Cloud is the New Core…and Much of it is Additive Today, as greater numbers of devices with greater bytes will be stored in the public cloud than in levels of intelligence are connected to various consumer devices (Figure 4), and by 2021, there networks, businesses and consumers are finding will be more data stored in the public cloud than the cloud to be an increasingly attractive option in traditional datacenters (Figure 5). that enables fast, ubiquitous access to their data. Increasingly, consumers are fine with lower storage capacity on endpoint devices in favor of using the cloud. By 2020, we believe that more Figure 4 – Where is the data stored? Where is the data stored? 70% 60% 50% Consumer % 40% Enterprise % 30% Public Cloud % 20% 10% 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Source: Data Age 2025, sponsored by Seagate with data from IDC Global DataSphere, Nov 2018 There is definitely interest in an increase in utilization of public cloud for data stores as long as we’re good with governance and identify suitable candidates. It’s still not going to be customer data for the foreseeable future, but there are candidates…It’s fair to say that public cloud utilization is going to double. – VP of IT, Fortune 50 Financial Services Firm IDC White Paper I Doc# US44413318 I November 2018 The Digitization of the World – From Edge to Core I 10

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