1) Consumption is driving big increases in information technology needs as content grows exponentially and more devices become connected. 2) By 2020 there will be 35 zettabytes of digital content created annually, with metadata growing the fastest. Context awareness will be critical to enabling consumption of the right data at the right time. 3) Opportunities for focus include driving efficiency to reduce storage costs, improving security and privacy with billions of connected devices, ensuring big data applications are cloud-friendly, and enabling analysis of data from billions of sensors and machines.

1. E ntering the E ra of Big IT
David Reinsel
Group Vice President Storage,
S emiconductors, G R C Infrastructure, Pricing
Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

2. Agenda
Fueling the Digital Universe
Big IT
Important areas of opportunities on which to focus
• Public/Private
Cloud
• Security/Privacy
Where does it What isContent
• How Much?
all come from? driving Big IT?
• What Kind?
• Metadata
Context
• Sensors
© IDC Feb-11

3. The Long View - IT
Worldwide IT Spending Growth 1996-2014 (%)
15%
10%
5%
0%
-5%
-10%
1996 1998 2000 2002 2004 2006 2008 2010 2012e 2014e
Source : IDC Worldwide Black Book, Q2 2010; growth in constant currency
© IDC Feb-11

4. Digital Universe Growth vs Storage
Capacity Shipments
W W C ontent Creation Vs. Storage Shipments
900EB
800EB
700EB
600EB M em ory
500EB NV Flash
Tape
400EB
O ptical
300EB Hard Disk Drives
WW C ontent Creation
200EB
100EB
0EB
2005 2006 2007 2008 2009
© IDC Source: IDC Digital Universe Study, sponsored by EMC, 2010 Feb-11

5. Fueling the Digital Universe
7.2% 2.8%
1.5%
0.4%
2009
0.8 ZB
Media
Cameras
Data
31.5% Music
56.7%
Voice Capture
Other
© IDC Source: IDC Digital Universe Study, sponsored by EMC, May 2010 Feb-11 5

6. Digital Universe Growth –
Long-term Content Creation
100,000,000
35 Zetabytes
10,000,000
1,000,000
100,000
10,000
WW Content Creation
1,000
100
10
1
2005 2010 2015 2020
© IDC Source: IDC Digital Universe Study, sponsored by EMC, 2010 Feb-11

7. Data-Intensive Social Networks
Assumption Annual Footprint
400M ‘ active ’ users 10M B /us er 4,000T B
60M status updates/day 0.25K B /update 5T B /yr
10B comments/mo 0.125K B /update 15T B /yr
20M videos uploaded/mo 8M B /v ide o 1,920T B /yr
~14,436 Terabytes 100K B
3B photos uploaded/mo /photo 3,600T B /yr
24 hrs of videoContent
of uploaded/min 12.5M B /vide o 3,787T B /yr
Creation in 2010
55M tweets/day 125B ytes /twe et 2.5T B /yr
3M p hoto uplo a d s/d a y 1M B /photo 1,096T B /yr
70M members 0.1M B /profile 7T B
1 new member every sec 0.1M B /profile 3T B /yr
© IDC Feb-11 7

8. Next Agenda Item
• Why?
Cloud
• How Big?
Where does it What is
Content
• How Much?
all come • What Kind?
from? Driving Big IT? • Metadata
Context
• Sensors
© IDC Feb-11

9. Consumption is a Big Driver of BIG
Consumption
• Drives Traffic (ad revenue)
• Drives eCommerce
• Drives Social Networks
• Drives Mobility (devices and
apps)
•Drives Personal Services
•Demands Analytics
© IDC Feb-11 9

10. Consumption VS Creation
624PB/yr 260B pg. views/mo 10M B /us er 4,000T B
192PB/yr 2B vid. views/mo 0.25K B /update 5T B /yr
9,131PB/yr 2B vid. views/day 0.125K B /update 15T B /yr
0.5PB/yr 4.4B pg. views/mo 8M B /v ide o 1,920T B /yr
56PB/yr 30.4M views/day 100K B /photo 3,600T B /yr
0.2PB/yr 1.9B pg. views/mo
12.5M B /vide o 3,787T B /yr
125B ytes /twe et 2.4T B /yr
1M B /photo 1,096T B /yr
0.1M B /profile 7T B
0.1M B /profile 3T B /yr
© IDC Feb-11 10

11. Big Data is not the Created Content nor is it even its
Consumption – It’s the analysis of all the data
surrounding or swirling around it
From Science Projects to Social Networks to Smart Technology
MORE MORE
DEVICES APPLICATIONS
MORE
MORE
ON-DEMAND
CONTENT
ACCESS
Finding Answers where there are yet to be Questions…
© IDC Feb-11

12. Consumption is a Big Driver of BIG!
• Virtualization
Cloud
• Convergence
• Context
Mobility
• Commerce
• Sensors
Smart
• Decisions
© IDC Feb-11 12

13. What’s So Appealing About Cloud
N = 219
Source: IDC’s IT Cloud Services Survey, Q2 2010 (# 225021)
© IDC Feb-11 13

14. Netflix and the Cloud
Feb ’07 – 1 Billionth DVD
May ’08 – 1st Set-top box to stream
Late ’08 – 1 Data Center
Feb ’09 – 10 Million Users (2nd
Datacenter?)
© IDC Feb-11 14

15. Netflix and the Cloud
Feb ’07 – 1 Billionth DVD
“ W hat I need–isstan exact list stream
May ’08 1 Set-top box to of
specific unknown problem s we
might encounter”Center
Late ’08 – 1 Data
-Anonymous
Feb ’09 – 10 Million Users (2nd
Datacenter?)
Apr ’09 – 2 Billionth DVD
Late ’10 – A ma zo n AWS
© IDC Feb-11 15

16. Netflix and the Cloud
1. We needed to re-architect, which allowed
us to question everything, including
whether to keep building out our own data
center solution.
2. Letting Amazon focus on data center
infrastructure allows our engineers to focus
on building and improving our business.
3. We’re not very good at predicting customer
growth or device engagement.
4. We think cloud computing is the future.
Drivin g Netlix’s De cisio n
© IDC Feb-11 16

17. Consuming the Right Content at the
Right Time
• Virtualization
Cloud • Convergence
• Context
Mobility • Commerce
Smart
• Sensors
• Decisions
© IDC Feb-11 17

18. Devices Communicating at any given
time (2012)– excluding enterprise datacenters
Mobile Devices (4.2B)
Computers (1.9B)
Entertainment (1.3B)
Home Networking (1.0B)
Toys/Appliances (0.8B)
VoIP (0.7B)
Industrial/Auto (0.2B)
Over 10 bi l l i on devi ces connect ed and
s endi ng/r eques t i ng dat a
© IDC Feb-11

19. Fueling the Digital Universe (2020)
0.0%
0.1%
0.2%
2020
35 ZB
20.1% Media
Cameras
48.8%
Data
Music
Voice Capture
Other
30.8%
© IDC Source: IDC Digital Universe Study, sponsored by EMC, May 2010 Feb-11 19

20. Digital Universe Growth –
Content vs # of Files
100,000,000,000
# of Files (M)
10,000,000,000
200 Trillion in 2009
1,000,000,000 15 Q uintillion in 2020!
100,000,000
35 Zetabytes
10,000,000
1,000,000
100,000 WW Content Creation
WW Files
10,000
1,000
100
10
1
2011
2005
2006
2007
2008
2009
2010
2012
2013
2014
2017
2018
2019
2020
2015
2016
© IDC Source: IDC Digital Universe Study, sponsored by EMC, 2010 Feb-11

21. © IDC Feb-11 21

22. Capturing Real-time Value in a Connected
World
Soft drink system that allows consumers over 100
different product variations
“Made to order” drinks
Sensors report machine state
Data instantly reported to prod development and
marketing (real time research)
Analytics applied to predict demand profiles
© IDC Feb-11

23. LinkedIn Swarm Analysis – Real Time
Visual Analytics
LinkedIn Swarm visualizes LinkedIn’s most recent company and
titles searches, jobs posted, blog entries and shared as a
moving “tag cloud”, or rather a “tag swarm” and it cycles through a
variety of topics automatically.
© IDC Source: http://blog.linkedin.com/2011/01/25/linkedin-swarm/ Feb-11 23

24. Consuming the Right Content at the
Right time - CONTEXT
Cloud • Virtualization
• Convergence
• Context
Mobility
• Commerce
•Sensors
Smart •Decisions
© IDC Feb-11 24

25. Smart in the Wake of Tragedy
Aug 1, 2007, I-35W
Mississippi river bridge
collapsed during rush hour.
5th busiest bridge in the
state, carrying 140,000
vehicles daily.
13 people killed and 145
injured.
The new bridge opened
September 19, 2008 at a
cost of over $200M
© IDC Feb-11 25

26. Smart Technology
323 sensors with nearly 500 channels of information flow possible.
Data file sizes which are being stored each day:
Dynamic data = ~500 MB/day -- SOFO Static = ~7 MB/day -- VW Static = ~0.5 MB/day
These amounts are based on hourly static readings, and dynamic readings at 100 Hz for
accelerometers and 4 Hz for the LPs and strain gages.
© IDC Feb-11 26

27. Last Agenda Item
• Public/Privat
e
Where does it
Cloud
• Security/Priv
acy
all come What is Driving
Conte
nt
• How Much?
• What Kind?
from? Big IT?
Conte • Metadata
xt • Sensors
© IDC Feb-11

28. There is a real cost to store all this
Data – MORE EFFICIENCY is needed
$1.7M = T h e av g. co st to acq uire 1P B of enterprise extern al storag e in 2010
$130K = T h e co st to p o w er an d co ol 1P B of extern al storag e in 2010
180,000PB $5,000M
Installed P B s vs. C ost to Power and C ool
160,000PB (C o n te x t = W W E n te rp ris e E x te rn a l S to ra g e)
$4,500M
140,000PB $4,000M
120,000PB $3,500M
100,000PB $60.79/yr ?? $3,000M
$2,500M
80,000PB
$2,000M
60,000PB $1,500M
40,000PB $1,000M
20,000PB $500M
0PB $0M
2011e
2010e
2012e
2013e
2014e
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Installed base of Ext. Storage WW Cost to Power and Cool
Source: IDC September, 2010 - Doc #225016, “A Plateau in Sight for the Rising Costs Power and Cool the World's External Storage?”
© IDC Feb-11

29. The Need for Information Security
Percentage of the Digital Universe
Lockdown (financial transactions, medical, military)
50% Confidential (trade secrets, customer lists, secret memos)
Custodial (account information – could lead to ID theft)
Compliance (emails that might be discoverable in litigation)
40%
Privacy (email address on a Youtube upload)
30%
20%
10%
0%
2010
2020
© IDC Source: IDC Digital Universe Study, sponsored by EMC, May 2010 Feb-11

30. Billions of Interactions….
Billions of Sensors
B illio n s of C o n n e cte d D e vic e s, 2020
TAM
Embedded 25+ billion 200B Big T hin g s
Other CE 2.0 billion 1-5 x Peo ple
Phones 2.6 billion <1 x Peo ple
PCs 1.9 billion <.5 x Peo ple
© IDC Feb-11

31. Summary and Conclusion
One of the top dynamics driving Big IT: CONSUMPTION
• Cloud enabling massive connectivity
• C onte nt grows at a 40% CAGR to 35ZB in 2020 (Meta data
fastest growing segment – massive management of files)
• C onte xt aware is critical to enabling consumption of the right data
at the right time. (Meta data will be critical in defining context and
optimizing commerce opportunity)
Opportunities upon which to focus:
• A drive for more efficie nc y
• The dire need for se c urity a nd priva c y
• Big Data apps must be cloud-frie ndly
• Ability to manage, analyze, and make decisions on data that is
captured via BILLIO NS of se nsors , devices, and machines – but
must be smart about it.
© IDC Feb-11

32. Thank you!
Please email me at
dreinsel@idc.com
© IDC Feb-11