ioVDI- Desktop Acceleration for Enterprise by Virtualization VP, Lee Caswell - Fusion-io Analyst Day...

ioVDI: Desktop Acceleration for Enterprise Lee Caswell, VP Virtualization Products February 6, 2014

Safe Harbor Disclosure

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Note on Forward-looking Statements Certain statements in this presentation may constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933, including, but are not limited to, statements concerning our future plans, expectations, beliefs, intentions and prospects, financial guidance for our third fiscal quarter of 2014, our progress on, and effect of, our key technology and strategic initiatives, our sales execution efforts, our expectations regarding the market opportunity and our ability to execute our go-to-market strategy, expectations concerning our product portfolio and our strategic partnerships, and benefits and value of our products and solutions to our customers and end users. These statements are based on current expectations and assumptions regarding future events and business performance and involve certain risks and uncertainties that could cause actual results to differ materially from those contained, anticipated, or implied in any forward-looking statement, including, but not limited to, risks associated with changes in the demand for our products, our expectation that large and concentrated purchases by a limited number of customers will continue to represent a substantial majority of our revenue and our ability to sustain or increase our revenue from our large customers or offset the discontinuation of concentrated purchases by our larger customers with purchases by new or existing customers, the continued adoption by customers of our ioMemory platform products, growing our sales through OEMs, resellers and channel partners and maintaining our relationships with OEMs, resellers and channel partners, including the timely qualification of our products for promotion and sale by our OEMs, long and unpredictable sales cycles, changes in the competitive dynamics of our markets, including the potential for increased pressure on the pricing of our products, reduced gross margins, increased sales and marketing expenses, the potential that we or our customers may not realize the benefits we currently expect from our acquisitions of ID7 and NexGen Storage, our ability to develop or acquire new products to meet customer needs and expectations, including additional software solutions to be integrated with our storage memory products, our acquisition and strategic partner strategy and disruptions in our business, operations and financial results as a result of acquisitions and strategic partner relationships, as well as the risks inherent in the integration and combination of complex products and technologies from acquisitions, undetected errors, defects or security vulnerabilities in our products, worldwide economic conditions and the impact these conditions have on levels of spending on datacenter technology like ours, our ability to recruit and successfully hire new executive officers, and such other risks set forth in the registration statements and reports that Fusion-io files with the U.S. Securities and Exchange Commission, which are available on the Investor Relations section of our website at www.fusionio.com. You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or will occur. Fusion-io undertakes no obligation to update publicly any forward-looking statement for any reason after the date of this presentation.

Use of Non-GAAP Financial Information This presentation includes a discussion of “non-GAAP financial measures” as that term is defined in Regulation G promulgated by the U.S. Securities and Exchange Commission. The most directly comparable GAAP financial measures and information reconciling these non-GAAP financial measures to the Company’s financial results prepared in accordance with GAAP are provided on the company’s investor relations website at http://investor.fusionio.com under “Financial Information.”

Explaining Virtual Desktops

▸ The concept of a desktop is changing

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▸ The nature of a worker is changing

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▸ The nature of a worker is changing

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Tablet Shipments = Surpassed Desktop PCs and Notebooks in Q4:12, < 3 Years from Intro

VDI Dynamics - Growth in Tablets

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Q1:95 Q1:13 Q1:97 Q1:99 Q1:01 Q1:03 Q1:05 Q1:07 Q1:09 Q1:11

Glo

bal U

nits

Shi

pped

(MM

s) 60

50

40

30

20

10

0

Global PC (Desktop / Notebook) and Tablets Shipments by Quarter Q1:95 – Q1:13

Desktop PCs

Notebook PCs

Tablets

Source: Morgan Stanley Research, Gartner; April, 2013

VDI Dynamics - Windows XP End of Life

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Source: Netmarketshare.com; February 3, 2014

Windows 7, 47.49%

Windows XP 29.23%

Windows 8, 6.63%

Windows 8.1, 3.95%

Windows Vista, 3.30%

Mac OS X 10.9, 3.20% Linux, 1.6% Other, 4.59%

VDI Dynamics - Windows XP End of Life

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Source: Netmarketshare.com; February 3, 2014

Windows 7, 47.49%

Windows XP, 29.23%

Windows 8, 6.63%

Windows 8.1, 3.95%

Windows Vista, 3.30%

Mac OS X 10.9, 3.20% Linux, 1.6% Other, 4.59%

VDI Forecast – 14 Million New VDI Users in 2014

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HVD User Forecast, Worldwide, 2012-2016 (Thousands of Users)

Source: Gartner; June, 2012

2008 2009 2010 2011 2012 2013 2014 2015 2016 CAGR (2012-2016)

HVD, New Users 383 1,165 4,145 5,906 6,965 10,440 14,165 16,365 18,465 21,5%

Growth NA 104.2% 255.8% 42.5% 17.9% 49.9% 35.7% 15.5% 12.8%

HVD, Total Installed Base 465 1,548 5,693 11,599 18,564 29,004 43,169 59,534 77,616 33.1%

HVD Total Installed Base, as Proportion of Total Installed Base of Professional PCs

NA 0.2% 0.8% 1.6% 2.4% 3.6% 5.0% 6.4% 8.3%

CAGR = compound growth rate; HVD = hosted virtual desktop; NA = not applicable


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2008 2009 2010 2011 2012 2013 2014 2015 2016 CAGR (2012-2016)

HVD, New Users 383 1,165 4,145 5,906 6,965 10,440 14,165 16,365 18,465 21,5%

Growth NA 104.2% 255.8% 42.5% 17.9% 49.9% 35.7% 15.5% 12.8%



NA 0.2% 0.8% 1.6% 2.4% 3.6% 5.0% 6.4% 8.3%



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2008 2009 2010 2011 2012 2013 2014 2015 2016 CAGR (2012-2016)

HVD, New Users 383 1,165 4,145 5,906 6,965 10,440 14,165 16,365 18,465 21,5%

Growth NA 104.2% 255.8% 42.5% 17.9% 49.9% 35.7% 15.5% 12.8%



NA 0.2% 0.8% 1.6% 2.4% 3.6% 5.0% 6.4% 8.3%



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2008 2009 2010 2011 2012 2013 2014 2015 2016 CAGR (2012-2016)

HVD, New Users 383 1,165 4,145 5,906 6,965 10,440 14,165 16,365 18,465 21,5%

Growth NA 104.2% 255.8% 42.5% 17.9% 49.9% 35.7% 15.5% 12.8%



NA 0.2% 0.8% 1.6% 2.4% 3.6% 5.0% 6.4% 8.3%



VDI Dynamics - Cost The Top Obstacle

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The Secret Life of a Physical Desktop

Why is my drive light on?

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▸  Windows 7 pagefile = 1MB disk write ▸  Flushed to disk every second – even at idle

▸  These writes would not persist a reboot ▸  The situation is magnified at scale


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▸  Windows 7 pagefile = 1MB disk write ▸  Flushed to disk every second – even at idle

▸  These writes would not persist a reboot ▸  The situation is magnified at scale


Desktops are constantly writing temporary data

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A Desktop-Aware Solution

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SAN Server

With ioMemory

Reads Writes


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SAN

Write Vectoring

Server With ioMemory

Reads Writes


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SAN

Write Vectoring

Transparent File Sharing


Reads Writes


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SAN

Write Vectoring



Reads Writes

Data of Record Here


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Target Customers ▸ Highest performance •  Financial / Gov’t / Healthcare

▸  Large or small scale •  Thousands of users

▸ Stateless or persistent •  Mixed environments

SAN

Write Vectoring



Reads Writes

Data of Record Here

Application Acceleration Leadership

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End-User Engagement (Hyperscale – Enterprise – SME)

Partnerships (OEM – ISV – SI – VAR/Channel)

System Platform

Software Platform

Hardware Platform

Application Acceleration Leadership

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End-User Engagement (Hyperscale – Enterprise – SME)

Partnerships (OEM – ISV – SI – VAR/Channel)

System Platform

Software Platform

Hardware Platform

213

446

0

100

200

300

400

500

LoginVSI VSIMax Results

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Increase Server Density by >2x

Without ioVDI With ioVDI

110% Increase

LoginVSI Shows Dramatic SAN Offload

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Offload Shared Storage by 87%

Reads Writes

87% Read Reduction

77% Write Reduction

SAN Offload

Improvement

SAN Offload

Improvement

0

10000

20000

30000

40000

50000

60000

70000

80000

87% Read Reduction

77% Write Reduction

0

200

400

600

800

1000

1200

1400

1600

1800

2000

LoginVSI Latency Variance Improvement

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Tight Latency Variability

Without ioVDI

Consistent Low Latency Desktop Response

Time

Late

ncy

(ms)

Intelligent Desktop Performance

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SAN/NAS WRITE OFFLOAD 77% STORAGE/NETWORK

RESOURCES 1/10th CONSISTENT RESPONSE T IMES 50ms

• Software-defined performance • Application-optimized

Software


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• Consistent performance • Proven, tested, reliable ioMemory

Software



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ioMemory

Software

Shared Storage

ü  Storage-friendly ü  VMware compliant


• Consistent performance • Proven, tested, reliable

ioVDI is Designed for Virtualization Admins

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Leverage Storage Investment

Purchase New Storage

Server Buyer Storage Buyer


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Flash Storage


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VMware VSAN

Flash Storage


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VMware VSAN

Flash Storage

ioVDI Makes Virtual Desktops a Reality

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Unique Application Acceleration

▸ Leverages the full value of ioMemory

▸  Introduces software value based on application insights

▸ Brings application support value to partners

ioVDI Makes Virtual Desktops a Reality

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Unique Application Acceleration

▸ Leverages the full value of ioMemory

▸  Introduces software value based on application insights

▸ Brings application support value to partners

Great User Experience Compelling Cost Model

Thank You

f u s i o n i o . c o m | D e l i v e r i n g t h e Wo r l d ’ s D a t a . F a s t e r.

ioVDI- Desktop Acceleration for Enterprise by Virtualization VP, Lee Caswell - Fusion-io Analyst Day...

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