Quick Start Guide for Selling HP Storage Media

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Quick Start Guide for Selling HP Storage Media
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Storage Media What Is It?

• A cartridge which holds a companys data
• like a video tape you use in your VCR
• Used in conjunction with storage hardware
• A cost effective way to backup archive data
• A secure way to archive data
• A consumable supply with over 55 million units
  sold in 2004

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Storage Media Who Buys It?

• Companies who
• Backup data
• Are concerned about data security
• Are audited periodically
• Have a smart disaster recovery plan
• Have laws regulating data storage
• Know disasters can happen
• Basically all companies in all industries of all
  sizes!
• People who
• Are responsible for purchasing
• Are in IT

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Storage Media Why Sell It?

• Market Opportunity
• Every reseller you sell to today has customers
  who use Storage Media
• Every end customer, regardless of size, needs to
  backup, archive and protect data!
• Data is the 1 asset of most end customers
• Protecting data is a concern of every business
  owner
• For every 1 spent on hardware, at least 1.35 is
  spent on media

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Storage Media Why Sell It?

• Sales Strategy
• Media is a consumable
• Media is an annuity sale!
• Media follows the same sales motion as ink
  toner
• Resellers can sell storage media even if they do
  not sell hardware
• Promotions SPIFs!

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Future Trends Information Explosion
A companys electronic information doubles every
nine months. More data will be created over the
next three years than in the previous 40,000
years combined. At some point in its lifecycle,
most data will be copied to removable storage
media. The tape storage paradigm has now evolved
and must accommodate 24x7 operations with high
reliability and less human intervention.
Month 9 18 27 36 45 54
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Future Trends Yottabytes!!!
A typical video store contains about 8 terabytes
of video. The books in the largest library in the
world, the U.S. Library of Congress, contain
about 20 terabytes of text. The Internet Archive
currently has about 1 petabyte of data.
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Future Trends Industry Trends

• Interoperability
• SAN (Storage Area Network) deployment
• Information life cycle management
• Automation/Simplicity
• TCO/ROI
• Archiving Regulations
• All trends will need a foundation of tape and
  media!

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Why HP?HP has the Largest Storage Media
Portfolio in the Industry
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HP The Industry Leader

• Inventor of leading technologies
• DDS and DAT 72 formats
• LTO format
• MO WORM format
• Respected authority on performance and
  reliability testing
• Industry veteran

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Market Overview Technologies

• There are several technologies that make up the
  Storage Media market Ex LTO, SDLT, DDS, etc.
• The primary difference in technologies is the way
  data is written to the tape
• The secondary difference in technologies is what
  we call feeds speeds
• This means the total capacity of the tape and how
  fast data can be written to it
• Customers will order based on the hardware
  investment they have made

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HP The Industry Leader
24 market share
Source Santa Clara Consulting Group, 2004
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Why HP Storage Media?

• 1 in Storage Media
• 1 in Storage Hardware
• Better Together
• Media quality/reliability
• HP brand name
• Competitive price
• Media bid for large end-user opportunities
• Partner engagement
• Extreme testing above and beyond industry
  standards

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HP Tape Drive Portfolio (Feb 05)
Corporate/ networked backup
SUPERDRIVE
Ultrium 460
SDLT 320
Departmental/local network
3849
MID-RANGE
Ultrium 215
3449
DLT VS160
1999
DLT VS80
1699
Office Servers
ENTRY
1199
DAT 72
DAT 24
899
Workstations
599
Prices shown are US List for internal drives
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Storage Media Why They Buy It?
1 Reliability 2 Price 3 Tape Life
Source The Yankee Group, April 2004
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Storage Media Reliability
Reliability

• People with brand preferences clearly prefer HP.
• But ... a higher percentage of people see no
  difference between brands.
• A little education on HP value will make the
  difference

Source The Yankee Group, April 2004
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Storage Media Price
Price

• HP is competitively priced on all strategic
  technologies
• HP price and reliability combination are
  unbeatable
• HP has a Storage Media Bid Desk to provide
  special pricing for large deals
• HP goal is to be 1 in every technology we sell

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Quality Better Together

• HP Drives HP Media
• The Strongest Protection You Can Buy
• Internal hardware expertise and access to
  hardware products for additional testing
  on-going quality evaluation
• Other leading media brands do not manufacture
  hardware and must rely on relationships with
  hardware companies such as HP to manage quality
• HP possesses valuable insight regarding media
  performance and characteristics due to the
  internal hardware design development process

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Quality Better Together

• HP Drives HP Media
• The Strongest Protection You Can Buy
• As a hardware company, HP has greater visibility
  of media performance issues for various brands in
  the field than media manufacturers
• Committed to promoting cross-compatibility, HP
  media is also extensively tested in non-HP
  hardware environments

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Quality Highest Standards

• HP Commitment to Testing
• HPs media specifications far exceed the industry
  standard
• HP concentrates on functional performance, not
  just exclusively on physical propertiesemulates
  real-world environmental conditions and usage
• HP has 20 custom-built test chambers in use
  around the clock
• 70,000 tests and 1.3 million test hours/year

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Quality Highest Standards

• Multiple sourcing All tape is NOT created equal
• With multiple sourcing, HP can choose the best
  media that is available
• HP requires higher quality standards and
  specifications than any other manufacturer
• Dedicated production lines
• Media rejected by HP media is often resold to
  other companies for branding
• Suppliers cannot use refurbished media for the HP
  brand

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Value Unplanned Server Downtime
HP Storage Media is tested to extremes to protect
you from unplanned server downtime

• Server downtime occurs an average of 9 times per
  year and requires 4 hours (average) of recovery
  time
• In one year that is
• 36 hours of IT time spent in data recovery
• 36 hours of lost productivity for everyone
  using the server
• 36 hours of lost accessibility for customers
• Think of the costs
• 1 in 5 organizations will suffer a major IT
  disaster every 5 years

• Source Ipsos-RSL

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Market Overview WW Market Share
HP Leads The WW Market CQ304 Market 289m
1.4
3.2
3.8
6.7
9.4
15.4
15.8
18.8
25.5
Source SCCG CQ3 04
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Market Size Growth
SCCG 2004 Annual Report
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Storage Media Technology Applications
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Technology ApplicationsLTO Linear Tape Open
(AKA Ultrium LTO)
LTO For mid-range to enterprise level
applications requiring fast and frequent backup.
Size range include standalone drives for small
servers to large scale enterprise level libraries
(2-8 drives and 100 to 1,000 pieces of media in a
single library). Up to 800GB in capacity on a
single cartridge (Gen 3). The New Ultrium LTO 3
is Available in RW and WORM LTO refers to the
technology Application Ultrium refers to the
technology format Gen 3 represents the family or
generation of the product
SCCG 2004 Annual Report
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Technology ApplicationsDLT/SDLT Digital Linear
Tape/Super Digital Linear Tape
DLT/SDLT For mid-range to enterprise level
applications requiring fast and frequent backup.
SDLT for higher capacity requirementsup to
320GB. Size range include standalone drives for
small servers to large scale enterprise level
libraries (2-8 drives and 100 to 1,000 pieces of
media in a single library).
SCCG 2004 Annual Report
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Technology ApplicationsMid-Range

• AIT For workgroups and small servers.
  Especially for those customers who require faster
  access times and higher capacities and
  performance.
• Positives Large breadth of product offerings in
  different categories at various price points.
• Negatives Niche market and technology is
  proprietary.

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Technology ApplicationsSmall Server and Desktop
Applications
DDS/DAT For small scale applications where
volume is rather static. Perfect for desktops,
workstations and small servers. Current
generations are DDS-1, DDS-2, DDS-3 and DDS-4.
The introduction of DAT-72 or the 5th generation
of DDS, will open opportunities for upgrading
existing customers within the same technology
family with higher capacities.
Travan/QIC Best for small scale back-up needs
in the SMHO market. Targeted towards low end
servers and laptops where volume is rather static.
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Technology ApplicationsArchival Applications
MO - Magneto Optical For online applications
where record retention and speed retrieval are
key for success. Applications include
government, graphic/printing, medical and
insurance records. Application sizes range from
standalone drives on a desk top to large scale
jukeboxes used in enterprise IT environments. UDO
Ultra Density Optical The next generation of
MO. Provides 33 faster file access than Magneto
Optical.
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WW Technology Technology Share
Source SCCG CQ! 04
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HP Tape Technologies Positioning
Very Large Libraries
Enterprise Networks

• Ultrium
• SDLT

Large Libraries
Multiple Servers

• SDLT
• Ultrium
• AIT 3

Medium Libraries
Single Server

• DAT 72
• DDS-4
• DDS-3

Small Libraries

• DDS-2
• DDS-1
• Travan

Desktop
Compact Libraries
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Target Customers
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Product Portfolio and Relationships
Ultrium 800
60MB/sec
Ultrium 460
30MB/sec
SDLT 600
24MB/sec
12MB/sec
VS160
SDLT 110
6MB/sec
50GB
100GB
150GB
200GB
400GB
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Top Revenue Generating End User Segments
(11/03-4/04)
Banking generates more than twice as many sales
as the next closest industry
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International Compliance Regulations
Basel II Capital Accord
Canadian Electronic Evidence Act
Electronic Ledger Storage Law (Japan)
SEC 17a-4 (USA)
HIPAA (USA)
11MEDIS-DC (Japan)
ISO 18501/18509
AIPA (Italy)
FDA 21 CRF Part 11
GDPdU GoBS (Germany)
NF Z 42-013 (France)
Sarbanes-Oxley Act (USA)
Public Records Office (UK)
Financial Services Authority (UK)
BSI PD0008 (UK)
Explosive growth in Fixed-Content Storage
Market Yankee Group estimates content storage
growth from 160M to 1.6B (2002 to
2006) Industry regulators driving enterprises to
establish data-retention policies 10,000
regulations in the US alone
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Better TogetherHP StorageWorks Hardware and HP
Storage Media

• Why HP Storage Media
• HP is the world wide storage media provider with
  24 market share
• HP exceeds industry standards for media
  specifications, qualification testing and ongoing
  quality assurance.
• HP designs and tests all hardware and media
  together
• HP conducts the most rigorous quality control
  programs and audits of supplier production lines.
  
• HP rejects are resold to other companies.
• HP offers the largest branded tape media
  portfolio in the industry today.
• HP does not purchase recycled media.

• Benefits of Better Together
• Creates unlimited repeat business
• Adds value to HP by selling the total storage
  solution
• Creates a single support source
• Prolongs longevity and maximizes ESL performance
• Big Deal pricing for better value and
  differentiation
• HP Storage Media is profitable to HP and YOU
• Bundle opportunities available

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Market Overview WW Market Projections
12
LTO CAGR 29 SDLT CAGR 28 AIT CAGR 14
15
14
17
11
7
Source SCCG 2004 Annual Report May 2003
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WW Super Tape Drive Unit Forecast
Source Gartner 2004
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The Importance of Reliable Storage Media

• People are relying on tape more than ever
• Increasing compliance regulations require more
  stringent data-archiving practices.
• Many people have experienced data loss due to
  unreliable media.
• Reliability drives buying decisionsits the No.
  1 purchase factor.

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What is WORM

• Write Once Read Many For archiving and
  regulatory requirement applications
• Why Worm Tape
• Magneto Optical has long been accepted as
  immutable medium
• Existing WORM tape solutions, e.g. from STK, IBM,
  AIT are now considered valid alternatives to MO
• WORM tape provides the benefits of
• Low cost/GB
• High capacity and storage density
• Scalability
• Low capital investment costs (uses mainstream
  backup libraries)
• Long archive life
• Ultrium LTO 3 is available in RW and WORM

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HP Offers World Class Support

• Limited lifetime warranty on almost all storage
  media
• Lowest return rate of all HP products
• Large portfolio of drives and media
• Prelabeled media available
• Long-term roadmaps
• Support for current as well as retired products
  (Travan, DDS-1, early MO)
• Committed to new tape and optical technology
  development
• Channel strength
• Competitive pricing

HP storage supplies security for your customer
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Sales Motion Opportunity

• Sales Motion
• Product specified by IT
• First purchase made by IT and/or purchasing
• Subsequent purchases normally made by
  purchasing
• May differ for SMB
• Beyond Technologies Opportunity
• Leverage existing ink/toner sales relationships
• Partner with HP for special end-user pricing
• Selling Advantage
• PurchasEdge
• HP prefers channel sales for storage media

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Install Base HP is the Leader

• 1 in Tape Drives 32
• 1 in Automation 26
• 1 in Media 24
• Overall tape backup market is 2.45b
• Tape Drives 1.05b
• Media 1.40b
• Leading the industry initiative for open,
  standard tape format with Ultrium LTO
• Hardware, software and services for entire data
  protection infrastructure

NOTE Check with your HP rep and
suppliesinfo.com for the latest stats on HP
storage media market share.
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Why you should sell HP

• Unlimited Sales Opportunity
• Largest install base
• Increasing amounts of data
• Compatibility
• Good Business Partnership
• Competitive pricing
• Incentive programs
• Higher margin dollars

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Links More Information on Storage Media

• www.suppliesinfo.com
• - Product Data/Compatibility Sheets and Sales
  Tools
• - Latest HP media products/news
• - Latest HP market share
• - Instructor Led Training (ILT)
• www.hp.com/go/storagemedia
• - Main link from hp.com
• - Links to hardware products
• www.purchasedge.com
• - Main link from suppliesinfo.com

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Storage is becoming the absolute center of IT
Infrastructure servers are becoming the
peripherals.

• Carl HoweForrester Research