Go-to-Market Insights for Service Providers Deploying Flash Storage

To Flash or Not to Flash?
Go to Market Insights for Service Providers
Deploying NetApp SolidFire Flash Storage
Stuart Oliver
Global Consulting Director
NetApp SolidFire

Agenda
1) Introduction
2) The industry is changing
3) This presentation is about storage deployment data (not a sales pitch)
4) Data Insights: How service providers are deploying NetApp SolidFire flash
5) Take-aways
6) Summary
7) Q & A
NetApp Insight © 2016 NetApp, Inc. All rights reserved. NetApp Confidential – Limited Use Only

Today's Presenter
The de facto flash block storage for service providers worldwide
Global Consulting Director
Fueled by SolidFire | Global
Stuart Oliver

Announcements
As a thank you for attending today's webinar, we will be
drawing one name for a copy of the Technology-as-a-Service
Playbook.
Listen until the end and you may win!

Introduction

‘Build’ Trends
77%
43%
67%
57%
49% 49%
Traditional Virtualized
On-premise
private cloud
2018
2015
*McKinsey & Company 2016
Fundamental Shift from ‘Build’ to ‘Consume’

‘Consume’ Trends
38% 34%
54%
25%
37%
Dedicated
Private
Cloud
Virtual
Private
Cloud
Public
IaaS
2018
2015
57%

2018
2015
On-Premise
Traditional
54%37%
71%63%
Large
Enterprise
Midsized
Enterprise
Small &
Medium
Business
83%80%
24% 46% 32% 24% 10%
51%
57%41% 57%58%68%74% 48% 48% 39% 35% 28% 40%
58%45% 49%56%65%79%
53% 51% 38% 33% 23% 33%
On-Premise
Virtualized
On-Premise
Private
Cloud
Dedicated
Private
Cloud
Virtual
Private
Cloud
Public IaaS
Build Consume

The Industry is Changing

Changing Market Landscape
Service Provider Market Trends
www.451research.com SP Trends 2016 Report

$82B
2019
$20B
2019
IaaS
From $8B in 2015
Managed Cloud Hosting
From $42B in 2015
By 2019 total market size will be
$20B with AWS owning over 64%
market share
While not growing as fast the total
market opportunity is greater at
$82B by 2019

Source: Rackspace.com - 2016
Public Cloud
Private Cloud
Hybrid Cloud
Microsoft Azure
Microsoft Private Cloud
Office 365
AWS Navigator
AWS Aviator
AWS Consulting Partner
Dedicated Servers
VMware
Managed Hosting

Public Cloud
Private Cloud
Hybrid Cloud
Microsoft Azure
Office 365
AWS Navigator
AWS Aviator
Dedicated Servers
VMware
Managed Hosting

Breadth of Services
Value
Public Cloud
Private Cloud
Hybrid Cloud
Microsoft Azure
Office 365
AWS Navigator
AWS Aviator
Dedicated Servers
VMware
Managed Hosting

Service Provider Flash Deployment
Breadth of Services
Value
Public Cloud
Private Cloud
Hybrid Cloud
Microsoft Azure
Office 365
AWS Navigator
AWS Aviator
Dedicated Servers
VMware
Managed Hosting

Global Service Provider Market Trends
1
6X More Growth Than
Traditional IT
IDC 2014
6X
2
89% of Enterprises
are Using Flash
ESG 2014
89%
3
68% of Applications
Remain Behind the
Enterprise Firewall
451 Research 2015
68%

Block Storage Market Overview
Service Provider Service Delivery

Managed
Servers
Public
Cloud
Private
Cloud
Hybrid
Cloud
Back
Office
HP AppsDBaaSDaaS
Managed Service 2
Managed Service 1 Most service providers offer a variations on
the “big 4” hosting services with separate
islands of storage
1
SolidFire’s performance virtualization delivers true
storage quality of service (QoS) enabling application
level performance profiles
2
QoS allows you to run multiple storage
services and types of infrastructure all from
one storage system
3
Streamlined operations support more efficient
delivery of higher margin managed services
4
Streamline Operations
Service Provider Service Delivery

How Service Providers are Deploying Flash
Data Insights

What was the original use case for your SolidFire purchase
56%
51%
35%
30%
28%
21%
16%
Distribution
Public Cloud Hosted Private Cloud Managed Hosting/SAN Hybrid Cloud
Virtual Private Servers Virtual Desktop Servers App Hosting Services Other
2%

Key Take Away
• Replacing legacy storage systems
• Cloud hosting followed by managed hosting is the trajectory
• Address biggest storage issues first
• Solve pain then expand into new opportunities
• Test the waters (VDI, Apps, Mode2, 3rd Platform)
Lessons Learned

What Additional Use Cases are Planned for your SolidFire
Platform?
39%
37%
37%
34%
34%
32%
26%
Distribution
Hybrid Cloud Private Cloud App Hosting Services Hosted Private Cloud Virtual Private Servers Managed Hosting/SAN Virtual Desktop Servers Other
3%

• Moving to add SSD to alternate platforms
• Still uncertainty of where to invest technology budget
• Test the waters on many offerings looking to find a new and profitable service
Key Take Away
Lessons Learned

How much of your Storage Operations are Automated Today?
27%
29%
24%
20%
Distribution
0 - 25% 26 - 50% 51 - 75% 76 - 100%

• Majority of SPs still have little or limited storage automation
• Opportunity to drive costs lower/margins higher with increased automation
• Need to drive for higher levels of automation to appeal to Mode 2 and 3rd platform
prospects
Key Take Away
Lessons Learned

What is the Primary Orchestration Platform you are using Today?
8%
69%
20%
16%
Distribution
Other:

• VMware is still largest orchestration platform
• Large number of SP’s looking at OpenStack as an alternative to VMware ($$$$)
• Many SP’s fixing orchestration issues with custom integrations requiring deeper
automation capabilities
Key Take Away
Lessons Learned

How do you Differentiate your Cloud/Hosting Services Today?
49%
49%
45%
43%
32%
19%
6%
Distribution
SLAs Pricing White Glove Support Workload Specific Services Consulting Services Vertical Focus other

• Enterprises still like SLAs
• Many SPs still using price instead of value as a differentiator
• Specific application support to deliver vertical value
• What are you good at supporting?
Key Take Away
Lessons Learned

What Storage Issues Have Been or are Anticipated to be Eliminated
by Deploying NetApp SolidFire Flash?
70%
65%
47%
33%
26%
21%
19%
Distribution
Performance Issues Scaling Challenges Management Complexity Lack of Automation
Array Sprawl Forklift Upgrades Lack of integration High TCO
Required Over Provisioning Long Deployment Times Other
19%
19%
14%
14%

• Reduced performance issues = lower churn
• Hosting is 24x7 – no maintenance window storage scaling
• More automation and integration
• Cost of migration is lowered saving many $$$
Key Take Away
Lessons Learned

What is the Greatest Impact Flash has had on your Business?
12%
10%
14%
37%
12%
14%
Distribution
Increased Revenue/GB & Lower Costs Faster/Easier Capacity Planning Better infrastructure Consolidation
Faster Performance / Fewer Tickets Reduced Administrative Time Greater Customer Satisfaction

• Reduced support tickets means less customer issues = reduced churn
• Revenues/margins maintained with significant operational benefits
• Happier customers = more revenue
Key Take Away
Lessons Learned

• Infrastructure as a Service (IaaS) is no longer enough.
• Service providers are differentiating themselves and generating revenue through new
workload or application-specific services
• It will be advantageous for service providers to deploy infrastructure that can handle
application-specific needs
• Flash technology does provide greater performance, but alone does not solve for
inconsistent performance problems or those caused by noisy neighbors.
• Service providers deploying new storage services, such as performance SLAs and
IOPS tiers are creating new profit centers and differentiating services.
• Flash is a core requirement for the next generation data center architectures
Lessons Learned from the Data

Congratulations!
As a thank you for attending todays webinar, we will be
drawing for a copy of the Technology as a Service Playbook.
The winner will be contacted separately
for address and shipping information

Stay Connected
Follow NetApp and Stuart Oliver on LinkedIn and Twitter
Stuart Oliver
@stuart_oliver
@NetApp
LinkedIn – Stuart_Oliver
Q&A

Go-to-Market Insights for Service Providers Deploying Flash Storage

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