Envision a world where all stored data is networked

presented to:

Global IT Press SummitMonterey, CA

November 13, 2006

Enterprise Storage Trends Briefing

Jean-Yves ChevallierDirector, Product Marketing

Emulex Corporation

What We Do

We create enterprise-class products

that intelligently connect storage,

servers and networks – enabling

access to information that is open,

adaptable and secure

Overview of Emulex

Founded: 1979

Revenue: $403 Million (Fiscal 2006)

Employees: Nearly 700

Headquarters: Costa Mesa, CA

Development Centers: USA: Bolton, MA; Bothell, WA; Costa Mesa, CA;

Longmont, CO; Roseville, CA; San Jose, CA

India: Bangalore

International Offices: Beijing, China; Wokingham, England; Paris, France

Stock Exchange Listing: ELX (NYSE)

Three Product Lines Host server products:

• Supplier to all top-tier server & storage OEMs• 90+ of the Fortune 100 use our HBAs• Gaining momentum in the fastest growing segments: server

blades, virtualized servers, End-to-end customer installable solutions

• Positioned for Next Gen Fibre Channel & 10Gb Ethernet/iSCSI Embedded storage products:

• Supplier to all top-tier storage OEMs• Over 16 million embedded ports shipped• Positioned for the future of tiered storage

Intelligent network products:• Multi-protocol storage processors provide building blocks for

range of products• Multi-protocol SAN routers enable connectivity

between SANs and IP Networks• Positioned for emerging 10Gb Ethernet opportunity

Expanding Market Opportunity

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2005 2006 2007 2008 2009

Market Revenue (Millions)

Intelligent Network ProductsEmbedded Storage ProductsHost Server Products

$2.7B

Source: IDC, Gartner, Emulex

Virtual Servers

Breakthrough solutions to data center issues: Consolidation, cost reduction Rapid provisioning Continuity of service

Massive market success: All FORTUNE 100 have virtual servers in production or evaluation 7,000 users at VMworld November 2006 Virtualzed servers: 6% of all servers now, 18-20% in 2008, 40% in

2010 (IDC) VMware dominates current shipments.

Microsoft investing heavily (Longhorn, Novell announcement, etc).

Strong synergy with Fibre Channel Continuity of service and consolidation require shared networked

storage Over 80% of VMware servers are FC connected About 2/3 of VMware FC connections through Emulex

LightPulse Virtual HBA Technology

What is Virtual HBA technology? Enables an HBA to present multiple ports (WWPN) to the fabric Implements the ANSI T11 N-Port ID Virtualization standard.

What are Virtual HBAs useful for? Manage virtual machine connectivity like physical machine

connectivity:• VM-level fabric zoning, LUN masking/mapping• VM-level fabric guaranteed bandwidth (QOS) , diagnostics,

statistics, and chargeback Move/recover SAN–attached configurations seamlessly

HBA

Fabric

switch

Arrays

And LUNsArrays

And LUNs

Virtual port

Virtual port

Virtual port

Emulex Leadership on virtual HBAs

Thought leadership: Pioneered the concept with IBM (2003-2005) Detailed usage with leading end users (2005-2006) Educated industry analysts, press, major vendors

Public demonstrations: Emulex-VMware demonstration October 2005 Additional demos with Intel dual-core technology, Xen Open Source,

etc. No other vendor has demonstrated virtual ports on VMware as yet

Product availability: Emulex 4 gigabit HBAs include LightPulse Virtual HBA technology

now Linux driver for open community use: September 2006 Windows driver, general availability: November 2006 VMware driver, general availability: first half 2007

VMPilot: virtual connectivity made easy

A solution for Microsoft Virtual Server Simple Wizard creates SAN-connected

virtual machines with Virtual HBA Ports and unique LUNs

Single command to migrate VMs with their Vport

No more storage/fabric reconfiguration

Availability: First public demonstration at Microsoft

Tech-Ed (November 2006) General release planned for Q1, 2007 Utilizes standard driver for Windows 2003,

4GB adapters and firmware

Deployment and management solutions for VMware, Linux, Xen, Solaris are being built jointly by Emulex and an ecosystem of value-add partners

Virtual HBAs

A B CVirtual Server

SAN

Virtual HBAs

Server 1 out of resources !

Move VM to Server 2

D E BVirtual Server

Datacenter Virtualization – What and Why?

Datacenter Virtualization: Combines virtualization of the

computing infrastructure …• Servers• Storage• Storage Fabric

… with Application virtualization

Key Drivers: Hardware Consolidation

• Server and storage resources• Efficiency of resource

utilization Simplified management

• Simplified provisioning• Easy deployment/testing

38%

54%

58%

63%

74%

23%

36%

45%

49%

64%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Application grids

Application virtualization

Enterprise / data centervirtualization

Storage virtualization

Server virtualization

Next 12 months

Next 3 - 5 years

% rating critical/high priority

Source: InfoWorld 2006

Emulex Products/TechnologiesVirtualized Datacenter Blueprint

PHYSICALRESOURCES

ServersStorage Networking

STANDARDS-BASED

TECHNOLOGIES

FC switches withVirtual Fabric

support

Block StorageVirtualization

Switches& Appliances

Line-of-Business

Customers

Hypervisors/Partitions

Virtual Disk(Backed up & Replicated)

Virtual Fabric VirtualServers

VirtualHBAs

Intelligent Storage

Processors

LightPulse HBAs• Virtual HBA• Virtual Fabric

Summary

Server virtualization has become a huge market successData center virtualization is rapidly emerging:

Convergence of server, storage and fabric virtualization Provides a utility-grade infrastructure powering all applications Major end users experimenting or evaluating now

Emulex is strategically positioned: Host bus adapter at the server-fabric nexus Embedded capabilities provide fabric and array intelligence Proven technical expertise and thought leadership

Delivering on the promise : 4 gigabit HBAs with LightPulse Virtual technology, intelligent

embedded network processors Drivers, APIs and complete solutions: VMPilot, OEM and partner

ecosystem