Equinix Sydney Customer Appreciation Day


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Equinix session for the Australia Customer Appreciation Day, November 13, 2012

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  • I have 15 mins to open the day to talk about:Secular trends in technology that are changing our lives and creating an incredible growth opportunity for EquinixHow Equinix is uniquely positioned to capture this growth opportunity because of its sustainable differentiation (MOAT)The key strategic vectors that will enable us to enhance our differentiation and grow the business (KEY LEVERS)Walk you up to the $3B in revenues in 3 years we guided the Street toLet’s jump into the 7 trends that driving growth in the data center and interconnection services space
  • Jewel #1: Networked data centers (at the heart of our business model)The established foundation of network neutrality and densityThe original ecosystem was built around being a neutral point for network peering to help scale the InternetToday, we have over 700 network service providers that exchange traffic and give customers multiple connectivity choicesThe ancotel acquisition will bring with it 200+ networks into the foldNext generation telecom hubs to meet the evolving digital economy are being consolidated and deployed at EquinixEquinix has the some of the most network dense data centers in the world
  • Jewel #3: Customer ecosystemsFertile environment for a diverse and interconnected customer baseFocused on 5 industry verticals:Networks: 26% of revenues, the foundation, peer, sell bandwidthContent & Digital Media: 21%, cost, user experienceFinancial Services: 20%, Global information and liquidity hubsCloud Computing: 24%, public, private, hybrid deploymentsEnterprises: 9%, mission critical, latency dependent appsWe possess the know how and critical mass of customers within key verticals to foster the development of interconnected ecosystems
  • Key message: It’s not about one data center. It’s about connected data centers around the globe. Supporting Message – Never Go DarkAggressive investment by Equinix in the APAC region ensures continued access to capacity, in the locations you need it.Supporting message – Global platform for simplicityVendor management, billing, scoping, etc. are simplified when working with one global partnerSupporting message – The right networks in the right places for performanceEquinix has the bandwidth choice and is strategically located to optimize performance Supporting message – Expansion when you need itReduce the geographic diversity demanded of your IT team by leveraging Equinix as a supporting resourceEquinix’s consistent global infrastructure simplifies your growth pathEquinix has teams around the globe to provide on-site support to address issues and solve implementation challenges
  • LegacyOne-size(or brand)-fits-all deployments to on-premise standardized platformsNo ability to expand on-demandDeployment timelines of up to 6 weeks when procurement requiredEvolvedOptions to deploy on-premise or hosted cloud providersAbility to expand on-demand when required with little to no delayAbility to expand on-premise for longer lasting services in ‘production like’ environments
  • Equinix Sydney Customer Appreciation Day

    1. 1. The  Cloud  Enabled  Enterprise  Lane  Paerson  CTO,  Equinix  
    2. 2. Agenda Lane Patterson, The Cloud Enabled Enterprise CTO Equinix •  Current trends: the case for IT transformation •  Benefits of the Cloud •  Complex compute and Business Class Cloud •  AWS and Equinix Partnership •  Case Studies Ian Gardiner, CEO Viocorp Viocorp Case Study: •  Managing and Delivering Video using AWSwww.equinix.com © 2012 Equinix Inc. 2
    3. 3. Are You Focused on Your End-Users? Both business and end-user expectations are continually increasing CxOs want A new business model for consuming IT resources High end-user satisfaction and adoption End-users expect Rich application services More speed and higher reliability Anytime/anywhere access Ease of use Greater innovation A high quality online experience At least what they have at homewww.equinix.com © 2012 Equinix Inc. 3
    4. 4. Application Performance Matters BUSINESS CRITICALITY Market Challenge Delivering application performance to meet customer expectations Impact Right performance for each application Higher user satisfaction Best Effort Priority Real-Time Proximity >100ms <100ms < 50ms < 5ms Increased adoption, >2000km < 2000km < 500km < 50km customer loyalty, and revenue LATENCY SENSITIVITY Performance matters for end user experiencewww.equinix.com © 2012 Equinix Inc. 4
    5. 5. Your Application Performance Drives Your Revenue “Users really respond to Poor Performance speed. A half of a second delay caused revenues to drop by 20%.” Slows adoption Reduces user satisfaction Decreases revenue and market share Creates a negative brand imagewww.equinix.com © 2012 Equinix Inc. 5
    6. 6. The Old Way of Delivering IT Serving the World from One Central Location 1 2 3 4 1.  Headquarters Experience – Users located in close proximity to where applications are hosted experience good application performance 2.  Branch Office Experience – Still positive end-user experience, but certain applications may be impacted 3.  Remote Office Experience – Negative end-user experience because of distance from application delivery 4.  Kill-Me-Now Experience – Users find it very difficult to do their jobswww.equinix.com © 2012 Equinix Inc. 6
    7. 7. Focus on Quality of Experience (QoE) Poor application performance impacts your employees, customers, and partnerswww.equinix.com © 2012 Equinix Inc. 7
    8. 8. Move to a Distributed, Global Cloud Platform All Users Get a Headquarters Experience Old Way Long routes Choke points Fault prone Service variability Variable QoE New Way Optimized routes Fast throughput Resilient Consistent service Higher QoE http://aws.amazon.com/about-aws/globalinfrastructure/www.equinix.com © 2012 Equinix Inc. 8
    9. 9. About Equinixwww.equinix.com © 2012 Equinix Inc. 9
    10. 10. Some Facts About EquinixThe World’s Largest Provider of Carrier-Neutral Data Centers Platform Equinix: 90+ data centers 30 global markets 5 continents 900+ Networks Unmatched Scale and Reach Direct access to over 90% of all Internet routes We deliver <10ms latency to 90% of the population of North America, Europe, and key Asia & LATAM metros Greater than 5-nines (99.999+%) of uptime for www.equinix.com the past 5 years © 2012 Equinix Inc. 10
    11. 11. A Global Platform to Build On Interconnection What would your •  900+ Networks •  100,000+ Cross Connects Business Ecosystems business gain? •  Serving 90% of all Internet Traffic •  4,000 Businesses •  Network Performance Hubs Global Data Centers •  Direct Connect •  Customer Storefronts Increase deployment •  90+ Data Centers •  Business Ecosystems •  7M+ Square Feet •  Ethernet Exchange •  Integrated Partner Solutions speed and efficiency •  Internet Exchange •  300+ Cloud/SaaS Providers •  99.999% Uptime Record •  500+ MSPs & SIs Improve quality of experience for end users Expand to more global markets Reduce total cost of ownership Applications Networks Data Deploy more business-enabling applicationswww.equinix.com © 2012 Equinix Inc. 11
    12. 12. Networked Data Centers Established foundation of network neutrality and density Americas EMEA Asia Pacific 450+ Networks 400+ Networks 250+ Networks 24 Metros 9 Metros 5 Metroswww.equinix.com © 2012 Equinix Inc. 12
    13. 13. Customer Ecosystems Helping Enterprises and Web companies migrate to the Cloud Cloud Computing Financial Services Networks >900 networks available Content & Enterprises Digital Media >110,000 Cross-Connectswww.equinix.com © 2012 Equinix Inc. 13
    14. 14. Asia: A Bright Spot in the World Economy AP is and will continue to be the most robust economic region in the world!AP Data Center Services Market Size – ColocationIn US$ Billion •  40% of the Fortune 500 are now HQ’d in Asia Pacific. •  China – 2nd largest economy, 5th largest consumer AP data center co-location market is projected to grow at a CAGR of 6% upto 2016. market on the planet −  It has 950 million mobile subscribers R CAG 6% 11.6 12.2 Singapore •  India – potential to become 4th largest economy, CAGR 10.6 11.1 middle class will grow from 50 million people to 5% 10.0 9.1 Hong Kong 550million! 8.3 8.6 8.0 Australia & •  Australia – most mature market in cloud adoption New Zealand within Asia Pacific China Japan •  61% of US exports went to the Asia Pacific region in 2011 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: Japan: IDC, Aug 2011; All other markets: Frost & Sullivan, Nov 2010www.equinix.com © 2012 Equinix Inc. 14
    15. 15. Equinix Asia Pacific Presence 2011-12 Expansions Sydney SY3 •  1000 cabinets. Q2 2011 Singapore SG2 •  1006 cabinets. Mid 2011 Hong Kong HK2 •  450 cabinets. Q3 2011 •  1000 cabinets. Q2 2012 Tokyo TY3 •  960 cabinets. Mid 2011 Shanghai SH5 •  200 cabinets. Q3 2012LEGEND: CURRENT EQUINIX LOCATIONSwww.equinix.com © 2012 Equinix Inc. 15
    16. 16. Sydney 3 Data Centers, 100 Networks SY1 IBX+ SY2 IBX+ SY3 IBX+ 69,967 sq ft 62,100 sq ft 199,885 sq ft (18,570 sqLeased Leased Leased (6,500 sq m) (5,770 sq m) m) 34,446 sq ft 17,700 sq ft 25,543 sq ftColocation Colocation Colocation (3,200 sq m) (1,640 sq m) (2,373 sq m)Electrical 2.0 kVA per Electrical Electrical 4.0 kVA per cabinet 3.84 kVA per cabinetDesign cabinet Design DesignCooling 1,200 watts Cooling 1,900 watts Cooling Water-Cooled CentrifugalCapacity per sq m Capacity per sq m Capacity Chillers 2 X 3.7 MWr + 2 X 600kWr (N+1), Computer Room Air Conditioners (N+25%) •  Named “Data Center Provider of the Year” in 2011 by Frost & Sullivan •  Sydney’s most connected data center •  Enjoy close proximity to the Central Business District •  Benefit from access to the Southern Cross Cable Head and PIPE •  SY3 phase II expansion plannedwww.equinix.com © 2012 Equinix Inc. 16
    17. 17. The Cloud-Enabled Enterprisewww.equinix.com © 2012 Equinix Inc. 17
    18. 18. Opportunities of the Cloud•  Cloud gives Enterprise IT new choices: –  Applications –  Compute power –  Storage•  Cloud enables innovation•  Cloud reduces cost•  Complex Compute Environmentswww.equinix.com © 2012 Equinix Inc. 18
    19. 19. Cloud is Still in the Early Innings Workloads are moving away from on-premise environments Cloud - Today How can Enterprises cross the Chasm?e=Morgan Stankey research estimates.Source:IDC, Morgan Stanley Researchwww.equinix.com © 2012 Equinix Inc. 19
    20. 20. Early Cloud – Enterprise Apps Challenged by Internet IAAS SAAS •  Security •  Network Cost Challenges •  Performance •  Reliability / Availabilitywww.equinix.com © 2012 Equinix Inc. 20
    21. 21. The Cloud-Enabled Enterprise Integrate & Leverage Public Cloud Reduce capital expenditures and complexitySTEP 3 Maximize flexibilityLeveragedirect access Improve securityto public cloud Optimize performance and reliability Cloud Enable the EnterpriseSTEP 2 -Built on Network Performance HubsMove key Performance ImprovementApplications 40% less variability in end-to-end transit timeto a connected 15% faster page load timesEcosystem 80% reduction in downtime Optimize the Wide Area NetworkSTEP 1 - Deploy strategic Network Performance HubsBuild into TCO Reduction RangesNetwork Local Loop elimination – 15-30%Neutral Hubs Leverage wholesale providers – 35-60% Tier 1 providers last choice only – 20-30%
    22. 22. The Catalyst: Network Performance Hubs (NPH) Allows CIOs to easily and inexpensively connect to over 900 network service providers and 300+ Cloud providers available on Platform Equinix Network Services •  Local access (direct fiber, private line, Ethernet, etc.) •  Long Haul (fiber, TDM, etc.) •  Internet •  MPLS and Carrier Ethernet connectivity •  Voice, video and collaboration services •  SIP trunking •  CDN •  Mobile platform gatewayswww.equinix.com © 2012 Equinix Inc. 22
    23. 23. Direct Connect: Internet Avoidance = Performance Public Cloud Enterprise Deployments Deployments Network Serviceswww.equinix.com © 2012 Equinix Inc. 23
    24. 24. AWS Direct Connect Advantages •  Elastic – scale at 1 to 10Gbps easily, or multi-10Gbps links •  Inexpensive – large bandwidth at drastically lower rates •  Secure – Private-high bandwidth dedicated network, with no encryption overhead •  Reliable – Direct connectivity provides a more consistent experience than Internet-based connections. 99.95% SLA when using redundant AWS Direct Connect connections •  Private – You control data flow over the AWS Direct Connect by advertising specific routes, guaranteeing full control of data flowwww.equinix.com © 2012 Equinix Inc. 24
    25. 25. AWS Direct Connect and Platform Equinix Ashburn, Silicon Valley, Singapore and Tokyo AWS Customer Applications Unique Customer Value High Level Services Establish Private Connection to AWS Content Distribution Deployment Monitoring Automation Accelerate Customers & Partners to the Cloud Application Platform Services Database Messaging Libraries & SDKs Parallel Processing More Consistent Network Experience Foundation Services Increase Bandwidth Throughput Compute Storage Networking & Security Identity & Access Physical Layer Enable Industry Solutions for Clients AWS Global Infrastructure More Access Capabilities for Customers Equinix Connection Options to AWS Leading QoE Enablement Optimized Internet Access Direct Connect Carrier Ethernet Lower Cost Solutions Faster GTM & TTM SM Platform Equinix Less Complexity, Lower Risk Business Ecosystems Mobile Apps Financial Cloud & IT Services Enterprise Content/Digital Media More Integration & Functionality Traffic Exchanges Enables End-to-End Platform Capability Internet Ethernet Mobility Vertical Industry Channels IBX Data Center Platform 38 Global Metros 99 Data Centers 650+ Networks 4,000+ Customerswww.equinix.com © 2012 Equinix Inc. 25
    26. 26. Case Study: Equinix Corporate IT Case Study Cloud Adoptionwww.equinix.com © 2012 Equinix Inc. 26
    27. 27. Equinix Transformation to Network Performance Hubs North America The early days Present •  $327 per Mbps WAN •  <$9 per Mbps WAN Cost •  $200 per Mbps Internet •  <$10 per Mbps Internet •  50% of cost going to local loops •  2,800 Mbps •  Low bandwidth Bandwidth •  Ethernet (FastE/GigE), no more T1 •  55 Mbps •  Port usage, not EVC •  2 WAN providers •  3 Internet service providers Redundancy None •  IP-SEC backs up WAN both domestic and int’l •  1 Gig to DR server site •  Bundled, 3-year (Long term to get acceptable cost) •  Unbundled •  Local loop, voice, and data services all under one Contracts •  1-year and Month-to-month contract – hard to unbundle •  Leverage 6 providers •  High switching cost Flexibility Locked In Easy to Switch Uptime 99.9% 99.999% •  Multiple Geographies Scalability Flat topology not scalable •  Multi-homedwww.equinix.com © 2012 Equinix Inc. 27
    28. 28. Equinix Cloud Adoption Moving on-premise to public cloud Cloud Managementwww.equinix.com © 2012 Equinix Inc. 28
    29. 29. Case Large Publishing Study Housewww.equinix.com © 2012 Equinix Inc. 29
    30. 30. Enterprise Cloud Leveraging AWS Direct Connect Own Cloud Infrastructure: •  Simple 2 tier model •  CloudStack •  Scaled for base load AWS Public Cloud: •  Same 2 tier model •  Direct Connect for performance •  Used for growth and peak loadwww.equinix.com © 2012 Equinix Inc. 30
    31. 31. Case Studywww.equinix.com © 2012 Equinix Inc. 31
    32. 32. Badgeville Direct Connect to AWS Badgeville’s isolated AWS resources Subnets Router Amazon Web Services Cloud Badgeville’s Complex Compute Infrastructure in IBXwww.equinix.com © 2012 Equinix Inc.
    33. 33. Case Viocorp Cloud Video Study Deliverywww.equinix.com © 2012 Equinix Inc. 33
    34. 34. Viocorp  –  journey  into  the  cloud      Ian  Gardiner,  CEO  @viocorp  www.viocorp.com  
    35. 35. What is Viocorp?"   A world-class cloud-based online video content management company"   Any content to any device, live or on demand
    36. 36. Who do we do it for?
    37. 37. Why AWS?"   Reduced cost More than halved our costs versus our previous dedicated hosting infrastructure"   Much easier and faster to scale the business New customers easy to provision and on-board. International expansion can be provisioned in hours not weeks"   Flexibility We are still able to install our own specialised equipment eg transcoding infrastructure and live broadcast servers"   Better for the developers Easy to replicate a staging environment (and much cheaper – we only pay for access in work hours)
    38. 38. Direct connect"   Cost benefits of cloud computing with the performance and scalability of specialized hardware not readily available in the cloud"   e.g. specialist transcoding hardware – increase quality and reduce processing time
    39. 39. Thank you"   Ian Gardiner @rabbieburns ian@viocorp.com
    40. 40. AWS  Customer  AppreciaBon  Day