon Provides a cloud-based file sharing solution to enable various parties to securely exchange files. NA

6/2/15 Nutanix FirstHand Capital Management Delivers web-scale converged infrastructure to medium and large enterprises NA

6/2/15 Nantero Draper Fisher Jurvetson, Globespan Capital, CRV Develops memory and logic devices. 41.5

6/1/15 Hedvig True Ventures, Vertex Venture Capital, Atlantic Bridge Hedvig platform is the only software-defined storage solution with true distributed systems DNA 18.0

5/31/15 Cohesity Accel Partners, ARTIS Ventures, Battery Ventures, Google, Qualcomm, Trinity Ventures Develops converged secondary storage solutions for backup, development, and analytics 55.0


Recent Storage Private Placements (cont.)($ in millions)

Announced Target Investors Target Abstract Total Amount Raised

5/30/15 Nexenta N/A Platform delivering ultra-scalable, cloud and virtualization-optimized storage solutions. NA

5/28/15 Tegile SanDisk, Western Digital, Meritech Capital, August Capital, Pine River Capital, Cross Creek Advisors, Capricorn Investment Group Provides Intelligent Flash Arrays for virtualization, file services and database applications 70.0

5/28/15 ClearData Norwest Venture Partners, Excel Venture Provides HIPAA compliant cloud hosting 25.0

5/26/15 Rubrik Greylock Partners, Lightspeed Venture Partners Offers a converged data management system and platform with hardware that offers backup and recovery-related functionality 41.0

5/21/15 Wayz Japan Archetype Ventures, Intel Capital, Nissay Capital Offers a cloud service that enables enterprises to store, manage, and share files NA

5/20/15 Coho Data Andreessen Horowitz, Intel Capital, Ignition Partners, HP Provides software-defined networking integrated storage appliances for private clouds 30.0

4/29/15 Infinidat TPG Growth Capital Provides next generation enterprise class hybrid storage at a disruptive price point 150.0

3/11/15 Compass Datacenters CIT Group Wholesale provider delivering dedicated data centers for businesses 25

3/10/15 SimpliVity Accel Partners, Draper Fisher, Charles River Ventures, Kleiner Perkins, Meritech Capital Its IT infrastructure platform that provides enterprise computing, storage services, and network functionality. 175

2/26/15 Exablox DCM, Dell, Norwest Venture Partners, U.S. Venture Partners Provides data storage solutions for companies 16

2/11/15 AppDirect StarVest Partners, Mithril Capital Management Provides a cloud service marketplace and management 50

2/11/15 Etix Everywhere InfrVia, Tiger Infrastructure Partners Provides application hosting and data center services 17

2/4/15 Qumulo Kleiner Perkins, Highland Capital, Madrona Venture Group, Valhalla Partners Is a stealth-mode enterprise data storage startup 40

2/2/15 Corephotonics Amiti Ventures, Horizons Ventures, Magma Venture, SanDisk Ventures Develops computational photography technologies 17.8

1/26/15 Everspin Technologies Global Foundries, Western Digital develops and manufactures integrated magnetic products. 29

1/22/15 Kaminario Lazarus Hedge Fund, Silicon Valley Bank Provides solid-state storage solutions for database, data mining and warehousing, business intelligence 15

1/20/15 Ravello Systems Bessemer Venture, Norwest Venture, Qualcomm, SanDisk, Sequoia Capital Provides cloud application hypervisor solutions to encapsulate multi-VM applications 28

12/9/14 DigitalOcean Fortress Investment Group Is a cloud hosting service built for developers. 50*

12/8/14 DataGravity Accel Partners Develops software solutions that turn big data into information. 50

12/8/14 Mesosphere Andreessen Horowitz, SV Angel, Fuel Capital, Khosla Ventures Providing software that combines datacenter servers and cloud instances into one shared pool 36

Source: CapitalIQ, Crunchbase, CapIQ 8/2/17*=Denotes Debt Financing**Denotes Secondary Market Raise


Appendix B

Tech IPO Update


Recent Technology IPOs (US$ in millions, except per share values)

Source: CapIQ 8/2/17Note: Offerings that raised less than $40M and OTCtraded companies have been excluded

36

Shares Offered

(millions)% Return since IPO

As of IPO

MRQ Gross Margin %

Current Price

IPO RangeIPO Price

Amount Raised Ent. Value

EV/LTM EV/FTMLTM Rev FTM Rev.

% Rev. GrowthCompany Industry IPO Date Low High Rev. Rev.

Tintri, Inc. IT Infrastructure 6/29/2017 6.26 10.50 12.50 7.00 8.6 60.0 -11% 19.2 0.1x 0.1x 132.6 169.0 27% 61%Carvana Co. Software 4/27/2017 18.85 14.00 16.00 15.00 15.0 225.0 25% 274.5 0.6x 0.2x 451.3 1,187.9 163% 6%Cloudera, Inc. Software 4/27/2017 17.15 12.00 14.00 15.00 15.0 225.0 14% 414.4 1.6x 1.1x 261.0 367.6 41% 24%Okta, Inc. IT Security 4/6/2017 21.98 13.00 15.00 17.00 11.0 187.0 29% 201.6 1.3x 0.9x 160.3 227.0 42% 67%Alteryx, Inc. Software 3/23/2017 19.29 12.00 14.00 14.00 9.0 126.0 38% 323.9 3.8x 2.7x 85.8 118.9 39% 83%MuleSoft, Inc. Software 3/16/2017 19.80 12.00 14.00 17.00 13.0 221.0 16% 199.6 1.1x 0.8x 187.7 266.0 42% 73%Coupa Software Incorporated Software 10/5/2016 30.19 14.00 16.00 18.00 7.4 133.2 67% -71.6 -0.7x -0.5x 109.5 136.6 25% 67%Nutanix, Inc. Software 9/29/2016 21.09 11.00 13.00 16.00 14.9 237.9 32% 526.6 1.2x 0.7x 444.9 703.6 58% 57%Talend S.A. Software 7/28/2016 37.51 15.00 17.00 18.00 5.3 94.5 108% -4.8 -0.1x 0.0x 88.7 117.8 33% 76%LINE Corporation Internet 7/11/2016 36.01 25.84 28.94 31.91 22.0 1,125.2 13% -59,469.5 -0.5x -35.1x 131,540.8 1,693.2 -99% 37%Twilio Inc. Software 6/22/2016 28.02 12.00 14.00 15.00 10.0 150.0 87% 150.6 0.8x 0.6x 192.9 253.1 31% 57%SecureWorks Corp. IT Security 4/21/2016 10.97 15.50 17.50 14.00 8.0 112.0 -22% 887.2 2.6x 2.0x 339.5 444.2 31% 53%Atlassian Corporation Plc Software 12/9/2015 34.75 16.50 18.50 21.00 22.0 462.0 65% 2,393.3 6.8x 5.3x 353.4 448.8 27% 79%Square, Inc. Payments 11/18/2015 25.88 11.00 13.00 9.00 27.0 243.0 188% 1,172.5 1.0x 2.0x 1,143.7 588.5 -49% 38%Mimecast Limited IT Infrastructure 11/18/2015 27.78 10.00 12.00 10.00 7.8 77.5 178% 343.5 2.7x 2.3x 128.4 150.4 17% 74%Instructure, Inc. SaaS 11/12/2015 31.30 16.00 18.00 16.00 4.4 70.4 96% 132.5 2.0x 1.4x 65.1 95.1 46% 71%Adesto Technologies Corporation IT Infrastructure 10/26/2015 4.65 10.00 12.00 5.00 5.0 25.0 -7% 86.9 2.1x 1.7x 41.8 52.2 25% 49%Pure Storage, Inc. IT Storage 10/6/2015 12.39 16.00 18.00 17.00 25.0 425.0 -27% 234.8 0.9x 0.5x 273.8 477.2 74% 65%Rapid7, Inc. IT Security 7/16/2015 15.07 13.00 15.00 16.00 6.5 103.2 -6% 541.8 5.9x 4.7x 91.6 116.0 27% 73%Sophos Group plc IT Security 6/30/2015 4.74 0.00 0.00 3.54 156.2 553.8 34% 1,800.5 3.9x 3.7x 456.3 483.5 6% -AppFolio, Inc. IT Infrastructure 6/25/2015 34.25 12.00 14.00 12.00 6.2 74.4 185% 323.6 6.0x 3.7x 53.7 87.9 64% 60%Alarm.Com Holdings, Inc. IT Security 6/25/2015 37.68 13.00 15.00 14.00 7.0 98.0 169% 566.3 3.2x 2.7x 176.5 208.7 18% 64%Shopify Inc. Cloud Infrastructure 5/20/2015 98.21 12.00 14.00 17.00 7.7 130.9 478% 1,261.4 10.2x 7.4x 123.6 170.2 38% 57%Etsy, Inc. Internet 4/15/2015 14.10 14.00 16.00 16.00 16.7 266.7 -12% 1,664.7 7.8x 5.6x 213.6 298.5 40% 64%GoDaddy Inc. IT Infrastructure 3/31/2015 42.52 17.00 19.00 20.00 20.5 460.0 113% 2,332.7 1.6x 1.4x 1,443.4 1,656.0 15% 64%Box, Inc. IT Storage 1/22/2015 18.56 11.00 13.00 14.00 12.5 175.0 33% 1,729.5 9.0x 6.7x 192.6 258.8 34% 72%

Mean 18.10 31.9 1,110.9 111% 11,228.5 8.1x 6.3x 2,618.6 940.0 29% 66%

Median 15.00 9.2 119.3 102% 955.0 6.0x 4.5x 123.6 170.4 33% 66%


Recent Technology Followon Offerings (US$ in millions, except per share values)

Source: CapIQ 8/28/17Note: Offerings that raised/expected to raise less than $40M and OTCtraded companies have been excludedIT Security companies highlighted in gold

37

Shares Offered

(millions)

% Return since

Follow-On

As of Follow-On

MRQ Gross

Margin %Current

PriceFollow-On

PriceAmount Raised Ent. Value

EV/LTMRev.

EV/FTMRev. LTM Rev. FTM Rev.

% Rev. GrowthTicker Company Industry

Follow-On Date

SHOP Shopify Inc. Internet 5/18/2017 $103.79 91.00 5.5 500.50 14% 7,612.97 17.1x 11.1x 443.99 683.74 54% 57%REDS RedstoneConnect Plc Software 5/9/2017 $1.25 1.94 433.3 840.93 -36% 31.39 0.8x 0.5x 41.52 63.56 53% 26%GDDY GoDaddy Inc. Internet 5/4/2017 $42.72 38.50 24.1 927.85 11% 4,458.46 2.3x 1.9x 1,903.90 2,327.49 22% 64%BOOM Audioboom Group plc Internet 4/6/2017 $0.02 3.12 149.3 465.87 -99% 2,884.61 2198.6x 406.5x 1.31 7.10 441% 27%LRD Laird PLC Electronics 4/4/2017 $1.41 1.06 217.2 229.73 33% 723.71 0.9x 0.6x 801.60 1,141.41 42% -16%KEYS Keysight Technologies, Inc. Electronics 3/22/2017 $39.86 35.00 11.4 400.00 14% 6,529.07 2.2x 2.1x 2,923.00 3,112.91 6% 55%MCRNL Micronet Ltd. Software 2/23/2017 $2.13 48.67 5.5 266.19 -96% 237.51 4.7x - 51.07 - -100% -74%ZPG ZPG Plc Digital Media 2/1/2017 $3.42 4.61 20.9 96.44 -26% 2,131.30 10.2x 7.1x 208.45 299.15 44% 100%OTEX Open Text Corporation Software 12/13/2016 $31.86 61.00 9.3 564.25 -48% 15,715.57 8.4x 7.0x 1,881.36 2,237.39 19% 71%TTMI TTM Technologies, Inc. Internet 11/16/2016 $13.88 11.50 12.0 138.00 21% 2,062.79 0.8x 0.8x 2,495.70 2,579.73 3% 17%VSAT ViaSat, Inc. Digital Communication 11/17/2016 $61.34 69.74 6.5 453.31 -12% 5,245.31 3.5x 3.3x 1,482.01 1,597.43 8% 34%TWLO Twilio Inc. Software 10/20/2016 $28.59 40.00 7.0 280.00 -29% 3,332.73 13.5x 10.2x 246.72 325.58 32% 57%AMD Advanced Micro Devices, Inc. Semiconductors 9/6/2016 $12.23 6.00 100.0 600.00 104% 9,475.42 2.4x 2.2x 3,878.00 4,383.62 13% 34%DMRC Digimarc Corporation Software 8/5/2016 $29.75 30.00 1.2 37.00 -1% 200.13 9.3x 8.3x 21.44 24.11 12% 56%GDDY GoDaddy Inc. Internet 5/4/2017 $42.72 38.50 24.1 927.85 11% 4,458.46 2.3x 1.9x 1,903.90 2,327.49 22% 64%HDP Hortonworks, Inc. Software 2/1/2016 $16.03 9.50 8.4 80.04 69% 288.47 2.4x 1.5x 121.94 188.24 54% 68%VNTV Vantiv, Inc. Payments 12/2/2015 $71.74 51.67 13.4 691.07 39% 11,681.94 3.8x 6.6x 3,041.39 1,771.54 -42% 51%FIT Fitbit, Inc. Electronics 11/12/2015 $5.94 29.00 17.0 493.00 -80% 5,664.96 3.7x 2.6x 1,516.61 2,211.86 46% 40%PAYC Paycom Software, Inc. Software 11/12/2015 $72.74 42.15 4.5 189.68 73% 2,417.83 11.9x 8.8x 203.58 273.50 34% 87%SABR Sabre Corporation Software 11/4/2015 $18.43 29.27 26.6 877.35 -37% 12,999.77 4.6x 3.9x 2,848.58 3,293.30 16% 32%PCTY Paylocity Holding Corporation Software 9/24/2015 $46.93 29.75 3.7 111.27 58% 1,547.10 10.1x 6.8x 152.70 227.01 49% 64%QTWO Q2 Holdings, Inc. Marketing 9/24/2015 $41.15 25.50 3.8 96.87 61% 903.67 9.7x 6.8x 93.58 132.86 42% 49%BNFT Benefitfocus, Inc. Marketing 8/6/2015 $29.25 36.75 2.0 73.50 -20% 1,100.56 6.9x 5.7x 159.76 194.52 22% 51%SSNC SS&C Technologies Holdings, Inc. Semiconductors 6/18/2015 $38.03 61.50 10.5 645.75 -38% 13,266.85 16.8x 10.4x 787.79 1,269.59 61% 47%ZEN Zendesk, Inc. Software 3/19/2015 $27.26 22.75 8.5 194.06 20% 1,663.10 13.1x 8.8x 127.05 188.59 48% 70%HUBS HubSpot, Inc. Marketing 3/17/2015 $68.60 37.00 4.1 152.24 85% 1,268.25 10.9x 7.9x 115.88 161.16 39% 79%EIGI Endurance International Group Holdings, Inc. Internet 3/6/2015 $7.35 19.00 12.0 228.00 -61% 5,379.77 8.5x 7.2x 629.85 746.03 18% 51%

Mean: 34.94 9.7 341.16 9% 5,263.07 9.1x 6.9x 879.71 951.81 30% 56%Median: 29.75 8.5 194.06 20% 2,417.83 9.7x 6.8x 203.58 273.50 39% 51%

Centaur PartnersStorage Market OverviewAnnualized Sector Growth by Market CapitalizationStorage Index Component Returns (6/6/16 8/2/17)Valuation Matrix: Revenue Growth vs. EBITDA MarginRecent Tech IPOs and Aftermarket PerformanceTechnology Sector Forward Revenue Valuation AnalysisStorage Market Valuation 2016Storage Market Valuation 2017Storage Market Landscape - 2017Software Defined Infrastructure Market Segments - 2017Recent Notable Announcements StorageStorage M&A MarketTechnology M&A TrendsSlide Number 14M&A Activity of Selected Large Storage VendorsStorage Financings MarketTop Storage Private Placements 2017VC Financings(2005-2015)Technology Financing Overview (2005-2015)2005-2015 IPO/Exit Trends Recent Private Placement Activity of Most Active Corporate VCsRecent Private Placement Activity of Other Corporate VCsAdditional Market DataWhy are the incumbents strugglingStorage - TrendsStorage - TrendsComparable Analysis Valuation MultiplesComparable Analysis Operating MetricsComparable Analysis Company EstimatesRecent Storage M&A TransactionsRecent Storage M&A Transactions (cont.) Recent Storage M&A Transactions (cont.) Recent Storage Private Placements Recent Storage Private Placements (cont.)Tech IPO UpdateRecent Technology IPOsRecent Technology Followon Offerings

introduction to centaur partners it storage market update

Documents