The Zettabyte Era the Evolution of Data Center Storage

Welcome the Zettabyte Era The Evolution of Data Center Storage

Eyal Bek Vice President, Data Center and Client Computing Western Digital

June 2019

This presentation contains forward-looking statements that involve risks and uncertainties, including, but not limited to, statements regarding our data center products and technologies, expectations regarding data usage and storage, our business strategy, growth opportunities, and demand and market trends. 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.

Key risks and uncertainties include volatility in global economic conditions, business conditions and growth in the storage ecosystem, impact of competitive products and pricing, market acceptance and cost of commodity materials and specialized product components, actions by competitors, unexpected advances in competing technologies, difficulties or delays in manufacturing, and other risks and uncertainties listed in the company’s filings with the Securities and Exchange Commission (the “SEC”) and available on the SEC’s website at www.sec.gov, including our most recently filed periodic report, 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 required by law.

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The volume, velocity, and value of data are increasing

350M - video streaming users in China 694K hours - video streamed on Netflix in one minute 5.5M - views on YouTube and Twitch in one minute 82% - of IP traffic will be video by 2022 (Cisco VNI)*

2020 80% will have more data 5 x of all data will be stored in public clouds data stored in data centers stored in public and than in consumer devices will reach 1.3ZB in 2021 private clouds by 2023

Architectures evolving to meet workload: Scale | Flexibility | Performance

Source: NVIDIA, IBM, Microsoft, Cisco CGI’18.; IDC Data Age 2025

©2019 Western Western Digital Digital Corporation Corporation or its affiliates. or its All affiliates. rights reserved. All rights reserved. *Cisco VNI: https://www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index-vni/white-paper-c11-741490.html 4 Data Center Storage Growth

Estimated Price Curves 20182023 (log scale)

NVMe™ SSD ~6.5x SATA SSD HDD/SSD exabytes

10K HDD ~2x cost Exabytes Exabytes SSD/10K ~10x cost Cap HDD SSD/HDD

Capacity HDD Data Center SSD 2018 2019 2020 2021 2022

Capacity HDDs and SSDs will continue to complement each other

Source: Western Digital TAM modelling, June ‘18

SCALABILITYSCALE FLEXIBILITY PERFORMANCE

2021

2020

2018

ePMR - Energy assisted

PMR recording Capacity Capacity Increase

ePMR (Energy Assisted PMR) technology progression provides capacity, while minimizing risk.

©2019 Western Digital Corporation or its affiliates. All rights reserved. 7 Scalability 100 150 200 250 300 50 0 2018 2019 ©2019 Western Digital Corporation or its affiliates. All rightsreserved. All itsaffiliates.or Corporation DigitalWestern ©2019 Data Center SSD Exabytes Proliferating (Western DigitalEstimate) to match specific needs for 2020 – Form MeetsForm FunctioninEDSFF 2021 capacity points 2022 2023 , edge form factors , cloud

Compute Storage compute , and endurance and storage levels . 8 Preparing for the Next Storage Evolution

SCALABILITYSCALE FLEXIBILITY PERFORMANCE

ePMR

Form to Function

• Host-based SMR delivers maximum HDD Data Center HDD Exabytes* capacity density at technology point 100%

SMR • Unprecedented adoption rate • Wide hardware, software, and application support CMR

0% CY18 CY19 CY20 CY21 CY22 CY23

Customers and the ecosystem have adopted host-based SMR technology which will drive the majority of hard drive storage by 2023.

* Source: Western Digital Internal Projections

• Working with NVMe consortium for standards-based approach • Reduce Write Amplification • Zone-based sequential write model • Lower Overprovisioning • Host assisted garbage collection • Improve • Leverages SMR software stack latency outliers

Zoned Namespaces (ZNS) NVMe SSD

Utilize proven software stack from SMR HDD while delivering Write Amplification reduction, lower overprovisioning, and less DRAM.

SCALABILITYSCALE FLEXIBILITY PERFORMANCE

ePMR SMR

Form to Function Zoned Namespace

> +

Dual Single Single

• Lower Total Cost of Acquisition (TCA) based on shared components • Lower power vs. 2X drives* • Higher capacity HDDs for IOPS-constrained users

Resetting the IOPS/TB access-density graph and providing performance of nearly two drives in single bay.

* Final product specs may differ *Final product specs may differ.

• Cost-effective scaling of RAM resources

• Transparent to applications

• Optimized for: • In-Memory Databases • Commercial and Open Source DB • Virtualization

Near DRAM performance for large in-memory workloads

SCALABILITYSCALE FLEXIBILITY PERFORMANCE

ePMR SMR Dual Actuator

Form to Function Zoned Flash as Memory Namespaces

Developers Standards Bodies

Operating System

Storage and Memory CPU/GPU

MySQLTM DB Apache Cassandra® NoSQL Low latency (NVMe SSD) Capacity HDD and Caching SSD

Millions of users Billions Location services Analytics batch Machine learning of trips dispatch/payment processing to predict trip Object storage times, pricing

A trusted partner delivering innovation across all technologies

Western Digital continues to innovate to help solve data growth storage and data process with efficient SSDs and HDDs

Western Digital, the Western Digital logo, and Ultrastar are registered trademarks ©2019 Western Digital Corporation or its affiliates. All rights reserved. or trademarks of Western Digital Corporation or its affiliates in the US and/or 18 other countries. All other marks are the property of their respective owners. Western Digital Wants to Work with You for the Zettabyte Age

• Ramping 64/96 Layer NAND – In-house development, from controller to NAND • Toshiba and Western Digital Joint Venture – Joint Investment: K1 manufacturing facility near Kitakami, Iwate Prefecture, Japan – Commitment over next 15 years* • Synergy continues to work closely with: – Hyperscale Cloud–SaaS–Telcos–ODMs–OEMs-ISVs–IHVs–and the broader data center ecosystem

HDDs NVMe SSDs SAS SSDs SATA SSDs Memory NAND Extension * https://www.anandtech.com/show/14359/toshiba-memory-western-digital-finalize-fab-k1-investment-agreement