emulex corporation cq2 2011 emulex confidential. 2 © 2011 emulex corporation emulex corporation...
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Emulex Corporation
CQ2 2011
EMULEX CONFIDENTIAL
2© 2011 Emulex Corporation
Emulex Corporation Overview
Founded in 1978
Based in Costa Mesa, CA
Employees Approx. 980
NYSE Symbol - ELX
2010 Revenue $399 MM
Q3:11 Revenue $112.1 MM
Q3:11 Net Cash $182.8 MM
Corporate Facts
3© 2011 Emulex Corporation 3
One intelligent data center network that connects individuals to information, users to collaboration, applications to data and companies to customers.
Our Vision
4© 2011 Emulex Corporation
Emulex Strategy
Be #1 in Host Ethernet Connectivity by leveraging OEM LOM wins for Adapter sales
Expand Fibre Channel share by leading protocol transitions and leveraging portfolio sales
Drive brand preference with new software offerings that simplify management in cloud and virtualized environments
Expand server footprint with I/O and management controllers
5© 2011 Emulex Corporation
Emulex Product Portfolio
Unified Control Server Management Advance Services
Storage I/O & SSD Expanded Targets SAS to FC Routing
Fibre Channel10GbE ConvergenceSecurity I/O
Embedded
EnterpriseI/O
ManagementServices
6© 2011 Emulex Corporation 6© 2011 Emulex Corporation
Broad Connectivity Portfolio
8Gb/s HBAs
10Gb/s CNAs
8Gb/s Blade
4Gb/s HBAs
4Gb/s Blade
10Gb/s Blade
10Gb/s NIC
10Gb/s “Integrated”
8Gb/s OneSecure
FCoEFCoE
7© 2011 Emulex Corporation
Fibre Channel Market Driver
8 Generations of Fibre channel Choice of Tier 1 OEMs
10+ Million Ports Installed3 Quarters Share Growth
1Q10 2Q10 3Q10 4Q1020%
30%
40%
50%
36% 37% 39% 41%
Source: Dell’Oro Calendar Q3-2010 report released (updated 1/11/11)
LP6k LP8k LP9k
LP9800 LP10k LP12kLP11k
LP7k
8© 2011 Emulex Corporation
Emulex LightPulse LPe1200xKey Features
Exclusive Compliance FeaturesEncryption-ready with advanced security featuresEnhanced end-to-end data integrity
Over 30% Better Performance37% better dual-port scalabilityCreate 35% more vPorts Powers the #1 fastest database system*
50% More Efficient ManagementCentralized management (GUI, CLI, Browser)vCenter plug-in for integrated VMware management2x functionality—diagnostics, troubleshooting featuresUniversal boot capability and superior UEFI
9© 2011 Emulex Corporation 9© 2011 Emulex Corporation
Broad Platform Support
Dedicated OS-centric development and testing teams
Active engagement with platform developers and platform communities
– Ongoing coordination ensures “single” drivers are supported across OEMs and OS vendors
Developing next generation enhancements
Stable and robust driver design– Hardware and software interoperability testing– Platform Certified/Qualified Drivers– Qualified by server and storage vendors
Collaborative post-sales support network
10© 2011 Emulex Corporation
Virtualization Leadership
PlatformSupport
VMware ESXCitrix XenMicrosoft Hyper-VOracle VMSolaris ContainersNPIV integration
Optimized Management
OneCommand Manager for VMware (vCenter Plug-in)
Performance
More concurrent NPIV portsVM zoning and access controlQoS admin
Resources
SAN Virtuosity web series and papersEmulex Implementer’s Solution SeriesChalk Talks
11© 2011 Emulex Corporation 11© 2011 Emulex Corporation
Increase Server Reliability
LPe12002 operates 27◦ F cooler than QLE2562
Reduces heat stress and thermal cycles
Increases server reliability and SAN availability
QLogic QLE2562Emulex LPe1200280
85
90
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100
105
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145
150°F
A01
Max = 121○ F Max = 148○ F
150
8080
85
90
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100
105
110
115
120
125
130
135
140
145
150°F
A01
140
130
120
110
100
90
◦ Fa
hre
nh
eit
12© 2011 Emulex Corporation 12© 2011 Emulex Corporation
Network Convergence
Ethernet is a “best-effort” network– Packets may be dropped– Packets may be delivered out of order
• Transmission Control Protocol (TCP) is used to reassemble packets in correct order
Data Center Bridging (aka “lossless Ethernet”)– The “bridge to somewhere”—pause-based link
between nodes– Provides low latency required for FCoE support– Cisco: Data Center Ethernet (DCE) – HP, IBM, Dell and Brocade: Convergence
Enhanced Ethernet (CEE)
13© 2011 Emulex Corporation
Cutting Cost
After Convergence
Before Convergence100%
CA
PIT
AL
28%
PO
WE
R
42%
CA
PIT
AL
PO
WE
R
CA
BLE
S
CA
BLE
S
80%
14© 2011 Emulex Corporation
Performance Is the Biggest Issue With 1GbE...
Series1
0% 10% 20% 30% 40%
IT Brand Pulse Convergence Survey - April, 2010
“The primary issue I have with 1GbE NICs today”Other
Lack of NIC reliability
1GB is not enough network bandwidth
NIC Teaming
I have so many 1GbE ports in my data center that keeping track of firmware and
firmware updates are hard to manage
I need so many 1GbE NIC ports that I'm becoming PCI slot constrained
15© 2011 Emulex Corporation
…Because of Server Virtualization
Xeon Servers
10Gb FCoE Storage
10Gb iSCSI Storage
Server Virtualization
10Gb NAS
HPC Clusters
10Gb LANs
Other
0% 5% 10% 15% 20% 25% 30% 35% 40%
IT Brand Pulse Convergence Survey - April, 2010
“The application in my data center that will drive the adoption of 10GbE is…”
16© 2011 Emulex Corporation
The Migration from 1GbE to 10GbE Is Underway
Series1
0% 5% 10% 15% 20% 25% 30% 35% 40%
IT Brand Pulse Convergence Survey —April, 2010
“The status of my migration…”
I should be investigating 10GbE technology but I have been too busy
I don't believe I need 10GbE technology so there is no need for me to pursue it at this time
I am in the process of investigating 10GbE technology and products
I have already deployed 10GbE products
17© 2011 Emulex Corporation
Server OEMs Select Emulex for Convergence
PickedEmulex for
10GbEServer I/O
UnifiedFabric
PickedEmulex for
10GbEVirtualization
PickedEmulex for 10GbE NAS,
ISCSI & FCoE
18© 2011 Emulex Corporation 18© 2011 Emulex Corporation
EnterpriseManagement
OneCommand Core and Advantage Series
OneCommand Enterprise Convergence Suite
Core Series AdvantageSeries
OneCommandManager
Installers
Offline Utilities
Provisioning APIs
OneCommandVision
OneCommandGuardian
OCM for VMware
ElementManagement
I/O Svcs
19© 2011 Emulex Corporation
Why Emulex?
10Gb Ethernet Leader• Emulex is #1 in Host Ethernet Connectivity • 9 out of 10 OEMs have chosen Emulex
Performance Leader• Emulex leads the way in multiprotocol offload• HBAs have 37% better IOPS & 15% greater transactions perform.
Management Leader• OCM has 2x the features; increased efficiency cuts OPEX in half• OCV delivers I/O visibility in virtualized data centers
Fibre Channel Leader• Emulex has over 10 million Fibre Channel ports installed• The choice of all Tier 1 OEMs
20© 2011 Emulex Corporation
The Channel Is Strategic to Emulex…
Provide Global Presence Path to IT Customers
Champions of TechnologyOver 60% of OEM Revenue
21© 2011 Emulex Corporation
New Emulex Connect Program Elements
Bigger SPIFs, Faster Claims, Higher Margins
ConvergenceConversations Training
New Connect+ Partner Distinction
MyEmulex.Com
Emulex ExpertOnline Training
New LinkedIn & I/O Blender Communities
22© 2011 Emulex Corporation
Emulex Channel Commitment
New Claims System
Connect+ Incentives
Deal Registration
Joint Marketing / MDF
Bigger SPIFs, Faster Claims, Higher Margins
Focus on 10GbE
Increased Discounts
Mutual Commitments
Driving Convergence
Connect+Partner Distinction
Expanded Online Training
Sales Track
Technical Track
Required for Connect+
EmulexExpert
Enhancing Our Partner Business Model!
23© 2011 Emulex Corporation
Emulex Channel Commitment
Key Trends
New Technologies
Lead Generation
Open New Dialog
Convergence Conversations
LinkedIn Channel Forum
I/O Blender.com
Drive Open Discussion
Emulex Participation
New PartnerCommunities
Generational Change
24/7 Support
Open Communications
Creating Communities
SocialMedia
Enhancing our Partner Business Model !
24© 2011 Emulex Corporation
MyEmulex.com Connect Partner Portal
Emulex Connects Our Partners to
the Converged Networking
Community
– Engaging sales tool and co-branding
marketing resources
– Interactive social media forums via
blogs, podcast, LinkedIn and YouTube
– Influential partner and end user
community to attract customer/peers
– Generous sales cycle based rewards,
deal registration and SPIFF
25© 2011 Emulex Corporation