Sales Presentation DS 3500 Express the

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Storage Is At The Heart Of Today’s IT Challenges § Information is critical to a company’s success – It must be stored, protected and available when needed – Application performance can create a competitive advantage § Server virtualization places unique/complex demands on storage – Number of virtual machines often dictated by capabilities of storage § Data growth is certain – IDC predicts 500% over next 4 years – Gartner predicts 650% over next 5 years – SLA’s must continue to be met through growth § Budgets cannot keep up – IT looking for ways to reduce acquisition and operational costs © 2010 IBM Corporation

Your Mission: § With every Modular System x server, Blade. Center, or Power Systems servers sold, a DS 3500 should go out the door § Individually, these modular servers and the IBM System Storage DS 3500 are exceptionally compelling for your customer and you! § The VALUE comes in their combination and helping your customers solve their business challenges with the RIGHT choice!! Ensure that your customer gets the most out of the server purchase by suggesting a DS 3500 Express! 5 © 2010 IBM Corporation

Challenges of Internal Storage § Customers are growing beyond the limits of internal storage – Data is spread across multiple servers – Wasted capacity, duplicated functions, and inefficiencies § Data is not being shared – Storage is held captive to the server which it is attached to – Unbalanced utilization and limited access to data across the organization § Data availability is vulnerable – Each internal storage configuration is reliant on the host to which it is attached, creating data protection inconsistencies § Further constrains IT budgets – Over-using the capacity on some internal storage devices and under-using the capacity on others = failing to fully leverage the current drive investment § Inefficient management of data and limited features – Manage dispersed and complex data protection schemes – Other IT projects are delayed as more time is spent managing isolated data © 2010 IBM Corporation

DS 3500 to the Rescue! With its low-cost and simple management, the DS 3500 is an ideal “my first external storage" solution for current DAS configurations! Marketing HR Internal storage 7 Finance/Sales (virtual servers) Consolidate internal storage Product Mgmt Internal storage © 2010 IBM Corporation

Market Demands Increased reliance on consolidated storage Today’s demands – availability 24/7/365 Lack of IT expertise demands simplicity Demands are increasing, budgets are not Productivity and competitiveness relies on it Data value is increasing and protecting it is critical Industry standards and customer retention calls for it Simplicity and low-cost is key to support these sites Slow or no plan leaves data exposed / reduced flexibility © 2010 IBM Corporation

IBM Entry-Level And Midrange Storage Positioning DS 5100, DS 5300 • FC, i. SCSI connectivity • (480) SSD, FC, SED, SATA drives • EXP 5000 (16 drives) or new EXP 5060 (60 drives) expansion units DS 5020, DS 3950* • FC, i. SCSI connectivity • (112) FC, SED (DS 5020 only), SATA drives • EXP 5020 (16 drives) expansion unit DS 3500 • FC, SAS, i. SCSI connectivity • (96) SAS, SED-SAS, NL-SAS drives • EXP 3512 (12 3. 5 -in drive), EXP 3524 (24 3. 5 in drive) expansion units DS 3200, DS 3300, DS 3400 • FC, SAS, i. SCSI connectivity • (48) SAS, SATA drives • EXP 3000 (12 drive) expansion unit SMB / Entry-level • • SAS, i. SCSI connectivity DAS/shared DAS/IP SAN Simple management Snapshot replication Workgroup • • i. SCSI, FC connectivity Shared DAS, small SAN Simple management Snapshot replication Department • • • Data Center FC, i. SCSI connectivity Homogeneous SANs Performance value Configuration flexibility Local/remote replication • • • FC connectivity Heterogeneous SANs Highest performance Configuration flexibility Local/remote replication HPC • • • FC connectivity System clusters GPFS Maximum bandwidth Capacity density * DS 3950 not available in North America © 2010 IBM Corporation

IBM System Storage™ DS 3500 Express 6 Gbps SAS-based storage system § Next generation entry-level storage system featuring 6 Gbps SAS technology, improved performance, concurrent i. SCSI/SAS or FC/SAS host connectivity, increased scalability and enhanced features Benefits § Affordable entry-point with midrange performance, scalability and features § Green efficiencies reduce energy expenditures § Extensive suite of Microsoft and VMware solutions § Ease-of-use built into a powerful and intuitive management software § Multi-protocol connectivity support concurrent DAS / SAN § Balanced performance ideally-suited for mixed workloads and virtualization § Enhanced security features provides relentless data protection © 2010 IBM Corporation

DS 3500 Overview § Three interface options – SAS, FC/SAS, i. SCSI/SAS – Four or eight 6 Gbps SAS host ports – Eight 8 Gbps FC ports and four 6 Gbps SAS host ports – Eight 1 Gbps i. SCSI ports and four 6 Gbps SAS host ports § Up to 96 SAS drives – High performance SAS, nearline SAS, and self-encrypting SAS – EXP 3512 (2 U 12 3. 5 -in drives) and EXP 3524 (2 U 24 2. 5 -in drive) § Optional Turbo Performance Feature § IBM DS Storage Manager – Robust and intuitive storage management – Enhanced remote mirroring across FC host ports 3. 5 -in 2. 5 -in © 2010 IBM Corporation

DS 3500 Unique Value 6 Gbps SAS storage system delivers mid-range performance and scalability attributes at entry-level prices § Double the performance and capacity of the DS 3000 series – Meets performance requirements with fewer drives – Achieved at an affordable price point – Easier than ever to keep up with increasing performance and capacity demands IOPs (Reads) DS 3000 – 20, 000 DS 3500 Base – 30, 000 DS 3500 Turbo – 40, 000 Throughput (Reads – MB/s) DS 3000 – 940 DS 3500 Base – 2, 000 DS 3500 Turbo – 4000 Capacity DS 3000 – 96 TB (48 2 -TB SATA drives) DS 3500 – 198 TB (96 2 -TB NL SAS drives) Performance – disk reads © 2010 IBM Corporation

DS 3500 Unique Value Green Efficiencies: Get More, Pay Less § Designed to meet multiple power efficiency standards § Exceptional drive utilization meets performance requirements with fewer drives – Reduces power consumption and heat dissipation § Lower overall power consumption / heat dissipation with 2. 5 -in. drives Power Consumption DS 3000 – 1, 444 watts (48 drives, 4 enclosures) DS 3512 – 1, 210 watts (48 drives, 4 enclosures) DS 3524 – 570 watts (48 drives, 2 encl) = $ Low power consumption Runs cooler A single DS 3524 can save over $1, 600 annually in energy expenses © 2010 IBM Corporation

DS 3500 Unique Value Widest range of leading interface options increases flexibility and choice SAS Benefits Affordable shared DAS Simple Great performance Target Markets/Applications Integrated rack solutions Single room data centers Small server / Blade. Center consolidations Virtualization and MS applications i. SCSI Smaller departmental SAN use Low-cost storage network Pervasive and well understood Extensive reach FC Proven and mature technology 16 Performance and reliability Investment protection with auto-link speeds Department and remote sites Tier 2 server consolidation Moderate traffic demands Virtualization and MS applications Current FC SAN implementations Midrange/enterprise data centers Backup and recovery implementations Heavy traffic demands Virtualization and MS applications © 2010 IBM Corporation

DS 3500 Unique Value Multi-protocol support provides consolidation flexibility to increase efficiencies and lower cost § Concurrent i. SCSI/SAS or FC/SAS host connectivity – Use interface best suited for the server and/or I/O type § One storage system to meet a variety of applications’ demands Secondary dispersed servers on 1 Gbps i. SCSI SAN 17 Local production servers on 6 Gb SAS Primary dispersed servers on 8 Gbps FC SAN Blade Center on 6 Gb SAS © 2010 IBM Corporation

DS 3500 Unique Value Extensive intermix capabilities meet application and energy requirements with the least investment • Intermix EXP 3512 and EXP 3524 enclosures • 2. 5” drives for IOPS-intensive applications • 3. 5” drives for cost-effective capacity • Intermix drive types within enclosures • SAS, NL SAS and SED SAS • Drive intermix reduces multiple storage systems down to one to meet a range of workload requirements $ DS 3500 Controllers EXP 3512 (3. 5 -in drives) 15 K SAS Tier 1 7. 2 K NL SAS Tier 2 SAS SED Security EXP 3524 (2. 5 -in drives) 15 K SAS / 7. 2 K NL SAS SED Tier 1 Tier 2 IOPs-Intensive Energy Efficient © 2010 IBM Corporation

DS 3500 Unique Value High Availability – Always on Data Hardware • • • Fully-redundant I/O paths with automated failover Dual-active, hot-swappable controllers and components Data cache is mirrored, battery backed, destaged to flash Global hot spares Hardware-assist RAID 6 Software • • Reconstruct read data for slow drives Enhanced first time data capture Extensive diagnostic and statistics collection Media scan with automated parity correction Data Availability = $ Productivity, Customer Satisfaction, Retained Revenue © 2010 IBM Corporation

DS 3500 Unique Value Intuitive and a powerful management that does not sacrifice control – ensuring investment protection with mirroring § Enhanced and powerful capabilities built into the software with the new DS Storage Manager § Common interface across the DS 5000, DS 4000, DS 3500 and DS 3000 – Reduced learning curve – Centralized management of multiple storage systems from any location § Increased replication, consolidation, security, and dynamic tasks § Physical view of the storage system § Enhanced remote mirroring now supported across FC host ports and compatible with DS 5000 © 2010 IBM Corporation

www. ibmdsseries. com Key Value Propositions Cost-effective performance and flexibility for Microsoft environments § Benchmark proven performance delivers scalable performance – Up to 55, 000 Exchange mailboxes – Hyper-V mixed workload tests – SPC-validated OLTP and OLAP performance for SQL Server § Realize full benefit of Microsoft functionality – VDS/VSS compatibility simplifies backups – Distributed Cluster Storage Failover (DCSF) integration enables remote failover for Windows clustering – System Center Operations Manager (SCOM) management pack enables alerting and monitoring of DS 5000/DS 3000 through SCOM console § Modular design ideally-suited for growing environments – Exceptional performance value with enterprise-class reliability 21 © 2010 IBM Corporation

www. ibmdsseries. com Key Value Propositions Extensive interoperability testing ensures infrastructure / application compatibility § Operating Systems – AIX 5. 2 -6. 1, Windows Server 2003 -2008, Red Hat Linux 4. 6 -5. 5, SUSE Linux 10. 2 -11. 0, IBM i 5 OS 6. 1 -7. 14, VMware ESX 3. 0 -4. 1, VIOS 1. 5 -2. 1, Solaris, HP-UX, Netware 6. 5 – Over 120, 000 combinations of HBAs, switches, routers in interop matrix § Key infrastructure applications – VMware – v. Center plugin; SRM; v. Motion; DRS – Oracle – Enterprise Manager plugin; RAC; ASM; RMAN, Smart Flash Cache – Microsoft – VSS/VDS; SCOM; DCSF; SQL Server Management Studio add-in – SAP – Net. Weaver Business Warehouse (BW) Accelerator 22 © 2010 IBM Corporation

www. ibmdsseries. com Key Value Propositions Strategic alliance partnering enables storage wins at end user sites with multi-vendor infrastructures § Leverage the install base of alliance partners § Leverage industry leaders to compete effectively § Enhance the DS 5000/DS 3000 data protection offering – Remote IP replication – Fast application recovery – Deduplication – Integrated SRM 21 -page Sales Guide 23 © 2010 IBM Corporation

www. ibmdsseries. com DS 3500 Unique Value Delivers highly integrated IBM server and storage solutions § Full testing and integration with IBM System x, Blade. Center and Power Systems servers – Worry-free compatibility - proven and reliable technology working together – Smooth and quick implementation of servers and storage • Integrated into IBM Systems Director multi-platform management solution – Flexible financing through IBM Global Financing – Single warranty and support provider! 24 © 2010 IBM Corporation

IBM System Storage™ DS 3500 Express. . Join the Evolution § Next generation 6 Gbps SAS entry-level storage system Scalability to midrange performance and features starting at entry-level prices Green efficiencies reduce energy expenditures Simplicity built into a powerful and intuitive management software Increased efficiencies reduce TCO and resources Security and protection avoids data loss and breaches The right solution at the right time – complement to many leading applications and System x, Blade. Center and Power Systems servers 25 © 2010 IBM Corporation

How Selling the DS 3500 Benefits You Revenue impact of selling Storage § All customers need storage – Internal storage limits reached soon after purchase – Data continues to grow at a rapid pace – Customer and/or legal requirements for storage and securing of data § If the DS 3500 is not included at the time of the server purchase… – IBM not perceived as a ‘total solution’ provider or SMB friendly – A customer is more likely to ‘price hunt’ – You have lost an ongoing revenue stream 27 © 2010 IBM Corporation

How Selling the DS 3500 Benefits You Revenue impact of selling Storage (cont’d) § Storage can increase your revenue and profit – Increased transaction size and margin – Achieve quota more quickly – Develop a trusted advisor relationship – Incremental warranty and services revenue – Take advantage of spiffs and KYI offerings! § The DS 3500 provides an on-going revenue stream – Consolidating storage provides a level of expandability and scalability – For every storage system, HBAs, licenses, drives, expansion units and switches are also sold 28 © 2010 IBM Corporation

DS 3500: A Large Component of Your Overall Sale $ A DS 3500 configuration can account for almost half of a complete System x and storage solution sale! Item List Price System x Configuration Only $ 12, 490 Addition of DS 3500 Configuration $ 12, 144 Total Potential Sale $ 24, 634 29 * Estimated entry price configuration includes lowest priced system with 5 1 TB NL SAS drives © 2010 IBM Corporation

How Selling the DS 3500 Benefits Your Customer § A Common Scenario for the DS 3500 – Internal storage, at first glance, is often the configuration-of-choice due to its low initial cost investment and simplicity Organizational growth Marketing Finance/Sales (virtual servers) HR Internal storage Product Mgmt Internal storage § However, as business grows… ► ► Additional servers are added with each server housing their own internal storage This creates islands of storage with data isolated to the drives housed within each individual server © 2010 IBM Corporation

DS 3500 – Why Would Your Customers Buy? 1. Midrange attributes that meet entry-level budget – Midrange performance and capacity priced for the entry user – Seamlessly adapts to changing business and technology needs 2. Simple yet powerful – Intuitive and robust management that does not sacrifice control – Common management interface across DS Storage Mgr platform 3. Flexible connectivity and drive types increase consolidation and reduce costs – Field-installable host daughter cards as your network evolves – Mixed drive type and enclosure intermix meets a range of applications 4. Green efficiencies reduce environmental footprint and reduce cost – Superior performance efficiency meets requirements with fewer drives – Power efficiency standards and 2. 5 -n drives reduce power consumption 5. Complete solutions from one vendor – Seamless integration with System x, Blade. Center and Power Systems servers – Flexible financing, single warranty and support provider 31 © 2010 IBM Corporation

Use Your LSI Sales And Technical Resources § Dedicated team that only supports IBM and IBM Partners – Territory, DRC, Distributor, Federal, ISV, Solutions and Platform teams in place – Average 15 years storage experience – Most are former IBMers. § What can the LSI team do for me and my partners? – Enablement and education – from Ln. L to “hands on” technical training camps – Solution and configuration assistance – Storage Manager software demonstrations – local or via Webex – Competitive assistance – Marketing Help • Event support, demand generation, telemarketing, creative services § Call to Action – Contact LSI BDE(s) in your region – Introduce the LSI team to your partner accounts – Bring the LSI team into partner opportunities to help close them faster 33 © 2010 IBM Corporation

LSI Resources Dedicated to IBM EMEA • CEE § UKI • France Martin Bruce, Business Development Executive Predrag Teofanov, Business Development Executive Tel: +44 7900 914 426; martin. bruce@lsi. com Rick Newland, Technical Consultant Tel: +34 629 4089 08; predrag. teofanov@lsi. com Michael Tischendorf, Technical Consultant Tel: +44 7712 768 657; richard. newland@lsi. com Tel: +49 1728944603. michael. tischendorf@lsi. com • RCIS Predrag Teofanov, Business Development Executive • § Germany, Switzerland & Austria Uwe Falk, Business Development Executive Tel: +34 629 4089 08; predrag. teofanov@lsi. com Tel: +49 172 8656346; uwe. falk@lsi. com Michael Tischendorf, Technical Consultant Jens Gerlach, Technical Consultant Tel: +49 175 1839950; jens. gerlach@lsi. com Thomas Gruber, Technical Consultant Tel: +49 1728944603. michael. tischendorf@lsi. com Thomas Gruber, Technical Consultant Tel: +49 89 458 33 325. thomas. gruber@lsi. com Tel: +49 89 458 33 325. thomas. gruber@lsi. com • MENA & SSA Deniz Ozisik, Business Development Executive § Nordic Jansson, Business Development Executive Tel: +46 70 304 7150, jansson@lsi. com Tel: +44 7827 291621; Deniz. Ozisik@lsi. com Mohinder Toor, Technical Consultant Tel: +44 7714 -342700; Mohinder. Toor@lsi. com Daniel Lowgren, Technical Consultant Carine Roman, Business Development Executive Tel: +33 (0)6 74 51 51 72, carine. roman@lsi. com Laurent Dubois Gaché, Technical Consultant Tel: +33 (0)6 77 00 15 64, laurent. duboisgache@lsi. com SPIG Lorena Nieto, Business Development Executive Tel: +34 918 379 640, lorena. nieto@lsi. com Alberto Perez, Technical Consultant Spain, Portugal Tel: +34] 675 87 29 03, alberto. perez@lsi. com • Italy and Turkey Andrea Fumagalli, Technical Sales Executive Tel: +39 335 144 1419, andrea. fumagalli@lsi. com Laurent Dubois Gaché, Technical Consultant Turkey Tel: +33 (0)6 77 00 15 64, laurent. duboisgache@lsi. com • Benelux Carine Roman, Business Development Executive Tel: +33 (0)6 74 51 51 72, carine. roman@lsi. com Thomas Gruber, Technical Consultant Tel: +49 89 458 33 325. thomas. gruber@lsi. com Tel: +46 70 337 8784, Daniel. Lowgren@lsi. com • LSI EMEA Oksana Braune, Business Development Manager Tel: +49 173 3882890; oksana. braune@lsi. com Marco Pozzoni, Field Marketing Manager Tel: +39 335 625 8061, marco. pozzoni@lsi. com © 2010 IBM Corporation

DS Series Portal - § Your one stop shop for all DS 3500 collateral! – www. ibmdsseries. com Just register one time and you will have access to all IBM DS 5000, DS 4000 and DS 3500 presentations, sales tools and DS Storage Manager simulators at the tip of your fingertips! 35 © 2010 IBM Corporation

DS 3500 Interoperability Matrix § DS 3000 MTMs & Options covered by the matrix § § What comes in the box with the system § § § 37 Supported HW & SW options by DS 3000 MTM Operating System Support Server Support HBA Support Fabric Support HDD Support Available Service. Pac Options © 2010 IBM Corporation

DS Storage Manager Simulator Let your customer experience first-hand the control and ease of the DS Storage Manager § Effectively sell the “ease of use” to manage more with less § Onsite selling tool ► ► ► 38 Utilize automated tools for quick to demonstrate quick setup and configuration Show customer application environment Simulate customer environment with custom configurations © 2010 IBM Corporation

Become a world-class resource for your customers, colleagues and company. § Visibility for increased service and sales opportunities § Valued quality and competency for customer satisfaction § Advantage over your competitors For more information on IBM Storage Certifications go to: http: //www. ibm. com/certify Storage Certification is changing from many product specific certifications to fewer role specific certifications based upon the market segment served (High Volume, Midrange, and Enterprise). This transition will continue through July 31, 2010. Storage Sales Combined (v 1) #000 -200 Storage Sales Specialist has a broad knowledge of the features, functions and benefits of IBM storage solutions and the IBM storage portfolio, including disk, tape, storage management software, NAS, SAN and virtualization, as well as an understanding of competitive offerings. Midrange Storage Technical (v 1) #000 -201 The Storage Midrange Specialist has a broad knowledge of the features, functions and benefits of IBM storage solutions and the IBM storage portfolio, including disk, tape, storage management software, NAS, SAN and virtualization, as well as an understanding of competitive offerings used in the midrange customer segment. Enterprise Storage Technical (v 1) #000 -202 The Enterprise Specialist must have a broad knowledge of the features, functions and benefits of IBM storage solutions and the IBM portfolio including disk, tape, storage management software, NAS, SAN, and virtualization commonly used in the enterprise customer market segment as well as an understanding of competitive offerings. High Volume Storage Fundamentals (v 1) #Coming Soon! The IBM High Volume Storage Specialist has a wide range of technical knowledge about entry level and selected midrange storage products and has the skills to integrate those products into customer solutions. 39 © 2010 IBM Corporation

How to get there… 1. 2. 3. 4. 5. Review certification descriptions and pre-requisite skill requirements • Determine a match between skills and appropriate certification Review Test Objectives • Review the skills and topics covered on the test Take the Assessment Test (optional) • • Practice a similar certification test $10 on certification site Pinpoint areas of weakness Gain knowledge and practical experience • • • Attend Classes and review self-study materials Refer to various resources Utilize a mentor or gain on-the-job practical experience Register for your exam • Via the IBM certification website for a time to take the exam at a local Prometric site ($150 USD) Test Language: English Scoring: Results immediately calculated and sent to IBM for notification Retakes: May be only taken two times in a 30 day period For more information on IBM Storage Certifications go to: http: //www-03. ibm. com/certify/certs/sm_index. shtml 40 © 2010 IBM Corporation

Why Selling Storage Adds Customer Value § Selling Storage elevates your role at the customer – Not just pushing another box – Expands your scope into other departments and solution requirements § Effectively positioning and selling our storage solutions creates future sales opportunities – Think of storage as an annuity – If you take care of your customer they will keep calling you for more 43 © 2010 IBM Corporation

Why Sell IBM DS 3500 Storage with Every Server? § All servers need storage! § If you don’t sell storage someone else will! § An easier way to exceed your revenue and profit targets! Attach storage with every server that goes out the door, and Attack the Competition! 44 © 2010 IBM Corporation