Great. I think we'll get started. Good morning, everyone, and thank you for joining us. I'm Stacy Rasgon. I'm Bernstein's Senior Analyst. I cover the semiconductor and semiconductor capital equipment space here at Bernstein. Today, it's my honor to host Broadcom's teach-in on their storage segment. Today from Broadcom, we have Hock Tan, Broadcom's President and CEO, Jas Tremblay, Jack Rondoni, and Dan Dolan. Jas is Vice President and General Manager of the Data Center Solutions Group at Broadcom, responsible for developing silicon software and adapters for data center storage solutions to cloud service providers, enterprise customers, and embedded OEM systems. Jas also manages the PCIe switching and Ethernet adapter franchises and joined Broadcom through the LSI acquisition, where he was vice president of North America Sales. Jack is Senior Vice President and General Manager of the Brocade Storage Solutions Division at Broadcom. In this role, he's responsible for leading the strategy and execution of the company's storage networking business. He joined Broadcom through the Brocade acquisition, where he was senior vice president of storage networking. Finally, Dan is senior director of marketing of Broadcom's HDD storage business and is responsible for driving the strategy and roadmap for the company's HDD storage electronic solutions. Dan joined the company also through the LSI acquisition, where he was the director of marketing for LSI storage products and previously held product marketing positions at Agere Systems and Lucent Technologies. Today's teach-in will last about one and a half hours. We can go a little longer if we need to. We'll have Q&A following the presentation. To ask a question, if you registered through Bernstein's portal, you should have a link to our Pigeonhole form where you can type your question in. If you don't, you can feel free to email questions to me at stacy.rasgon@bernstein.com. We can make sure to get those asked. With that, I'll turn things over to Hock Tan, Broadcom's President and CEO. Go ahead, Hock. Thank you. All right. Thank you, Stacy. I'm pleased to be here today for our storage teach-in, the number three in our continuing series of providing more transparency, more details of the various segments and drivers within the Broadcom platform. Having said that, as Stacy said, I'm not planning to say much here today, but I'll start with a few words about Broadcom and the critical role Broadcom plays within the storage ecosystem. Jas, Jack, and Dan will lead the discussion of our storage franchises. All right. Next to begin. Well, at the risk of repeating myself, and this is the same slide here I presented in the last two teach-in, but it's worthwhile perhaps to reinforce our business model that drives Broadcom. Today, Broadcom is a leading provider of technology to the global IT ecosystem and a critical partner to the world's largest enterprises, which includes most of the Fortune 500. As we note here on the left, since 2009, which happens to be the year we went public, we expanded the Broadcom platform from eight to 23 different product franchises. We have stayed true to how we built these category-leading franchises, and let me describe what each is. There are three common attributes. First, each provides mission-critical technologies to end users, and that ensures sustainable demand. Secondly, in each vertical, we have the technology leadership. Finally, we not only have technology leadership, we tend to be number one market share. You'll hear today how our storage franchises fits very squarely within this criteria. Looking again at this slide, since 2009 on the left, we have grown our revenue over this period of times, 2009 to 2020, through both organically, and I would say organically, we've probably grown to the extent I can estimate, probably high single digits compounded annual growth rate, but also we've grown through acquisitions. You see here revenue has grown to $24 billion from $1.5 billion when we went IPO, a 16x growth rate. During the same period, consistent with our business model I described earlier, and clearly a contradiction to some of the naysayers out there who view incorrectly that Broadcom is simply an industry roll-up, which we are not. We actually increased our R&D spending 25x. We need to do that to grow and sustain our leading franchises. What's even more interesting, the end result of that, is that we grew operating profit 84x. You might say, how? Gross margin, product margin improve as we go through newer and newer product generations, and we have a platform scale on infrastructure costs. Right. Underpinning this technology leadership are basically roots, which comes from the great innovations of American technology icons such as Bell Labs, HP, Hewlett-Packard, LSI Corporation, and even Broadcom Classic. We gained this heritage and the exceptional engineering talent that goes with it through our acquisitions as you gather. Today, Broadcom has emerged as having the largest intellectual property portfolio, say, in the semiconductor industry. More than 20,000 fundamental patents. Our storage business is no exception and is an example of the value created through our acquisitions during this period of LSI Corporation, Broadcom Classic, PLX Technology, Brocade, and Emulex. Acquisitions from which we extracted set of product franchises, which you'll hear more about today, with a history of proven technology, product innovation and execution, and very deep customer relationships. Next, as highlighted here today, the focus of the teach-in will be our products, hardware and software, and technologies applied in the enterprise server storage connectivity segment. Together, these businesses represent over $4 billion of annual revenue in fiscal 2020. As highlighted, this end market is driven over 80% from enterprise demand. Traditional enterprises, very relevant today, have started to recover from the pandemic. As we see over the next 12 months, and with great visibility these days because of tight supply constraints, we are seeing pent-up demand from enterprise customers resulting in a very, very strong and accelerating demand trajectory in this business back half of 2021 and continuing now as we see to most of 2022 calendar year. Next, please. My final slide just simply sets the stage for today's teach-in. Across our data center and deployments as you gather, data is created in servers, computing that is, and stored in storage and accessed through the network. Broadcom, its platform, enables this server storage ecosystem by connecting these elements in a highly reliable and extremely efficient manner. As you know, about roughly half the 12 million servers today go to enterprises, and every one of these servers does require some form of storage attached. In fact, 70% of these enterprise servers have direct attached storage controllers, which is an excellent franchise for us. Jas will discuss that today. With the excitement particularly, and I would call it, and the marketing hubris in the computing space between Intel, AMD, as well as possibly future multi-ARM-based servers, connectivity of servers to storage has become quite exciting and game changing. Meanwhile, the other 30% of enterprise servers remains very stable, boring almost, because they use very high-end Fibre Channel SAN attach. A purpose-built network for mission-critical servers and storage. This is another franchise Jack will elaborate more on today. Not to be forgotten, the primary choice of high-capacity storage in data centers today, both in cloud and enterprise, continues to be nearline hard disk drives. Thankfully, we have not had much footprint on the client side, as Dan Dolan will explain later historically. We have been able to leverage what we had initially as an emerging nearline hard disk drive business into today a very substantial franchise within the hard disk drive storage industry. With that, I'm pleased to turn the presentation over to Jas. Thank you, Hock. My name is Jas Tremblay. I've been with the company for 15 years. I'm responsible for the Data Center Solutions Group. Today I'll be giving you an overview of this franchise and how we've achieved number one market share. With this slide, what I'd like to do is put things into context. Enterprises, their main focus is to deploy applications. Once their time comes to choose the infrastructure to deploy that applications, data protection and data privacy are core decision criteria. They have options from an architecture perspective. The first option is on the left for mission-critical applications. Here, the data is stored on the drives located in external storage systems, and the data is accessed through servers interconnected through a specific storage networking, specifically Fibre Channel. This architecture provides the highest level of data protection and security. The second option in the center is for enterprise-grade applications. Here, the data is located in the drives in the servers directly, interconnected to the CPU with a purpose-built storage adapter that provides protection and security. This is the core focus of the division that I run and the storage connectivity franchise. The third option is moving your workloads and your applications to a cloud environment, and typically, the drives are located in the servers, and software is utilized to provide data protection, typically replication where you simply copy the data from one server to the other. Again, when the time comes to pick your infrastructure to deploy your application, data protection, data privacy are very critical, where you decide, do I keep this application on-prem or host it on the cloud? In 70% of the cases for enterprise servers, they deploy the middle application where storage adapters. Next slide, please. On this slide, I'll give you an overview specifically of the core product that we sell in this franchise and how we've achieved number one position. I'll draw your attention to the picture on the left. You have a storage adapter in the center. This is the product that we make, composed of silicon software and a board-level product. Its role is to interconnect the drives with the CPU and make this visible by the application. They are deployed in the server, so it's an option that goes inside a server. Three core functions for that storage adapter. The first one is the drives and the CPUs have different protocols, so the storage adapter converts the protocols from the drives to the CPU. The second one is drive failure protection. This is very critical. Imagine you have an application that's using the storage adapter and you have three, five, 10, 12, 24 drives, and one of these drives fails. Well, the storage adapter has the ability to reconstruct the data and provide seamless data protection to the applications. Drive failure protection is the second key function. The third function is server power failure protection. Think of a financial institution that has an application that needs to register a transaction, write a transaction to the drives, write financial transactions. While that transaction is in flight, the server loses complete power. Well, our storage adapter has an autonomous energy source, specifically with supercap technology, that allows you to complete the write even when the server loses power. Again, the storage adapter has three core functions. The first one is drive protocol conversion, the second is it protects against drive failure, and the third one is actually protects against complete power failure of the servers to ensure you don't lose writes or any recording of transactions. These things are very important for financials, healthcare, multiple sectors. This form of data protection is compatible and optimized for databases, ERPs, CRMs, and many types of applications. In fact, all the server suppliers offer our storage adapters as an option for data protection. The way that we're growing this franchise, growing revenue, is two aspects. The first is we're gaining share. We've been continuing to gain share over the past decade. Generation over generation, these servers require more performance. The drives are getting faster, and the storage adapters are getting much faster. I'll show you a little bit more details on that. We're growing ASPs consistently generation over generation. Compounded, this business has grown mid to high single digits consistently over the past several years. Next slide, please. Okay, this franchise has existed for over 30 years. Let me go through a little bit of this heritage and how we built up the number one market share position. Again, 30-year history. In fact, my head of software engineering, my head of silicon engineering, and my head of storage architecture, all three of them have worked together and for the same franchise for the past 30 years. Multiple company names, but they've always stayed together. We've got quite a heritage and a team that the industry's learned to trust and know over decades. This really all started in the 1990s when we introduced the first storage controller. In the 2010s, we introduced jointly with the ecosystem, the SAS protocol, a new protocol for drives, and this brought a lot more resiliency and performance to storage connectivity. In the recent years, the focus of our investment has been to deliver the same data protection and trust that people have in the solution with NVMe-type drives. NVMe-type drives provide better latency and more performance, and we're aligning our roadmap to deliver this level of performance. In fact, if you look at this slide and you take a snapshot of the past 10 years, over the past 10 years, we've increased performance by 20x. 20x more transactions per second over the past 10 years. With the sustained innovation and investment that we're making, we have a path to continue on that performance gain trajectory over the next several years. At the end of the day, this is important in this heritage, and the team, and building this trust with customers is if you're an insurance company, over the weekend, you experience a series of drive failures or issues with your infrastructure, and the Broadcom storage adapters protect your data, they recover it seamlessly. You come back to the office Monday morning, and you didn't miss a beat there. That's how the trust is built, and we take this responsibility very seriously. Next slide, please. Okay, on this slide, I'll go over the three core components of our leadership. How have we achieved number one position over multiple decades of sustained innovation? Well, the first core component is the software, the most trusted data protection software. It's taken decades to create. It's 10 million+ lines of code. It's real-time, high complexity real-time software. The second component is we built our own silicon. Purpose-built silicon specifically for these applications. It's not general purpose silicon. It's silicon dedicated for storage connectivity and data protection. When you take the software, the data protection software, and the purpose-built silicon together, that's where you get the highest performance with the highest data protection. The third core component of our leadership is the strong ecosystem support. It first starts with the operating systems. If you're an enterprise and you want to deploy your application on, let's say, Red Hat Linux, you deploy Red Hat Linux, and out of the box, our storage adapters and drivers are recognized automatically. We do this for a very broad set of operating systems. This just simplifies the deployment model. Second element of ecosystem support is drive compatibility. What customers want is they want to make sure that the application, operating system, storage adapter, and drives combined with a server combination works. The ecosystem relies on us to ensure the drives are compatible with our solution. We have a very stringent drive compatibility infrastructure. In fact, just a few weeks ago, we had Samsung come to our offices in Colorado Springs, and they brought their latest and greatest drives to go through the joint testing together. They know, and as multiple drive vendors know, that for the enterprise space, having the Broadcom seal of approval for storage and being on our compatibility list is important. We invest quite a bit in ecosystem support. We take the software. It's taken decades to perfect. We continue to optimize the purpose-built silicon for performance, and we invest heavily in broad ecosystem support, both OS and drives. Next slide, please. Okay. Let's go through how we've created the broadest and most complete route to market for our products. When it comes time to purchase and deploy the products, the enterprise customers want simplicity. We have three pillars for our go-to-market strategy. The first one, and most important, is server OEMs. Imagine you're a customer. You want to buy a Dell server. You go online and you go through the configurator, and then you're offered a series of options for storage adapters and data protection. And you can pick and choose them, and then when you buy your server, it simply comes with it. It's a very simple process, and we have this process in place for all the industry's leading server OEMs. The second pillar is server ODMs. Similar approach, their focus is hyperscalers, telcos, and a few select large enterprise customers. Same approach and simplicity in terms of ordering. You pick your server, you configure it, you're offered options of the storage adapter, and the solution comes with you fully integrated. It's not a separate purchasing decision. The third pillar of our route to market is channel. This is a network of hundreds and thousands of system builders and integrators globally. These are typically companies that assemble software, hardware to create purpose-built solutions, either for specific verticals or actually for individual companies. They assemble solutions. What they do is they buy through distributors our storage adapters, and they fully integrate them. With this community, we'll often found some of our most advanced users. Just to put it simply, from a route to market, we wanted to simplify the purchasing process, and we've built up a very complete and thorough global that covers all segments route to markets for our storage adapters. Next slide, please. We've covered storage connectivity. Let's step back and look at the different types of connectivity required in a server. Server, as displayed here on the left, there's about 12 million servers sold annually, globally, about 12 million. These servers are composed of CPUs, memory, storage, and a broad array of connectivity. Over the past six years, through multiple acquisitions, Broadcom has built the broadest, most complete portfolio from a server connectivity perspective. Let me go through a couple of these. The first one is storage, which we covered. Storage adapter is our leading server connectivity franchise, came to us from the LSI acquisition. The second one is Ethernet connectivity. High-speed Ethernet connectivity inside a server, the same business model, storage adapters. That came to us from Broadcom. Thirdly is PCIe adapters, PCIe switching that gets deployed mostly in servers. That came to us from the PLX acquisition. Finally, Fibre Channel adapters. Those came to us from the Emulex acquisition. If you compare storage, Ethernet, PCIe, and Fibre Channel, they all share the same customers, the same route to markets, and the same fundamental business model. We've achieved number one position overall in server connectivity. Next slide, please. Let's look at the competitive landscape a little bit and see where we stack up. From a storage perspective, again, the franchise has existed for more than 30 years. We've achieved number one. We've had number one position for quite a long time and are investing significantly, given the scale that we have from a revenue perspective, to keep that leadership position. On PCIe switching, we're also number one with a very strong position. In Fibre Channel, we're also number one globally. The competitive landscape for these solutions is extremely stable, and we're not seeing new entrants, specifically in storage, PCIe, and Fibre Channel, and we are growing quite rapidly from an Ethernet perspective. For storage server connectivity, we're number one overall, and we're number one in three of the four categories where we participate. This is important for customers. They like having a company that is dedicated and focused on server connectivity. They want to interface with a team that offers multiple solutions. They really like the fact that we're driving more investment than the competition across these product categories. Really from a product and investment perspective, no one else has this range or breadth of solutions, and customers are really appreciating the focus that we have and the commitment we have to this franchise. Next slide, please. This is the final slide. Just to put things and summarize things. From a portfolio perspective, we're extremely well-positioned in the server space with number one position overall in server connectivity. We're investing in four areas, and we've achieved number one position in three out of the four. Storage connectivity in servers is one of the flagships in this overall portfolio, and 70% of enterprise servers utilize our storage connectivity. We've achieved this through building the trust with our customers over 30+ years, and we're going to continue to invest in this space. With this, we've actually achieved a pretty cool milestone. We've deployed now over 100 million of our storage adapters. Our strategy is very straightforward. It's focus, be committed to server connectivity. Because of the revenue scales and the number one position we have, we're outinvesting our competitors in these individual categories and delivering high differentiation from a performance perspective. Overall, we have a path to continue to grow this highly profitable franchise. With that, I'll pass it on to Jack. Thank you. Thanks, Jas. Hello, everybody. My name is Jack Rondoni. I am the General Manager of the Brocade Storage Networking business unit. I've been with Brocade for about 15 years. Came in, obviously, through the acquisition, been associated with Fibre Channel for almost 20 years. First slide. When you think about the storage networking market, I always start with who uses storage, who uses SANs? It's enterprises that run mission-critical applications. What a mission-critical application is, the way to think about that is, if that application that's running on that server, if that is not running, your business comes to a complete halt. It's not like email or something that's not important. Think about it as you're doing an ATM transaction. If that mission-critical ATM application is not working, you're not doing business. If you're a airline operations and that application is not running, that business is not running. If you're processing payroll, and you can't because your mission-critical application, your business comes to a stop. It's very important when you think about SANs, those are the types of applications that are deployed on storage area networks. The reason is these applications require that the underlying infrastructure, meaning servers, network, and storage, deliver the reliability and resiliency to keep the application running 24/7. It delivers very low latency to keep the applications performing as expected, as well as being able to scale, as well as being highly secure. The type of information, credit card numbers, social security numbers, very, very important. Security, obviously, is also very, very important. Because of the nature of the importance of these applications to these enterprise businesses, we see that these applications continue to be deployed primarily on-premises, on infrastructure that is on-premises. Because the cloud, even though it's been successful in other models and other use cases, it's not suited necessarily for those types of characteristics. Certainly we've all seen in the press certain things that has happened with the cloud and where some of outages have happened and other things have happened. It's very important when you're thinking about storage area networks to always start with the notion of who is deploying it, mission-critical applications for enterprises. As I talk through this teach-in, as I introduce myself as from Brocade, the important thing to remember, even though it's Broadcom, the two franchises that deliver Fibre Channel networking are Brocade and Emulex. Those two names are brands in the enterprise storage networking business. They are the trusted names in Fibre Channel SAN. You'll hear me use those names quite a bit, because we're one of the earlier inventors from the beginning. Go on to the next slide. Now that I introduced who uses these storage area networks, want to make sure I'm very clear on what is a storage area network, what is a SAN? It is a purpose-built network, meaning this network is built primarily for storage workflows, for storage information. As I mentioned before, it connects mission-critical applications that are sitting on the server on the far left and connecting to external storage on the far right. On the far left, that red adapter there, that is a Fibre Channel HBA, and that is the Emulex brand. They provide the connectivity to or through the network, which is where Brocade is in the middle there, to a storage array, where there's also a Fibre Channel adapter, which is where the storage is. Again, the way to think about a SAN is the key applications running on the server, the actual data itself, social security numbers, key business operations, credit card, that flows through the network and then into the centralized storage on the right-hand side. These SANs that are delivered by Brocade and Emulex use a protocol which is called Fibre Channel. Fibre Channel, as I mentioned, is part of the purpose-built technology for SANs. It differentiates itself versus other network technologies in a number of ways. First is Fibre Channel is a lossless network. The best way I can explain that is think about two people that are playing catch with a ball. In a lossless network, before the person throws the ball, the person who is to catch the ball says, "I'm ready to catch the ball," and they're capable of catching the ball. They send it over. The ball, in this case, is mission-critical information. In other networks, for example, general purpose Ethernet networks, the way that would work is the person who's throwing the information, they're not going to wait or ask if the person's ready to receive it. They're just going to send it. They're just going to throw the ball over. They're going to keep sending it until somebody says, "Oh, I got it." Now, in a general purpose, let's say, workload or applications that's not mission-critical, that's fine. Maybe 90% of the time, that's good enough. As I think we can all appreciate, when you're transferring, let's say, your 401 from one institution to another institution, 90% is not good enough. The lossless aspect of how Fibre Channel was built is a key part of the differentiation of why Fibre Channel continues to be deployed with mission-critical applications. The other aspect of it is every generation of product, the speed doubles. I'll talk about this a little bit more, and that's very important. As Jas showed, the number of transactions per second on these drives are just phenomenal. The scale of information and data is going up massively. You don't want your network to be a bottleneck. Your network's got to be able to handle the volume of that information. The other key aspect of Fibre Channel that differentiates itself is integrated security. The best way to think about this is Fibre Channel is off by default, meaning if you are able to go into a data center and plug into that Fibre Channel network, nothing happens. It's off by default. You have to go and do further configuration. Now, on some general purpose Ethernet networks, that's different. You plug it in, it's connecting, it's ready to go. It's kind of like when you connect into Wi-Fi, you're all ready to go. You don't want that, really, when you're running mission-critical applications. That's another aspect of what really differentiates Fibre Channel. I talked about the mission-critical applications, hopefully give you a real clear view of when I'm talking about SANs, I'm really talking about the connection from the server all the way to the storage and why Fibre Channel has continued to be very well-differentiated in the space. Next slide. Let me go through a little bit of kind of the history of revenue. This is quarterly revenue for 20 years. Fibre Channel's been around for a while. It includes switches as well as adapters, so it's combined. The sources are third-party analysts. Basically, this market for the first 10 years, let's say from year 2000 to roughly 2008, was in a ramp phase. Basically kind of peaked out in 2008 or so, and then, there's the dip of the economic meltdown in 2008. Really what I'm going to focus on is the last decade, starting kind of where that number one is. Basically, what we've seen over the last decade is that this market has remained stable for over a decade. As you can see, sometimes quarter's up, sometimes quarter's down. We saw some strong growth in 2018, 2019. We did see some declines in 2020, because as Hock mentioned, the impact of the pandemic on the enterprise. Also, of course, in us since we're in the enterprise. We're certainly starting to see a second half improvement starting in 2021, and expect a rebound, as well in 2022. More importantly, we expect this revenue dynamic to be sustainable for the foreseeable future. Let me explain why that is. Next slide, please. This chart here is the exact same revenue chart, right? It's the exact same revenue chart. What I'm showing in the colors is really by generation of products. What I think it clearly shows is a refresh dynamic that happens within the Fibre Channel SAN market. Again, if I start with maybe the first 10 years as kind of the ramp-up phase of Fibre Channel, there was 1 Gb, 2 Gb, 4 Gb products. That's all kind of the gray market. That's what was shipped of that class of products. Starting in the middle there in 2010, or 2009, just starting to ramp, you see the 8 Gb portfolio of products coming in. Remember I said speed doubles every generation? We came out, the industry came out with 8 Gb, what happens is it starts refreshing the install base that is there. Then you can see with the darker blue that the 16 Gb portfolio came in. Again, it's refreshing previous generations and previous generations of that. As you can see in the red, as we get to the 2020 time frame, we're in the midst of a refresh with 32 Gb products. We call that Gen 6. You can see that this business, especially in the last 10 years, is really driven around refresh from new portfolios of products coming from the Fibre Channel industry. The other interesting thing is that as these new products come out, again, double speed, easier to use, lots of value for it, there is a ASP growth associated with the new portfolio. Doubled speed, as I mentioned. That ASP is, that growth of ASP per port is also an important characteristic of how this industry is able to keep the Fibre Channel revenue sustainable over time. Next slide, please. I went through kind of the snapshot of the last 20 years and maybe the dynamics of maybe the last decade and how tech refresh and new portfolios really drive the stability and the sustainability of the Fibre Channel market. I want to talk a little bit more about this tech refresh process here. First, it's required to keep up with the increasing application demands. There are more transactions being done, certainly more online transactions being done. Again, we talked about in the previous presentation, the number of transactions per second of storage. Storage is getting faster as well as it's getting larger scales per drives. These SAN product generations, on average, it's about five years. Some customers go a little bit longer, some a little bit less. It's that five-year refresh cycle, and as I mentioned, the higher ASP per port because of the new portfolios that really drive customers to refresh. They get better speed, they're able to scale their applications more. They get new capabilities within the new portfolio that makes operations easier. That's why we see our customers refresh. Now, if you look at just the last two generations, again, this is from third-party reports, there's about 43 million switch and adapter ports. In fact, there's probably another 20 million or so of the generation before that out there. There's a very large install base of these Fibre Channel switches and adapter ports that are basically the source of the tech refresh phenomenon that I showed on the previous page. The dynamics of it are actually pretty simple, and we commissioned an internal study on this. 90%, roughly, of the refresh that we see is of existing footprint. Customer has a Fibre Channel SAN today, adds onto it, brings in a new portfolio to replace the existing fabric. The vast majority of it is, the 90% range, is really just refresh of existing Fibre Channel footprint. The other 10% are more greenfield opportunities that we've seen, and think of those as just maybe a new data center build-out jump ball, if you will. Now, 5% of those, roughly, we've seen will be considering alternative technologies. Depending on the mission-critical app, we've seen some small migration from Fibre Channel footprint towards that. Also, we see about half of these new greenfield opportunities are new Fibre Channel installs. There, it's truly a jump ball, and we've done very well executing, and we actually win the vast majority of those. It's very interesting dynamic. It's almost like software renewals, right? At some point, the contract comes up, and you got to go refresh, or you got to go and renew it. It's very similar what we see here. Then, as I showed, we're in the midst of a 32 Gb refresh cycle right now. What Broadcom has done through Brocade and Emulex is we've launched our Gen 7 portfolio, which is the 64 Gb product. Remember, the speed doubles every time. That was introduced just late last year. The timing of the new portfolios for tech refresh for the foreseeable future is perfect because as the enterprise, as I mentioned, comes out of the challenges of the pandemic and certainly into next year, not only are we in the strength of our 32 Gb portfolio, but we also have our Gen 7 64 Gb portfolio at the ready. Go to the next slide, please. I mentioned Broadcom. It's the SAN industry leader, and that's really driven through the two franchises associated with Fibre Channel, that being Brocade and Emulex. The thing to remember also is Brocade and Emulex were there from the beginning. There's 25+ years of innovation. Both companies had one of the first products in the market in the late nineties. Brocade has been a switch market leader. For the last decade, we've been about 70% market share. As mentioned, Emulex also is a market share leader as well for HBA. Very well-positioned both historically and currently and into the future with our Gen 7 portfolio. Next slide, please. I talked about the Gen 7 portfolio a little bit, and I just want to go into a little bit more detail. First is, this was the industry's first, and currently only, end-to-end 64 Gb portfolio. Again, we call it Gen 7. If you remember what constitutes a SAN, you have the adapter for the server, Gen 7 ready, you have the Brocade switch. See a couple pictures of the various switches that we have right in the middle, and then you have the other adapter that sits in the storage array. In addition to just the doubling of speed, inside the fabrics, inside the SAN itself, we have what's called Autonomous SAN technology. Essentially, the way to think about this is there is information flows that go over a SAN. Remember I talked about mission-critical applications. There's a storage flow of information, and that storage is encapsulated in a Fibre Channel frame and sent through the fabrics. What we're able to do is because now the number of transactions has gone up massively, the amount of data is continuous to grow, we are able to basically profile or baseline a end user's environment. Actually, that's very important because first off, every business is different. So how information flows through a SAN is different. So having that baseline of this is what normal is very important, and that's what our Autonomous SAN does automatically. Once it baselines, it self-optimizes. One of the ways it self-optimizes is there's some business applications that run extremely fast. Maybe they're running some of those new NVMe drives or other things. There's some applications that are slower, maybe some legacy tape drives, other things. Part of the self-optimizing is our SANs are able to see how these frames flow through there, and they're able to put the, let's say, call it the slower applications in the slow lane. Think of it as the highway and the high priority, or maybe more the money information, goes in the higher speed. That self-optimizing is done automatically. There's a self-healing capability as well, that if something goes wrong, and let's say an upgrade on a server or storage array does not go correctly. If you remember that analogy about the ball going back and forth, and they say, "I can't catch it." We can help self-heal that. This is very important technology. If you remember what I said is, this is purpose-built for storage flows. A general purpose Ethernet network doesn't have that storage, essential kind of analytics or view of what goes through a SAN. Only Fibre Channel has that. This Autonomous SAN technology translates into making it significantly easier to operate. Not only do you want your SANs to be very reliable and high performance, you want them easy to use. The best way easy to use is the performance stays high automatically, and the resiliency is always there. It's a very important part of our portfolio and differentiates us. The other thing is, as part of the legacy associated with our business, we have a lot of highly tenured Fibre Channel experts in our business units. What they are able to do is also provide very proactive and automated support. The smartest Fibre Channel experts in the world, there's no question, are within the Brocade and Emulex divisions. They also provide then that support that enterprises and our storage OEM partners require to keep those applications exactly where they are. This portfolio, we're very excited about. As I mentioned, we launched it end of 2020. As we get into the second half 2021 and next year, we see 64 Gb or Gen 7 adding on to the transition for our portfolio. Next slide, please. This will be my last slide. The Fibre Channel roadmap, best way to think about a Fibre Channel roadmap is we always align it with how the enterprise storage is going. When enterprises are updating or are modernizing their storage, it could be all flash, could be NVMe, we align our capabilities from the SAN fabrics with that. For example, our Autonomous SAN technology, it doesn't matter if it's Fibre Channel drives or SCSI drives, or NVMe drives, all that autonomous capability that I talked about will work. We align our roadmap to where enterprise storage is going. The second thing is analytics is important, meaning as the storage flows, if you remember I said storage flows are going through the fabric. We put all these little sensors in the fabrics to basically look at the frames, never the data, we never look at payloads, just the frames, as they go through to understand, so we can see how to baseline, how to optimize, how to self-heal. Automation, the last, is really about simplifying and enabling the SANs to participate in modern orchestration tools that enable infrastructure, IT operations to manage their environments as effectively as possible. Kind of to wrap up, as I've shown, Fibre Channel is a very resilient market. As enterprises come out of the pandemic, coupled with the introduction of the new generation, the Gen 7 64 Gb portfolio that will support further tech refresh, we are very much looking forward to continuing to drive this market for the foreseeable. With that, I will turn it over to Dan. Thanks, Jack. Good afternoon, everyone. My name is Dan Dolan, Senior Director of Marketing for HDD Storage. I've been with Broadcom and in the HDD storage market now for over 20 years, and I'm excited to be with you today to discuss Broadcom's growth and leadership in the nearline HDD industry. With that, we'll get started with my first slide. As you can see on the chart, the demand for nearline data storage is growing. To put this in perspective, more data is created today in one hour than was created in an entire year just 20 years ago. While there is a perception of the hard disk drive market declining relative to SSDs, which is happening in client disk drives, you can see the demand for nearline data storage is growing. If you look back to 2016 on the west side of the chart, you can see that the majority of the bits were stored on Client disk drives. There's a shift that's happened, where now the far majority of the bits are stored on nearline disk drives. In fact, nearline disk drives are expected to account for more than 80% of the bits stored in nearline relative to SSDs out through 2025. On the next slide, we'll talk about how Broadcom electronics play a key role in disk drives for data centers. As you may know, in data centers, there are racks and racks and rows and rows of disk drives. Inside every disk drive, there are three components that are responsible for the operation of the disk drive. Broadcom provides two of these three components, the preamplifier, or preamp as we call it for short, and the system on a chip, or SoC. The preamp is located inside the disk drive, very close to the head sensors and the media or disks to provide the highest signal-to-noise ratio. The SoC is a large mixed signal device that has integrated many functions into one chip over time. These two devices together comprise the data path that enables the approximately $10 billion nearline disk drive market that is growing. Next slide, please. Both devices are complex custom designs that are very difficult to develop. The preamp is a high-speed mixed signal device that continues to add new functions and capabilities, such as laser drivers, to increase the capacity of the disk drive. The preamp is primarily an analog device that uses decades of specialized design techniques to provide world-class performance. The SoC functions as the brain of the electronics inside the disk drive and has several IP blocks that are used to process information and control the operation of the drive, including the read channel core, processor subsystems, and high-speed interfaces. The read channel core uses sophisticated signal processing algorithms to increase the capacity of the drive by converting the analog information it receives from the preamp into digital ones and zeros that can be used by the host to transfer TB of information from the disk drive. Next slide, please. I want to talk about why we win. There's four key reasons why Broadcom has maintained its leadership position in the nearline disk drive electronics market. I can sum it up as follows. Our leading process technologies and innovative IP designs have a time to market advantage that produces quality silicon that works right the first time. The preamp uses custom process technologies that are developed by Broadcom and specifically tailored for the HDD nearline preamp, providing significant advantages to our customers. The SoC leverages Broadcom's node geometry process technology leadership to provide our customers with the leading-edge benefits on the most advanced technologies. Through strategic acquisitions and our market expertise, we have been winning with this strategy for over two decades. On the next slide, we're going to look at where the HDD industry roadmap is headed. As you can see on the left side of the chart, the nearline HDD industry continues to innovate to increase capacity and depends on Broadcom Electronics to make it happen. Not only do we expect to grow with the market, but we'll add silicon content to help continue driving solid growth. Finally, I'll wrap up on my last slide with some key points. Broadcom is a leader in the large and growing nearline hard disk drive electronics market. We have a long history and a proven track record with over 2 billion units sold. Our annual revenue growth of over 20% since 2016 also demonstrates the strength of this market and Broadcom's performance leadership. With that, I'll hand it back to you, Hock. Thank you. Hock, I think you're on mute. Still on mute, Hock. Stacy, could you hear me okay? I can hear you fine. Is it? Good. I think we're fixing it. There we go. Yeah, we got it. Okay. There we go. Stacy, you hear me now? Yes. We can hear you now, Hock. Thank you. All right. Sorry about that. I want to leave you guys with just two thoughts before we open up to questions. One is, as you can probably gather today, in this space of server storage connectivity, Broadcom is pretty much ubiquitous. That doesn't stop innovation technology from upgrading in the hardware, software in this space. We out-invest our limited competition in this space. Because we do that and we continue to do that, we have been gaining share quite dramatically over the last five years. Second point, deep customer relationships, strong ecosystem support you've heard about, are very important characteristics. We have those. We're trusted, we're practically branded in this space. The message I'm coming to you is price sensitivity is not a big thing in this space. The combination of these two makes this segment of our business, our platform, extremely attractive. With that, Stacy, let me turn it over to you for questions. Got it. Thank you so much for that, Hock. We are going to go to the Q&A portion of today's teach-in. Again, if you registered through Bernstein's portal, there should be a link to what's called our Pigeonhole forum, where you can type in questions. If you do not have that link and you'd just like to email questions to me, you can do that. My email is stacy.rasgon@bernstein.com. We actually have a ton of questions, though, in the Pigeonhole, we probably won't be able to get to them all. I do have a question of my own. One of the biggest questions I always get on this segment is growth. People tend to think of it as an ex-growth segment. It doesn't sound to me, from what I'm hearing today, that you guys share that point of view. I know you've given some growth targets for some of these, you talked about Brocade being stable. Just in general, can you talk about how you see normalized growth across these three segments going forward, and maybe how that rolls up into how you guys view for normalized growth for the storage segment overall, if we look out several years? Well- Normalized stages. I get the near-term cyclicality and some of those other drivers that are going on, but how do you think about that? Well, yeah. We have history of 10 years, five years. If you look at it over the last five years, as I indicated, the organic growth in the whole market is about mid-single digits. Couple that with share gains in this segment, we have been growing closer to high single digits on a compounded annual growth rate. Keeping in mind, there have been some level of cyclicality, volatility as we go through years and quarters. Over compounded five, 10-year growth level, we see ourselves continuing to grow probably mid to high single digits. Got it. One of the top questions in the Pigeonhole actually sort of relates to it, but specifically for the Fibre Channel business for Brocade. I get the drivers, you sort of talked about stable revenue with ASPs going up on new technology. That chart that you showed, I believe that was for the whole market, showed ASP per port doubling on stable revenues, which implies units, or I guess at least ports potentially cut in half over that time. Is that actually true? I guess how is that trend going forward? What do you expect for, I guess, unit or port growth versus ASP trends going forward to maintain these kind of stable relationships? Do you think ASPs can double again over the next five years and ports get cut in half again, or what? Jack, if I could take it on first, then you give more elaborate. What you're missing in that and what Jack may not have elaborated clearer is this. Let me do the simple math. As Jack indicated, there are over 43 million ports installed today. The dynamic chart that Jack was showing. Not all 43 refresh in any one year, Stacy. Keep in mind, translate to an annual cadence of refreshment. You're talking about 4 million-5 million ports refreshing or coming up on an annualized basis, not all 43 million. 43 million is the stock base. Annualized is 4 million-5 million. Of that 4 million-5 million, to use Jack's example, 90% of it goes into the same Fibre Channel vendor because there are only two Fibre Channel vendors in this world. We're the leading guys, of course. They do not interoperate in the data center. You refresh the data center, you refresh with the incumbent, 90% goes in. Jack indicated only 10% is a jump ball. On that 10%, which are mostly greenfield site, or they totally rip out and expand a new data center, half of it goes back to data centers and the other half possibly go into other technologies. You're really talking about 5% of a refreshment of 10%. That's how the math really works. That's how you end up, we call it stable. It's actually slightly growing. I would call it low single digits to even possibly in some years mid-single digits, is what Fibre Channel is. It's driven by the fact that even as you have slow attrition of the ports. Keep in mind, attrition is 5% of probably 8% of an installed base. Your price is going up pretty dramatically with a new generation. Got it. Jack, did you have anything you wanted to add to that, or did Hock say it? No. No, I think it was well said. Got it. There's a question for you on Brocade. This is a segment that you actually don't include in storage anymore. You obviously put it's in the Infrastructure Software segment. It was in storage before you bought CA and formed that software segment. Why do you include it in software? Is the go-to-market, is the customer strategy different for Brocade versus some of the other storage segments? What's the reason for that differentiation in your reporting? It's end user. The end user, it's a system. Jack is selling software and with an appliance virtually. The product is really, that Jack described very strongly, the software. You sell it as a system. Okay. It is the same customers, correct? It's still the same enterprise customers? Well, JP Morgan, say, is a huge customer- for mainframe CA, mainframe software, Symantec cybersecurity protection. as they are for Jack's Brocade Fibre Channels and systems. Got it. How about another question here. If we can stay focused on the Fibre Channel for a minute. Somebody would like to know how you see the growth opportunity in 2022 and beyond for that business as we get, I guess, sounds like two different cycles. We've got just a general enterprise rebound and a move to 64 Gb, which obviously should have higher ASPs, and we'll see about the units. Do you expect into 2022, growth, and I know things are cyclical, but do you think growth into 2022 and beyond can actually be higher maybe than, call it, the mid-single digit kind of growth levels that you've been talking about historically, given those two cycles hopefully playing out simultaneously? Jack? Yeah. Certainly, as I mentioned, I don't know if you can hear me. Is 2022, because of the rebound from the pandemic, we would certainly expect a rebound in a growth, maybe single-digit kind of number. As you get into that refresh cycle, I think the way to think about it is, 90% is existing install base, 5% is kind of this jump ball, which we win the vast majority of the time. If we can execute as we have been on that, beyond even 2022, and with the shift to more 32 Gb and more 64 Gb, certainly, I think that eking out a single-digit growth is a realistic goal for us as a business. Got it. I guess the 128 Gb would be five, you said the example as something like a five-year cycle, so that'd be five years. Yeah to 128 Gb. Yeah. It's kind of if you stop and determine maybe halfway through and those 64 Gb are going to start adding on, it would just keep going. Got it. Yeah. Oh, go ahead, sorry. No, go ahead. Finish. No, I was done with my thought. Okay. Got it. I don't know if you guys can give us any sort of high level view for how the storage segment splits out between, I guess, in your reported segments, it would be primarily server storage connectivity, and hard drive. Can you guys give us any sort of even just a ballpark estimate for how the storage segment roughly splits out between those two? Brocade, we kind of know a little bit here and there. Well, I would say it's about, you know roughly the size of Brocade and the Jas biz segment, which is the enterprise-grade connectivity for storage and largely enterprise, again, is about roughly the same size as Brocade. Yeah. If you take this $4.4+ billion revenue segment I described in one of my slides early on. Yeah think as it as broken down to almost, I'm trying to say, close to 40% for both Jas and Jack, roughly close to 40% of that total $4+ billion. About over 30% is on our hard disk drive business that Dan Dolan went through. In other words, our hard disk drive market is almost $1 billion. It's just about $1 billion. Got it. To put it in round numbers. Got it. Do you guys do sort of similar stuff in SSDs as you do for HDDs? I saw the chart. I know it's smaller. Obviously it is growing. It's growing up off of a small base, but on a percentage basis, it should be growing. Well, I'd love to answer that, I'll pass it to Dan to give you more elaboration. Hard disk drive, as Dan indicated, there are only three electronic components, chip components, semiconductor components in a hard disk drive. One is the SoC, which is really the brains. Yeah The read channel. It used to be the read channel. It's gone beyond read channel now, as things like HAMR come into play, it adds in the various other items. There's the preamp, which also has taken on more as more disks comes in for nearline, and in complexity of the architecturing enhancers and multiple heads show up, and you start going to 10, 11 disks with more preamps. The third item, which we do not participate, is controllers, motor controllers. That's somebody else. Those are only three components, but we have two of them. In each of the two we are in, there's differentiated, deep differentiated technology in the semiconductor space we own and keep enhancing. In flash controllers, which is in SSD to create solid state drives, while there are technologies, we do not see these two reasons why we're not considering it as the core franchise. One is the differentiated technology is not that obvious and deep, even though we do touch on that. They're not that obvious and deep. Secondly, it's just the dynamics of the market, right? If you have a fab that produces in an SSD $10,000 of memory, flash memory, a $20 flash controller can be given away for free. Okay. Got it. Dan, did you have anything to add? No, I didn't. Hock covered it very nicely. Thank you. Okay. Got it. I have a question on, you talked about some of the differentiated technology, especially process technologies within preamps and even in SoCs. My understanding, I thought you guys were fabless on these parts, but from what you said, now I'm not so sure anymore. How do you actually handle the manufacturing of those parts? For the SoC, that's true, it's a fabless model, Stacy. On the preamp, it's a process technology that we own, and it's custom and developed by us. It's more of that kind of internal model. Okay. Do you actually make them yourselves in your own fab, or do you outsource them using a process that you've transferred to foundry? No. We make our own fab. You make them. Okay. Interesting. Yeah. It's a key part of the differentiating strategy. Got it. Can you talk a little bit about what makes it special? I gather it's a mixed signal, so like analog digital kind of thing, but there's anything specific that you want to call out? Specific for the preamp or both, the preamp and the SoC? Pre-amp. For the preamp, as I said, it's a process technology that's developed by Broadcom, so it's a proprietary process technology. You can imagine if you're developing the foundation that our design team works with to provide the best products in the industry, we focus on the parameters inside the process, and we can tune those specifically, making other trade-offs in the process to provide the best performance. That gives you a flavor of how we do that, and we've done that for several generations. Got it. Next question. Stacy, if I can add to that. Yeah, go ahead. I've got to add to that because I know where you're driving at. Now, there are people out there who talk about doing preamps. You don't do it outsourcing, not if you want to compete against us. The process we develop is a unique process, and it's not available easily out there in the foundry industry. That's what creates the differentiated performance. Not to mention, we own the fab, so the cost to us per wafer is half the cost if you try to do a foundry with suboptimal process. Got it. Interesting. Another question on HDD on the Pigeonhole here. Somebody would like to know what happens to HDD and preamp content as the industry moves to HAMR drives, and what your view in general is on how much of nearline HDD shipments HAMR will represent over time. That's a very good question. HAMR technology requires a laser driver, which is an entirely new IP block that we add to our pre-amps to drive the lasers that are in the disk drives. The amount of capacity that can be increased with the addition of laser drivers and the HAMR heat-assisted magnetic recording technology is significant. We do absolutely expect a transition to this technology, but it's a whole system solution that's being worked out. We think the technology is mature, and it will absolutely ramp in the future. I can't provide an exact date, but it will ramp. Got it. That's helpful. Stacy, just to follow on to that question. Yes. On the storage connectivity, because Dan and I go hand in hand, the drives in enterprise and data centers attach to storage adapters. Multi-actuator technology and innovation in the drive space is actually driving refreshes on our side. Okay. If you go back five, six, seven years ago, the industry was so maniacally focused on SSDs that you kind of saw a little bit of innovation in the HDD space. not as much in the limelight. The top hyperscalers have made it clear that HDDs are going to be core to their storage infrastructure for decades to come. We're seeing actually a wave of refreshes for the top hyperscalers and an enterprise of HDD systems, purpose HDD systems. They want to make sure from a connectivity perspective, they're future-proof for the multi-actuator drives. Got it. One quick question just popped up here as well. I know you mentioned that client isn't a huge driver of this business, but you do have some client exposure in the HDD business, I assume? Dan, go ahead. Yeah. It's a good question. We do have some client business, but it's not the majority. The majority of our business is nearline. Got it. I guess given the trajectory that you put for nearline growth, it sounds to me like, again, going back to the growth story in general, you do think the HDD business is a growth business, it can grow. Again, part of the cyclicality and everything that can be there. Yes, I absolutely think it's a growth business for us, yes. Okay. Like Hock talked about, it's maybe single digit kind of growth, but it's a growth business. Got it. There's a question here on the Pigeonhole, people asking about CXL, Compute Express Link. Is that a protocol that's important for this business? Do you have any plans to support it? Are there any consequences if you do not? [crosstalk] Yes, Jas. If you zoom into a data center, the connectivity landscape is quite complex. The pillar for connectivity inside the data center is Ethernet. You've got Fibre Channel, you've got multiple HDD and SSD technology, SAS, SATA, NVMe. You've got specific memory interconnect, like DDR and so forth. There's another category of basically AI, ML accelerator interconnects. Historically, that has been PCIe as the interconnect of choice, and we're actually the market leader in PCIe interconnect inside the data center. That's an area that we invest quite a bit. What has happened, there's been a whole series of different connectivity protocol, Gen-Z, CXL, NVLink, for that type of application. Many people in the industry have been chasing the holy grail of data center connectivity, which is, let's have one connectivity fabric that'll cover storage, networking, accelerators, memory, the whole works. Personally, I don't believe that that's going to materialize, and I think CXL is going to be very successful in the memory disaggregation space. Basically, companies want to serialize and disaggregate DDR and other types of memory, which historically has not been interconnected. That has been dominated by DDR as a protocol directly interconnected to the CPUs. I think CXL is going to be good initiatives. We're very supportive for memory disaggregation. Now, for AI, ML interconnect and things of that nature, whether it replaces PCIe or not, we'll have to see. It's very interesting to follow the dynamics around protocol races and different interconnections inside the data center. There's been many that have come and gone, ethernet, Fibre Channel, PCIe, storage connectivity protocols, DDR, have been there to stay. We'll see what happens. Got it. It's helpful. Question on one of the connectivity areas you play in. You obviously mentioned you're number one in three areas. What about Ethernet? What is your competitive positioning in Ethernet? Jas? Yeah. Go ahead. Ethernet is a very important segment, and we have number one market share in Ethernet switching, both in hyperscale and enterprise. That's an area where separate franchise, and there was a teach-in session on that. Historically, Broadcom has been number one in Ethernet connectivity, Ethernet adapters. Since then, we've invested in different areas, and right now we're really focused on investing and leading in simple enterprise NIC technology. We're seeing a lot of refreshers in that space. We're seeing transition from 10 Gb to 25 Gb happening in the enterprise, and that's driving ASP gains and refreshes. In the hyperscalers, we're seeing the transition from 25 Gb to 100 Gb, 200 Gb. We're also seeing in HPC, in different sub-segments in enterprise, adoption of 50 Gb, 100 Gb technologies for ethernet adapters. That's an area where we're focusing our investment, and we have aspirations to regain the number one position in enterprise space. Well, Stacy, let me expand on that. We have not much invested in that space, what you are saying, NICs. Network interface cards is what you are saying. Let's cut to the chase. We have not considered it as a very strong, differentiated space previously, historically, when it was 10 Gb and below, not big deal. We had the capability to do it, but we have not focused on it. Since it's gone up above 10 Gb connectivity, the certain bandwidths, 25 Gb, 50 Gb, now 100 Gb, we have stepped up our focus on investing and basically creating products in that space. As Jas said correctly, given the level of investments and given the fact that it's, in a way, looked at as really a key part of a server connecting to the network or connecting to storage. for storage connectivity sometimes, We have basically taken an initiative that we want to be number 1 in this space. We are well on the way to doing that with the level of investments we've made, especially in the 50 Gb and 100 Gb bandwidth NICs. Got it. How long do you? Stacy, just to add on to that. The recipe for success is very common across the different storage adapters that go into servers. It starts with leading process and leading IP. Typically, on these technologies, we're one process node ahead of our competition, which derives better power, better performance. The second thing is the SerDes, which is the underlying technology where you get the reach and the connectivity piece, because at the end of the day, this is all connectivity. You need to have the best SerDes with the best reach, best power, best performance. This is an area where we really out-invest the competition and it differentiates significantly on SerDes, and this is shared across the different storage connectivity. The second aspect is mindset around low power, hardware accelerated technology to deliver performance. The third recipe for success, which is common, is the system mindset. Is delivering the purpose-built silicon with the software, with the adapter, and having an execution machine that basically outperforms the competition when you integrate all these things together. That's the secret sauce to our success, and we're going to apply this, like Hock said, to high performance Ethernet NICs. Got it. That's helpful. There are other questions here on here, and there was one I just saw that I wanted to grab. Hold on a minute. Here we go. Somebody's asking about cloud storage adapters. They wanted to think through how content per drive for Broadcom varies, I guess, between cloud and enterprise. In particular, the question is: Is there lower Broadcom content per drive for cloud storage adapters since data protection is performed at the software level, or is that just not an area where you guys play anyways? Yeah, Stacy, exactly right. The thing is, Jas put up in one of his early slides. With the exception of Dan Dolan's hard disk drive, where a big part of hard disk drive is non-enterprise, but in the cloud and certain cloud large hyperscalers, well, I won't mention names, have used hard disk drives as their core storage. What Jack and Jas largely focus on their business is driven through enterprise. Cloud use software replication, as Jas say, for really data protection and data recovery, and in Jack's case, totally enterprise, not cloud at all. In most of Jas' case, I would say most of it, very little cloud. Mm-hmm. Got it. There's another question, I think, around some of that. Again, Jas talked about the importance of data protection software. Somebody would like to know if there are R&D synergies with Symantec, especially around data loss prevention products, and are there capabilities that you can or would bring with future products along those lines? Security is key for our customers, but it's different type of security than what a Symantec would offer. The security aspects that we're really focused on is protecting the data from a physical perspective and protecting the server infrastructure from external attacks. We're very focused on security, but it's a different complementary security than application level security with threat protection. Got it. That's helpful. Overall, I would say that we differentiate on security, and overall as a company, we have a mindset around being leaders in security at the right level for the technology that we build. Got it. That's helpful. We're bumping up on our hour and a half, I'm gonna, I guess, open it up to Hock or any of you if there's any closing remarks, anything else anybody wants to say at this point as we bring things to a close. Stacy, not at all. If you have any further questions you really want to pick, by all means, continue. No, we don't have anything to add. Okay. There are more questions here. We can keep going on some of these. Happy to do that, Stacy. Yeah. There's a question on market structure. I know you said, and this pretty good is talking specifically about Marvell. I think across a number of these segments, you do compete with Marvell. Are most of these primarily duopolies, like hard drives is, I think is you and Marvell. You talked about a Fibre Channel like HBAs. I think it was Emulex and QLogic was you and Marvell. Can you talk maybe just a little bit broader around the market structure? Not just in the connectivity, but maybe more broadly across these different things. Well, the most interesting one you talked about, you alluded to, and you're touching on earlier in your question, Stacy, is hard disk drives. Yeah. I mean, we made a point of saying our legacy, as Dan indicated, has been where we started from years back is when Client was a bigger part of data storage in enterprise than were nearline hard disk drives. Marvell has always been in their SoC. They were a largely SoC player in Client. Nearline had been more LSI from which it became Broadco. We used that, we're lucky. As Nearline expanded dramatically. we're very well positioned to strengthen where we are. Today, by far, we are Nearline SoCs. If you take the broader market, we have a larger share on the SoC side in nearline hard disk drives and enterprise drives. Client, we never had much position in the SoCs, as Dan indicated. In preamp, we're basically the only guy. Regardless of what you may hear out there, Stacy, we are the practically only guy. All right? No matter what you may hear out there. Got it. In host bus adapters Fibre Channel, you're right, there are only two players, and that's Emulex and QLogic, which was acquired under the Marvell umbrella. You saw the relative market position of two players, only two players. In Fibre Channel, when it comes to the switch, storage area network, as Jas indicated, and Jas put up in this one slide, there are only two players. Yeah. That's Brocade with over 70% market. There's the other guy, which is a subset, a vertical within Cisco, MDS. That's the way it is. As I said, put it bluntly, the competition in server storage connectivity where it comes to enterprise is interestingly limited. I guess given that enterprise focus, there's another question I have around synergies with some of your other franchises, for example, particularly networking and Ethernet switch. You talked a little bit about that. Just in general, are there broader synergies or complementary nature between aspects of storage and some of your other franchises, or are they still pretty siloed? They are starting to converge, Stacy. You hear a lot of marketing talk out there that as part of running, trying to manage networking connectivity better, you take, as Jas started to touch on, you touch that little beachfront property on the server called network interface controller or network interface card called NICs, from being just a plain translator from PCI Express, from the CPU to ethernet on the network to perhaps creating some intelligence in those NICs. They call them Smart NICs, which I have indicated in earnings call before, and Jas is in. Else now people heighten it by calling them data processing unit, DPUs. All that nice stuff is coming down to hasn't emerged yet to more than a hill of beans at this point, Smart NIC. It's too customized on workloads, but also this. Running it in a server is a totally different game, totally different requirements, understanding from running a network where you have to understand the characteristics of networks, and the key thing is congestion control, management of workloads in the network to ensure, as Jas started to touch on in storage, how you want to transfer data without congestion. Whereas in a server, no such thing happens. Right now, to be honest, there could be a convergence where then the beachfront property called NICs might emerge as an interesting content increase for our networking vertical or networking segment. As of right now, it's very server focused, as Jas indicated very clearly, and we are now focused on just becoming the number one player in that space. Got it. Have another question here. I guess to get to the growth targets that you've talked about, obviously pricing seems to be playing a very large role across a number of these different segments. Can you give us some idea of which segments are maybe more dependent on increasing ASPs for growth versus units? Are they all dependent on pricing? No, not all, but this is a very price-insensitive market, as I indicated earlier, as you gather from it. We're ubiquitous, and it's mission-critical, and a lot of it is very trusted. If you think about it, for Jas, as an example, just using example, the RAID controller for data protection, data recovery, sitting attached to a server barely represents 8% of a server value, total ASP. If it goes down, all hell breaks loose. More important is quality, reliability, and performance. Jas, you want to add to that? Yeah, I'll add to that a little bit. I think the important thing, the ASP increases are linked to technology refreshes. Example, the underlying interconnect inside a server is PCIe. To go from PCIe Gen 3 to Gen 4, it took the industry eight years. We're going from Gen 3 to Gen 4 and potentially Gen 6 in less time than it took to go in one generation. It's a doubling of performance every time. That creates opportunities, but it makes it very difficult if you don't have the investment scale to keep up with this pace of innovation. It all goes back, when you're doubling these performances and these technology refreshes, you've got to have the core IP, the core process, you've got to have the architecture innovation to deliver the performance. It's making it more difficult for new entrants to come in, or for competitors that don't have the revenue scale to invest and keep up with that technology refresh. Really, the ASPs are linked to technology refreshes. If you look at an Ethernet, 1 Gb, 10 Gb, now we're going from 25 Gb, 50 Gb, 100 Gb, 200 Gb. The cadence of these refreshes is actually accelerating. There's so much appetite for data services inside core data centers that the industry needs these technologies. Got it. Is it fair to say, I'm curious how, on a qualitative basis, how the investment levels vary across the segments. Looking outside, it would seem to me that probably the storage connectivity space might have higher levels of investment than, say, HDD. Is that how it is, or is it more uniform across the different segments? How do you think about allocating the R&D? No, it's not allocated. Each of them are run very differently, very uniquely. We have our own in each of these product segments, as we do have in the other 20 odd product segments out there, product verticals we have out there. Each runs their own R&D team. Each runs their own marketing team. The level of R&D varies, very dramatically. Obviously, the longer the product cycle, the R&D% of revenue is actually lower, obviously. Because you spread it out over a longer period. The area on the curve doesn't change that much by the end of the day, just spread it out further. As you probably know, in the hard disk drive side, this nearline capacity drives changes now every two years, virtually, right, Dan? Almost every two years. That's right. We have a new set of products for 14 TB two years ago, as it is for 16 TB, which is a sweet spot almost six months ago, to 18 TB today. Next year, second half will be 20 TB. All new set of products. The cadence of investment speeds up very dramatically versus, say, in the case of Jack, where the product cycle is more five years. In the case of Jas, it's more like three years, right, Jas? Yep. Somewhere in the middle. The percentage of revenue correspondingly matches the speed of innovation. That's interesting. What I'm hearing you saying is that, again, I get your concept of integrating under the curve over time, but it sounds to me like the hard drive business might actually have a higher percentage of revenue of current investment versus some of the others. I would argue that's not how most investors probably think about it. Is that? I know. Yeah. Isn't it fascinating? There's a lot of myths running around the marketplace. It isn't. We're investing in both SoCs and think about innovation happening in the hard disk drive industry to create these monster terabyte drives. Why it keeps growing in throughput capacity is because hypercloud guys, whether it's Google, AWS, is using that as their long-term lowest cost storage, total cost of ownership. They get a lower and lower TCO. the higher the capacity. It becomes a challenge, not just to the hard disk drive guys, which you probably many of you hear in their calls and analyst days from Seagate and Western Digital, where they not only use energy assisted, and HAMR is definitely one energy monster energy assisted. They also put in higher number of disks, and then they go into multi-actuator, as Jas said. All that impacts the content we put in our preamps and our SoCs. Step by step. It's pretty fascinating because some of the leading SoCs, the highest capacity drives are pushing almost to leading-edge silicon. to create the SoCs. As we have to do, Dan indicated, in updating our process technology, which is an interesting process in the sense that it's basically some form of a hybrid process from silicon and germanium and a bunch of other stuff to press the kind of performance, which is on reading and writing, especially on the media that hard disk drives require. Oh, very interesting. Really. We are running up. We are 15 minutes past. I think we will close it out here. Most of the questions, at least on the Pigeonhole, have been answered. A lot of mine have as well. If anybody else does have questions, please feel free. You can follow up with the company, you can follow up with me. I will just see if there is any other closing remarks, and if there is not, then I think we can close it out here. Thank you so much. This is really interesting and fantastic. Thank you. Thank you. Thank you, Stacy, for hosting. Yep, thank you. My pleasure. I think we'll close it out there then. Thank you for joining, everybody. Again, if you have any questions, please feel free to reach out to me or to Broadcom. With that, have a nice day.