The Digital Explosion

1. The Digital Explosion Preserve, Optimize and Discover September 03, 2009 David McCartySolutions Consultant

2. Key Dynamics What are your key dynamics that are causing the growth in your Networked Storage? Business Expansion • (9/18/08): F1000 Sample. n=140. * Note that due to multiple responses per interview, total may exceed 100%. Business Expansion n=72

3. Archiving Business Challenges • Unstructured Data Growth and Management • 75% to 90% of data is unstructured • Requires unique capabilities for archive management • Costs to maintain unstructured data • Maintaining backups • Recovery • Space • Power and cooling • Resistance to change - “we’ll be fine’ • Adherence to Compliance Regulations and Corporate Governance to Minimize Risk • Insure ready access • Insure integrity • Discovery • Time is not on your side

4. Challenge: Keeping up with Unstructured Data Unstructured content growing faster than traditionalinformation or structured content • 75% to 90% of data is unstructured • Requires unique capabilities for archive management • <5% of unstructured data is managed through content management. • Unstructured Data is growing at 10X the rate of Structured Data (Files, E-mail, Content) • NAS/File Systems are not Content Aware Exabytes

5. Challenge: Keeping Ahead of the Market 11,000 petabytes by 2010! Digital archive capacity increasing 10X from 2005-2010 From 2,786 petabytes in 2005 to 27,206 PB in 2010 Transition to disk-based archival storage is underway While 85% of digital archive capacity on tape media today 66% of archiving “early adopters” currently use nearline disk Digital archiving is a cross-functional task No one individual or group “owns” the digital archiving process ESG: Digital Archiving: Market Trends and Forecast 2006-2010 Disk-based digital archive capacity is growing from 377 PB (2005) to 11,000 PB (2010) a CAGR of 96%!

6. What Drives the Need for an Active Archive? Many 2008 priorities are still hot and 2010 impacts will come from many different directions Shrinking IT budgets? Shrinking IT staff? Driving More Productivity? Adding Band-Aids at the Lowest Possible Cost? Does Strategic Thinking get Sacrificed? Apply automated, intelligent policies and practices for data management, retention and disposal regardless of the application onto a unified storage pool

7. Challenge: Compliance Regulations and Governance Compliance Issues How to provide compliance infrastructure Support legal discovery Enable corporate governance Manage e-mail Enable retention policies Minimize risk Insure ready access Insure integrity Contain costs Pain Points Inability to access archived information Legacy application infrastructure New applications introduce more risk Growth in complexity Growth in cost and risk to the business

8. Retention Challenges – “It Depends” Retention timeframes by industry Life Science/Pharmaceutical Processing food Manufacturing drugs Manufacturing biologics 2 years after commercial release 3 years after distribution 5 years after manufacturing of product Healthcare HIPAA Records in original form Medical records <18 Full life patient care 5 year minimum for all records From birth to 21 years Length of patient’s life + 2 years Financial services 17a-4 Financial statements Member registration Trading account records 3 years End-of-life of enterprise End of account + 6 years OSHA Records 30 years from end of audit Sarbanes - Oxley Records Original correspondence 4 years after financial audit 1 2 3 4 5 10 15 20 25 50 Source: ESG

9. Global Regulation Climate

10. Challenge – Discovery Traditional archiving technologies cannot retrieve relevant content in a timely manner How long would it take to retrieve 10,000 or 100, 000 items? Traditional storage technologies do not have the functionality required for archiving and discovery Federal Rules of Civil Procedure Rule 26f: Within 100 days of a suit being filed parties must meet and disclose any issues relating to disclosure or discovery of ESI ‘Duty to preserve’ when a suit is filed or when it can be ‘reasonably anticipated’

11. Email Server Document Management General Accounting Web Applications Search #2 Search #3 Search #4 Search #1 SMTP CIFS NFS HTTP Tape Library Optical Jukebox NAS RAID Array Archive Operational Challenges:Breaking Up Legacy Silos Keeping Archive Costs in Check Ingest Applications • Lack ofscalability of silos • No search across disparate storage systems • Requiresmanagement for each silo • Increased TCO • No automated retention management • Performance is affected when calls go to offline media

12. Back to Basics – Backup versus Archive Backup(It is not the same as archiving) • Point-in-time copies of data • Restores application environments to a particular point in time • Multiple copies of data • Copies often stored offsite • Part of disaster recovery planning • Often do not satisfy compliance regulations for long term preservation Versus • Archive • A user accessible repository of unstructured content • Data taken off of active production primary storage stored intelligently • Adheres to policies and or retention set by the governing application • Insure that data remains available and authentic to support legal discovery teams, business requirements and compliance regulations.

13. Tape Library Optical Jukebox JBOD/RAID System NAS / SAN Archive – Use CasesA Unified Approach to Active Archive Storage Archive Platform • Supports multiple applications and content types • Embedded full text indexing and search • High-performance, scalable, and secure storage E-mail Archiving Imaging Multimedia DMS/ECM Recs SMTP CIFS NFS HTTP / HTTPS / WebDav

14. Use Case: E-mail Archiving Replication Archive Platform • Business Challenges: • Dated e-mail clogs servers and promotes unwanted growth • Performance suffers • Increased backup times • Compromises compliance initiatives • Slows e-Discovery requests • Increases costs and risk • Solution Capabilities: • Reduction in Email server growth via a highly scalable, active-archive storage • Provide a limitless mailbox to users • Provide automated retention and disposition to meet governance or compliance guidelines • Business Benefits: • WORM ensures data not modified • Enforcement of e-mail archive retention policies • Advanced authentication = content integrity • Replication for disaster recovery • Encryption of data at rest ensures data security • Rapid discovery and retrieval of e-mail and attachments Reduced Exchange Server Growth E-mail Archiving Application Search Retrieve Quota Time

15. Reduced Backup Size Archive Fixed Content Recovery Search & Retrieve Use Case: File System Archiving to the Archive Platform • Business Challenges • Production Tiered Storage environments growth accelerates • Backup environment is tied to production growth • “Archive” environments are under utilized and ineffective • Data is often “off line” - hindering e-discovery and retention management • Solution Capabilities • Archive valuable content from tiered storage layers • Search and Retrieve -“content aware” integrated archive • Apply appropriate retention policies to all types of data • Business Benefits • Relieve “storage bloat” • Back up only “active” production information • Meet SLAs and dependencies on backups Archive Platform Active Archive Production Storage Environments Production Storage Backup

16. Use Case: Enterprise Content Archiving Business Challenges: Growth of ECM environment • Continue to add volumes and storage Static content management Backup and recovery becomes a challenge. Solution Capabilities • Migrate static content higher tiered storage layers • Retain data in an unalterable format • Pass on retention values from application to archive repository Business Benefits • Compliance – gives user control over documents/records/emails to comply w/ growing regulations • Enforces data retention policies for ECM solutions • Ensures data authenticity for ECM solutions • IT Efficiency – consolidates mgmt of unstructured content onto single platform • Acceleration of Business Proces • Converts paper into electronic images • Duplication elimination improves storage utilization • Data encryption at the storage layer protects content from stolen media • Scales a single global namespace that virtualizes to petabytes ECM Repositories Direct to Archive Archive Policy Migration Primary Storage Archive Platform

17. Use Case: SAP Archiving Business Challenges • Different storage tiers are required for active and archive data • Legacy SAP systems contain static terabytes of content Solution Capabilities • Direct integration with SAP ILM • Move static SAP content to secure archive tier for long term preservation Business Benefits • SAP utilizes the Archives intelligent policy handling • Data retention requirements maintained • Improved SAP Performance • Reduced backup times due to elimination of redundant backups of fixed data/content in SAP • Reduced Compliance Risk • Fast response to e-discovery requests • Destruction/End of Life policies implemented/enforced Structured Content Unstructured Content SAP Information Retention Manager XML DAS w/ ILM Enhanced WebDAV Interface ILM enhanced WebDAV Interface ArchiveLink Interface Archive Platform

18. Use Case: Solutions for Governance and Compliance • Compliance Challenges: • Becoming increasingly difficult to understand how to best comply with corporate governance and regulations via information infrastructure • Different applications warrant different retention policies • Maintaining authenticity and chain of custody of all compliance data • Solution Capabilities: • Enforce application file level retention for all static content that is archived • Worm storage for even the strictest of compliance regulations • Business Benefit: • Achieve compliance at lower cost while improving production and limiting risk. • Increased access and protection required for compliance. E-Mail Archiving Records Management eDiscovery Reduced Primary Storage E-mail Capture & Archiving Legal Management ECM Repository E-mail Archive ECM Platform E-mail Archiving ISV Federated Search Archive Platform Archive Platform Search Archive Platform Primary

19. Preserve and retain data for compliance and internal governance Guarantee data authenticity Maintain data integrity for chain of custody Advanced feature sets for medium and large businesses Open standards interfaces for easy interoperability with more than 100 File Services integrated software vendors Optimize performance, availability and scalability to grow along with the archiving needs of the company. Enables easy discovery of content AND associated meta data Integrated Data Discovery Suite for search and index across NAS platforms Archive from higher tiers to simplify management and reduce TCO Archive Platform Summary • Archive Platform: • Preserve and protect unstructured data types • Optimize performance and scalability • Actively archive data and streamline discovery processes • Enterprise-class Feature Set and platforms for Medium and Large Businesses

21. Supporting Slides

22. Typical Backup Process • All data is backed up repeatedly, a single file can take up 20 (or more) times it’s original size on tape • Backup software scans of the file system add time to B/U windows • Added cost and complexity because of large amount of data stored on tape 100% of data is backed up repeatedly Backup and Restore Processes Tape Backup system File system

23. Less tape, quicker B/U and restores HCAP Archiving Streamlines Backup On average 70% of file system data is over 6 months old! • Only active data is backed up • Less cost and complexity in the backup and restore process • Better cost per MB by adding capacity to archive tier • Replicate archive to reduce mgmt costs and improve recovery • Data retention and disposal can be automated ISV or \Open Connection Replication Link 70% of data is removed to archive tier 30% of data is In backup stream Improved Backup and Restore Processes File system Tape Backup system

24. Our Customers: Why They Buy • Over 40% of Archive customers reported that the primary rationales for purchasing their Archive Platform was to: • Consolidate storage • Reduce Costs • Secure sensitive data • Meet governance and compliance regulations Source: Survey of Hitachi Content Archive Platform users March 2009

25. Optimized for Ease of Management Ease of management and enhances TCO and associated soft costs Operational benefits: • Self-configuring and self-healing • Automated policy enforcement • Failover and ongoing content integrity checks • No single points of failure • Tolerate simultaneous points of failure by maintaining 1 to 4 internal copies depending on value of data • Ensures specified number of replica copies are maintained • Reduces burden on tape and associated management and offsite costs

26. Achieving Rapid Payback IT budgets are being stretched – Enterprises are forced to do more with less An Archive Platform provides a rapid payback for customers • Reduce burdens on higher tiered storage • Reduce or eliminate backup costs • Meet SLAs • Faster recovery times • Maintain retention and governance • Data integrity remains intact • Enable rapid discovery

27. File System Archiving is Customer Validated File system archiving- Enables customers to proactively tier data from primary to archive storage Value to customer • Gain a detailed understanding of tiered data • Apply automated management policies • Reclaim expensive higher tiered storage • Remove “stale” data from production systems • Reduce the number copies of data • Lower costs of tape, backup, recovery, DR • Improve production systems performance • Most importantly, reduce operational and capital expenditure for additional capacity

28. Optimized for performance Rapid Ingest Maximum output Enables multiple ingestion points from IVS and custom applications via industry standard interfaces Breaks down archive silos Promotes a unified active archive environment Simplification and Performance