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Companies need to seriously consider areas to reduce the total energy demands of their data centers. Data centers including data storage consume 1 to 3% of global electricity. Now imagine that 1 to 3% growing exponentially, that's going to have an impact on climate change. Data storage is largely based on a 70 year old mechanical technology,
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hard disk drives. These energy hungry disk drives store about 80% of all data globally. They use a lot of energy and they are hopelessly out of step and out of date with today's high tech computing. Customers should be asking questions about how their data is stored related to flexibility, reliability, energy consumption and sustainability.
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What energy savings can be achieved versus traditional data storage and what guarantees can you make on that energy efficiency? So when it comes to data storage technology and its impact on climate change, but there's no escaping the fact that data is growing exponentially today. Already, data centers are consuming anywhere from 1 to 3% of global energy and it doesn't
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have to be like this. There is an opportunity here to bend that exponential curve such as that data centers particularly data storage can consume a dramatically lower amount of energy by a factor of four or a factor of five. The technologies are there to do it to reduce the e waste associated with it as well. Our vision at pure storage is to store, manage and protect the world's data and our mission is
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to deliver simple agile and sustainable products and services that get better with age without disruption. I was personally drawn to pure storage by the vision and opportunity to truly disrupt this industry by building a data storage platform based on modern technology and cloud practices, enabling companies to scale their data management effortlessly with a simple unified
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infrastructure built on an evergreen architecture. Pure storage actually had been working in A I for the last five years where we've been working with companies like NVIDIA and other parts of the ecosystem to provide what we call an A I ready infrastructure. If you think about legacy storage and the challenges associated with legacy storage,
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right, typical storage system lasts 3 to 5 all times. The failure starts to happen with this physical spinning media, mechanical components. They they start to fail after some time. So what the flash manufacturers did was to make it easy for adoption of the technology. They said, OK, let me do a little translation layer sitting on top of flash that makes this
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flash look like disk that can slide in really easily. We came about our design where we said, let's not do a translation from disk to flash. Let's skip the translation which the rest of the industry was doing. And let's go straight direct to flash. And therefore our carbon footprint will be much lower because we are not doing this excessive
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translation. That takes a lot of energy data reduction means you're going to consume 1/5 the physical storage in the public cloud. And that means your carbon footprint, you were taking five times less amount of storage, five times less carbon footprint there too. So that's the beauty of pure storage. We've taken this carbon footprint mentality to
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heart, not only on on premises but also in the public cloud. So in some sense, we've designed environmental Day one into the architecture, which is also very climate friendly. A lot of the industry has tended to copy this notion of evergreen, but the reality is they have not designed it day one into the product and therefore you still end up having to do disruptive upgrades for it.
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Our sustainable products and services differentiate us in the market. Our environmentally responsible operations position us as a preferred supplier with our customers. And lastly, our strategic approach to attracting retaining and developing a talented and diverse workforce. It drives innovation and keeps us highly competitive.
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The sustainable development goals were created as a blueprint to achieve a better and more sustainable future for all and at pure, we believe that a more sustainable world is critical to our employees, our customers and all of our stakeholders, including the communities in which we operate. We're committed to doing our part to achieve that aspiration. And in particular, we're focused on four SDGS
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where we believe we can have the greatest impact. Those include gender equality, decent work and economic growth, industry, innovation, and infrastructure and finally responsible production and consumption. As artificial intelligence and machine learning continue to power companies and lead to improvements in people's lives.
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The additional energy required for data centers to power A I far exceeds the current world's energy development plans. There's a major cost impact, a significant business impact as well as an environmental impact in reducing power requirements. Let alone the issue of future energy availability. One solution is available today.
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Our Evergreen program is a subscription to innovation. It creates a never obsolete future ready foundation for business. Evergreen allows companies to store their data in multiple locations while paying only for what they consume. This flexibility is unlike leasing a car, you're not stuck. If you need less space later,
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you can scale down, renew your subscription or even walk away if you no longer need the car. This allows pure storage customers to use 10 times less power for their storage. Mitigating all the landfill waste that hard drives create by reducing e waste by 97%. Pure storage is bringing the all flash green data center to life, direct to flash technology versus S SDS.
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The big difference is that S SDS have a translation layer in them. We on the other hand, had the application directly talk to flash. We don't put this extra translation layer that slows you down, that causes extra overhead. So it is this key benefit of direct to flash technology that enables the architecture to run smoothly.
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In addition to the benefits of evergreen that no, no downtime because of upgrades and that's what makes pure story shine in the industry. The pure storage platform is a great example of the technology innovation and partnership of Intel and pure this platform and the storage as a service solution helps customers to enable cost savings, energy savings, space savings and e waste reduction.
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When we take a look from a sustainability perspective, there can actually be real world implications on your overall data center, energy and footprint. The portfolio when implemented can reduce your energy consumption by up to 85% and lower the footprint by 95%. We do this through providing sustainable manufacturing products,
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software and solutions. We also collaborate with industry partners so that together we can build solutions to help our joint customers lower their footprint. We also have investment in built in accelerators into the processor which help to accelerate compression and storage workloads. Intel looks forward to continuing our partnership with pure storage and its all flash
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based products. There's a rich road map that the flash window they are providing mostly driven by consumer flash. And so the industry is projecting that by 2026 the cost per terabyte of hard disk versus flash flash will start to get cheaper than hard disk. So as data centers consume less uh energy and data centers are contributing less to climate
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change. And and really, you know, preventing the temperature that fus temperature, we're all trying to fight to avoid. In 2024 we will set our near term science based targets with the S BT initiative. And we're going to continue engaging our suppliers on addressing environmental risks and opportunities. And finally, and this is very exciting,
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we will pilot impact weighted accounting as a new approach to more effectively measuring both the positive and negative environmental impacts on our business. We believe that impact weighted accounting or IW A represents the future of how corporate performance will be measured and assessed in the future. I see that intel and pure storage will continue to collaborate to address the growing
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challenges around data center growth driven by A I. We are revolutionizing data storage in the same way, the internet protocol transformed communications. For those of you who experience life before the internet, you understand the significance here at pure. We have the privilege of working on A I
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projects alongside some of the most innovative companies in the world. We've enabled hundreds of organizations across industries to build and use state of the art A I infrastructure. We plan to continue to advance our lead in devising new and better ways to efficiently store data and ensure our customers are over the moon.
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Delighted with their pure experience.
