AFF Support Promotion

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New NetApp AFF Support Programs

Goals
Accelerate winning with AFF by competing more effectively on support offering

Two new support programs for AFF systems

Extended support price protection up to 7 years
Free Controller Upgrade with premium support renewal
Program period: through April 29, 2016. We will re-evaluate and determine
whether to continue by that time.

NetApp Confidential - Internal Use Only

Extended Support Price Protection

What we offer

7yr

3 Years standard warranty

Up to 4 years extension

Extended warranty and support to up to 7 years

Year 4-7 support and warranty cost the same % of list price per year, purchase
now (POS) or purchase later (renewal).

NetApp Confidential - Internal Use Only

Extended Support Price Protection

How it works: HW example

Point of
Sale

Renewal

Same % of list price for year 4-7 purchased at POS or Renewal

Year

HW warranty

3%

3%

NA 3%

NA 3%

SupportEdge
Premium 4hr

6.25%

6.25%

6.25%

6.25%

6.25%

NA 6.25% NA 6.25%

Total

6.25%

6.25%

6.25%

9.25%

9.25%

9.25%

9.25%

HW warranty

6% 3%

6% 3%

NA 3%

NA 3%

SupportEdge
Premium 4hr

6.25%

6.25%

NA 6.25% NA 6.25%

Total

9.25%

9.25%

9.25%

NetApp Confidential - Internal Use Only

9.25%

Extended Support Price Protection

How it works: SSP example

Same % of list price for year 4-7 purchased at POS or Renewal

Year

Point of
Sale

Flash
Bundle

6%*

6%*

6%*

6%

6%

6%

6%

Renewal

Flash
Bundle

6%

6%

6%

6%

AFF offers a new software packaging named Flash Bundle that combines OS and premium bundle software in
one single line item on the quote.
* 6% SSP for year 1-3 is included in the software price and not visible as a separate line item in the quote.

NetApp Confidential - Internal Use Only

NetApp Free Controller Upgrade Program

Overview

Who is eligible
Customers purchased minimum 3 years of premium service with an AFF order and
Renew their support contract so the total duration is 6 years

What we are offering

A Free Controller equivalent to the original AFF controller purchased
An option to upgrade to a higher performance controller for an upgrade fee

How it works
Partner and Sales team notified before year 3 is up to schedule upgrade
Customer submits a purchase order for the free controller and support contract renewal prior to
beginning of year 4
Return the original controller within 45 days after receiving the new one.
6

NetApp Confidential - Internal Use Only

NetApp Free Controller Upgrade Program

Additional notes

Pay for year 4,5,6 support at any time within the first 3 years in any combination

Flash Bundle transferred to the new controller

It is an option, Customers can choose whether to upgrade to the newer controller,
their choice

Installation costs and services of the new controller not covered by NetApp

NetApp Confidential - Internal Use Only

Common Questions and Answers

Scenario #1: my customer bought AFF within 60 days before Aug 17, can they take advantage of
this offer?
No. The promotion is only for qualified purchase (booking) of AFF systems starting Aug 17.

Scenario #2: my customer bought 4 years of premium support with initial purchase of AFF. Can
they benefit from the offer?
Yes. As long as they renew their support contract to cover the rest of the 6 years in total required by the promotion
before the end of year 3. They can purchase the 6 years of support in any combination, as long as it is before the end of
year 3.

Scenarios #3: Can I combine the two offers?

Yes. Customers can take advantage of the extended support price protection for the 6 years of premium support they
purchase and get a free controller at year 4. If they want to extend the support to 7 years, they will have the same flat %
of list price as support cost.

Scenarios #4: Can Support Services Certified (SSC) partners benefit from this offer?
Yes, only when selling NetApp branded SupportEdge Premium Services.
8

NetApp Confidential - Internal Use Only

NetApp beats competition

Support offer comparison

Year

NetApp

Pure

EMC-XtremIO

1-3

~6.1%* per year

6.7% per year

11% per year

4-7

~8%* per year

10-15% per year

11% per year

Combine AFFs
Nondisruptive Upgrades,
Scale Out, Unified
Architecture and
Enterprise Grade with
free controller.

support is of
higher list prices
for comparable
systems.

* Blended rate of HW warranty /Support, and SSP varies by config but within the proximity of 8%. See example in backup section.

NetApp Confidential - Internal Use Only

No option for a
free controller.
Forklift between
models.

The Competition
Pure Evergreen

Free controller every 3 years with support

Flat Renewal Cost per year buy anytime
Similar Performing Controller
Online Head Upgrade
Requires m class controller for new disk type
10-15% per year cost depending on options

Source $

10

NetApp Confidential - Internal Use Only

Pure Evergreen Comparison

Higher List Price

Higher % per year
FA450 $11.60 per GB years 4-6
AFF8080 $6.19 per GB years 4-6
NetApp is 47% cheaper for raw $/GB

The Competition
EMC

11% per year

Flat Renewal to 7 years
No Controller upgrades
No Non-disruptive Migrations
Cant do this with EMC

Source $

11

NetApp Confidential - Internal Use Only

Nimble Nothing
SolidFire Nothing
Tintri - Nothing

AFF Resources
Public:
AFF Momentum Press Release on 9/24
Free Controller Upgrade Promotion Brief

The Register: NetApp slims down latest controller, beefs up

channel efforts
Field Portal:
Customer Outreach Email for AFF Controller Upgrade

AFF Support Promotion Terms

AFF Sales FAQ
All Flash FAS (AFF) Deep Dive (WebEx Recording)
SPM 2.0 Forward AFF

All Flash FAS (AFF) POC Toolkit Binder

Winning with NetApp Flash How to compete against EMC XtremIO
CI Presentation : Pure Storage Technical Deep Dive
12

NetApp Confidential - Internal Use Only

Thank you

NetApp Confidential - Internal Use Only

Support Comparison Example

Product List Price
Pure FA 450 (34TB)
AFF8080 (38.4TB)
Hardware/Storage
Software
AFF8080 (38.4TB)

$
$
$

Support List Price

Year 1
Year 2
Year 3
Year 4
Year 5 Total (yr 1-5)
825,000 $ 55,000 $ 55,000 $ 55,000 $ 82,500 $ 82,500 $ 1,155,000

311,015 $ 19,438 $ 19,438 $ 19,438 $ 28,769 $ 28,769 $

258,816 $ 15,529 $ 15,529 $ 15,529 $ 15,529 $ 15,529 $
569,831 $ 34,967 $ 34,967 $ 34,967 $ 44,298 $ 44,298 $

Rate Comparison
FA450 (34TB)
AFF8080 (38.4TB)

HW+SW
HW SEP 4Hr
HW extended warranty
SSP
Blended Rate*

*for AFF8080 comparison. Blended Rate varies by config

Year 1
6.7%
6.25%

Year 2
6.7%
6.25%

Year 3
6.7%
6.25%

6%
6.1%

6%
6.1%

6%
6.1%

Year 4
10%
6.25%
3%
6%
7.8%

Year 5
10%
6.25%
3%
6%
7.8%

426,868
336,461
763,329

AFF support rate is a flat

% of list price.
6.25% for HW SEP 4Hr
6% for SW (first three year
included, not visible as a
separate line item)
3% extended warranty
added for year 4-7

Pure support is SKU

based. Derived rates
suggests:
6.7% for year 1-3 if buy 3
years
10% for year 4 & 5

14

NetApp Confidential - Internal Use Only

Pure Storage Support Rates

POS

Year

Advanced*

Premium*

6%

8%

1+2+3

15% (for 3 yr support period)

20% (for 3 yr support period)

4+5

16% (for 2 yr support period)

20% (for 2 yr support period)

8%

10%

8%

10%

15%

N/A

15%

N/A

Renewal

Example
Product

SKU
Pure Storage FlashArray FA-450 58TB ETH8

Annual
Annual Support
List Price
Support % of
Amount
Pdt List Price
$ 1,275,000
-

POS - 1 yr Support
FA-450-58TB 1 Year Premium Maintenance
POS - 1+2+3 yr Support FA-450-58TB 3 Year Premium Maintenance
POS - 4+5 yr Support
FA-450-58TB 4+5 Year Premium

$
$
$

102,000 $
255,000 $
255,000 $

102,000
85,000
127,500

8%
7%
10%

Renewal - 4 yr Support FA-450-58TB 4th Year Premium

Renewal - 5 yr Support FA-450-58TB 5th Year Premium

$
$

127,500 $
127,500 $

127,500
127,500

10%
10%

15

*% are per year unless specified, % represents % of product list price

Source: April 2015 Pure PEPPM Pricelist
NetApp Confidential - Internal Use Only

Total support $ for year 4&5 same as total

support $ for first three years

On an annual basis; Pure charges higher

support $ for year 4&5 than year 1-3

Support Delta Costs for a Free Controller

System
Pure FA450 38.4TB
Pure FA420 17TB
Pure FA405 11TB
NetApp AFF 8080A
NetApp AFF 8060
NetApp AFF 8040

RAW TB
34
17
11
38.4
19.2
9.6

Total 1-3
$165
$93
$72
$105
$54
$26

Total 4-6
$230
$140
$106
$133
$67
$33

1-3 Delta
-57%
-74%
-174%
N/A
N/A
N/A

4-6 Delta
-73%
-109%
-217%
N/A
N/A
N/A

Notes
FA450 vs 8080 3 year and 4-6 support with controller
FA420 vs 8060 3 year and 4-6 support with controller
FA405 vs 8040 3 year and 4-6 support with controller

Source: April 2015 Pure PEPPM Pricelist

Comparison of list price support renewals

Pure is around 10-15% per year of HW/SW
EMC is around 11% per year
NetApp is around 8% of list price (lower list on similar system)
Support can be discounted, these are public list prices for all systems
NetApp support is less expensive than Pure for base support and controller upgrade.
Pure is also about 2/3 NetApp usable capacity as well.

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