The Next Wave of 10GbE webcast with Crehan Research was held on 10/5 and focused on current and future 10GbE adapter and switch market drivers and adoption trends, and the effects of the introduction of 10GBASE-T products on the overall 10GbE market.

1. Explore the Next Wave of 10GbE

2. Webcast House Keeping All attendees will be on mute during the presentation Please submit your questions via the text/chat feature We will do all Q&A at the end of the presentation

3. Agenda Emulex - Next Steps in Networking Crehan Research - 10 Gigabit Ethernet (10GbE) Market Update Emulex – The Maturing Converged Market Place Q&A with Seamus Crehan

4. Shaun Walsh VP Marketing, Emulex Next Steps in Networking

6. UnifiedMulti-Fabric I/O

7. 10GBASE-T, 16GFC

8. 7ZB by 2013

9. Big Data (Hadoop)

10. SSDs drive performance

11. Universal Multi-Channel

12. SR-IOV, VXLAN, GRE

13. Virtual Networking

14. Cloud LOM Technology

15. I/O Isolation

17. Waves of 10GbE Adoption Sources: Crehan Research Server-class Adapter and LOM Report ESG Deployment Paper 2010 IDC WW External Storage Report 2010 IT Brand Pulse 10GbE Survey April 2010 FCoE Storage 25% of I/O 10GbE LOM Everywhere Wave 3 Cloud Container Servers for Web Giants and Telcos 1-2 Socket Server with NICs and Modular LOMs Wave 2 10GbE Adoption Waves 2-4 Socket X86 and Unix Rack Servers Drive 10Gb with Modular LOMs and UCNAs 10Gb NAS and iSCSI Drive IP SAN Storage for Unstructured Data Wave 1 10Gb LOM and Adapters for Blade Servers 50% of IT Managers Cite Virtualization as the Driver of 10GbE in Blades 2010 2011 2013 Beyond 2012

18. 10GbE Market Update Seamus Crehan Founder, Crehan Research, Inc Email: Seamus@CrehanResearch.com Phone: (650) 273-8400 CREHAN RESEARCH Inc. restricted -- do not redistribute without permission

19. 10GbE Server Adapter & LOM Port Shipments 10GbE Server Adapter/LOM Shipments Ports growing ~ 20% Q/Q 1H11 port shipments of ~2.3 M Close to doubling Y/Y Very strong traction without: Romley/Sandy Bridge upgrade 10GBASE-T Strong macro economy Ports in Millions CREHAN RESEARCH Inc. restricted -- do not redistribute without permission

20. Current Market Adoption & Drivers Blade servers Virtualization Storage network attach Cloud & large production data centers Massive expansion of connected devices High-density server access switches Market close to doubling Y/Y 10 CREHAN RESEARCH Inc. restricted -- do not redistribute without permission

21. Future Market Drivers Continuation of current market drivers Romley/Sandy Bridge Convergence Storage – FCoE, iSCSI HPC – Low latency “Big Data” 10GBASE-T 11 Server Adapter/LOM Shipments Ports in Millions CREHAN RESEARCH Inc. restricted -- do not redistribute without permission

22. 10GBASE-T Adapter/LOM Adoption Ramp starting in 2012 FlexLOM/daughter card Native LOM Stand-up cards Numerous high-density/high-volume server access switches Large installed base of Cat 6/6a data center cabling 12 10GbE Port Interface Shipments Ports in Millions CREHAN RESEARCH Inc. restricted -- do not redistribute without permission

23. 10GbE Adapter/LOM Pricing Trends Steep ASP declines Multiport solutions Increased copper mix Mezzanine card and LOM mix Significant 10GbE bandwidth discount on all major form-factors Cable and slot savings 13 Server Adapter/LOM Bandwidth Pricing $ ASP per Gigabit of Bandwidth CREHAN RESEARCH Inc. restricted -- do not redistribute without permission

24. Server Access Switches Ports growing ~ 20% Q/Q Quarterly run-rate >1M ports Recent traction stronger in Fixed/T-o-R High density 10GBASE-T switches from numerous vendors ASP per port halved since 2008 14 Server Adapter/LOM Bandwidth Pricing Port Shipments in Millions (Bars) CREHAN RESEARCH Inc. restricted -- do not redistribute without permission

25. 10GBASE-T Data Center Switch Adoption High-density fixed/top-of-rack switches High-density chassis/modular end-of-row line cards 10GBASE-T close to half of data center switch ports by end of 2015 More on-board LOM and pre-installed cabling reduces customers variable cost of 10GBASE-T adoption 15 10GBASE-T Data Center Switch Ports % of Total Datacenter Switch Port Mix CREHAN RESEARCH Inc. restricted -- do not redistribute without permission

26. BASE-T Factors for Speed Upgrade Power Cabling installed base LOM for rack servers Server-access switches Bandwidth discount 16 CREHAN RESEARCH Inc. restricted -- do not redistribute without permission

27. 10GbE Pricing TrendsSwitch + Server Connection Significant bandwidth discount for 10GbE connection versus 1GbE connection Bandwidth discount continues to increase ~40% in 2008 ~60% in 2011 ~70% in 2012 Network hardware only – also incremental cable savings 17 Switch + Server Pricing Trends $ ASP per Port (Switch + Server) CREHAN RESEARCH Inc. restricted -- do not redistribute without permission

28. Summary 10GbE server-class adapter & LOM shipments have reached significant volumes already. Traffic/device growth, virtualization, convergence, cloud and bandwidth cost savings have been, and will remain key drivers. Impending key drivers such as Romley/Sandy Bridge,10GBASE-T, more attractive pricing and emerging applications will propel next adoption stage. Expect 10GBASE-T to become majority of server-class adapter/LOM and data center switch connections. 18 CREHAN RESEARCH Inc. restricted -- do not redistribute without permission

29. The Maturing Converged Market Place 19

30. Evolution of 10GbE Network Convergence HP FlexFabric IBM Virtual Fabric Cisco UCS Dell NPAR 10GbE LOM 10GbE CNAs HW iSCSI/FCoE x86 and Unix Blade and Rack HP iSCSI/FCoE NetApp iSCSI/FCoE EMC iSCSI/FCoE DELL iSCSI/DCB IBM iSCSI/FCoE VMware vNICs Virtual Switch ESX HW iSCSI ESX FCoE VM vCenter Blade Switches Blade PTMs TOR Switches Core Directors Converged Fabric-based Computing Converged Switching Convergence for Server Virtualization Converged Adapters & LOMs Converged Storage

31. Wrap Up Many Phase to Market Transitions and Implementation 10GBASE-T will drive 10GbE Cost in Racks Network Convergence is Coming; Best to be Ready Management of Domains Will be the Most Challenging 10GBASE-T is Like Hanging Out with an Old Friend

32. THANK YOU For more information, please contact Shaun Walsh 949.922.7472 shaun.walsh@emulex.com