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International Business Expansion

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Thoughts and considerations for expanding internationally: culture, localization, culture and business models.

Thoughts and considerations for expanding internationally: culture, localization, culture and business models.

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  • Rackspace HostingOur clients include more than 60% of the Fortune® 100. Today we have more than 190,000 customers in 120 countries.One of the achievements that we are most proud of is that Rackspace Hosting has been recognized by Fortune as one of the 100 best places to work not only in the United States, but in EMEA as well. People really like working here. What that means to customers is that we have a growing, stable workforce that is carefully selected not only for technical skills but also forhow much each employee enjoys delivering exceptional service, and how well they match our culture and core values.OURCULTURE AND THE EXCEPTIONAL SERVICE THATWE BRAND AS FANATICAL SUPPORT MAKE THE DIFFERENCE BETWEEN GROWING AT, SAY, 5% A YEAR AND GROWING AT THE MUCH FASTER RATE THAT OUR COMPANY HAS EXPERIENCED IN THE LAST FEW YEARS
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    • 1. CONFIDENTIAL & PROPRIETARY MATERIALMARKETING & STRATEGY FORINTERNATIONAL EXPANSIONGerardo A. Dada, Head of Global Product Marketing@gerardodadaAmerican Marketing Association - San AntonioSEPTEMBER 22nd, 2012 @rackspace / @SanAntonioAMA / @gerardodada
    • 2. AGENDA CONFIDENTIAL & PROPRIETARY MATERIAL  Rackspace and the Cloud  Our International Journey  Why Expand Internationally  Where to Start  Business Models  Localization  Top Mistakes to Avoid @rackspace / @SanAntonioAMA / @gerardodada 2
    • 3. RACKSPACE® HOSTING CONFIDENTIAL & PROPRIETARY MATERIAL 4,500+ WE SERVE OVER $1 RACKERS 60% OF THE BILLION $$$$ FORTUNE® 100 Annualized Revenue 190,000+ CUSTOMERS 84,000+ SERVERS 22,085+ VM ≅70 PB STORED GLOBAL FOOTPRINT 120+ COUNTRIES8 WORLDWIDE DATA CENTERSPORTFOLIO OF A LEADER HOSTED SOLUTIONS Gartner Magic Quadrant Dedicated - Cloud - Hybrid for Managed Hosting @rackspace / @SanAntonioAMA / @gerardodada
    • 4. WHAT IS THE CLOUD? CONFIDENTIAL & PROPRIETARY MATERIAL • Utility - Pay only for what you use • Instant on • Shared – investment is distributed • Transparent • No Upfront Investment - OpEx vs CapEx Bottom Line: The cloud provides business agility and allows you to focus on your business @rackspace / @SanAntonioAMA / @gerardodada 4
    • 5. RACKSPACE’S GLOBAL JOURNEY CONFIDENTIAL & PROPRIETARY MATERIAL GLOBAL FOOTPRINT 120+ COUNTRIES 8 WORLDWIDE DATA CENTERS 2 SUPPORT CENTERS The Rackspace strategy does not change We aim to be the service leader in every market we serve @rackspace / @SanAntonioAMA / @gerardodada 5
    • 6. WHY EXPAND INTERNATIONALLY CONFIDENTIAL & PROPRIETARY MATERIAL • Have you exhausted the local market? • Good Reasons: growth, opportunity • Are you committed? – Management Buy-in – Investment and resources – Patience @rackspace / @SanAntonioAMA / @gerardodada 6
    • 7. WHERE TO START? CONFIDENTIAL & PROPRIETARY MATERIAL • Market Planning and Opportunity Analysis • Market Sizing - Addressable Opportunity • Legal Framework – Taxes, Customs and regulations - NOM, ISO, UL , PII • Demographics and business environment – Business may be centralized in one of a few cities – Propensity to buy in retail: touch & feel the products – Practicality of Ecommerce: credit card adoption, shipping efficiency and trust@rackspace / @SanAntonioAMA / @gerardodada 7
    • 8. BUSINESS MODELS CONFIDENTIAL & PROPRIETARY MATERIAL • Centralized versus localized model – Think globally but act locally – “Glocalization”: finding the balance between the two • Selling internationally from one location • Indirect models – Distributor, agent, reseller, etc. • The core business strategy may not change (i.e RAX) • Global web presence – How to do it right @rackspace / @SanAntonioAMA / @gerardodada 8
    • 9. RACKSPACE.COM/ES CONFIDENTIAL & PROPRIETARY MATERIAL @rackspace / @SanAntonioAMA / @gerardodada 9
    • 10. LOCAL HOSTING IS BETTER CONFIDENTIAL & PROPRIETARY MATERIAL(IS IT?) @rackspace / @SanAntonioAMA / @gerardodada 10
    • 11. LOCALIZATION CONFIDENTIAL & PROPRIETARY MATERIAL • More than translation • Religion • Language is different – UK vs US English • Understanding history • Culture impact on logos and colors Examples: Orkut in Brasil and Baidu in China TIP: balance local and corporate resources @rackspace / @SanAntonioAMA / @gerardodada 11
    • 12. NISSAN IN LATIN AMERICA CONFIDENTIAL & PROPRIETARY MATERIAL Nissan missed the fact that ‘moco’ means booger in Spanish… 12 @rackspace / @SanAntonioAMA / @gerardodada
    • 13. NIKE IN THE ARAB WORLD CONFIDENTIAL & PROPRIETARY MATERIAL Nike learned the hard way the fire design on their sneakers looks very similar to the Arabic word for Allah @rackspace / @SanAntonioAMA / @gerardodada 13
    • 14. CULTURE CONFIDENTIAL & PROPRIETARY MATERIAL • History and attitudes between cultures – Good and bad (Malinchismo) • The importance of titles and hierarchy – Business cards in Japan – Judging by looks and formality • Importance of relationships and trust – In many countries business in done in person – Use of Alcohol and importance of social events @rackspace / @SanAntonioAMA / @gerardodada 14
    • 15. CULTURE CONFIDENTIAL & PROPRIETARY MATERIAL @rackspace / @SanAntonioAMA / @gerardodada 15
    • 16. COMMON MISTAKES TO AVOID CONFIDENTIAL & PROPRIETARY MATERIAL #1 – Insufficient commitment from management #2 – No business or market plan & priorities #3 – Underestimating emotions and relationships #4 – Not understanding culture #5 – Going after too many opportunities at once #6 – Expecting quick results @rackspace / @SanAntonioAMA / @gerardodada 16
    • 17. CONFIDENTIAL & PROPRIETARY MATERIALTHANK YOU Gerardo A. Dada @gerardodada www.TheAdaptiveMarketer.com RACKSPACE® HOSTING | WWW.RACKSPACE.COM

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