commsday melbourne congress 2016: equinix

PowerPoint Presentation

Realizing Revenue Growth with an Interconnection-First StrategyCommsDayGareth BridgesMarket DevelopmentPresented : October 2, 2016

Confidential 2016 Equinix Inc.Equinix.com#

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Introducing EquinixDigital Disruption Equinix Point of viewSolving for Digital


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Founded in 1998 to help the internet scale

EQUI N I XEqualityInternet ExchangeNeutrality

Confidential 2016 Equinix Inc.Equinix.com#Message Founders Jay and Al came up with the name back in 1998

Additional points EQUINIX = Equal/Neutral (shared idea) + Internet + ExchangeThe Internet is a network of networks, the networks need a place to meetEquinix was that neutral location for the networks to exchange trafficWe helped fixed a bottleneck in the internet and enabled it to scale3

Enabling industries to become interconnectedEnterprises came to re-architect their IT, to access the cloud, reduce costs and improve user experience.Ecosystems began to emerge, first with financial customers, then with content providers.Content providers came to connect to networks to reach end users.Networks came to connect to other networks to scale the Internet.Cloud providers joined to capitalize on our network density and reach enterprises.

Networks

Content & Digital Media

Financial Services

CloudInterconnectionsEnterprise

Confidential 2016 Equinix Inc.Equinix.com#Message While we began as the neutral peering place for the major networks, we have evolved to be the optimal place to interconnect for digital business and scale.Additional points Neutral meet me place to securely exchange business traffic with partnersBusiness opportunities in the network effect of multiple ecosystems converging

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Sydney Interconnection DensitySydney 2010Sydney Current

NetworkCloud & IT ServicesContent & Digital MediaEnterpriseFinancial ServicesCloud & IT ServicesNetworkContent & Digital MediaEnterpriseFinancial Services


Creating the place Where Opportunity Connects

Unmatched global footprint145+ data centers in 40 top markets on five continentsInterconnection8,000+ companies connect directly to their customers and partners through the largest digital exchanges in the worldAccess to the broadest networked ecosystemsMore than 1,400 networks, 2,600+ cloud/IT providers and 500+ content providers

ecosystems global reach and consistencyhigh quality

cross connects175k

continents5

availability

99.9999%

Confidential 2016 Equinix Inc.Equinix.com#Message Providing access to the densest ecosystems, for greatest choice, in the most geographic locations. Additional pointsOur Australia customers span nearly all industry segmentsInterconnection is growing ~2100+ new cross connects/month

86% of tech-enabled startups launch multi-region (McKinsey Global Startup Survey 2015)

By the time this presentation is over we will have interconnected another 3 or 4 enterprises, enabling new capabilities and business relationships. 6



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Digital is here and now, forcing businesses to transform

New Commerce and Collaboration ModelsNew Connectivity and Data Models4.9B30%2.1T76%4.4ZB 40%$176B16%Connected DevicesApp Usage SessionsData Created & StoredHybrid CloudMobile Application SpendCloud Services Spending* Equinix Vertical & Market Insights, 451 Digital Infrastructure Research, Gartner Digital Business Research, Forrester Digital Enterprise Research~50% ENT adopting hybrid cloud by 201720B22%

B2C eCommerce$1.7T18%B2B eCommerce$1.1T8%Digital Advertising$72BB2B Acquired Customers via Company Blog57%B2B Customer Support via Facebook44%Skype for BusinessHours1.6B

Confidential 2016 Equinix Inc.Equinix.com#Message Digital is forcing business transformation. Story Board Point 1Digital requires firms to implement new commerce and collaboration models For example:57% of B2B firms acquire customers via company blog1.6B Hours of Business meetings are conducted annually via Skype for Business

Point 2Digital requires firms to support new connectivity and data modelsFor example:50% of enterprises implementing Hybrid Cloud by 2017 (Gartner)4.4ZB of new data being created and stored annually (451 Research)8

Digital is disrupting all industries

Industrial InternetLocation-Aware Ride ShareData-enabled FitnessVirtual Point-of-SaleAnywhere RetailingConnected DriveCommunity- Based Room Share

Confidential 2016 Equinix Inc.Equinix.com#Message Digital disruption is not industry specific.

Additional points Uber7 years old used sharing economy to disrupt taxis & limosValued at $62.5 Billion, without costs of a fleet (NY Times)Now branching into package & food deliveries etc.

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Digital is creating an economic revolution

1850Industrial economy

2020Digital economy1990Internet economyIT economy1970$0.36T$12.10TAll figures are in trillions; 1990 international dollars; Source: Department of Economics, UC Berkeley, Bain - The Great Eight: Trillion-Dollar Growth Trends to 2020.

$27.50T

$90.0TWorld gross domestic product

Confidential 2016 Equinix Inc.Equinix.com#Message Digital is different from other economic revolutions in that it will touch almost everything. Additional points Digital is the main reason just over half of the companies on the Fortune 500 have disappeared since the year 2000 Pierre Nanterme CEO Accenture.

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Digital is transforming GDPAustralia2015 economyThe digital economy as a share of gross domestic product2020 economyForecast growth of the digital economy$1,2202BN$1,2495BNUnited States2015 economyThe digital economy as a share of gross domestic product2020 economyForecast growth of the digital economy$17,952BN$20,442BNSource: Accenture Strategy - Digital Disruption: The Growth Multiplier.

Confidential 2016 Equinix Inc.Equinix.com#Message Digital is growing while non-digital is stagnating.

Additional points In Japan, Digital is ~20% of Japans GDP while capturing 69% of projected growth (Accenture)

Addition on $292.8bn to economy

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Digital is forcing technology to become the priorityCEOs say technology is the chief external influence on their enterprises

Source: IBM C-Suite Study 2016 - The CEO Point of ViewTechnology factorsMarket factorsRegulatory concernsMacro-economic factorsSocio-economic factorsPeople skills2004200620082010201220132015

Confidential 2016 Equinix Inc.Equinix.com#Message Technology is considered the chief external influence on all enterprises for the past three yearsAdditional pointsSource: IBM C-Suite Study 5,247 Executives 21 Industries 70 Countries12



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Digital EcosystemsDigital Engagement

To transform, business and IT needs to disruptfrom siloed and fixed to integrated and dynamic

Raw MaterialsSuppliersR&DMarketingSalesHierarchicalModelWarehouse/ retailerCustomers

CustomersPrivacyMobile sales and PaymentsOmni-channelStorefrontDigital servicesResearch and innovationDigital productsSupplier network

API

Confidential 2016 Equinix Inc.Equinix.com#Message To transform, business and IT needs to disrupt.Story Board Point 1This requires a shift in business architecture from silo and fixed value chain

Point 2To an integrated and dynamic business-IT architecture leveraging ecosystems and engaging users on-demand.14

To disrupt, IT needs to re-architectFlip the architecture

CoreEdge

CoreEdgeSimplify the topology

Deploy hybrid footprintCentralizedData Center

PushPushColo Hubs

Clouds

Confidential 2016 Equinix Inc.Equinix.com#Message IT needs to be re-architected for digitalStory Board Digital requires IT to..

Point1 Flip the architecture - and bring the apps to the user

Point 2Simplify the topology - by hubbing network communications near the user

Point 3Deploy Hybrid footprint - which directly connects to clouds and colocates data and security adjacently

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A re-architecture requires four steps

DigitalPlaybook

Localize the network1

Create security guardrails2

Establish data fabric3

Interconnect digital ecosystems locally4

Confidential 2016 Equinix Inc.Equinix.com#Message Every firm needs to solve the four steps in the digital playbook.Story Board Digital requires a four step playbook which involves

Point1 Localize user and data traffic in communication hubs across major metros internetworked via a backbone in the cloud

Point 2Create security guardrails by deploying security controls in the communications hubs next to users and the clouds

Point 3Establish a data fabric by deploying analytics and data in the communications hubs next to the users and the clouds

Point 4Directly connect to ecosystems locally via the communications hubs tailoring services to the local user needs16

www.ioakb.com


Confidential 2016 Equinix Inc.Equinix.com#Energy Supplier (Australia)

Integrate IoT, Azure and ERP SystemsSmart meters fitted with GPRS SIM cardsData wirelessly transmitted to EDMI (SaaS hosted on Azure) for data aggregationDirect interconnection between SAP HANA, Legacy SAP, EDMI (Azure) and mobile network via ECXSmartphone app improve customer service and payment channelsNetApp private storage cloud for optimal performanceStaff manually read meters and input to SAP via MDT (Mobile Data Terminal)Potential for human errorSafety concernsTime consumingAll Customer Service interactions via Call Centre

IoT

Customer Staff visit homes to read meters

Meter readings sent to on-prem SAP via MDT

Provider Data Center

Legacy SAP

Equinix Cloud Exchange

Equinix IBX

NetApp Private Storage

Smart meter

Smart meter

EDMI AppMeter readingsBills generatedCustomer service

Customer Service app

Mobile Internet

Smart meter

BeforeAfter

# 2015 Equinix Inc.Equinix.comTake those steps on Platform Equinix

Distributedata and securityConnect to clouds Integrate ecosystems

HANA

Confidential 2016 Equinix Inc.Equinix.com#Message Do this at Equinix where your business and users are

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Invested ~$13 billion to scale the business54 quarters of top-line growthForbes list of most innovative companies140 of the Fortune 500 are customersS&P 500 Index Member

Confidential 2016 Equinix Inc.Equinix.com#Message We are investing to keep pace with the growth in digital business and ecosystems, and ramping up, as digital exponentially growsAdditional pointsOpening SY4 this year $$??????????+ square metres

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Establishing a global platform for digital enablement

5Continents21Metros79IBX Data Centers11Countries

5Continents40Metros145IBX Data Centers21CountriesCloud Exchange

Confidential 2016 Equinix Inc.Equinix.com#Message Our platform provides you a local digital presence, with richest choice of cloud services and network connectivity in 40 major metros across 21 countriesAdditional points 86% of tech-enabled startups launch multi-region (McKinsey Global Startup Survey 2015)

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Cultivating digital ecosystemsA diverse platform of ecosystem participants exchanging commerce, insights and ideas

Service ProviderEnterprise

ContentNetwork28%14%25%

20%13%

FinancialEnterpriseCloud

Confidential 2016 Equinix Inc.Equinix.com#Message Delivering a network effect with a rich balance of providers and consumers coming together in a neutral marketplace. Additional points 72% of these customers are deployed in multiple regionsGE is a both a Provider and a Consumer of Cloud ServicesEnterprise is growing at 28% YoY

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Digital is accelerating the rate of changeSource: Accenture - Technology Vision 2016 survey

How do you anticipate the pace of technology will change in your industry over the next three years?

Confidential 2016 Equinix Inc.Equinix.com#Message Digital is driving the need to change at an unprecedented rate. Enterprises are not architected for such unprecedented rates of change. Additional pointsIf the rate of change on the outside exceeds the rate of change on the inside, the end is near. Jack Welch, retired Chairman and CEO of GE.

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Digital is driving CIOs to deliver new capabilitiesSource: IBM C-Suite Study 2016 The CIO Point of View

Confidential 2016 Equinix Inc.Equinix.com#Message Digital requires enterprises to implement three key technology capabilities : Mobile, Cloud and IoTAdditional points$176B Annual Cloud Services Spend, Growing 16% YoY (Gartner)$800B Annual Enterprise Mobility Spend, Growing 22% YoY (IDC)$800B Projected Annual IoT Spend by 2025 (IDC)26

Digital is exponentially growing data and services

DevicesIoT connects billions of sensors and devices like consumer objects and industrial equipment, onto networksThe high volume of data produced through these sensors and devices is collected and logged onto networksThe network inputs are combined, analyzed and converted into insights for increased efficiency and intelligent decision-making60100ZBin new economic value creation by 2025, per McKinsey predictionsconnected devices, will exist by 2020, per Cisco predictionsdaily traffic by 2025, per Gartner predictions50B$11T

Network and Connectivity

++

People and Processes

Confidential 2016 Equinix Inc.Equinix.com#Message Digital is creating an explosion in data and devices overwhelming IT architectures in terms of connectivity, scale and need for real time analytics. Additional pointsWithout data & analytics, companies are blind and deaf, like deer on a freeway Geoffrey Moore27

Digital requires an emphasis on securitySource: www.convergedigest.com/ (Gemalto & SafeNet)

Encryption of data at rest and data in motion within the network for exposure to authorized users only

Database of authentication keysSecurity software and applicationsReliable authentication to validate users and their access requests and to initiate a secure channel

Authentication keySecurity software and portable objectsClient-sideCloud-side

Security at the edgeSecurity at the core

Confidential 2016 Equinix Inc.Equinix.com#Message Digital requires security from the user to the cloud (and everything in between).Story Board Point 1Digital requires security at the edge of userUsers need to be secured, irrespective of device or location

Point 2 Digital requires data in motion to be secureEnd to End Encryption is required, as data will be stolen

Point 3Digital requires data at rest in the cloud to be securedEncryption Keys must be physically stored separate from the cloud

Additional NotesAn example of this, Googles security strategy NOW assumes their corporate network is not secure and everyone must be verified. 28

driving Digital Transformation PeopleLocationsCloudsData2016 Firm Overview - Marianne Lake, Chief Financial Officer JPMC

Omni-channel Integration & Seamless Digital ExperienceRewire Topology for Secure Growth, Reach & Scale (Security, bandwidth & performance)Digital Business Platform of Interconnected Ecosystems & Markets Operational Excellence & Servitization (insights, real-time analytics)

Equinix CustomerAdvisory Board

Improve customer/client experiencesInternational and regional expansionJPMC 2016Business PrioritiesLeverage scale and completeness of platform Efficiencies and risk managementOwn the future of wholesale and retail paymentsEmbrace change adapt to customer/clients evolving needs and market changesContinue to build a control environment that is effective and efficient Defend the Firm from cyber attacks

JPMC 2016 Innovation

Digital

Customer Experiences / Payments Platforms

Security & Controls

Protecting the firm

Three 24/7 global Security Operations Centers

Cloud / Development

Streamlined Delivery

Elastic, on-demand infrastructure and automation of the software development process

Data & Analytics

Leveraging Insights


... transforming Enterprises across all industries Two year growth in number of Enterprise customer deployments on Platform Equinix worldwide show increasing diversity in industries and ecosystems28%20132015

Confidential 2016 Equinix Inc.Equinix.com#This is Enterprise and Financial customer deployments does not include Networks, Clouds, Content etc. 30

20092010201120122013201420152002200320042005200620072008

... growing global flows & metro centers of digital density

Source: Equinix2,175 cross-connects a month

Confidential 2016 Equinix Inc.Equinix.com#On the left is global data flows but more importantly, it global GDP business exchanges between countries. In digital you can source anything from anywhere and do business anywhere.

On the right look at the transition from Network dominance to Cloud and ENT Enterprise is now our fastest growing segment of growth in interconnection for digital business and cloud ecosystem use.31

shifting competitive advantage to Digital Disruptors

Confidential 2016 Equinix Inc.Equinix.com#All of these companies have one thing in common They built a global business platform and then use it to disrupt incumbent industries. Using speed as their primary weapon as the technologies used mostly already exist.32

Interconnection [in-ter-kuh-nek-shen ]

integrates the physical and virtual worlds where they meet, shifting the fundamental delivery architecture of IT from siloed and centralized, to distributed, and internetworked

Making an Interconnection-First Architecture a critical strategy component for re-architecting Enterprise IT


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Locate Data & Analytics

Shorten the distance to

Integrate & Deliver with

Interconnecting Data

Interconnecting People

Interconnecting LocationsInterconnecting Clouds

Interconnection Oriented Architecture (IOA) - Reference ModelEcosystemsAdjacentEcosystems ExchangeData HubEdgeArchitectureStrategyCommunications HubArchitectureComponentWe codified Interconnection best practices into a repeatable architecture called an Interconnection Oriented Architecture


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Traditional

Shorten the distance to the Edge and rewire topology for Digital1Integrate and Deliver with Ecosystems

2

Locate Data and Analytics Adjacent3to create interconnection-first hub-based architectures at the edge that mesh tailored service nodes


to support a Modern Enterprise Architecture

E2E MarketplacePayments MarketplaceC2E Marketplace

People & LocationsDigital Business Platform

Traditional IT

Bi-ModalEdgePhysical EdgeCloud Edge

Business Opportunities

Systems of InsightSystems of EngagementSystems of CoordinationSystems of Record

123Security & ControlsMillions270,000+6,500+Electronic Trading100sTerms Systems of .. are used by Forrester and originally from Future of Enterprise IT & Crossing the Chasm Geoffrey Moore

Confidential 2016 Equinix Inc.Equinix.com#Solves for Dispersion, Integration, and RationalizationImprove customer/client experiencesInternational and regional expansionOwn the future of paymentsContinue to build a control environment that is effective and efficient

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Enterprises implementing an Interconnection Strategy at Equinix have achieved transformational valuePeopleLocationsCloudsDataProblemInadequate User ExperienceUncontrollable Bandwidth Costs & Time to Provision Inefficient & insecure multi-cloud accessInsufficient Customer Insight & Data ComplianceScenarioInterconnecting Employees, Customers and Partners Interconnecting Geographic Markets, Ecosystems and Business LocationInterconnecting Multiple Clouds Across Multiple Locations Interconnecting Data for Accessibility and Real Time Analytics AppsDistributed Users & AppsNetwork Topology OptimizationMulti-CloudDistributed AnalyticsEquinixsValidatedImpact217% increase in bandwidth/employee while reducing OPEX by 25%

38% reduction in application latency of global collaboration workflow45% reduction in bandwidth OPEX / employee

40% reduction in latency of customer facing apps25% reduction in latency of real-time data analytics apps

50% reduction in OPEX per app30% cost reduction in cloud connectivity cost/analytic application

$8MM annual OPEX savings implementing hybrid cloud


US East/West Region Example Before IOA

OHDE

Silicon ValleySeattle

MiamiChicagoWashington DC

New YorkDallasAtlanta

BostonLos AngelesLong BeachNewportSan FranciscoDenver

Scottsdale

Equinix

Office TampaOrlandoHoustonNew Orleans

St. LouisNorthbrookPhiladelphiaGreenwich

6,500+

INTERNET

MPLS

Cleveland

Confidential 2016 Equinix Inc.Equinix.com#Atlanta, Boston, Chicago, Los Angeles, Newport Beach, Palm Beach, Dallas, New York, San Francisco, White PlainsCleveland, Philadelphia, Seattle, St. Louis, Florham Park, Santa Barbara

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US East/West Region Example After IOA



New YorkDallasAtlantaBostonLos AngelesLong BeachNewportSan FranciscoDenver

Scottsdale

Communications Hub

Office TampaOrlandoHoustonNew Orleans


6,500+

1Shorten the distance, Re-wire the topology

Performance HubPlatform Equinix

OHDE


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IOA Communication Hub

Equinix IBX

HQHigh Speed Local LoopBranch OfficesEthernet

Regional PHsRedundant Fiber Paths

Cross ConnectCross ConnectCross Connects

Network Providers

Mobile Back-Haul PathCross Connect

RouterFirewallVPN TerminatorEquinix Performance Hub

Storage

Confidential 2016 Equinix Inc.Equinix.com#Customer Example: Optimizing User Experience

MPLS

BeforeAfter

RegionMPLSEthernetCircuit Costs(monthly)Average Latency (ms)Total BandwidthCircuit Costs(monthly)Average Latency (ms)Total BandwidthRegion 1$61,198241 G$19,735411 GRegion 2$40,02746555 M$17,10083.1 GRegion 3$24,44966217 M$20,03061.5 GRegion 4$43,27062458 M$28,215152.5 GRegion 5$31,74243463 M$26,77563.3 GRegion 6$20,77228145 M$10,08091.1 GSummary$221,458472.8 G$121,935822.5 G

Cost Reduction: 45%Latency Improvement: 83%Bandwidth Increase: 700%

$80,000/G to $5,500/G of bandwidthNow they can efficiently scale @ speed.


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Scottsdale

Communication Hubs

Offices TampaOrlandoHoustonNew Orleans


6,500+


Performance Hub

Cloud Exchange

2Connect and Deliver via Ecosystems (clouds)

Comm. + Cloud Integration Hubs

Platform Equinix


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IOA Communications & Exchange HubEquinix IBX

HQHigh Speed Local LoopBranch OfficesEthernet

Regional PHsRedundant Fiber Paths

Cross ConnectCross ConnectCross Connects

Network Providers

Mobile Back-Haul Path1 or 10 GB Ports

RouterFirewallVPN TerminatorPerformance Hub + Cloud Exchange

Storage

Or Direct Connect

Cross ConnectVirtual Connections






Scottsdale

Communication Hubs

Offices TampaOrlandoHoustonNew Orleans


6,500+


Performance Hub

Cloud Exchange

2Connect and Deliver via Ecosystems (clouds)

Comm. + Cloud Integration Hubs

Locate Data and Analytics Adjacent3

Data Hub

Add Data Adjacent


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AssessDiscovery, Planning and Architectural DesignEnableFoundation elements, security and connectivityMigrateLift & Shift and Greenfield migration OptimizeMaximize your investment and reduce costs1234Accelerating migration

Cloud FoundationCloud SecurityCloud TrainingCloud Connectivity

Confidential 2016 Equinix Inc.Equinix.com#Nimbo uses a phased approach to ensure that business and compliance requirements are delivered, challenges are documented, risks are mitigated and financial targets are met.

Additional services include: Disaster Recovery, Legacy Integration, DevOps, and HyperCare

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Customer Engagement on Priorities

#

Confidential 2016 Equinix Inc.Equinix.com#Customer Engagement on Priorities

#
