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THE RISE OF THE INFORMATION CENTER

RANDY E. DEMONT

EVP OF GLOBAL SALES, SERVICE, & CUSTOMER SUPPORT

© Hitachi Data Systems Corporation 2012. All Rights Reserved

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AGENDA

TODAY’S ENVIRONMENT‒ Global Economic climate

‒ CIO priorities

‒ Hitachi’s capability

‒ HDS solution

OUR VISION‒ The world’s leading

vision for Information

‒ Value opportunities

‒ HDS performance

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TODAY’S ENVIRONMENTNEW CHALLENGES AND OPPORTUNITIES FOR IT

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2012 ANTICIPATED IT SPEND Y/Y CHANGESCITI CIO SURVEY (JAN 2012)

Initial view of 2012 looks like it is softening (although nowhere near as weak as 2009)

2012 IT budgets expected to be flat in Asia (0%) and Europe (+0.1%), down slightly in US (-0.5%)

46% of CIOs think the economy is worsening slightly or worsening substantially

27% of CIOs see outlook for spend at their own companies becoming more conservative

CIO VIEWS

0.1%

1.6%

1.2%

-2.2%

-0.5%

1.7%

-3.2%

0.1%

1.2%1.5%

-2.7%

201120102009

0.8%

2012

Europe

US

Total

Source: Citi Q4 2011 CIO Survey

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No. 47 in the 2010 Fortune Global 500®

One of the world’s largestintegrated electronics companies

Founded in 1910 900 subsidiaries 360,000 employees Over 760+ PhDs

Total FY10 sales of US$112B FY10 R&D Investment: ‒ US$4.6+B‒ Approx. $1B in ITSC

US$6.5+B in cash

HITACHI, LTD. (NYSE:HIT/TSE:6501)

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HITACHI, LTD. – HISTORY AND FOCUS

11 INDUSTRY SEGMENTS OF HITACHI GROUPGROUP REVENUE BY INDUSTRY SEGMENT

11 ％9 ％8%

$112B 8%

13%7%8%

9%4 ％7%

Power Systems

Social Infrastructure and Industrial Systems

Electronic Systems and Equipment

Construction Machinery

High Functional Materials and Components

Component and Devices

Digital Media and Consumer Products

FinancialServices

Others

16 ％

Information and TelecommunicationSystems

Automotive Systems

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RECENT GLOBAL HDS INDEPENDENT RECOGNITION

HDS RECOGNIZED BY FORTUNE “TOP 100 PLACES TO WORK” Top 100 places to work:

In France

In the UK

In Silicon Valley

Great Place to Work® Institute

HDS RECOGNIZED AS ONE OF THE MOST ETHICAL COMPANIES

Ethisphere Institute

HDS RECOGNIZED AS ONE OF THE TOP 40 FOR LEADERSHIP DEVELOPMENT

Chally Group Worldwide –Jan/Feb 2012

HITACHI CONTENT PLATFORM WINS 2012 STORAGE VISIONS AWARD

Storage Visions Conference

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CIO’S TOP PRIORITIES

MANAGE COSTS AND EFFICIENCY

– Extend value of current assets

– Reduce operation costs

– Support the business requirements of data growth

LEVERAGE INFORMATION AS A STRATEGIC AND COMPETITIVE ASSET

– Accessibility (discoverability, availability)

– Analytics (integration, repurposing)

– Compliance (security, governance)

– Resulting in - Business acceleration from IT

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OUR BLUEPRINT

OUR BLUEPRINTTHE WORLD’S LEADING VISION FOR INFORMATION

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INDUSTRY DYNAMICS

APPLICATIONDATA, CONTENT AND

INFORMATION GROWTH

PROVISION MORE SERVERS, FASTER

DEPLOY MORE VIRTUAL MACHINES

DEPLOY MORE STORAGE TO KEEP

PACE

By 2014, there will be 1 billion applications driving server deployments

More virtual machines are now deployed annually than physical servers

2009: 800 exabytes of digital data 2020: 35,000 exabytes (42x growth)(IDC)

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THE CHALLENGE

ALL DISCOVERABLE AND SEARCHABLE

INDEPENDENT OF APPLICATION

INDEPENDENT OF MEDIA

INTEGRATED AND MEANINGFUL

GOVERNED FOREVER

INFORMATION ANYWHERE,ANYTIME, ALL THE TIME…FOREVER

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HDS TECHNOLOGY STRATEGY

A COMMON VIRTUALIZED PLATFORM FOR ALL DATA, CONTENT AND INFORMATION

Structured Unstructured Semi-structured Rich Media

UNIFIED MANAGEMENT

VIRTUALIZED INFRASTRUCTURE

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KEY COMPONENTS OF VISION AND STRATEGY(WE HELP ALIGN IT TO BUSINESS OBJECTIVES)

VIRTUALIZATION Create and support virtualized IT environments with the best

storage and information infrastructure

AUTOMATION Deliver new applications and business systems into

production faster and with less cost by automating

CLOUD-READINESS Adopt or evolve to cloud computing or IT as a service at

your own pace with minimal risk

SUSTAINABILITY Leverage our experience as a leader in building

sustainable facilities and products and our ability to help your business do the same

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WE DELIVER – POWERFUL OPERATIONAL SAVINGS

Operating cost savings : IT savings of 20-40% of storage infrastructure OPEX

Heterogeneous storage virtualization and information cloud solutions

Shared platform for structured and unstructured data (database, and file and content) with shared governance, process, management and protection

Scalable content and data services: Index, discovery, search, lifecycle management within the storage infrastructure with governance and compliance

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WE DELIVER – DEMONSTRABLE CAPITAL COST SAVINGS

Capital cost savings: IT storage spend cost savings of 20-50%

Higher utilization of existing storage assets

Shared management across database, file, content – all data and information

Dynamically tiered data platform allows continued alignment of business requirements to infrastructure price, performance, protection

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INFRASTRUCTURE CLOUD STRATEGY

Most systems virtualized today – increasing adoption rate

Non-disruptive data movement across heterogeneous environment

Best infrastructure migration solution in the world

INDUSTRY LEADING

EXTERNAL STORAGE VIRTUALIZATION

LEADER

STORAGE VIRTUALIZATION MANAGEMENT

LEADER

More than 50% of customers use Hitachi Dynamic Provisioning

Over 50% of Hitachi storage is virtualized

Multi vendor virtualization

One enterprise platform for all data

EMCFUJITSUHDSHP

XIBM

X

XX

X

STRONG NEGATIVE CAUTION PROMISING POSITIVE

STRONG POSITIVE

RATING

SOURCE: Gartner 2011

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50 60 70 80 9050

60

70

80

90

CUSTOMERS ARE REALIZING THE VALUE(INFOPRO OVERALL CUSTOMER RATINGS – H1 2011)

PROMISE INDEX

FU

LF

ILL

ME

NT

IND

EX

Oracle

EMC

Dell

Hitachi Data Systems

NetApp

IBM

HP

Promise Index: The strength of a vendor’s marketing “promises” is measured by customer ratings of Competitive Positioning, Technical Innovation, Management’s Strategic Vision and Brand/Reputation.

Fulfillment Index: Vendor fulfillment is measured by customer ratings of Value for the Money, Product Quality, Delivery as Promised and Technical Support.

The size of the circle indicates the relative volume of ratings a vendor received.

 VENDOR 1H 2011

PROMISE FULFILLMENT

AVERAGE 70 71

HDS 71 78

DELL 71 74

IBM 70 72

EMC 76 71

NETAPP 75 69

HP 67 69

ORACLE 57 65

HIGHEST TO OVER DELIVER BALANCED ON PROMISE

SOURCE: THE INFOPRO STORAGE STUDY 1ST HALF 2011; THE ENTIRE SAMPLE FROM INFOPRO IS NOT PORTRAYED AND THIS GRAPH/VENDOR SELECTION WAS DETERMINED BY HDS.

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TRUSTED BY THE GLOBAL BUSINESS COMMUNITY

44 of the top 50 - Fortune Global 500® companies

81 of the top 100 - Fortune Global 1000® companies

The top 15 - Global commercial banks

The top 16 - Global property and casualty insurers

The top 10 - Global telecommunications companies

The top 10 - Global aerospace and defense companies    

The top 7 - Global technology companies

BUT :

Our growth has been driven by bringing the best practices from the largest Companies in the world to mid-sized Corporations  

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HITACHI DATA SYSTEMS CUSTOMERSBENEFITING TODAY

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OUR BLUEPRINT

HITACHI ACQUIRES BLUEARCCOMMITTED TO CUSTOMER VALUE THROUGH R&D AND

ACQUISITION

07-SEPTEMBER 2011

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CUSTOMER BENEFITS

EXPERIENCE A POWERFUL COMBINATION OF VALUE AND INNOVATION

‒ HDS enterprise-class reliability, quality and global support

‒ BlueArc leadership in scalability, performance and integrated unstructured data solutions for high growth vertical markets

‒ Combined strengths toward solving big data requirements

BETTER FOR OUR CUSTOMERS

‒ More tightly integrated file and content technologies, roadmaps and strategy

‒ Deeper expertise globally

COMBINED BEST-IN-CLASS VIRTUALIZATION FOR ALL DATA

‒ Scalable cloud solutions for infrastructure, file and content

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SUMMARYSUMMARYACCELERATING YOUR SUCCESS TODAY AND TOMORROW

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VISION – DATA DRIVES OUR WORLD AND INFORMATION IS THE NEW CURRENCY. It’s a vision you can invest in with confidence

ECONOMIC SAVINGS AND VALUE – Our Storage Economics methodology enhances your existing investments and provide strategic return on assets

FOCUS – Hitachi is leading the industry in storage virtualization and data center transformation

GLOBAL REACH AND STABILity – 6,000+ employees in 100 countries. Wholly-owned subsidiary of Hitachi, Ltd. which has 360,000 employees, US$112B revenue

Service and Support – We are consistently recognized for providing the best service and support in the industry

INNOVATION – From storage to bullet trains, Hitachi is renowned for our innovation with an annual R&D budget of US$4.6+B

SUMMARY: WHY HITACHI DATA SYSTEMS

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THE HITACHI PHILOSOPHY HAS ALWAYS BEEN TO ENHANCE SOCIETY THROUGH TECHNOLOGY

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MERCI