Intel perspective on the future of the DC & the. Cloud. Steve Paper. Intel Technical Account Manager

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1 Intel perspective on the future of the DC & the Steve Paper Cloud Intel Technical Account Manager

2 Today s Challenges

3 Infrastructure Enabling New Horizons >1 Zetabyte Internet Traffic 3 >15 Bn Connected Devices 2 Energy Retail Smart Cities Client Continuum Internet of Things by 2015 Big Data New Business Cloud + Usage Models Healthcare Security Finance >1 Bn More Netizen s 1 Tectonic Shifts Transport OBSERVATIONS OVER THE LAST 12 MONTHS KEY IT CHALLENGES Client Continuum Internet of Things Big Data Cloud Security

4 Future Datacenter Operations Challenges 7.9 ZB in x more bits in digital universe than stars in the physical universe 90% of Data In the world was created in the last 2 years. 200PB Storage of a Smart City project in China >5 Billion People calling, texting, tweeting & browsing on cell phones 966 Exabytes People calling, texting, tweeting & browsing on cell phones 3B DVDs On-demand video traffic per month 1 million minutes of video on global IP networks every second * The data deluge has arrived! *Cisco Visual networking index, Feb 13

5 In Enterprise, some clear trends are shaping Big Data 6% Cloud 9% HPC 12% OF ENTERPRISES MAKING DECISIONS WITH BIG DATA ANALYTICS 1 OF ENTERPRISE WORKLOADS RESIDE IN PUBLIC CLOUD 2 OF U.S. MANUFACTURING FIRMS USE HPC CLUSTERS 3 1: Intel enterprise customer IT spending survey Q IDG Enterprise 2012 Cloud Computing key trends and future effects 3 Intersect360 Research and NCMS, "Modeling and Simulation at U.S. Manufacturers: The Case for Digital Manufacturing," 2011

6 Big Opportunity: Extract Value from Data = Big Challenge Revenue Growth 50 Billion x = 35 ZB Cost Savings Margin Gain THINGS DATA VALUE

7 Big Opportunity: For Enterprises Companies that use analytics best are 2X 5X 3X 2X Make data-driven decisions more likely to Make decisions faster than others Learn or Perish! Execute on decisions faster Have top-quartile financial results Source: Bain

8 Cloud Growth Drivers: Digital Services Economy New Services Driving Explosion of Devices New Devices Driving Demand for Servers Virtuous Cycle Driving 20%+ Cloud CAGR through Source: Intel internal analysis

9 Catalyzed by a Virtuous Business/Computing Cycle Devices and so on Services Datacenter Devices A new approach is needed Other brands and names are the property of their respective owners.

10 Which has Seismic Effects on the CIO CEO/CFO EXPECTATIONS Always on availability Extreme Flexibility & Service Agility Public Cloud Economics Compliant to regulatory requirements BUSINESS EXPECTATIONS Consumer-like expectations Tech-savvy Outside alternatives Fastest services TTM

11 IT: Period of Transformation Computer-Centric Network-Centric Human-Centric Focused on Productivity through automation Focused on Cost Reduction through connectivity Focused on Rapid Service Delivery through cloud & devices

12 Ongoing Stress on Datacenter Operations Network 2-3 weeks to provision new services 1 Server Storage 90% unstructured 3 despite virtualization 4 40% data growth CAGR, Average utilization <50% New Challenges are coming. 1: Source: Intel IT internal estimate; 2: 3: IDC s Digital Universe Study, sponsored by EMC, December 2012; 4: IDC Server Virtualization and The Cloud 2012

13 Re-architect the datacenter with cloud and software defined infrastructure (SDI) Technology Trends Visual / Voice Analytics ITIL ITSM ERP Traditional IT PaaS SaaS IaaS DevOps Cloud delivery U Private Cloud IaaS Big Data PaaS SDN/NFV SDS / NVM Infrastructure telemetry IoT Hybrid Cloud Silicon photonics Composable infrastructure Non-volatile memory tier Infrastructure Deployment SDI Real-time enterprise with full datacenter orchestration Open standards and API-based ecosystem Optimized resource pooling, provisioning management, and service assurance

14 A world where applications define the system High degree of flexibility Performance for core business Predictable / proven needs Efficiency for backoffice Systems of Differentiation ERP Systems of Record Mobile UI Supply Chain Payroll CR M Sales Automation Human Resource Finance Systems Data Reporting Social Enablement Greater governance Enterprise Communication Decision Support Systems of Innovation Regulatory Compliance Big Data Insight Application Development Environment Systems of Differentiation Go fast and adapt quickly High rate of change Go fast and be secure Classify your workloads to support diverse application needs

15 Journey to cloud is then inevitable A cloud strategy addresses real pressures IT organizations face Pressure to reduce cost Do more with less Deliver globally Deliver broader service types Pressure to deliver faster Meet timelines at business pace 24 x 7 x 365 availability Pressure to secure and comply Enforce security and maintain privacy Adhere to policies/governance A Cloud Strategy addresses these pressures Balance CAPEX/OPEX to enable invest for base, partner for spikes deployment model Shorten time to value and secure deployments with a software defined architecture (SDI) Deliver services on-demand; partner with business leaders on innovations that matter

16 Amazon Web Services & Intel

17 Intel continuously investing in DC technologies Enterprise IT Cloud SPs Comms SPs High Performance Computing 8% CAGR >25% CAGR >15% CAGR >20% CAGR Servers CPUs, Ethernet & Infiniband Controllers, Management SW Network CPUs, Accelerators, Ethernet & Infiniband Switch Silicon Storage CPUs, Flash, Caching & RAID SW Software Hadoop, Lustre File System, Datacenter Manager, Wind River OS Source: IDC WW Server Tracker & Intel

18 AWS keeping pace with Intel s relentless pursuit of Moore s Law Intel Core Microarchitecture Intel Microarchitecture Codename Nehalem Intel Microarchitecture Codename Sandy Bridge Intel Microarchitecture Codename Haswell Merom Penryn Nehalem Westmere Sandy Bridge Ivy Bridge Haswell Broadwell 65nm 45nm 45nm 32nm 32nm 22nm 22nm 14nm New Microarchitecture New Process Technology New Microarchitecture New Process Technology New Microarchitecture New Process Technology New Microarchitecture New Process Technology TOCK TICK TOCK TICK TOCK TICK TOCK TICK AWS EC2 C3 AWS EC2 C4 The number of transistors incorporated in a chip will approximately double every 24 months." Gordon Moore, Former CEO & Intel co-founder

19 Other names and brands may be claimed as the property of others Custom Intel Xeon processors for AWS C4 = highest performing EC2 instances New EC2 Instances C4 PERFORMANC E

20 Full table of Intel technologies available in EC2 Amazon EC2 provides a wide selection of instance types optimized to fit different use cases. The latest Intel Xeon processors are utilized, providing you with high performance and value, and the ability to choose Amazon EC2 instance types that best meet your performance needs for compute intensive, memory intensive, or IOPS intensive applications. AWS publish Intel processor models and enabled technologies that deliver value and choice to end customers

21 Novartis reduced cost by choosing premium instances AWS end customer s benefit up to 65% Cost reduction 1 up to 52% Decrease in in run-time 1 Sec Job runtime in seconds 1 (lower is better) Lower Performing Premium 1 NIBR, of Novartis Pharmaceuticals ran Next Gen Sequencing, Imaging & Modeling & Sim techniques (specifically Virtual Screening w/cpu bound, low mem, low IO, network, parallel Benchmarking SW ran same job many times (workload avg 32 secs on AWS cc2.8xlarge vs 1min 7 sec on AWS m1.large) revealed that best ROI was with cc2vspot instances Intel does not control or audit the design or implementation of third party benchmark data or Web sites referenced in this document. Intel encourages all of its customers to visit the referenced Web sites or others where similar performance benchmark data are reported and confirm whether the referenced benchmark data are accurate and reflect performance of systems available for purchase. Software and workloads used in performance tests may have been optimized for performance only on Intel microprocessors. Performance tests, such as SYSmark and MobileMark, are measured using specific computer systems, components, software, operations and functions. Any change to any of those factors may cause the results to vary. You should consult other information and performance tests to assist you in fully evaluating your contemplated purchases, including the performance of that product when combined with other products. For more information go to Other names and brands may be claimed as the property of others

22 Intel & AWS big data case studies Accelerating your adoption of Big Data solution More at ig-data/ More at and

23 Key takeaways Transformation to cloud is critical to speed business time to value, deliver services on-demand, and turn IT from business support to business partner. Cloud infrastructure enables IT to seamlessly connect multiple pools of resources, deliver insights with higher scalability and secure access to centralized data Intel and AWS are working jointly to help you leverage the power of the Cloud

24 Thank You

25

26 Legal Disclaimer INFORMATION IN THIS DOCUMENT IS PROVIDED IN CONNECTION WITH INTEL PRODUCTS. NO LICENSE, EXPRESS OR IMPLIED, BY ESTOPPEL OR OTHERWISE, TO ANY INTELLECTUAL PROPERTY RIGHTS IS GRANTED BY THIS DOCUMENT. EXCEPT AS PROVIDED IN INTEL'S TERMS AND CONDITIONS OF SALE FOR SUCH PRODUCTS, INTEL ASSUMES NO LIABILITY WHATSOEVER AND INTEL DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTY, RELATING TO SALE AND/OR USE OF INTEL PRODUCTS INCLUDING LIABILITY OR WARRANTIES RELATING TO FITNESS FOR A PARTICULAR PURPOSE, MERCHANTABILITY, OR INFRINGEMENT OF ANY PATENT, COPYRIGHT OR OTHER INTELLECTUAL PROPERTY RIGHT. A "Mission Critical Application" is any application in which failure of the Intel Product could result, directly or indirectly, in personal injury or death. SHOULD YOU PURCHASE OR USE INTEL'S PRODUCTS FOR ANY SUCH MISSION CRITICAL APPLICATION, YOU SHALL INDEMNIFY AND HOLD INTEL AND ITS SUBSIDIARIES, SUBCONTRACTORS AND AFFILIATES, AND THE DIRECTORS, OFFICERS, AND EMPLOYEES OF EACH, HARMLESS AGAINST ALL CLAIMS COSTS, DAMAGES, AND EXPENSES AND REASONABLE ATTORNEYS' FEES ARISING OUT OF, DIRECTLY OR INDIRECTLY, ANY CLAIM OF PRODUCT LIABILITY, PERSONAL INJURY, OR DEATH ARISING IN ANY WAY OUT OF SUCH MISSION CRITICAL APPLICATION, WHETHER OR NOT INTEL OR ITS SUBCONTRACTOR WAS NEGLIGENT IN THE DESIGN, MANUFACTURE, OR WARNING OF THE INTEL PRODUCT OR ANY OF ITS PARTS. Intel may make changes to specifications and product descriptions at any time, without notice. Designers must not rely on the absence or characteristics of any features or instructions marked "reserved" or "undefined". Intel reserves these for future definition and shall have no responsibility whatsoever for conflicts or incompatibilities arising from future changes to them. The information here is subject to change without notice. Do not finalize a design with this information. The products described in this document may contain design defects or errors known as errata which may cause the product to deviate from published specifications. Current characterized errata are available on request. Contact your local Intel sales office or your distributor to obtain the latest specifications and before placing your product order. Copies of documents which have an order number and are referenced in this document, or other Intel literature, may be obtained by calling , or go to: Xeon, Phi and other code names featured are used internally within Intel to identify products that are in development and not yet publicly announced for release. Customers, licensees and other third parties are not authorized by Intel to use code names in advertising, promotion or marketing of any product or services and any such use of Intel's internal code names is at the sole risk of the user Intel, Look Inside, and the Intel logo are trademarks of Intel Corporation in the United States and other countries. *Other names and brands may be claimed as the property of others. Copyright 2013 Intel Corporation. 26

27 Risk Factors The above statements and any others in this document that refer to plans and expectations for the third quarter, the year and the future are forward-looking statements that involve a number of risks and uncertainties. Words such as anticipates, expects, intends, plans, believes, seeks, estimates, may, will, should and their variations identify forward-looking statements. Statements that refer to or are based on projections, uncertain events or assumptions also identify forward-looking statements. Many factors could affect Intel s actual results, and variances from Intel s current expectations regarding such factors could cause actual results to differ materially from those expressed in these forward-looking statements. Intel presently considers the following to be the important factors that could cause actual results to differ materially from the company s expectations. Demand could be different from Intel's expectations due to factors including changes in business and economic conditions; customer acceptance of Intel s and competitors products; supply constraints and other disruptions affecting customers; changes in customer order patterns including order cancellations; and changes in the level of inventory at customers. Uncertainty in global economic and financial conditions poses a risk that consumers and businesses may defer purchases in response to negative financial events, which could negatively affect product demand and other related matters. Intel operates in intensely competitive industries that are characterized by a high percentage of costs that are fixed or difficult to reduce in the short term and product demand that is highly variable and difficult to forecast. Revenue and the gross margin percentage are affected by the timing of Intel product introductions and the demand for and market acceptance of Intel's products; actions taken by Intel's competitors, including product offerings and introductions, marketing programs and pricing pressures and Intel s response to such actions; and Intel s ability to respond quickly to technological developments and to incorporate new features into its products. The gross margin percentage could vary significantly from expectations based on capacity utilization; variations in inventory valuation, including variations related to the timing of qualifying products for sale; changes in revenue levels; segment product mix; the timing and execution of the manufacturing ramp and associated costs; start-up costs; excess or obsolete inventory; changes in unit costs; defects or disruptions in the supply of materials or resources; product manufacturing quality/yields; and impairments of long-lived assets, including manufacturing, assembly/test and intangible assets. Intel's results could be affected by adverse economic, social, political and physical/infrastructure conditions in countries where Intel, its customers or its suppliers operate, including military conflict and other security risks, natural disasters, infrastructure disruptions, health concerns and fluctuations in currency exchange rates. Expenses, particularly certain marketing and compensation expenses, as well as restructuring and asset impairment charges, vary depending on the level of demand for Intel's products and the level of revenue and profits. Intel s results could be affected by the timing of closing of acquisitions and divestitures. Intel's results could be affected by adverse effects associated with product defects and errata (deviations from published specifications), and by litigation or regulatory matters involving intellectual property, stockholder, consumer, antitrust, disclosure and other issues, such as the litigation and regulatory matters described in Intel's SEC reports. An unfavorable ruling could include monetary damages or an injunction prohibiting Intel from manufacturing or selling one or more products, precluding particular business practices, impacting Intel s ability to design its products, Rev. 7/17/13 or requiring other remedies such as compulsory licensing of intellectual property. A detailed discussion of these and other factors that could affect Intel s results is included in Intel s SEC filings, including the company s most recent reports on Form 10-Q, Form 10-K and earnings release. 27

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