© 2014 HGST, INC

Open Ethernet Drive ArchitectureIntroducing a new technology from HGST

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© 2014 HGST, INC 2

Forward Looking StatementThis 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.

© 2014 HGST, INC 3

OPEN ETHERNET DRIVE ARCHITECTURE

A FOUNDATIONAL BUILDING BLOCK FOR THE SOFTWARE DEFINED DATA CENTER

© 2014 HGST, INC 4

PROPRIETARY ARCHITECTURES

CONFINES SCALE-OUT OF GROWING UNSTRUCTURED DATA

© 2014 HGST, INC 5

ETHERNETDRIVEARCHITECTUREOPEN

A Drive Running Linux…Leverages the Linux ecosystem

A Drive with Ethernet…Connects storage directly into the data center fabric

A Drive with CPU & RAM…Runs storage services directly on the device

© 2014 HGST, INC 6

DRAM

HDD ARM®

R/W Channel

Ethernet

32-bit ARM®

Standard 3.5” HDD form factor

Powerful, low-cost integrated SOC

Ethernet connectivity

Demonstrating 4TB, but technology can be applied to any HDD, SSD, etc.

“Under the Hood” of the Demo Drive

© 2014 HGST, INC 7

Integrated Demo: Enclosure Example

Reference Design

4U Enclosure

60 drive slots

Embedded switched fabric

Hot-swap components

Provides seamless integration into existing datacenter architectures

10Gbps Ethernet ports

Devices appear as Linux servers

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The open Ethernet drive architecture enables the migration of

“data-centric” storage services as close to storage as possible,

transforming the datacenter of the future by delivering improved

storage efficiency, flexibility, and enabling new capabilities

Goal of the Technology Demonstration:

Work with developers and operators of OpenStack cloud software to (re)define the data center of the future

Stop by to learn how to become a developer, or go to http://www.hgst.com/opendev

© 2014 HGST, INC 9 9HGST Confidential

• Visit HGST.com to learn more about our full Ethernet drive architecture demo

• Visit other companies to see their Software-Defined Storage solutions

• Read more about the Swift Community Test Cluster based on Intel and HGST’s Ultrastar He6 drives on SwiftStack.com/blog