Steve Campbell, Chief Technology Officer at HGST, presents at Cloud Expo 2013 on the data center evolution, enterprise solid state drives, the future of data storage, and more.

1. © 2013 HGST, INC.
Steve Campbell
Chief Technology Officer
Navigating Storage in a
Cloudy Environment

2. 2© 2013 HGST, INC.
Forward Looking Statement
This presentation contains forward-looking statements that involve risks and uncertainties, including, but not limited to, the
development and adoption of a new storage architecture and the potential introduction of products based on this architecture.
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.
Additional key risks and uncertainties include the impact of continued uncertainty and volatility in global economic conditions;
actions by competitors, business conditions and growth in the various hard drive segments. More information about the other risks
and uncertainties that could affect our business are listed in our filings with the Securities and Exchange Commission (the “SEC”)
and available on the SEC’s website at www.sec.gov, including our Quarterly Report on Form 10-Q filed with the SEC on May 5, 2014,
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 otherwise required by law.
This presentation contains financial measures defined as non-GAAP by the SEC. We believe that certain non-GAAP financial
measures, when presented in conjunction with comparable GAAP (Generally Accepted Accounting Principles) measures, are
useful because that information is an appropriate measure for evaluating our operating performance. Non-GAAP information is
used to evaluate business performance and management's effectiveness. These measures should be considered in addition to, not
as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Non-GAAP financial
measures may not be calculated in the same manner by all companies and therefore may not be comparable.

3. 3© 2013 HGST, INC.
Agenda
 Who is HGST?
 The Data Center Evolution
 Enterprise Solid State Drives
 A New Platform for the Future
 The Future of Data Storage

4. 4© 2013 HGST, INC.
Our Heritage
 HGST and WD are independent subsidiaries of Western Digital Corporation
 Both subsidiaries are realizing superior financial performance

5. 5© 2013 HGST, INC.
Heritage of Innovation and Industry Firsts
1950 2000 Today
1979
Thin Film
Heads
1991
MR
Heads
1997
GMR Heads
2000
National Medal
of Technology
2001
AFC Media
2007
First 1TB
HDD
2012
Helium
Technology
2013
10-nanometer
Patterned-Bit
Milestone
1973
Winchester Disk
IBM 3340 – father
of the modern HDD
1978
First disk array
subsystem patent
1962
Hydrodynamic
Air Bearing
Sliders
1990
PRML
Channel
1997
Ramp Load/Unload
1994
First 3.5”
Enterprise
HDD with
1M hr MTBF
1999
1” Microdrive
2006
2.5” PMR HDD
for high-volume
OEM use
2004
First 5-platter
3.5”design
2011
First 7200 RPM
Enterprise HDD with
2M hr MTBF rating
2010
First 7200 RPM
7mm 2.5” HDD
1956 –
RAMAC
Invented First
Hard Drive

6. 6© 2013 HGST, INC.
2012–2020 Storage Trends
Of the exabytes stored on HDDs and SSDs, over 85% in 2020 will be stored on HDDs
Source: HGST analysis
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2012 2013 2014 2015 2016 2017 2018 2019 2020
Smart/Feature Phones
Tablets
Cloud SSD
Cloud
Personal CE
Client SSD
Client PC
Personal CE
Cloud
Exabyte Forecast
by Application
Client PC
Tablets
Smart/Feature Phones

7. 7© 2013 HGST, INC.
0
1,000
2,000
3,000
4,000
5,000
2012 2013 2014 2015 2016 2017 2018 2019 2020
EB
HDD Exabyte Outlook:
CAGR 35%
Areal Density Progress15% CAGR
25-30% CAGR
Average head and disk count per drive will continue to increase
Gap
Exabyte vs. Areal Density Growth
HDD Component Usage Dynamics

8. 8© 2013 HGST, INC.
Large and Growing Market
0
100
200
300
400
500
600
700
2012 2013 2014 2015 2016
Units(M)
Enterprise SSD
Personal Storage
Enterprise (High Cap)
Consumer Electronics
Desktop PC
Mobile PC
Enterprise (Performance)
2012 - 2016 Growth Rate is 3.1%
2012-16 Industry Growth (CAGR)
47.4%
21.9%
17.6%
2.4%
- 1.7%
- 3.9%
- 7.2%
Source: IDC Market Analysis: Storage Mechanisms: Disk - Worldwide Hard Disk Drive 2012-2017 Forecast: Adjusting to the IT Industry's Transformation

9. 9© 2013 HGST, INC.
9
Parallel Growth Rates
AREAL DENSITY GROWTH
100
1000
10000
2010 2012 2014 2016 2018 2020
ArealDensity(Mb/mm2)
Conventional
FG NAND
HAMR/BPM/
TDMR
Dual FG
3D
RRAM X-point ArrayExtension
Invention
ExistingHDD
Source: HGST analysis
HAMR
Conventional
PMR
Shingle/
PMR

10. © 2013 HGST, INC.
Data Center Evolution
Trends Driving Change and Growth

11. 11© 2013 HGST, INC.
What’s Driving the Data Center Evolution

12. 12© 2013 HGST, INC.
Enterprise Market Outlook
0
10
20
30
40
50
60
70
80
90
100
2011 2012 2013 2014 2015 2016
MUnits
Market Trends
 Customized architectures with
Open Source software and hardware
 Customer fragmentation & sole-
sourcing
 Cloud is a capacity and roadmap
driver
 SSD becoming a key storage tier
 New capacity drivers: big data
analytics & cold storage
 TCO becoming a critical decision
making factor
Capacity Enterprise
Performance Enterprise
Enterprise SSD
2.5”
3.5”
Source: IDC

13. 13© 2013 HGST, INC.
 Optimized Solutions
 Dynamic Workloads
 Replication & Erasure Coding
 Free-Air Environments
 Petabytes to Exabytes
 Free & Forever Storage
 General Purpose Solutions
 Predictable Workloads
 RAID Protected
 Controlled Environments
 Terabytes to Petabytes
 Business Critical Storage
Data Center Segmentation
TCO is Critical to Both Data Center Types
Hyperscale Data CentersTraditional Data Centers

14. 14© 2013 HGST, INC.
Device reliability
Power consumption and cooling costs
Equipment acquisition costs
Bandwidth in the datacenter
Security
Server and storage density vs. floor space costs
Need bulk storage solutions for content, backup,
disaster recovery
Management / Administration: Data, Storage,
Server, Network
Drivers of Opportunity
Hyperscale Data Center Pain Points

15. 15© 2013 HGST, INC.
Digital Storage Growth Outpacing Flat IT Budgets
2012 2022
Flat IT Budgets
Capacity
Cold
Storage
Digital Storage
Annual Growth~50%
This Gap Requires:
 Lower CapEx
 Lowest TCO
 Differentiated
Product Offerings
Source: IDC & HGST analysis

16. 16© 2013 HGST, INC.
HGST’s View on Storage Tiering
Highest Performance
High Performance and
High Reliability
High Capacity and
High Reliability
High Capacity and
Low Workload Optimized
New Storage class that
is lowest $/TB?
COOL
COOLER
COLD
HOT
WARM

17. 17© 2013 HGST, INC.
Data Center
Applications
Application Segmentation
Cold Storage
Cloud Storage
Data Warehouse
Archive
Backup
Big Data Storage
 Long-Tail Content
 Regulatory Driven
Archive
 Consumer Driven
Social Media Content
 Medical Records
 Email Archive
Performance
Databases / OLTP
Content Serving
Business
Intelligence
Cloud Gaming
Capacity
Cloud Computing
Virtualized Servers
Social Networks
Cloud Storage
Big Data Storage
Long-Tail Content
CRM
HPC
Value
Cloud Storage
Big Data Storage
Long-Tail Content
Mail Servers
Financial
Video on Demand
Surveillance
Enterprise SSD
HF Trading
Big Data Analytics
Indexing
Databases / OLTP
High Density VDI
Data Type HOT WARM COOL COOLER COLD
Choose the RIGHT Drive for the RIGHT Application

18. 18© 2013 HGST, INC.
Selecting the Right Drive for the Right Workload
Cold StoragePerformance Capacity ValueEnterprise SSD
Data Type HOT WARM COOL COOLER COLD
₵₵₵$$$$ $$$ $$
1 in 1017
1 in 1016 1 in 1015
600K 600K
5 years 5 years 5 years
1.2 – 2 Mh 1.2 – 2 Mh 1.2 – 2 Mh
Emerging
Market Being
Defined
550TB/year 550TB/yearN/A
N/A
$
1 in 1014
300K
180TB/year
3 years
800K
Workload
$/GB
Error Rate
Load/Unload
Cycles
Warranty
MTBF
Ultrastar Enterprise SSDs Ultrastar 10K and 15K HDDs Ultrastar 7K4000 SAS/SATA MegaScale DC™ Low-workload New HDD Innovation

19. © 2013 HGST, INC.
Enterprise SSDs
Storage Solutions for the Most Demanding Data Center Applications

20. 20© 2013 HGST, INC.
Enterprise SSD – Forecast
-
2
4
6
8
10
12
14
2012 2013 2014 2015 2016 2017
Enterprise SSD – Units (M)
$0
$1
$2
$3
$4
$5
$6
$7
2012 2013 2014 2015 2016 2017
Enterprise SSD – Revenue (B)
SAS & PCIe represent majority of future Enterprise SSD revenue opportunity
while SATA maintains a strong unit position
PCIe
SAS
SATA/SATAe
PCIe
SAS
SATA/SATAe
Source : HGST

21. 21© 2013 HGST, INC.
 Broad PCIe and SAS SSD product portfolio
 Server and storage fabric-wide software solutions
Application
Acceleration &
Workload
Optimization
 Shared access to distributed SSDs
 Advanced single- and multi-server caching
 Health monitoring
 IO system analysis
Simplified
Integration &
Management
 Higher compute resource efficiency
 Reduced I/O and shared network bottlenecks
 High availability and endurance
 Lower power consumption
Improved
Data Center
Economics
HGST: Powering The Next-Generation Data Center
Solutions for the Converged Infrastructure

22. 22© 2013 HGST, INC.
Increasing Value to Customers Through
Intelligent Device Strategy
Applications
Processing
Storage
HDD
Intel JDA
SSD
sTec
Enhanced
Controller
SSD
VeloBit
Advanced
Caching
Virident
App-Optimized Flash
Shared Server Flash
Flash-Aware App API
SW
SW

23. 23© 2013 HGST, INC.
HGST Intelligent Storage Solutions
Industry-leading SSDs with system and application optimized software
SAS PCIe
s800 Series Ultrastar
SSD800xx/SSD1000xx
s1100-Series
Virident
FlashMAX II
HA, Shared Access, Caching
Virident vFAS
Software Technology
Virident FlashMAX
Connect Software
Suite
EnhanceIO Caching Software
SDM Device Management Software
Industry-proven,
award-winning SAS SSDs
Mainstream SAS SSDs &
unique configurations
(1.8”, 2TB)
High Performance PCIe
SSD platform with unique
software capabilities
Mainstream PCIe SSDs
w/high endurance

24. The Sealed Helium HDD
A Storage Platform for the Future

25. 25© 2013 HGST, INC.
Time For A New Class of HDDs
Challenges, Opportunities & Growth
 Unprecedented
Storage Demand
 Areal Density Slow-Down
 Recording Technology
Challenges
 Total Cost of Ownership
 Hyperscale Datacenter
Pain Points
~50%
CAGR

26. 26© 2013 HGST, INC.
~23%
Mechanical
Power
Savings
Air – 5 Disk
Air
O
N
O
N
Disk Rotation Helium
Reduced
Flutter
Thinner Platters
Less Motor
Drag
Disk Flutter
&
Vibration
Disk Rotation
O
N Nitrogen
Oxygen
Helium
 4◦C cooler operation
 49% reduction in watts/TB
Helium – 7 Disk
How It Works
 Reduces mechanical power dissipated in air shear
 Allows platters to be placed closer together enabling more capacity

27. 27© 2013 HGST, INC.
INTRODUCING
Ultrastar®
He6
6TB
World’s First 6TB 3.5-inch Helium Drive
4oC
COOLER
50%
MORE
CAPACITY
23%
LOWER
POWER
Works
w/ Existing
3.5”
SMR/HAMR
COMPATIBLE
30%
QUIETER
50g
LIGHTER

28. 28© 2013 HGST, INC.
Air vs. Helium
Same Form Factor – Exponential Difference
5-disk
design
Same 1”
z-height
4TB 6TB
7Stac™
Design

29. 29© 2013 HGST, INC.
Reducing TCO with Ultrastar He6
TCOptimized
™
Power Consumption:
Watts/TB
Cooling Efficiency:
BTU/TB
Density / Footprint:
TB/SqFt
Long-Term Reliability:
MTBF
Acquisition Costs:
$/GB
Reduced
System Weight

30. 30© 2013 HGST, INC.
Deploying 11PB of Storage:
Conventional HDDs vs. Ultrastar He6
HelioSeal
Platform
Advantage
 57% less power
(HDD only)
 33% less space
 Less complexity
The above TCO's are estimates only. Individual TCO may vary.
Using 4 TB 3.5” Conventional HDDs
12
Racks
240
Enclosures
2,880
HDDs
32.8KW
192
Sq ft
>500
cables
Using 6 TB 3.5” Sealed HDDs
8
Racks
160
Enclosures
1,920
HDDs
14.0KW
128
Sq ft
>350
cables

31. 31© 2013 HGST, INC.
22-33%
TCO
Savings
Hyperscale Datacenter TCO
Conventional 5D HDDs Ultrastar He6 with
HelioSeal Platform
 Reductions in both CAPEX & OPEX
 Cooler, lower-power HDDs reduce power & cooling costs
 Fewer, denser servers = less networking infrastructure, less space, less power, less cooling
 Lower complexity, less maintenance
The above TCO's are estimates only. Individual TCO may vary
Costs include TOR and aggregator costs & power into “rack cost”; “Server cost” is the customer cost of a complete 2U-12 server without HDDs. TCO savings vary based on PUE, cost of power, server type/density
HDD
Rack/
Network
Server
Power
Cooling
Floor Space
HDD
Rack/Network
Server
Power
Cooling
Floor Space

32. 32© 2013 HGST, INC.
Other TCO Considerations
 Data centers within metropolitan areas face
additional constraints and challenges:
– May not be able to acquire additional floor space
– May not be able to get adequate power
– May not be able to provide adequate cooling:
“Free-Air” cooling not available in these
environments
– Floor loading limits—typically ~2000lbs./sqft
but varies by locality and individual building
The HelioSeal Platform’s high density, lower power and cooler operation solves
problems for hyperscale datacenters, co-location facilities and internal IT

33. 33© 2013 HGST, INC.
New Emerging Class of Data Centers
New Coolant Technologies, New HDD Opportunities
 Data center designers and server vendors
are continuing to pack more capability into
smaller spaces
–Modular and “container” datacenters
–Servers with faster CPUs and more cores
–More servers in a given volumetric space
–Desire to place storage “closer” to compute node
 Effective cooling is becoming a new challenge
–Hotter components
–Less space for efficient airflow
–The HDD blocks even more airflow

34. 34© 2013 HGST, INC.
Ultrastar He6 Naturally Designed for
Immersion Cooled Data Centers
 Growing interest in immersion cooling
– Servers immersed in a non-conductive liquid
– Liquids can remove heat more efficiently
 Limitations with current HDDs
– High-density solutions w/ local storage can not be immersed
– Traditional HDDs “need to breathe”
 Ultrastar He6 uniquely suitable for immersion cooling
 Ultrastar He6 operates in non-conductive liquids
Photo used with permission from www.grcooling.com
Nov 4-7, 2013
Booth #209
LIVE DEMO
Santa Clara Convention Center

35. 35© 2013 HGST, INC.
A Foundation For The Next 10+ Years
Much More Than a Capacity Bump
The HelioSeal Platform provides immediate benefits and will add to
the value of other HDD innovations
HelioSeal™ Platform
Higher
Capacities
Better TCO
Emerging and future
HDD technologies
will be built on the
HelioSeal Platform,
enabling additional value
SMR
HAMR
Other Technologies

36. Future of Data Storage

37. 37© 2013 HGST, INC.
Shingled Magnetic Recording (SMR)
Write
‘over-lapping’
Data tracks
Track pitch
Read Data
tracks
Concept
 Write head wider than track pitch and overwrites data several tracks wide
 Read track width is determined by how much the head is incremented radially
between writes
 Track pitch is determined by servo control rather than head physical dimensions

38. 38© 2013 HGST, INC.
Industry projecting the introduction of HAMR technology in 2016-2017
HAMR : A Whole New Recording System
Heat-Assisted Magnetic Recording (HAMR)
 Density growth limited by ability to make smaller bits thermally stable
 HAMR combines laser and magnetic field to write the media
 Allows for use of much higher coercivity media and hence enables higher densities
dx
dT
dT
dH
dx
dH keff


39. 39© 2013 HGST, INC.
Bit Patterned Media
 Extend density by replacing randomly sputtered grains with very uniform,
lithographically-defined magnetic islands
 The challenge for bit patterned media is how to fabricate these very small islands
precisely and cost-effectively
 Feature sizes will need to be smaller than semiconductor
Granular Media versus Bit Patterned Media
100 nm
Have already demonstrated all the steps necessary for 13nm half pitch

40. 40© 2013 HGST, INC.
Storage Central to Evolving Ecosystem
Big Data Storage
Cold Storage
Big Data Analytics
Ecosystem Trends New Measures: TCO
New Applications
Cloud Computing
Storage is at the
Center
Customer Complexity

41. 41© 2013 HGST, INC.
Capacity & Trademark Statements
This information is presented as of November 6, 2013, and HGST does not undertake any obligation to update any of the information
provided.
One gigabyte (GB) is equal to one billion bytes, one terabyte (TB) equals 1,000GB (one trillion bytes), and one petabyte (PB) equals
1,000TB (one quadrillion bytes) when referring to hard drive or solid state drive capacity. Accessible capacity will vary from the stated
capacity due to formatting and partitioning of the drive, the computer’s operating system, and other factors.
Ultrastar, MegaScale, HelioSeal, 7Stac, Virident, and FlashMAX are trademarks or registered trademarks of HGST, Inc.
HGST trademarks are intended and authorized for use only in countries and jurisdictions in which HGST has obtained the rights to use,
market and advertise the brand. HGST shall not be liable to third parties for unauthorized use of this document or unauthorized use of its
trademarks.
All other company names, products or trademarks used in this presentation are the marks of their respective owners, and not HGST.

42. © 2013 HGST, INC.
Steve Campbell
Chief Technology Officer
Navigating Storage in a
Cloudy Environment