Verari Systems, Inc'

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Verari Systems, Inc.
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Company Overview
Verari Systems, Inc. - The premier provider of
powerful, flexible and scalable
platform-independent blade server, workstation
and storage systems that are defining a new era
in high performance, utility computing
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Verari Systems, Inc.Company Overview

• Fast growing company, nearly doubling revenue
  annually, profitable the last four years, with
  approx. 100,000,000 2004 revenue target
• 5th-largest x86 server systems provider in the
  United States
• (IDC Top 10 US Vendors, 3Q 2003 Preliminary Data)
• Global reach, supplying multi-thousand CPU
  clusters to customers operating data centers
  around the world
• Customers include Boeing, ConocoPhillips,
  Industrial Light and Magic, Lockheed Martin,
  Motorola, NASA, NVIDIA, Northrop Grumman,
  Novartis, Pixar, Qualcomm, Shell Oil, Veritas
  DGC, WesternGeco Schlumberger
• 280 employees in California, Alabama, Texas, New
  Hampshire, Europe, India, and China

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Recent Milestones

• Appointment of industry luminary Masood Jabbar as
  Director - January 29, 2004
• Granted allowance of patents on our VCS (Vertical
  Cooling System) technology enabling unrivaled
  blade server density - February 9 and March 4,
  2004
• Strategic acquisition of MPI Software
  Technology, Inc. - March 31, 2004
• New Company Name RackSaver, Inc. becomes
• Verari Systems, Inc. - April 12, 2004

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Management Team
David Driggers, Chief Executive Officer, 2004
Ernst Young Entrepreneur of the Year,
recognized authority in high performance
computing
Masood Jabbar, President, 32 years industry
experience including President, GM, and CFO
positions with Sun, IBM, and Xerox
Dane Smith - Vice President, Global Sales and
Field Operations, 12 years with Sun Microsystems,
VP of Sales Pacific Region
Dr. Anthony Skjellum, Chief Software Architect,
Ph.D. California Institute of Technology, leading
authority in industry standard MPI
parallelization software
John V. Smith, Chief Operating Officer, US Navy
trained supply chain expert, inventor,
entrepreneur
Robert Murphy, Sr. Director of Marketing, 15
years experience at HP, SGI, and Network Appliance
Christopher Witt, CPA, CMA, Chief Financial
Officer, 18 years experience at PWC, Andersen,
CFO at both public and private technology
companies
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Board of Advisors

• Phil White Chairman of Advisory Board, former
  Chairman CEO of Informix, SVP of Altos
  Computer Systems, Wyse Technology and IBM
• Dave Mitchell Former CIO / GM Chevron 32
  years
• Heinz Roggenkemper Current EVP of Development
  at SAP
• Mike Saranga 30 years at IBM, EVP at Informix
  and Siebel Systems
• Tom Ashburn President BEA formerly with HP
• Ken Goldman Current CFO Siebel Systems,
  former CFO Excite_at_Home, Sybase, Cypress
  Semiconductors and VLSI
• Don LeBeau Aruba Wireless CEO, Former SVP
  Worldwide Operations Cisco
• Dennis Walsh Former VP / CTO of On Star, CTO
  of GM, VP / CIO Entergy, RJR and Del Monte
• Ken Harris Former CIO of GAP,IT executive at
  Nike and Pepsi
• John White Former VP / CIO TI, Compaq, EDS,
  President I.T. Group

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Verari Systems
Built around the Core Strengths of Blade Server
Computing
Management

• Recognized as Leaders of HPC with worldwide team
  of experts passionately devoted to HPC software
  development
• Detailed knowledge of all aspects of Linux and
  Windows development and deployment
• Performance Analysis and Strong
  Benchmarking/Tuning Expertise
• Detailed knowledge of high performance I/O,
  scalable file systems, InfiniBand, Myrinet
  Interconnects, and high performance storage
• Professional Sales Organization and World Wide
  Enterprise Class Support and distribution

COTS
Storage
Blade Computing
AMD
Intel
Thermals
Density
Workstations
Servers
Linux
Windows
Utilization
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Company Strategy
Blades Without BoundariesTM

• All the Benefits of Blade Servers without
  Compromise
• No compromise on performance, scalability,
  density, manageability
• High Growth, Industry-leading talent pool
• Hardware Strategy
• COTS, Platform Independent
• Patented Vertical Cooling System (VCS)
• Performance
• Cost Effective
• No Backplane, No Bottleneck
• Servers, Workstations, and Storage blades
• Software Strategy
• Manageability
• Utilization
• Out of the Frame, Cross Platform Support
• Commercial quality
• Accountable single source of support

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Value Proposition
All the Benefits of Blade Computing, without
Compromise
Our Customers Hot Buttons
Blade Computing Solves

• Provisioning
• Cabling Issues
• Incremental Investment and Lower cost of entry
• More Reliable fewer points of failure
• Density
• Time and complexity of deployment
• Cost (shared resource)
• Simplified Datacenter Building Block

• Performance
• Cost, both acquisition and operating
• Reliability and Availability
• Time to Deployment
• Provisioning
• Change Management
• Scalability
• Utilization
• Patch and Upgrades
• Build as you grow v. pre-invest

Issues with Conventional Blades
Unique Verari Solutions

• Performance Compromised for Density
• Limited Manageability and Provisioning within
  the Frame
• Thermal Issues
• No Standards
• Limited Flexibility
• Backplane Bottleneck limits Scalability

• Vertical Cooling System (VCS)
• Verari Command Center Complete in Band and
  Out-of-Band Management and Provisioning
• Based on Existing Industry Standards
• Full Performance Processors
• Platform independence, Intel, AMD, PowerPC,
  Windows, Linux
• No Backplane design for Direct access to
• scalable high speed networks

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Our Elegantly Simple Approach
Patented Front and Back Mounting Highest Density
in the Industry
Advanced Heat Sink Design
Worlds Fastest (Hottest) CPUs

Industry Standard Motherboard
Power Supply
Disk Drive(s)
Blade Chassis
Patented Vertical Cooling
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No Backplane Design
Eliminates Bottleneck between Backplane and High
Speed Network
No Backplane
Backplane
IBM
RLX
HP
Egenera
No Bottleneck
Bottleneck
10Gbit/sec Infiniband
10 Gbit/sec PCI Express
1-2 Gbit/sec Backplane
10Gbit/sec Infiniband
10 Gbit/sec PCI Express
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Thermal Management
Traditional Front to Back Air Flow
Conventional Servers and Blades are starved
for cooling air, leading to high failure rates
and/or reduced density per rack
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Weve Solved the Cooling Problem
Patented Vertical Cooling for the Fastest CPUs in
the Industry
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Verari Command Center
Massive Scale Rapid Deployment and Provisioning
A Common Interface Across Thousands of
Machines Single control center installs blades
in parallel across an entire multi-thousand CPU
cluster - reducing administration time and
expense Configuration and Administration for
1000s of Nodes Auto OS Provisioning Auto
Application Provisioning Auto Patch Management
Out-of-Frame Heterogeneous Management Scalable
to 1000s of machines from Verari Systems and
other Vendors Accountable, Single Source of
Support Single point of accountability for all
customer needs means the cluster spends most of
its time being used efficiently by end users,
instead of in maintenance or unscheduled down
time
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Verari Command Center
Out-of-Band Monitoring and Management Works even
if the Network and OS Goes Down
BladeRack Fan Monitoring Fan Status display
provides a description with color updated to
show the current status BladeRack Temperature
Monitoring Displays rack intake and rack exhaust
temperature Administrator can set temperature
alarm flags Blade Power Control Displays
individual blade power settings and can cycle
power on each blade Blade Identity
Light Illuminates a specific Blade identity
light, allowing an administrator to visually
identify and locate the selected blade Email
Notification Notifies administrators if a Rack
exceeds temperature thresholds and if desired,
automatically power it down to prevent hardware
damage
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Our Markets

• Oil Gas
• Electronic Design Automation
• Media Entertainment
• Global Capital Markets
• Automotive Aerospace
• Defense Government

Parallel Applications in
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Global Customers
HARVARD
MIT
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World Wide IT Spend Composition

• Utilities
• Building
• Electricity
• Network Providers

• Systems
• Clients 151B
• Servers 50B
• Storage, Networking
• 77B
• Software 186B

• Operations
• Payroll 330B
• Prof. Services 320B

53B
464B
650B
1.2T Total



Automate Simplify
Source Intel
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Return On Investment

• Administration
• 10 seconds to replace a Blade
• Least number of people to manage cluster
• 1 System Administrator per 1000 CPUs v. 100
  elsewhere
• Operation
• More Flexible Compute, Graphics, Storage Resource
  management
• Just in Time Infrastructure
• Leverages the latest in technology
• Just the Right Size Infrastructure
• Predictability

Verari Linux Clusters provide the very best in
price performance and density and are ideal for
compute intensive challenges presented by
complex seismic imaging solutions
-Michael Nathan, Veritas, DGC
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Fast Time to Production
Verari Systems can be searching for oil and
rendering movies in minutes. Competitive systems
take weeks to get into production.
Floor Tile Ready
88 Boxes of 1U Servers

• Pre-cabled
• Blades installed
• Pre-imaged, fast SW loading
• Hours to production
• Just in time Infrastructure

• Unpacking
• Rack Mounting
• Cabling
• Tedious SW load
• Weeks to production

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Installation
A whole Verari BladeRack can be installed in the
same time as a conventional server
Servers and many Blade Systems are packed
separately and must be unpacked, installed, and
cabled. Over 1 week to install
Verari BladeRack is Floor Tile Ready
2,175 savings 1 week of install time eliminated
88 servers x .5hr/server x 50/hr 2,200
(Over 1 week!)
1 BladeRacks x .5hr/BladeRack x 50/hr 25
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Strategic Initiatives

• Storage Products
• New revenue streams planned for 2004 and beyond
• Strategic OEM Agreements with LSI and Terrascale
• Innovative Blade-based storage in 2005
• Workstations and Blade-based Workstations
• Vertical (EDA, Entertainment, Oil Gas, Trader)
  specific configurations
• Cycles_at_Work Utilization Gain
• Services
• Expand offerings, integration of MPI professional
  services arm with existing Systems Engineers
• Channel Sales
• Develop products and partners to increase channel
  volumes

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Storage Solutions
Unique Enterprise Class Blade Server Storage
Solution

• Select, Strategic OEM Agreement
• with Industry Leader LSI Logic
• Coupled with Innovative Cluster File System from
  Terrascale
• Significant Revenue and Margin Opportunities

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Workstation Initiative
EDA, Entertainment, Oil Gas, Traders Desktop
Focus

• Leveraging Opteron, Lead Partner of AMD in
  Entertainment Initiative
• Cycles_at_Work Utilization Gain
• Incremental Revenue and Market Footprint
  Opportunity

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Go To Market StrategyCrossing the Chasm

• Leverage our unique partnerships with Early
  Adopters of Technology (Oil and Gas, Media and
  Entertainment) to develop cutting edge products
  that satisfy a distinct problem issue and niche
  need
• Work with late stage early adopters (EDA and
  Aerospace and Automotive) to widen and complete
  the offering for the general consumption
• Take advantage of the volumes attained from the
  early adopters and late stagers to move into
  economies of scale for the wider enterprise
  market place as the technology goes mainstream

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The Leading Blade Server Systems Company
Blades Without BoundariesTM

• All the Benefits of Blade Servers without
  Compromise
• No compromise on performance, scalability,
  density, manageability
• High Growth, Industry-leading talent pool
• Hardware Strategy
• COTS, Platform Independent
• Patented Vertical Cooling System (VCS)
• Performance
• Cost
• No Backplane, No Bottleneck
• Servers, Workstations, and storage blades
• Software Strategy
• Manageability
• Utilization
• Out of the Frame, Cross Platform Support
• Commercial quality
• Accountable single source of support

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Verari Systems, Inc.