Elevating from Consumer to Mission Critical Value

1. Elevating from Consumer to Mission Critical Value Brian Cox Sr. Director of Marketing, SanDisk Enterprise Storage Solutions Silicon Valley Product Management Association

2. Forward-Looking Statements During our meeting today we may make forward-looking statements. Any statement that refers to expectations, projections or other characterizations of future events or circumstances is a forward-looking statement, including those relating to market position, market growth, product sales, industry trends, supply chain, future memory technology, production capacity, production costs, technology transitions and future products. This presentation contains information from third parties, which reflect their projections as of the date of issuance. Actual results may differ materially from those expressed in these forward-looking statements due to factors detailed under the caption “Risk Factors” and elsewhere in the documents we file from time to time with the SEC, including our annual and quarterly reports. We undertake no obligation to update these forward-looking statements, which speak only as of the date hereof.

3. Life Examples Elevating to Critical Value

4. A Number of Companies Have Been Successful  CONSUMER MISSION CRITICAL Intel Microsoft

5. A Number of Companies Have Struggled  CONSUMER MISSION CRITICAL Sony Nokia

6. A Number of Companies Are Aspiring  CONSUMER MISSION CRITICAL Dropbox

7. Dropbox’s Enterprise Shift is the Hardest Thing It’s Ever Done “ Dropbox wants to take over the enterprise, but one thing stands in its way: Dropbox itself.” —VentureBeatAugust 13, 2013 http://venturebeat.com/2013/08/13/dropbox-the-enterprise/

8. A Global Brand Leader in Consumer Flash Storage Solutions Retail: The Leading Brand of Flash in Key Markets All Leading Smartphone & Tablet Manufacturers use SanDisk SanDisk Client SSDs Used by All Leading PC Manufacturers • #1 Global Retail Revenue Share Given that SanDisk has a very strong brand in Consumer products, how can this be extended to Enterprise IT? NPD Estimate, Nov., ‘13. Estimates of the memory card & USB markets from NPD (Nov. ‘13) and GfK Retail and Technology, Sep., ‘13.

9. Flash/SSD’s and Buying Intentions Quadrant Index of Percent Definitely Would Consider Index of Percent Definitely Would Consider/Definitely Would Buy Tech Buyer Intelligence Reports | Spring 2013, Wave Two

10. Keys to Success in Consumer versus Mission Critical MISSION CRITICAL ENTERPRISE CONSUMER • Nearly All about the Product (and scale) • Supported by online marketing • Must be intuitively easy • As much about the Sales organization as the Product • Supported by Field Engineers • Product requires training and integration with existing gear Lower prices afford little or no individual customer nurturing High prices with extensive nurturing and long sales cycle Source: http://svpg.com/moving-from-enterprise-to-consumer/

11. Managing the Buyer Personas MISSION CRITICAL ENTERPRISE CONSUMER • End User driven • Influenced by advertising and possibly consumer sites • Purchasing Department driven, but influenced by End User stakeholders • Influenced by Sales Reps, industry studies and community of experts Requires convincing the End User Requires convincing multiple stakeholders http://www.mindtheproduct.com/2013/02/consumer-vs-enterprise-product-management/

12. Do It Right: Go Back to the Basics WHO HOW WHERE WHY WHAT WHEN

13. Enterprise Customer Mix Is Changing!HDD and SSD TBs Shipped by Enterprise Consumption Categories Source: IDC “New and Growing Channels for Storage Industry Terabyte Shipments”Mar 2013 - Doc # 239953

14. WHOare the Enterprise SSD Customers? Enterprise Application Software Vendors: SAP, Oracle, Microsoft, VMware… Line of Business/Function Owners: Manufacturing, Sales, Finance, HR, etc. Direct  Indirect  Influence Traditional Enterprise Data Centers: General Motors, Texaco, AAA, IRS, etc. Traditional OEM Server & Storage Array Vendors: IBM, Dell, NetApp, etc. Growing Web 2.0 & Cloud Computing companies: Google, Yahoo, eBay, etc.

15. HOWto Reach the Customer: Routes to Market TRADITIONAL ROUTE OEM End Customer SSD Vendor INFLUENCE EMERGING ROUTE SSD Vendor OEM End Customer Building a direct to End Customer relationship is a competitive advantage • Enables SSD vendor to create and manage perceptions with the End Customer segment • Customer knowledge, support & trust are a significant barrier to new entrants • Direct, unfiltered feedback on pain points, growth areas to innovate ahead of OEMs and competition • Platform to grow business, extend into new market segments • Risks: This business model has high S&M, so must maintain higher ASP units and profit margins, moderate R&D as % of OpEx

16. How to Reach the Customer:Build Awareness Advertising and Social Media • Online, Print, External (billboards) • Blogs, Twitter, LinkedIn, SpiceWorks, Wikipedia, SlideShare, etc. News Articles and Product Reviews • Tech enthusiast press (SSD Review, Tom’s Hardware, etc.) • IT Decision Maker press (Computerworld, InformationWeek, etc.) • Business press (WSJ, Bloomberg, NY Times, SF Chronicle, etc.) Industry Analyst coverage • Gartner, IDC, Forrester, etc.

17. Source: KnowIT Information System, Prof. Michael Goul, Arizona State University

18. How to Determine the Level to Staff the Team OEM centric Growth/land grab Declining revenue Mature / Harvest Industry benchmarking for staffing the Sales and Marketing effort

19. Where to Target: End User Segmentation / Focus – Go To Market … • Requirements: • Dedicated business/tech sales per major account • Dedicated support team, on par with Tier 1 OEM • Requirements: • Build direct engagement, by vertical/geo • Requirements: • OEM co-marketing to scale efficiently Need right product, partners, proof points, reach, sales, fulfillment, support to win in each segment

20. Where to Target: End User Segmentation / Focus – Product … Where Marketing team will further define

21. Why Do They Buy? • OEM System Vendors • Procurement & Qualification Engineers  Acquisition Cost & Specs • System Architect & Business Leaders  App Performance, Reliability, TCO • Traditional Data Centers • Data Center Managers  Meeting SLAs through Performance & Uptime • Line of Business owners  Meeting business objectives, IT as enabler • Web 2.0 & Cloud Data Centers • Acquisition & Operating Cost • Acquisition & Operating Cost • Acquisition & Operating Cost

22. What Information do Buyers Need to Buy Flash/SSD’s Key Criteria That Drive Intentions—ITand Line-of-Business Index of Brand Selection, Marcomm and Sales Effectiveness Criteria Regression to Likely to Buy IT Criteria Marketing Effectiveness Key Purchase Criteria Sales Effectiveness A A B B B Case Studies** Product Evaluations** White Papers** Thought Leadership* ROI* Post-Purchase Support* TCO* Quality/ Reliability/ Uptime* Customer Testimonials** Industry Knowledge*** General Events/ Conferences* Product Evaluations** Post- Purchase Support* Bringing in Experts*** 3rd Party Rec.* Ease of Integration* Value* Support by My VAR/Reseller* Case Studies** Sales Creativity*** Ease of Doing Business* Ease of Use* Technical Knowledge*** TCO* Line-of-Business Criteria A B B B B B B Source: Tech Buyer Intelligence Reports | Spring 2013, Wave Two Source: Silicon Valley Product Management Association| March 5, 2014 Milpitas, CA

23. When to Pursue Which Customers • Focus on a critical few solutions and locations where we can build a full value chain • Horizontal and Vertical solutions where our products demonstrate a clear benefit • When we see a sizeable Total Addressable Market (TAM) • When the current pain point of the customers compels them to invest in adopting a new approach • When we have established ISV certifications and partnerships • In geographic locations where partner and Sales and Field Engineers are staffed and trained in the enterprise products, ISV solutions and the language customers use to describe their business • Achieve success, then expand

24. 8 Fundamental Keys to Success 1. Ensure your CxO suite and Board of Directors are committed to theEnterprise business for the long haul and goals are aligned • You have to earn the trust of Enterprise customers – they are making 5-10 year commitments when buying and integrating your product or service into their infrastructure • Make sure everyone has a common definition of Enterprise

25. 8 Fundamental Keys to Success 2. Trying to grow Enterprise “DNA” internally is difficult and will take many, many years to get it right. • It is easier to import Enterprise DNA by acquiring some existing Enterprise providers or staff and setting them up to run their own operations. • Avoid the temptation to functionalize the operations out of the broader company, e.g. developing both Consumer and Enterprise software out of the same team, doing both Consumer and Enterprise sales out of the same team, etc.

26. 8 Fundamental Keys to Success 3. Pick a business that has an expanding customer need • e.g. Growing economic region, expanding industry, underserved market 4. Ensure you have a technology or service that is sustainably superior to the status quo or alternatives • e.g. Higher performance, more reliable/secure, better value

27. 8 Fundamental Keys to Success 5. In Enterprise, the Sales infrastructure is just as important as the Product. Enterprise requires a different mindset than Consumer. • Best to hire Sales talent from other proven Enterprise providers rather than trying to re-train existing Consumer Sales folks 6. Enterprise Channel and ISV Partners are a key catalyst to success • They already know the Enterprise customers and can provide a halo of credibility when they promote and certify your offering

28. 8 Fundamental Keys to Success 7. Cover all the right communication avenues to build awareness and influence • Gain trust with the customer’s CxO suite/Business Unit leadership and those that approve the purchase in addition to those who will actually use the product or service • There are many stakeholders in the mission critical enterprise and each has their own trusted information sources

29. 8 Fundamental Keys to Success 8. Focus on selected markets and build success in steps • You can’t conquer the world successfully all at once.

30. To Achieve Critical Value is to Make the Right Extension NOTTHIS THIS

31. THANK YOU