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Investor Presentation Suresh Vasudevan, Chief Executive Officer Anup Singh, Chief Financial Officer

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Page 1: Nimble storage investor presentation

Investor PresentationSuresh Vasudevan, Chief Executive OfficerAnup Singh, Chief Financial Officer

Page 2: Nimble storage investor presentation

Safe Harbor

1

This presentation and the accompanying oral presentation contain “forward-looking” statements that are based on our management’s beliefs and assumptions and on information currently available to management. We intend for such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements other than statements of historical fact contained in this presentation, including information concerning our financial outlook, business plans and objectives, potential growth opportunities, competitive position, industry environment and potential market opportunities.

Forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other factors including, but not limited to, those related to our future financial performance, market acceptance of our solutions, our ability to increase sales of our solutions, including to attract and retain customers and to selling additional solutions to our existing customers, our ability to develop new solutions and bring them to market in a timely manner, pricing pressure (as a result of competition or otherwise), our ability to maintain, protect and enhance our brand and intellectual property, global economic conditions and our ability to continue to expand our business and manage our growth. Moreover, we operate in very competitive and rapidly changing environments, and new risks may emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Further information on these and other factors that could affect our financial results are included in our filings we make with the Securities and Exchange Commission, and may cause our actual results, performance or achievements to differ materially and adversely from those anticipated or implied by our forward-looking statements.

You should not rely upon forward-looking statements as predictions of future events. Although our management believes that the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances described in the forward-looking statements will be achieved or occur. Moreover, neither we, nor any other person, assume responsibility for the accuracy and completeness of the forward-looking statements. We undertake no obligation to publicly update any forward-looking statements for any reason after the date of this presentation to conform these statements to actual results or to changes in our expectations, except as required by law.

In addition to GAAP financial information, this presentation includes certain non-GAAP financial measures. The non-GAAP measures have limitations and you should not consider them in isolation or as a substitute for our GAAP financial information. There are limitations to the use of non-GAAP measures. For example, bookings and free cash flow are not substitutes for revenues or cash provided by operations. In addition, non-GAAP operating expenses exclude the impact of stock-based compensation expense, which is a recurring expense for us. See the Appendix for a reconciliation of these non-GAAP financial measures to their nearest GAAP equivalent.

Page 3: Nimble storage investor presentation

Founding Thesis

2013 TAM:~$40B

1980sDAS

1995+Networked Storage

Opportunity for a ground-up redesign of storage

Today

Flash

Cloud Connectivity

2

Page 4: Nimble storage investor presentation

Investment Highlights and Nimble Storage Snapshot

33

Disruptive platform built on two foundational innovations: CASL, flash-optimized file system InfoSight, cloud-based management

Significant and broad-based traction Diverse base of enterprises and cloud service providers Broad set of workloads

$18B market opportunity*

Exceptional revenue growth with scalable margin profile

Experienced technology and management team

402

1,372

3,097

Q1FY13 Q1FY14 Q1FY15

Cumulative Customer Base

$14

$54

$126

$22

$47

FY12 FY13 FY14 Q1FY14 Q1FY15

+134%

Revenue Growth

+110%

*Source: Based on company estimates from IDC and Gartner data

Page 5: Nimble storage investor presentation

Flash and Disk are Complementary

Component Flash DiskRandom IO/$ 100X 1X 2017?

Sequential IO/$ 1X 3X 2019?

Capacity/$ 1X 15X 2025?

Write Endurance Poor Proven

4

Need for Performance Varies Greatly

Analytics

VDI

OLTP

File ServicesLow High

Core design principles:• Efficiency: Leverage flash and disk for their complementary characteristics• Flexibility: Adapt to workloads, and as the merits of flash and disk evolve over time

Page 6: Nimble storage investor presentation

Simplifying Management Is As Critical As Scaling Performance and Capacity

5

20XCompute

10XNetwork

Poor Application Performance

Storage Same40-45%*

CAGR

Increasing Demandsof Data Growth

Cloud ComputingVirtualization Big Data Social and Collaboration

Exacerbating Trends

Mobility

VM / Application DataManagement Complexity

CRMERP

CRM

ERP

*Source: IDC, The Digital Universe in 2020, sponsored by EMC

Page 7: Nimble storage investor presentation

Our Value Proposition

CASL™Flash-optimized file

system software

InfoSight™Cloud-based management/support

6

Non-disruptive, flexible scaling to massive scale

Peak system health and availability

Scale-To-Fit

Rapid Backup and Recovery

Integrated Protection Proactive Wellness

Significantly betterperformance / $ and

capacity / $

Efficiency

Page 8: Nimble storage investor presentation

Tiering

Flash Arrays for High Performance

Incumbent Response

Flash Requires a Ground-Up Design

7

Data Management• Compression• Snapshots• Thin provisioning• Replication• Others

ApplicationIntegration

File SystemSoftware

Key Decisions in Ground-Up Design

How do we:

Leverage flash for performance, while overcoming endurance concerns?

Leverage disk for capacity?

Be media-agnostic and flexible as the merits of flash and disk evolve?

Leapfrog incumbents on data management?

Page 9: Nimble storage investor presentation

Traditional File Systems / Tiering Nimble AdvantageCASL Innovations

CASL: A Breakthrough File System

8

Uses 30-70% less disk and flash resources

Inline Compression, using variable blocks

Fixed blocks:No compression

Fast random writes need a flash tier

Uses low-cost HDDs to deliver SSD-like write performance

Inline Serialization ofall incoming write IO

Disk

SSD (Flash) Cache

More Disk

More FlashDynamic Caching to serve reads from flash

Uses substantially less, low-cost flash to accelerate reads

Fast reads by migrating between tiers wastes flash

Copy-based snapshots waste capacity and degrade performance

Pointer-BasedSnapshots

Integrated, rapid backup and recovery

Non-disruptive scaling in least-cost increments

Scale-to-Fit: Scale-up, deep and scale-out

Scale-Up ORLimited Scale-Out

CASL is more performance and capacity efficient and easy to scale, while delivering integrated data protection

Page 10: Nimble storage investor presentation

Adaptive Flash Eliminates Silos

9

Traditional Approach Nimble Approach

Capacity Performance Performance + Capacity + Data Protection in oneData Protection

Page 11: Nimble storage investor presentation

Traditional Storage Management is Inefficient and Expensive

10

!#

!

#!#

!#

!#

? ??

With modern data analytics tools can vendors predict and prevent

problems before they occur?

In a connected world why can’t vendors proactively monitor

customer deployed systems?

Vendor

Page 12: Nimble storage investor presentation

InfoSight: Cloud-Based Management

Leveraging pervasive network connectivity and big data analytics to automate support and enable cloud-based management

Nimble Approach Customer Benefits

Comprehensive Telemetry

Analysis and Automation Storage Management

SaaS Offering

Proactive Wellness

Community Learning

11

Page 13: Nimble storage investor presentation

InfoSight Impact

12

Predicting Customers’ Storage Expansion Needs**

customers expanded capacity

385 103customers

expanded flash

37customers

upgraded controllers

Proactive Support Prevents Problems*

92%

81%

of the cases automatically opened by Nimble

of support cases auto-closed by Nimble

* InfoSight case percentages based on 9 month period through Q1FY15 ** Customer storage expansion needs based on 12 month period through Q1FY15

Page 14: Nimble storage investor presentation

Market Response Has Led to Rapid Growth in Our Installed Base

13

33

97

211

Q1FY13 Q1FY14 Q1FY15

40

131

285

Q1FY13 Q1FY14 Q1FY15

Cumulative Customer Base Number of Large Enterprises*

Number of Cloud Service Providers

402

1,372

3,097

Q1FY13 Q1FY14 Q1FY15

*Company estimates of Global 5,000 customers

Page 15: Nimble storage investor presentation

Broad Appeal

14

Diversified Workloads*

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Diversified Market Verticals*

*Based on 12 month period through Q1 FY15. Y axis represents % of systems in the field that handle this type of workload

14%Financial

11%ServiceProviders

10% Hi-Tech

10%Education9%

Healthcare

9%State/localgovernment

7%Mfg.

5%3%

24%

Energy

Legal

Other

Page 16: Nimble storage investor presentation

Channel Leverage

15

Base of Accredited SEs**

Active Reseller AEs*

Engagement Levels

732

2,189

Q1FY14 Q1FY15

+199%

Reseller Led New Customer Wins****

Channel Generated Opportunities***

Opportunities & Customer Wins

1,013

1,751

Q1FY14 Q1FY15

+73%

66

178

Q1FY14 Q1FY15

+170%

335

685

Q1FY14 Q1FY15

+104%

* Total number of reseller AEs that closed 1 or more deals during the fiscal quarter ** Total cumulative number of accredited SEs as of the end of each fiscal quarter*** Total number of opportunities generated by partners during the fiscal quarter **** Total number of new customers during the quarter where the reseller contributed 75% (or greater) of total effort to close the deal.

Page 17: Nimble storage investor presentation

Land and Expand Strategy: 2-Year Bookings After Initial Sale

16

Note: Bookings defined as a purchase order received; statistics as of April 30, 2014* Top 50 of all customers that have been Nimble Storage customers for 4 or more quarters; Of the 50, 20 customers have 8 quarters of history.

Average: All Customers

Initial Sale Total: Year 1 and 2

4.8X

1X

Top 50 Customers*

Initial Sale Total: Year 1 and 2

2.1X1X

Page 18: Nimble storage investor presentation

Market Landscape and Our Opportunity

17

Performance Intensive

Mainstream Applications

High-Performance Computing

Cheap and Deep

Hybrid / Disk Arrays

Archival

All Flash Arrays

Server Flash

Archival

Real Time Analytics

Workloads

Adaptive Flash Platform

Oracle / SqlVDISAPVMware

VerticaMongo DBExchangeSharePoint

EMC VNXNetApp FAS

HP 3PARDell EQL/CML

Pure, SolidFireXtremIO

Industry Nimble Storage

ServerFlash

Page 19: Nimble storage investor presentation

Financial Summary

Page 20: Nimble storage investor presentation

Financial Highlights

Strong revenue growth with a significant “land and expand” opportunity

Attractive and best-in-class gross margin profile

Investments to expand differentiation and capitalize on large market opportunity

Improving operating leverage and cash flow from operations

Attractive long term financial model

19

Page 21: Nimble storage investor presentation

$8.2 $11.0

$14.6

$20.2 $22.1

$28.5

$ 41.7

$ 46.5

Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15

Product Revenue Support and Service Revenue

Quarterly Revenue

Rapid Revenue Growth

20

Annual and Q1 Revenue*

$33.4

$14.0

$53.8

$125.7

$22.1

FY12 FY13 FY14 Q1FY14 Q1FY15

$46.5

Product Revenue Support and Service Revenue

+134%

+110%

*Fiscal year ends on January 31

Page 22: Nimble storage investor presentation

Growth Drivers

21

402

1,372

3,097

Q1FY13 Q1FY14 Q1FY15

Cumulative Customer BaseCustomers

% New vs. Existing Customer Bookings

10049

58

0

100

200

Initial Sale Year 1 Year 2 Total

2-Year Bookings* After Initial SaleAverage Across All Customers

207

New customers

Existing customers

64%

36%

12 months thru Q1FY15

Land and Expand

7 4 %12months thru Q1FY14

26%

* Defined as the dollar value of a purchase order received; statistics as of April 30, 2014** Number of deals for 12 month period through Q1FY14 and Q1FY15

% Customer Bookings > $100K

Number of Deals > $100K**

Bookings <$100K

Bookings>$100k

64%36%

12 months thru Q1FY15

Deals >$100K

177

393

TTM Q1FY14 TTM Q1FY15

+122%

Page 23: Nimble storage investor presentation

Attractive Gross Margin Profile

22

61.8%

64.3%

66.4%67.2%

66.2%

Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15

65.8% 69.0%

22.8%

44.8%

Q1FY14 Q1FY15

Product Gross Margin Support and Service Gross Margin

Quarterly Gross Margin* Product and Support and Service Gross Margin*

*Reflects Non-GAAP Gross Margin; see slide 26 for reconciliation

Page 24: Nimble storage investor presentation

$6

$14

$24

Q1FY13 Q1FY14 Q1FY15

$3$6

$12

Q1FY13 Q1FY14 Q1FY15

Investing For Growth While Demonstrating Operating Leverage

60

120

188

Q1FY13 Q1FY14 Q1FY15Head Count

72% 62%52%

Q1FY13 Q1FY14 Q1FY15% of RevenueHead Count

23

$ Millions

$ Millions

93

211

356

Q1FY13 Q1FY14 Q1FY15

Research and Development*

Sales and Marketing*

37%27% 25%

Q1FY13 Q1FY14 Q1FY15% of Revenue

*Reflects Non-GAAP Research and Development and Sales and Marketing, which excludes stock based compensation expense. See slide 26 for reconciliation.

Page 25: Nimble storage investor presentation

-47%

-27%

-36%

-22%

FY13 FY14 Q1FY14 Q1FY15

Improving Operating And Cash Flow Margins

24

v

Cash Flow From Operations andFree Cash Flow % of Revenue**

Improving Operating Margin*

*Reflects Non-GAAP Operating Margin, which excludes stock based compensation expense. See slide 26 for reconciliation**Free cash flow is defined as net cash from operating activities minus capital expenditures

-33%

1%

-39%

-7%

Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15

Operating Cash Flow as % of Total RevenueFree Cash Flow as % of Total Revenue

Page 26: Nimble storage investor presentation

Business Model

25

FY13 FY14 Q1FY15 Long-Term ModelGross Margin* 62% 65% 66% 63%–65%

R&D as % of Revenue* 28% 26% 25% 11%–13%

S&M as % of Revenue* 72% 57% 52% 28%–31%

G&A as % of Revenue* 9% 9% 10% 5%–6%

Non-GAAP Operating Margin -47% -27% -22% 16%–20%

*Reflects Non-GAAP Gross Margin, R&D, S&M, G&A and Operating Margin, see slide 26 for reconciliationNote: due to rounding, numbers presented above may not sum to total.

Page 27: Nimble storage investor presentation

GAAP to Non-GAAP Reconciliation

26

($ in thousands) FY12 FY13 FY14 Q1FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15

GAAP Product Gross Profit 7,880 32,499 76,581 4,965 13,151 17,240 20,564 25,626 28,224% GAAP Product Gross Margin 60.1% 65.3% 67.9% 65.9% 65.6% 67.0% 68.8% 69.0% 68.4%(+) Stock-based Compensation 10 48 232 4 40 38 52 102 231

Non-GAAP Product Gross Profit 7,890 32,547 76,813 4,969 13,191 17,278 20,616 25,728 28,455Non-GAAP Product Gross Margin 60.2% 65.4% 68.1% 66.0% 65.8% 67.2% 69.0% 69.2% 69.0%

GAAP Support and Service Gross Profit (145) 891 4,941 213 430 940 1,458 2,113 1,988% GAAP Support and Service Gross Margin -16.1% 21.9% 38.2% 34.2% 20.7% 34.1% 41.3% 46.4% 37.4%(+) Stock-based Compensation 31 114 468 21 43 88 127 210 393

Non-GAAP Support and Service Gross Profit (114) 1,005 5,409 234 473 1,028 1,585 2,323 2,381Non-GAAP Support and Service Gross Margin -12.7% 24.7% 41.9% 37.6% 22.8% 37.3% 44.9% 51.0% 44.8%

GAAP Gross Profit 7,735 33,390 81,522 5,178 13,581 18,180 22,022 27,739 30,212% GAAP Gross Margin 55.2% 62.0% 64.8% 63.5% 61.4% 63.8% 65.9% 66.5% 64.9%(+) Stock-based Compensation 41 162 700 25 83 126 179 312 624

Non-GAAP Gross Profit 7,776 33,552 82,222 5,203 13,664 18,306 22,201 28,051 30,836% Non-GAAP Gross Margin 55.5% 62.3% 65.4% 63.8% 61.8% 64.3% 66.4% 67.2% 66.2%

GAAP Research and Development 7,903 16,135 35,247 3,150 6,318 8,058 9,361 11,510 14,217(-) Stock-based Compensation 268 874 3,049 159 367 547 781 1,354 2,440

Non-GAAP Research and Development 7,635 15,261 32,198 2,991 5,951 7,511 8,580 10,156 11,777

GAAP Sales and Marketing 12,863 39,851 75,107 6,040 14,160 17,268 19,902 23,777 29,202(-) Stock-based Compensation 244 1,029 3,674 176 498 623 850 1,703 4,921

Non-GAAP Sales and Marketing 12,619 38,822 71,433 5,864 13,662 16,645 19,052 22,074 24,281

GAAP General and Administrative 3,756 5,168 13,737 1,047 2,301 3,041 3,130 5,265 6,437(-) Stock-based Compensation 267 539 1,726 117 207 331 455 733 1,572

Non-GAAP General and Administrative 3,489 4,629 12,011 930 2,094 2,710 2,675 4,532 4,865

GAAP Operating Expenses 24,522 61,154 124,091 10,237 22,779 28,367 32,393 40,552 49,856(-) Stock-based Compensation 779 2,442 8,449 452 1,072 1,501 2,086 3,790 8,933

Non-GAAP Operating Expenses 23,743 58,712 115,642 9,785 21,707 26,866 30,307 36,762 40,923

GAAP Operating Loss (16,787) (27,764) (42,569) (5,059) (9,198) (10,187) (10,371) (12,813) (19,644)% of Revenue -120% -52% -34% -62% -42% -36% -31% -31% -42%(+) Stock-based Compensation 820 2,604 9,149 477 1,155 1,627 2,265 4,102 9,557

Non-GAAP Operating Loss (15,967) (25,160) (33,420) (4,582) (8,043) (8,560) (8,106) (8,711) (10,087)% of Revenue -114% -47% -27% -56% -36% -30% -24% -21% -22%

Net Cash Provided by (Used in) Operating Activities (14,841) (18,754) (6,742) (6,093) (4,876) (3,780) (271) 2,185 452% of Revenue -105.9% -35% -5% -75% -22% -13% -1% 5% 1%(-) Property and Equipment, Net 1,303 3,954 13,613 658 1,884 1,542 4,726 5,461 3,728

Free Cash Flow (16,144) (22,708) (20,355) (6,751) (6,760) (5,322) (4,997) (3,276) (3,276)% of Revenue -115.2% -42% -16% -83% -31% -19% -15% -8% -7%

Page 28: Nimble storage investor presentation

Sales and MarketingInvest aggressively to deepen

sales coverage within existing territories, expand internationally, and drive continued

channel leverage

CustomersContinue expansion into

large enterprise and service provider customers

PeopleBuild best-in-class company

founded on recruiting and retaining the industry’s best talent

Our Strategic Priorities

27

Technology PlatformBuild on our broad technology

foundation to further extend our differentiation, broaden feature coverage,

and further expand our target market

Page 29: Nimble storage investor presentation

Positioned to Lead in the Flash-Storage Era

Opportunity for a ground up redesign of storage

2013 TAM:~$40B

1980sDAS

1995+Networked Storage

TodayFlash Storage

Be the market leader in storage by delivering the industry’s most efficient flash-storage platform28

Page 30: Nimble storage investor presentation

Customer Case Studies

Page 31: Nimble storage investor presentation

Fortune 500 Engineering & Construction Company

Competitor Solution

Fortune 500 Engineering & Construction Company

30

80% physical servers; EMC & NetApp SAN Struggled with performance for Autonomy

e-discovery & Oracle data warehouse Application backups taking over 10 hours

Challenges Performance up by 2X, despite using virtual servers Data reduction of 2.3X lowers $/GB substantially Snapshots -based backup eliminated backup window Replication for DR Power, cooling and space costs lower by $3,500/month

Nimble Advantage

Nimble SmartStack

DR with 90 days of replicated snapshots

Prod (Houston) DR (Austin)

Replication

6U! 110TB with 2.3X

data reduction 30 days of

snapshots

Primary SAN: 2 Racks

Pre-Nimble Environment

Daily backup to tape

Page 32: Nimble storage investor presentation

Lower TCO: Global Office Products Company

Competitor Solution3 Racks of “Tier 1” storage

40TB Usable Storage in 126U

Nimble Solution2 CS 460 arrays

59TB Usable Storage in 6U

“Nimble has given us much more flexibility with primary storage and data protection and a much more resilient infrastructure – all at a much lower cost.”

—IT Platform Lead

SQL Server, SAP applications and other VMs using traditional“Tier 1” Storage

Core project drivers:– Minimize data center

costs like power, cooling– Reduce storage

capacity costs– Reduce complexity

9X Reduction in Storage Costs

20X Reduction Footprint

50% Savings in Data Protection Costs

Zero Impact to Performance

ReplacedWith

Challenges

31

Page 33: Nimble storage investor presentation

Consolidation and Efficiency at a Global Oil and Gas Leader

Global Energy leader with hundreds of remote sites

Initial VDI project goal to consolidate thousands of employee desktops at hundreds of field locations

XenDesktop deployment with incumbent storage experienced serious performance issues, prompting a competitive bake-off with Nimble

Challenges

Price-performance: 72% lower cost per IOPS Cost of capacity: 37% compression,

coupled with low-cost, Nearline HDDs 50% lower recovery time for virtual PCs Calls to help desk reduced dramatically

Nimble VDI Solution

3000 VDI users 64TB and 30K

IOPS on average

Nimble Expanded Use Cases

Phase 2: Exchange 11,500 mailboxes ~60TB used HA across two data centers

Phase 3: ESX Farm 600 VMs Over 200 TBs across three

data centers

10 systems and over 600 TB of capacity in 18 months

32

Page 34: Nimble storage investor presentation

33

Storage challenges in meeting the needs of a high-performance Vertica cluster- Constant trade-off

between IO and capacity- Adding nodes to support

storage was not cost effective

- Lack of consolidated provisioning and management

- Data protection difficult for separate storage pools

Challenges

Reduced cost by reducing the number of required HP Vertica nodes

- Performance to meet the IO needs of the analytics workload

- Scale-to-fit architecture allows for separately scaling IO or capacity

Consolidated storage management

Nimble snapshots, clones and replication improve data protection and eliminate risk

Nimble AdvantageNimble Solution

Customer Case Study: Fortune 50 Telecommunications Company

Vertica cluster processing Billions of events / hour

170TB capacity Hourly snapshots

for data protection

Page 35: Nimble storage investor presentation

Customer Case Study: Global Managed Services Firm

Global firm with over 19,000 professionals

Managed Services focused on delivering hosted Microsoft Applications

EMC storage deployed as core storage platform

Situation

19 Nimble systems in 5 countries

Goals from an alternative solution: Lower capital costs Small foot-print to lower monthly

data center costs of $14,000 Faster backup and recovery, to

avoid traditional backup challenges Scalable platform for expansion

Challenges

EMC VNX 7500 for 10,000 Exchange users

Nimble Solution

6U of Nimble storage replaced 2 racks of EMC

Nimble Advantage: Much lower capital costs Data center and rack space cost

savings of ~$10,500/ month Compression of 1.5X Snapshots for backup and recovery Non-disruptive upgrades

34

Page 36: Nimble storage investor presentation

Customer Case Study: Leading Cloud Services Provider

35

Service Provider with presence across the US Core drivers:

• Datacenter consolidation• Rapid provisioning• Performance scaling

Large Telecom customer with scaling challenges prompted POC

Challenges

Much higher performance at substantially lower capital costs: Compression savings of 50% site-wide High-density HDDs and more effective

use of flash optimize both performance and capacity

Much simpler management and faster on-boarding time

Current environment comprises over 600 TB (pre-compression) hosting over 6000 VMs for hundreds of customers and a variety of workloads

Nimble AdvantageNimble SmartStack

10G iSCSI 10G UCS

VMWare

+

Cisco

Nimble

+

Page 37: Nimble storage investor presentation

Transforming Storage Efficiency at a Large Bank

36

Storage costs were 30% of the capital budget

Core project drivers:• Performance scaling• Storage budget• Datacenter footprint

Challenges

1.5x usable capacity and 50% lower capital costs

10x lower power and cooling costs

Dramatically simpler storage management

Phase 1:Exchange ½ Rack

6 Racks

2.5x performance and 2x usable capacity at much lower capital costs

75% lower power and cooling costs

Dramatically simpler storage management

Phase 2:SQL

Databases ¾ Rack

3 Racks

Competitor Hybrid Disk-Flash Solution Nimble AdvantageNimbleVS.

Page 38: Nimble storage investor presentation

Nimble chosen as the platform for all 11 sites Each site protected with hourly

snapshots for rapid recovery Data replicated between offices

for cost-effective and simple DR Significant savings on storage and

bandwidth

Nimble Approach

Transforming Data Protection at a Global Consulting Firm

37

BostonData Center

Chicago Data Center

9 Remote Sites

Inadequate data protection in 9 remote sites: • Tapes for backup • Offsite tape copies for disaster recovery

Aging storage infrastructure in their main data centers: Boston and Chicago

ChallengesRethinking infrastructure at all of their 11 sites

Page 39: Nimble storage investor presentation

Appendix: CASL Deeper Dive

Page 40: Nimble storage investor presentation

Industry Approach: Add Flash to Disk-Centric Architecture

39

Incumbent Response: Tiering

Flash SSD

HDD

Write tiers are expensive High endurance flash to absorb

random writes

RAID protection overhead

Migration requires “excess” flash Large (MB/GB) units of migration

Infrequent (mins/hours) migration

Infrequent migration is inherently less responsive

Page 41: Nimble storage investor presentation

CASL Delivers Industry Leading Efficiency

Nimble

Inline Compression and Serialization

SSDLow-Cost HDDs

Substantially more performance and capacity efficient Less and low-cost flash Fewer, low-cost HDDs Inline compression

Responsive: adapts rapidly to workload changes

Variable blocks facilitateinline compression, saving flash and disk capacity

Random IO is converted into HDD-friendly sequential IO, allowing HDDs to deliver SDD-like random write performance

Flash as a read cache accelerates readsat significantly lower cost: Compression No RAID penalties MLC flash

40

Page 42: Nimble storage investor presentation

Nimble Scale-to-fit

Scale at the lowest incremental cost

CS2xx~20K IOPS, 8 TB

4-Node CS700 ClusterUp to 500K IOPSPB Capacity64TB of flash

CAPACITY

200TB

CS4xx~60K IOPS

CS7xx, AFS125K IOPS, 16TB flash

PERF

ORMA

NCE

41

Page 43: Nimble storage investor presentation

D2D + Replication Snapshots + ReplicationPrimary

Backup

DisasterRecovery

Transformation in Data Protection Model

Tier 3 (+Dedupe)

42

No backup window Rapid local recovery Cost-effective,

simple DR

No Tapes

Page 44: Nimble storage investor presentation

D2D + Replication Snapshots + ReplicationPrimary

Backup

DisasterRecovery

Complementing Data Protection: Provisioning and Managing Copies

Space-efficient clones

43

No backup window Rapid local recovery Cost-effective,

simple DR

Instantaneous zero-copy clones (e.g., for test and dev instances)

Tier 3 (+Dedupe)

Page 45: Nimble storage investor presentation

Superior to Tiered Hybrids

44

Disk / usable capacity

IOPS

Latency

480 drives / 1 PB

~2-4 msAdditional software and hardware

228 drives / 1 PB

< 1 msBuilt-in Snapshots and replication

Nimble CS700VNX7600

Data Protection

Management

100K IOPS

Additional software

500K IOPS

InfoSight

Petabyte scale deployment

Page 46: Nimble storage investor presentation

Better Scaling, Protection, and Management Than All-Flash Arrays

Scalability

Resiliency

Data Protection

Management

Scale out only

Dual parity RAID for SSDs

Additional softwareAdditional software

Scale-to-fit (Scale-out, scale-up, scale-deep)Impervious to flash failures; triple parity on diskSnapshots and replicationInfoSight

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• All data on flash• 500K IOPs • Latency <1ms

Nimble CS700 ClusterXtremIO Cluster

Page 47: Nimble storage investor presentation