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Caroline DowlingPresident, Communications and
Enterprise Compute (CEC)
Connected Intelligence
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Communications and Enterprise Compute (CEC)
» Revenue FY17 $8.4B − Cloud Data Center: Up 14% YoY − Communications: Up 1% YoY via Optical − Networking: Down -2%− Traditional Server, Storage: Down -35%
» Strong capital efficiency
» FY17 Sketch-to-ScaleTM growth 21% YoY > $1B
» $2B in bookings and 18 new customers
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Sketch-to-Scale Value PropositionTo create a smarter more connected world
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3
Smart Cities
M2M and Robotics
IEI
Digital Health
Autonomous Driving
HRS
Born in the Cloud Providers Telco Cloud Transformation Enterprise Hybrid Cloud
Mobile Device
Connected Living
Augmented Reality
CTG5G
CEC
Cloud and Edge Computing
Connected Things / Connected Intelligence
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Sketch-to-Scale Innovation
Public Cloud 2014Commodity Hardware
Switch
Storage
Computing
Enterprise 2014Proprietary Hardware
Switch
Storage
Computing
» CEC develops reference platforms addressing the shift to custom and semi-custom solutions− Cloud infrastructure and data center − Enterprise convergence− Telco new architecture / technologies
» CEC is accelerating development via Sketch-to-Scale− Technology building blocks
» Enabling− Global deployment via our platform
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Sketch-to-Scale Innovation
Public Cloud 2014Commodity Hardware
Switch
Storage
Computing
Enterprise 2014Proprietary Hardware
Switch
Storage
Computing
» CEC develops reference platforms addressing the shift to custom and semi-custom solutions− Cloud infrastructure and data center − Enterprise convergence− Telco new architecture / technologies
» CEC is accelerating development via Sketch-to-Scale− Technology building blocks
» Enabling− Global deployment via our platform
Hybrid and Public Cloud 2018Virtualized, Software Defined
Commodity and Custom / Semi-Custom Hardware
Switch
Storage
Converged Infrastructure
ComputingEdge
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Cloud and Communication Solutions
Networking
Compute
Storage
ConvergedInfrastructure
Radio 4.5GSmall Cells
Optical Front Haul
Building Blocks Software and Cloud Labs Rack Scale SolutionsConsortium
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Sketch-to-Scale Accelerates Sketch-to-Scale 12% of Revenue FY17 to ~30% FY20
FY15 FY17 FY20
ProductPlatforms
Core R&DEngineers
SoftwareEngineers
12 27 60
293 458 800
60 98 200
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Proactive Innovation
Device Top Cover
2.5” Storage Module x 24
Compute with I/O Sled x 2
2000 W PSU x 2
BBU x 2
Fabric Plane
Service Top Cover
BBU Board x 2
Customer ‘X’
Product Requirements
System Architecture
Software – Product
Software – BIOS / System
Mgt.
Software Bring -up
Diags
Electronics HW
PCB Layout
Mechanical
Validation – System
Validation – HW
Mfg. Test and Process Dev
NVMe All Flash Storage Array Platform with PCIe Fabric
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Sketch-to-Scale
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Hyper-Scale Open Compute Solution
» OCP V2 rack solution, mechanical and thermal design
» Next-generation dual-processor Skylake compute sled
» 32x100G Top-of-Rack switch based on Broadcom silicon
» 2U OCP storage platform
» Liquid cooling solution
» Power shelf
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Radio Module 4G to 4.5G
» Multiple radio projects in development
» Investing in RF and radio expertise to leverage for 5G
» Tier 1 OEM customers
» Hardware design and validation by Flex
» Supplier development for microwave cavity filters
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Portfolio Evolution
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Flex Portfolio Evolution via Sketch-to-Scale
12%
88%
FY17
~30%
~70%
FY20E
Sketch-to-Scale: Communications, Converged Enterprise and Cloud
Traditional OEM
Portfolio Evolution
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12%
88%
FY17
~30%
~70%
FY20E
Flex Portfolio Evolution via Sketch-to-Scale
Portfolio Evolution
Operating Profit Range
Revenue Projections
Sketch-to-Scale: Communications, Converged Enterprise and Cloud
Traditional OEM
FY17 FY18E FY19E FY20E
Growth Inflection Point
$8.4B
3.5%2.5%
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Executive Summary
» Investment strategy in product platforms yielding results
» Sketch-to-Scale enables portfolio transition and diversification to ~30% of revenue
» Expanding new customers, 18 new logos this past year
» Margin and key fundamentals stable with strong cash flow generation
» Guidance remains unchanged