Topic: How the Internet of Things Has Changed the Way You Should Look at Storage Speaker: Brendan Collins, Vice President, Product Marketing, HGST, a Western Digital Company

1. © 2014 HGST, INC.
Brendan Collins
Vice President, Product Marketing
How the Internet of Things
Has Changed the Way
You Should
Look at Storage

2. © 2014 HGST, INC. 2
Forward Looking Statement
This presentation contains forward-looking statements that involve risks and uncertainties, including, but
not limited to, the development and adoption of a new storage architecture and the potential introduction
of products based on this architecture. Forward-looking statements should not be read as a guarantee of
future performance or results, and will not necessarily be accurate indications of the times at, or by, which
such performance or results will be achieved, if at all. Forward-looking statements are subject to risks and
uncertainties that could cause actual performance or results to differ materially from those expressed in or
suggested by the forward-looking statements. Additional key risks and uncertainties include the impact of
continued uncertainty and volatility in global economic conditions; actions by competitors, business
conditions and growth in the various hard drive segments. More information about the other risks and
uncertainties that could affect our business are listed in our filings with the Securities and Exchange
Commission (the “SEC”) and available on the SEC’s website at www.sec.gov, including our Quarterly
Report on Form 10-Q filed with the SEC on May 5, 2014, to which your attention is directed. We do not
undertake any obligation to publicly update or revise any forward-looking statement, whether as a result
of new information, future developments or otherwise, except as otherwise required by law. This
presentation contains financial measures defined as non-GAAP by the SEC. We believe that certain non-
GAAP financial measures, when presented in conjunction with comparable GAAP (Generally Accepted
Accounting Principles) measures, are useful because that information is an appropriate measure for
evaluating our operating performance. Non-GAAP information is used to evaluate business performance
and management's effectiveness. These measures should be considered in addition to, not as a
substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Non-
GAAP financial measures may not be calculated in the same manner by all companies and therefore may
not be comparable.

3. © 2014 HGST, INC. 3
Market Dynamics
SMR &
HelioSeal™
Enable
Capacity
Storage
is
Strategic
Entering
The
Zettabyte
Era
Increasing
Data Center
Efficiencies
Flash &
SSD
Growth
Software
Defined
Storage
IoT & Big
Data
Analytics
~25B
Connected
Devices in
2015
Evolving
Storage
Workloads

4. © 2014 HGST, INC. 4
Source: HGST analysis based on information obtained on public websites
15TB of Email sent every minute
1.8PB photos uploaded to top
social sites every day
~6TB YouTube video uploaded
every minute
Cloud
100GB collected by a Boeing 787
every hour of flight time
1TB generated by an oil well
every day
1.5TB captured by London
subway surveillance every minute
“IoT”

5. © 2014 HGST, INC. 5
Exabyte Forecast
0
500
1,000
1,500
2,000
2,500
3,000
2012 2013 2014 2015 2016 2017 2018 2019 2020
ExabyteShipments
By Market Segment
Mobile Phones
Tablet
Cloud - SSD
Cloud
Personal / CE
Client - SSD/NAND
Client PC
HDDs remain an important element of the storage ecosystem
0
500
1,000
1,500
2,000
2,500
3,000
2012 2013 2014 2015 2016 2017 2018 2019 2020
ExabyteShipments
By Storage Type
Tape
Optical
DRAM
NAND
SSD
HDD
26%
CAGR for PB Growth
on HDD
2014-2020
24%
CAGR for PB Growth
2014-2020
Source: HGST analysis

6. © 2014 HGST, INC. 6
HDD Worldwide Unit & PB Forecast
Source: IDC Worldwide Hard Disk Drive 2014 – 2018 Forecast Update Apr. 2014

7. © 2014 HGST, INC. 7
Enterprise Worldwide Unit Forecast (HDD & SSD)
Source: IDC Worldwide Hard Disk Drive 2014 – 2018 Forecast Update Apr. 2014, IDC Worldwide Solid State Storage 2014 – 2018 Interface Forecast May 2014

8. © 2014 HGST, INC. 8
Drivers of Storage Growth
Internet of Things
(sensor data)
Big Data
Analytics
Cold Storage
Web
Social Media
Business Apps Media
Documents
Archives

9. © 2014 HGST, INC. 9
Internet of
Things
The next generation of the internet where
connected objects can interact with each other
and their environment, creating a new wave of
data that will impact every aspect of our lives

10. © 2014 HGST, INC. 10
New and Evolving Sources of Data
Machine
to
Machine
Person
to
Machine
Person
to
Person
“P2P” “P2M” & “M2P” “M2M”

11. © 2014 HGST, INC. 11
Fitness Device
Biometircs
Health Monitor
Wearable
Smartphone
Tablet
eReader
Laptop
Camera
Child Location
The IoT is Part of You Today…

12. © 2014 HGST, INC. 12
Smart Meters
Security System
Smoke/Fire Detector
Wireless Cameras
Lighting Control
Thermostat
Locks
Household Appliances
Bathroom Scale
Exercise Equipment
Connected TV
Gaming
Desktop Computers
…It’s in Your Home…

13. © 2014 HGST, INC. 13
Traffic Cameras
Road Sensors
Parking Sensors
Auto Sensors
Transportation
Engine Sensors
Security Cameras
Security Systems
Fire/Smoke Detector
Digital Signage
Vending Machines
Surveillance
Smart Grid
…It’s All Around You

14. © 2014 HGST, INC. 14
500M Devices
12.5B Devices
25B Devices
50B Devices
0.1
1
10
100
2003 2010 2015 2020
Source: Cisco, HGST analysis
More Connected Devices than WW Population Today…
6.3B 6.8B 7.2B 7.6B
ConnectedDevices(B)WWPopulation

15. © 2014 HGST, INC. 15
Source: HGST analysis
…Can Drive a New Wave of Data Growth
Internet of Things
Social Networking
Business Cloud
Enterprise
The Internet of Things an increasingly larger part of data stored
2012 2013 2014 2015 2016 2017 2018 2019 2020
HDDStorage(PB)
~75%
IoT PB CAGR
2014-2020

16. © 2014 HGST, INC. 16
Transforming multiple data
sources into information and
insights
Characterized by data sets
that are larger and more
complex than typical tools
can manipulate
Big Data

17. © 2014 HGST, INC. 17
The Need for Hot and Cold Storage
Getting the most value from the “3-V’s” of Big Data requires both
fast storage and increasingly more cost-effective storage
Increasing
sources
& types
of data

18. © 2014 HGST, INC. 18
Metadata
Extraction
 Extract information
 Index & Catalog
Linkages &
Analysis
 Trends and Links
 Predictive Analysis
Contextual
Analysis
 External Data Sources
 Prescriptive Analysis
Big Data Analytics: Data & Storage Multiplier
Raw Data
Streams
 Multiple sources
 “3-V’s”
100x - 1000x
Raw Data
10x-100x
Raw Data
2x-10x
Raw Data
Raw
Data
Source: HGST Analysis, Yttibrium Consulting, IBM Investor Briefing 2013

19. © 2014 HGST, INC. 19
1% Reduction in
Capital Expenditures
Oil & Gas
Healthcare
Exploration &
Development $90B
Type of Savings
Big Data Reveals
Industry Segment
Estimated Value
Over 15 Years
(US $B)
Aviation
Power
Rail
Commercial
Gas-Fired
Generation
System-Wide
Freight
1% Fuel Savings
1% Fuel Savings
1% Reduction in
System Inefficiency
1% Reduction in
System Inefficiency
$30B
$66B
$63B
$27B
WHY BIG DATA MATTERS
Potential Economic Impacts from Data Transformation
Source: GE Report “Industrial Internet” 2012
Even small efficiency improvements enabled through Big Data analytics
can result in significant long-term value

20. © 2014 HGST, INC. 20
Solutions to unlock the
value of data by making it
more easily accessible with
high capacity, cost-effective
HDD storage
Cold Storage

21. © 2014 HGST, INC. 21
More Data Being Created than Stored
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2008 2009 2010 2011 2012 2013 2014 2015
Today’s storage solutions cannot optimally store all of the data created
Exabytes
Data
Created
Data
Stored*
5X
More data
created
than stored
“ Data Stored” on all types of storage devices including HDD, SDD, flash, optical and tape

22. © 2014 HGST, INC. 22
The Cold Storage Opportunity
Primary Storage
“Capacity HDDs
allow me to get to
my data, but I can’t
afford enough of it”
Deep Archive
“Tape allows me
to store more
data, but I can’t
always get to it
easily or quickly”
Accessibility High Cap, Low Cost
Cold Storage
 Affordable
 Accessible
 Dense
andAccessibility High Cap, Low Cost

23. © 2014 HGST, INC. 23
DataAccess
Age of Data
Large data sets, access
patterns change over time
DataAccess
Age of Data
Analytics,
compliance and audit
DataAccess
Age of Data
Write-once,
Read occasional data
Warmer Storage
“Active Archiving”
Lower Latency
Colder Storage
“Storing More”
Higher Latency
The Many Temperatures of Cold Storage

24. © 2014 HGST, INC. 24
Solutions for the New Market Reality
SMR
HelioSeal™
Technology
Flash
Acceleration
Software
Virtualization
SMR &
Beyond

25. © 2014 HGST, INC. 25
Transforming the Data Center
Ultrastar® He6
World’s First 6TB 3.5-inch Helium Drive
Reducing Cloud
Data Center TCO with
6TB
50%
Capacity
Boost
23%
Lower
Power
Fits
3.5”
SMR/
HAMR
Compatible

26. © 2014 HGST, INC. 26
Disk Rotation Helium
Reduced
Flutter
Thinner
Platters
Less
Motor
Drag
 4◦C cooler operation
 49% reduction in watts/TB
Helium – 7 Disk
HelioSeal™ HDDs: One Year Later
 Market acceptance: Deployed in
multiple datacenters
 First-generation shipping in
volume
 Immersion cooling demonstrations
 TCO benefits proven

27. © 2014 HGST, INC. 27
~40,000
cars of coal
~5 million
soccer fields
of forests
~1.5 million
homes in Japan
HelioSeal™ HDDs Solve More Than Storage Problems…
If data centers used helium HDDs instead of air HDDs:
worth of carbon storagesaved per year powered per year
Conservative estimates. Not including server, networking and PUE savings.

28. © 2014 HGST, INC. 28
Why Shingled Magnetic Recording (SMR)?
2014 2015 2016 2017 2018 2019 2020
HDDCapacity(TB)
Capacity Growth
(3.5" Capacity Enterprise)
Areal Density Accelerator
 Much higher track density
 Overall AD growth 25%/Y vs. 15%/Y
 65% greater maximum capacity
by 2020
With SMR
Without SMR

29. © 2014 HGST, INC. 29
Enabling Future Innovation
SMR
HAMR BPM
TDMR /
MAMR
Foundational Technology
 Multi-Generational building block
 Reduces risk for future recording
technologies

30. © 2014 HGST, INC. 30
SMR: More Than a Cold Storage Enabler
Capacity Enterprise
Cold Storage
Mobile
SMR will enable higher capacities across all market segments
SMR

31. © 2014 HGST, INC. 31
SMR
Ecosystem
Leadership
Leadership is More Than Time to Market
T10 ZBC & T13 ZAC Standards
Leadership + Contributions
HGST investing beyond products for successful technology transitions
SMR HDDs
Linux Open Source Enablement
Contributions

32. © 2014 HGST, INC. 32
All data is getting warmer:
As data becomes more readily
accessible, it’s value increases
All data is getting colder:
More efficient storage allows
data to be kept longer,
increasing its value
Petabyte Paradox
AND

33. © 2014 HGST, INC. 33
HDD
The New HDD Reality
MEMORY TAPE
EVOLVING STORAGE SPECTRUM
Cold
SSD
MEMORY
TAPE
HDD
HGST is bridging storage needs from hot to cold

34. © 2014 HGST, INC. 34
Summary
Data center
workloads continue
to evolve, placing
new demands on
the storage industry
As IoT and Big Data
develop, they will
drive new
innovation and
growth for HDDs
and SSDs
SMR and
HelioSeal™
are foundational
building blocks
for future HDDs
HGST is positioned to be a leader in data center storage

35. © 2014 HGST, INC. 35
Capacity & Trademark Statements
One gigabyte (GB) is equal to one billion bytes, one terabyte (TB) equals 1,000GB (one trillion bytes),
and one petabyte (PB) equals 1,000TB (one quadrillion bytes) when referring to hard drive or solid state
drive capacity. Accessible capacity will vary from the stated capacity due to formatting and partitioning of
the drive, the computer’s operating system, and other factors.
HelioSeal is a trademark of HGST, Inc. and its affiliates in the United States and/or other countries
HGST trademarks are intended and authorized for use only in countries and jurisdictions in which HGST
has obtained the rights to use, market and advertise the brand. Contact HGST for additional information.
HGST shall not be liable to third parties for unauthorized use of this document or unauthorized use of its
trademarks.
All other company names, products or trademarks used in this presentation are the marks of their
respective owners, and not HGST.

36. Q&A