sphere 3d presentation for credit suisse technology conference 2014

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1 The IT Infrastructure Company of the Next Decade

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Page 1: Sphere 3D presentation for Credit Suisse technology conference 2014

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The IT Infrastructure

Company of the Next Decade

Page 2: Sphere 3D presentation for Credit Suisse technology conference 2014

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Agenda

• Corporate Overview

• Our vision

• Key drivers

• Three Pillars of Innovation

• Summary

Page 3: Sphere 3D presentation for Credit Suisse technology conference 2014

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Except for the factual statements made herein, the information contained in this presentation consists of forward-looking statements that involve risks, uncertainties andassumptions that are difficult to predict. Words and expressions reflecting optimism, satisfaction or disappointment with current prospects, as well as words such as “believes,”“hopes,” “intends,” “estimates,” “expects,” “projects,” “plans,” “anticipates” and variations thereof, or the use of future tense, identify forward-looking statements, but theirabsence does not mean that a statement is not forward-looking. Such forward-looking statements are not guarantees of performance and our actual results could differ materiallyfrom those contained in such statements. Factors that could cause or contribute to such differences include, but are not limited to: the company’s ability to maintain and increasesales volumes of its products; the ability to continue to aggressively control costs and operating expenses; the ability to achieve the intended cost savings and maintain quality withits manufacturing partners; its ability to generate cash from operations; the ability of our suppliers to provide an adequate supply of components for the company’s products atprices consistent with historical prices; the ability to raise outside capital and to repay the company’s debt as it comes due; the ability to introduce new competitive products andthe degree of market acceptance of such new products; the timing and market acceptance of new products introduced by Sphere 3D’s competitors; the company’s ability tomaintain strong relationships with branded channel partners; the ability to maintain the listing of Sphere 3D’s common stock on the NASDAQ Global Market; customers’, suppliers’and creditors’ perceptions of Sphere 3D’s continued viability; rescheduling or cancellation of customer orders; loss of a major customer; the Company’s ability to enforce itsintellectual property rights and protect its intellectual property (including the outcome of its ongoing patent litigation); general competition and price measures in the marketplace; unexpected shortages of critical components; worldwide information technology spending levels; and general economic conditions. Reference is also made to other factorsdetailed from time to time in Sphere 3D’s periodic reports filed with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of thispresentation and Sphere 3D undertakes no obligation to publicly update any forward-looking statements to reflect new information, events or circumstances after the date of thispresentation.

Safe Harbor Statement

Page 4: Sphere 3D presentation for Credit Suisse technology conference 2014

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The IT Infrastructure Company of the Next Decade

A Global Provider of Virtualization Infrastructure and Data Management Solutions

U.S.: Exec HQ, Operations, R&D

Norway: R&D Center

Germany: Operational HQJapan: Sales Office

China: Manufacturing facilitySingapore: APAC HQ

Canada HQ

2009FOUNDED

ANYNASDAQ Global Markets

400+EMPLOYEES

$100m+REVENUE

Pro-forma on combined

basis with Overland

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A Broad Global Customer Base in 70 + Countries

Page 6: Sphere 3D presentation for Credit Suisse technology conference 2014

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Leadership Team

CEOEric Kelly30+ years of executive and senior leadership

PresidentPeter Tassiopoulos20+ years as founder, director, senior. executive

FinanceKurt Kalbfleisch, CFO20+ years accounting and finance leadership

MarketingNilesh Patel, VP Prod Mgt/Marketing20+ years marketing and strategy leadership

OperationsRandy Gast, SVP and COO

20+ years ops, SCM, global support leadership

R & DTrevor Heathorn, VP Of Eng (15+ years)

John Morelli, Founder/VP of tech (15+ years)

SalesScott Petersen, VP Channel/OEM, NA/APAC

Graham Paterson, VP EMEA

Stoney Hall, VP Global Solutions

Experienced management / with deep sector knowledge

Page 7: Sphere 3D presentation for Credit Suisse technology conference 2014

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Vision: Any App, Any Device, Anytime™

Page 8: Sphere 3D presentation for Credit Suisse technology conference 2014

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Today’s businesses demand

Software Defined IT – Key Drivers

Cloud-ready IT for

service efficiency and

acceleration

Mobile-ready IT for

end-user flexibility and

productivity

Distributed IT for a

strategic competitive

advantage

Scalable IT for cost

efficiency and business

agility

Page 9: Sphere 3D presentation for Credit Suisse technology conference 2014

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Challenges and Solutions for the Next Era of IT

• SW & VM Sprawl –

Integration issues

• Lack of cross-platform

mobility

• Secured app and data

delivery

• App compatibility

across platforms

Cloud-native, integrated

solutions

Platform agnostic stack

Inherently secured

app & data delivery

Platform agnostic,

native app experience

Cloud-ready IT

Challenges

Mobile-ready IT

Solution

Page 10: Sphere 3D presentation for Credit Suisse technology conference 2014

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Geographically distributed

scale-out

Centrally managed IT

infrastructure

Purpose built scalable

building blocks

Seamless end-to-end

infra management

• Traditional convergence =

centralization

• Data mobility and availability

issues

• Unpredictable, relentless

data growth

• Varying needs, one-size

doesn’t fit all

Challenges and Solutions for the Next Era of IT

Distributed IT

Scalable IT

Challenges Solution

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Three Pillars of Innovation

1

Page 12: Sphere 3D presentation for Credit Suisse technology conference 2014

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V3 Globalscale VDI Appliances

ScalabilityDeployment ease

ConsolidationFlexibility Improved Performance

V3 Globalscale VDI solutions scale both up and

out and deliver performance in extreme high

density … and, can be delivered closest to the

users for optimum user experience.

Page 13: Sphere 3D presentation for Credit Suisse technology conference 2014

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VMware ESX

V3 Desktop Cloud Orchestrator

Single Pane of Glass DCO™

For Desktop Administrators

•DCO is a web based application•View pool resources over multiple appliances•Manage disaster recovery policies•Check health status

•Create & manage pools•Create & deploy new desktops•Manage & update pools•Administrative tools for the desktop manager•Kernel modifications with other consoles not required

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Glassware 2.0

Scale

Dynamic

Container

Microvisor

Bare Metal

Page 15: Sphere 3D presentation for Credit Suisse technology conference 2014

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Glassware –Container for Windows Applications

Platform built from ground up

• “Light weight” MicroVisor approach;

• Bypass layers of the OS stack;

• Containerizes app, data, resources;

Breakthrough differentiation

• Significantly more efficient;

• Virtualizes apps considered not feasible for

virtualization;

• Dynamic resource provisioning reduces

infrastructure costs;

• App sessions are inherently secure, protected from

malware.

A Breakthrough SW Stack for Platform-agnostic App Virtualization

OS

Applications

Devices and Carriers

Hardware

Page 16: Sphere 3D presentation for Credit Suisse technology conference 2014

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A Complete IT Infrastructure Solutions PortfolioA Full Range of Cloud, Virtualization and Data Life Cycle Management Solutions

Backup Appliance

High-performance block-leveland file-level storage

• • •File sharing & Virtual server

integration with Clustered and traditional NAS

Removable disk• • •

Protects single and/or multiple workstations and servers• • •

De-duplication for efficient use of capacity

Traditional backup and restore• • •

Tape drives, media and automation• • •

Ideal for disaster recovery and long-term archiving

Unified Storage

Data Archival

Cloud Solutions

CloudOrchestrator

Turn-key VDI and Virtualized app delivery Appliances

• • •Up to 8x faster than alternatives

• • •

Page 17: Sphere 3D presentation for Credit Suisse technology conference 2014

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Industry Analysts Say…

Adoption Solution

“Overland, (a

subsidiary of Sphere

3D) is focused on

the right pain points

for end users

considering

VDI.”…Enterprise

Strategy Group, Inc.

“…82% stating they

were "somewhat or

very likely" to adopt a

hyper-converged

infrastructure.”..451

Research

“CI has been steadily

gaining acceptance as

an enterprise

infrastructure

foundation”…Forrester

Market Size

“The global

Converged

Infrastructure Market

to grow from $11.53

billion in 2014 to

$33.89 billion by

2019, at a CAGR

24.1% .”

…Research and

Markets

Page 18: Sphere 3D presentation for Credit Suisse technology conference 2014

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Total Available Markets

Sources:

1. "Converged Infrastructure Market by Components, Services, Architecture Type, and End Users - Worldwide Forecasts &

Analysis (2014 - 2019)"

2. Worldwide Enterprise Storage Systems Forecast 2013-2017, IDC, November 2013

3. IDC Worldwide Purpose Built Backup Appliance Market, September 2013

4. Enterprise Tape Automation Forecast, IDC, 2013

$33B1

By 2019

$9B2

By 2017<$100k

Cloud

Virtualization

Solutions

Unified Storage Backup

Appliance

Long Term

Archival

$3B3

By 2018 $1.0B4

Page 19: Sphere 3D presentation for Credit Suisse technology conference 2014

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Product and Solutions to Address the Markets

Cloud

Virtualization

Solutions

Unified StorageBackup

ApplianceLong Term

Archival

Create Manage and Protect Retain

End-to-End solutions for the SW Defined IT Era

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Positioned for Success

• Innovation and strong patent portfolio with 45 issued patents, 36 pending;

• Worldwide reseller channel with over 20,000 channel partners focused on

the small & medium enterprise markets;

• OEM Relationships;

• Proven technologies – over 1 million installations worldwide;

• Sales and service support in more than 70 countries;

• Experienced core management team from:

Phobos

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• Containerized stack, cloud-native architecture and hyper-converged

infrastructures are the disruptive forces challenging the status-quo;

– Redefines cloud-scale and introduces Global scale infrastructure;

– Delivers breakthrough efficiency in IT productivity and utilization;

• Sphere3D’s pillars of innovation are already delivering sustainable

competitive advantages;

• Trends, Technology and the Team at Sphere3D are well positioned to

build the IT infrastructure company of the NEXT decade.

Closing Thoughts

Page 22: Sphere 3D presentation for Credit Suisse technology conference 2014

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Questions ?