Mark Cadiz | Sr. Product Manager | April, 2015 Flex System Carrier-Grade Chassis Lenovo/Partner Seller Presentation 2014 LENOVO. All rights reserved

2 TABLE OF CONTENTS Carrier Grade Chassis Product Details Product & Portfolio Overview Network Function Virtualization (NFV) Telco Industry Snapshot NEBS Transition Plan Competitive Comparison Important Links

3 Portfolio overview Mission critical Dense Mission critical x880 X6 x440 x480 X6, x880 X6 Mission-critical x280 X6, x480 X6, x880 X6 Enterprise x240 Enterprise Chassis w/ AC and DC power Ethernet iSCSI Fibre Channel FCoE InfiniBand Open Interoperability with SANs including EMC VNX, Storwize V7000, V3700 No compromise portfolio across servers, networking, storage 2S 4S 8S 2015 LENOVO. ALL RIGHTS RESERVED. Carrier-Grade Chassis w/ DC power

4 Flex System Compute Nodes: Target markets Flex Nodes Family Primary Workloads Business Value Where Flex Excels Banking/Finance Research Education Government Telecom Manufacturing VirtualizationCloudDatabaseAnalytics Flex System x240 M5 Flex System X6 Flex System x440 Reduce Cost 1.Uncompromised design for the next 10+ year generations of IT 2.Innovative design delivers up to 40% less energy cost vs. pervious generation 1 3.Networking architecture enables 30% less cost than competitive offerings 2 Increase Agility 1.First-in-industry: Highest scalability blade platform featuring Intel Xeon E7 enables 3X higher performance than previous generations 2.Support for broad range of systems: Choice of 2, 4 or 8 processor systems using latest Intel Xeon processors in the same chassis. 3.Network design that offers consistent SLAs for cloud workloads and up to 2.5X faster VM migration compared to competitive blade offerings 3 Improve Efficiency 1.Do more with less systems: 32% more virtual machines than competition 4 2.Network management for up to 9 Flex System chassis compared to 38 for competition 5 3.Faster performance to allow more transactions for businesses critical applications with up to 4.8X more backplane through-put 6 Chassis Enterprise Chassis Carrier-Grade Chassis

5 Carrier-Grade Resilient Flexible Ruggedized chassis, NEBS level 3, Earthquake Zone 4, ASHRAE 4 compliant Support for -48V DC power Long life platform No single point of failure to maintain high availability The system monitors and manages power usage on all major chassis components so you have total control over power consumption Flex System Carrier-Grade Chassis - Product Overview Add any combination of compute, networking, and management nodes Power supplies are high energy efficiency, and the chassis design optimizes cooling with cooling zones within the chassis Segment11U Blade Chassis Target CustomerTelecom General Availability6/19/2015 Flex System Chassis have been designed and built specifically to provide the efficiency you need now, along with the growth path necessary to protect your investment into the future

6 Flex System Carrier-Grade Chassis - Product Overview 11U chassis 14 bays Standard and full Storage 4 switch modules Redundant CMMs Redundant power Redundant cooling High physical density Positional awareness Virtual FC and NIC address Mixed processor support Hot add, hot swap Ease of cabling Ease of insertion and removal High bandwidth, low latency networking Integrated management Ethernet Designed to support the future Front View Rear View

9 Flex System Chassis Models 2014 LENOVO INTERNAL. ALL RIGHTS RESERVED. Current (CMMv1)New (CMMv2)Description MTM # HVEC GAV / SEO # - Xcc LODMTM # HVEC GAV / SEO # - Xcc GALOD Flex System Enterprise Chassis 8721A1x8721A1Y6/30/158721ALx8721ALY4/30/1512/30/22 2500W AC PS 8721LRx8721LRY6/30/15 - --- 2100W AC PS 8721DCx8721DCY6/30/158721DLx8721DLY4/30/1512/30/22 -48V DC PS -8721E1Y6/30/15-8721E3Y4/30/1512/30/22 Top Seller Model (SI4093) -8721E2Y6/30/15-8721E4Y4/30/1512/30/22 Top Seller Model (CN4093) - 8721HC112/30/16-8721HC24/30/1512/30/22 Xcc Flex System Carrier-Grade Chassis - -7385DCx7385DCY6/19/1512/30/22 Carrier Grade -48V DC PS. - --7385HC16/19/1512/30/22 Xcc

10 GAV Offering Report 2013 LENOVO. ALL RIGHTS RESERVED. SBB TypeSBBMFIFFIOption Feature CodeDescriptionDCY BASE00JX956 ASPSLenovo Flex System Carrier-Grade ChassisS COPT00JX969 P00MP723 ASURLenovo Flex System Carrier-Grade Chassis Label GroupS COPT00JX973 P00MP722 ASPTLenovo Flex System Chassis Management Module 2S COPT00MP764 P00MP774 ASULLenovo Flex System Carrier-Grade Chassis Rack KitS COPT49Y3252 P43W9054 A0TPFlex System Compute Node Filler13S COPT49Y3253 P43W9048 A0TLFlex System Enterprise Chassis Power Module Filler4S COPT49Y3254 P43W9059 A0TNFlex System Chassis Management Module FillerS COPT49Y3255 P43W9060 A0TQFlex System Switch Filler3S COPT49Y3262 P43W9053 A0TUFlex System Enterprise Chassis Fan Module Filler4S FOD94Y9828 P00D8022 A2ZTFabric Manager Manufacturing InstructionS LPK00JX970 P00MP709 ASPUSystem Documentation and Software-US EnglishCS LPK00JX971 P00MP710 ASQ0System Documentation and Software-Simplified Chinese (China)CS LPK00JX975 P00MP711 ASPVSystem Documentation and Software-UK EnglishCS LPK00JX976 P00MP712 ASQ1System Documentation and Software-Traditional Chinese (Taiwan)CS LPK00JX977 P00MP713 ASQ2System Documentation and Software-Traditional Chinese (Hong Kong)CS LPK00JX979 P00MP715 ASPYSystem Documentation and Software-KoreanCS LPK00JX981 P00MP717 ASPWSystem Documentation and Software-JapaneseCS MECH81Y5289 81Y5286 A1NFFlex System Console Breakout CableS PKG00JX968 P00MP724 ASQ7Lenovo Flex System Telco Chassis Packaging World WideS PS00FJ636 P00FJ660 A5VBFlex System Enterprise Chassis -48V DC 2500W Power Module Std.2S

11 Configure servers up to 17x faster* Discovery and inventory Monitoring Firmware updates and compliance Configuration management Deployment of OS to bare metal servers Lenovo XClarity Administrator Hardware resources Centralized resource management Integrators and REST APIs Visibility & control of resources from external, higher level virtualization & orchestration tools * Compared to manual execution of tasks

12 LAS AP EMEA NA China Country Support = Countries Presently Covered

14 Flex System Carrier-Grade Chassis - Key Specifications 11U

15 Physical Components

16 Physical Dimensions Dimensions: Height: 483 mm (12 EIA rack standard units) Width: 447 mm (EIA 19-inch rack standard width, minus 3mm clearance) Depth: 854 mm (measured from front bezel to rear of chassis) 847 mm (measured from Compute Node latch handle to the power supply handle) Weight: Rack mount: 155.3 lb (70.44 kg) (all PMs, fans, rear shuttle, ITEs, and switches removed Minimum: 224.8 lb (101.97 kg) (chassis, 10 fans, 2 power modules, 1 CMM, all fillers) Maximum: 516.5 lb (234.28 kg) (chassis, 6 power supplies, all switches, all Compute Nodes, 2 CMMS

17 2014 LENOVO. ALL RIGHTS RESERVED. Power supply Key functions: Power management monitors and controls power usage on all major chassis components N+N or N+1 redundant power supplies Hot-swappable -48 V DC RTN Earth GND 2500W Same form-factor, cooling and output as AC supply

18 2014 LENOVO. ALL RIGHTS RESERVED. Cooling optimization Zoned Cooling with industry leading fan efficiency Cooling zones are separated by compute nodes (right / left) and switches Fans are added according to chassis configuration More fans can be added as more compute nodes are added Easy path fan upgrade standardized fan interface to code (no code change if fan is changed) Enhanced acoustic optimization with multi select states State 1 5 Customer selectable acoustic states to balance acoustic and performance needs Ambient health awareness counsel detects hot air recirculation to the chassis 100% heat removal rear door heat exchanger (RDHX) - up to 30 kW Support for up to a total of ten hot-swap fan modules: two 40 mm (1.57 in) fan modules and eight 80 mm (3.14 in) fan modules.

19 Chassis Management Module Key functions: Power control Fan management Chassis and compute node initialization Switch management Diagnostics: chassis, I/O options, and compute nodes Resource discovery and inventory management Resource alerts and monitoring management Chassis and compute node power management Security policy management Role-based access control Support for up to 84 local CMM user accounts Support for up to 32 simultaneous sessions

20 Air Filters Two airborne contaminate filters assemblies are included with Carrier-Grade chassis Main 10U filter assembly covers the compute nodes Secondary filter assembly covers 1U air-inlet at bottom of chassis Each filter assembly includes a 6mm polyurethane filter Replacement filters option available (Contains four sets of both 1U and 10U filters)

21 Photography

23 Telecom industry trend analysis Telecom Industry Drivers Mobile = non-loyal end-users hungry for new services and apps Revenue Shifts: mobile services/data increases 60% by 2014 vs fixed-line voice/data declining ARPU Decline: impacted via substitution, high competition and regulation Data Explosion: massive volumes -- predictive analytics is a must have Segment Distinctions Blurring: Service Providers demand streamlined, end-to- end converged infrastructure Cloud Offerings: natural expansion opportunity Systems Implications Service Providers demand a streamlined, end-to-end approach Enable clients to reduce IT maintenance spend and invest in new revenue generating technology Integrate siloed client information to provide a single view of the customer Provide consistent levels of service (converged infrastructure) across all client channels; branch, kiosk, web and call center Offer an IT infrastructure for hi-speed computing with low latency to enable clients to analyze Big Data to enable informed real-time decisions Enable compliance to myriad legislative and regulatory acts including Dodd-Frank and GLBA (GrammLeachBliley Act) Client Inhibitors Respond to demands and re-tool IT to become relevant Platform revenue targets historically not aligned with Telecom spending trends Participation missing on Telecom Standards Board where HP, ISVs, NEPs are engaged Limited influencer engagement (ISVs, NEPs, SIs) Service Providers demand NEBS compliance and 10 yr Roadmap EBG must address: System x: Flex System and rack server roadmap Storage: NEBS, Roadmap Source: Segmentation Analysis, Analysas Mason report, Dec. 2011 Bill Lambertson, CTO, Telecommunications industry, GMV Data 1H12 $5,078 $5,593 CAGR = 2.4%

24 Dramatic forces across the industry require new approaches to succeed in a dynamic market Disruptive competitors drive down profit margins Advances in technologies like cloud and next-gen networks challenge legacy systems ability to keep pace Mobility and data services growth cause an unprecedented network traffic and data explosion Empowered customers expect a superior communications experience anywhere, anytime, on any device Active government involvement means increasing regulations To sustain revenue growth, telecom industry leaders are prioritizing three imperatives Deliver smarter services that generate new sources of revenue Transform operations to achieve business and service excellence Build smarter networks Telecom Industry Trends and Industry Imperatives

25 Telco Business Transformation NFV Increases the Server Opportunity See the next section on Network functions Virtualization (NFV) for more detail

26 Workloads by Segment Virtualized telecom functions: Internet Routing Wireless Packet core User data management Business communications Telco Network Cloud Cloud offerings sold as a service: IaaS, PaaS, SaaS, MaaS Deployed as Public cloud Private cloud Hybrid cloud Virtualized IT functions: OSS/BSS CRM ERP Billing, etc. Traditional telco network functions Firewall CDN DNS WAN acceleration Carrier class routing Enterprise workloads Website hosting CRM HR Financial reporting SAP Salesforce.com HR applications Virtualization NFV PMD for DPDK iSCSI, iSCSI boot Emulex SURF SR-IOV UMC OpenStack plug-ins Storage offload Overlay networks Hypervisor support OpenStack support Hi-perf-IO/RoCE Storage offload Overlay networks Hypervisor support OpenStack support Hi-perf-IO/RoCE Workloads Features Telco Business Cloud Telco Public Cloud

27 Telco Convergence Carrier Silos Converged Into a Single Cloud Virtualized telecom functions: IMS Packet core User data management Business communications Telco Network Cloud Cloud offerings as a service: IaaS, PaaS, SaaS, MaaS Deployed as Public, Private and Hybrid Cloud Virtualized IT functions: OSS/BSS CRM ERP Billing, etc. Traditional Telco Network Functions Firewall CDN DNS WAN acceleration Etc. Telco Business Cloud Financial reporting SAP Salesforce.com HR applications Virtualization Telco Iaas, PaaS, SaaS, MaaS Public, Private, Hybrid Cloud Emulex Value Add Features NFV PMD for DPDK iSCSI iSCSI boot Emulex SURF SR-IOV UMC/VFA OpenStack plug-ins FCoE as a service Overlay networks Hypervisor support OpenStack support HPIO/RoCE Telco Business Cloud Telco Public Cloud Single Cloud Infrastructure Any Workload On Any Server

29 2014 LENOVO. All rights reserved. Introduction to NFV NFV is an initiative to virtualize the network services typically done with dedicated hardware. NFV will decrease the amount of proprietary hardware that's needed to launch and operate network services. The goal of NFV is to decouple network functions from dedicated hardware devices Examples of Network Services that could be virtualized are Routers, Firewalls, Load-balancers and Wireless Packet Core Network Function Virtualization (NFV) has the following characteristics:

30 2014 LENOVO. All rights reserved. Introduction to NFV ETSI developed NFV Architecture Four Main Components 1.Hardware Infrastructure (Compute, Network, Storage) 2.Virtualization and Management (VIM) 3.Virtual Network Functions (VNF) 4.Orchestration

31 2014 LENOVO. All rights reserved. NFV Standard and Communities Several communities and standard initiatives in the NFV Space OPNFV This is an Open Source project focused on developing software for NFV OPNFV ETSI This is the standard body developing industry-wide specifications and architecture for NFV ETSI CloudNFV This group is focused on the adaption of NFV for the Cloud CloudNFV Openstack This Open Source project has emerged as a major player with NFV software. Redhat, HP, Windriver and others are building NFV offerings on this platform Openstack

33 2014 LENOVO. All rights reserved. NFV Market Review - Trends The following are key trends in the NFV space identified by infonetics SDN and NFV hardware and software to grow to over $11 billion in 2018 NFV represents the lions share of the combined SDN and NFV market, from 2014 out to 2018 The main value is in VNF software which makes up over 90% of the NFV software segment SDN and NFV exemplify the telecom industrys shift from hardware to software as this will make up 75% of the market in 2018

35 2014 LENOVO. All rights reserved. NFV Market Review Lenovo Competitors Lenovo direct competitors have made some degree of public offerings around NFV CategoryPlayers Infrastructure All of our direct Competitors have announced recommended NFV hardware OS/VIM HP partnering with Windriver Dell, Cisco and Huawei partnering with Redhat VNFs HP and Cisco has own VNFs Dell and Huawei leverages OS Partnerships ecosystem NFV MANO HP and Cisco have MANO offerings Others are leveraging the NFV partner ecosystem

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Mark Cadiz | Sr. Product Manager | April, 2015 Flex System Carrier-Grade Chassis Lenovo/Partner Seller Presentation 2014 LENOVO. All rights reserved