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Adam Eaton, Director at Equinix - Creating the right application architecture for your business


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Adam Eaton, Director at Equinix spoke at the CIO Event, March 2013

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Adam Eaton, Director at Equinix - Creating the right application architecture for your business

  1. 1. Creating the Right Application Architecture for your Business
  2. 2. Our Credentials 2
  3. 3. Where Global Business and Growth Connect Enabling you to keep pace with the rapid expansion of the digital marketplace • The widest network-neutral footprint – 31 strategic global markets • The strongest balance sheet in our industry* – $1.895 billion in annualized revenues – $547 million cash, cash equivalents & investments – $4.4+ billion investment in capacity 2007-2012 • The most dynamic ecosystem in the industry – 4,000+ global customers – 58% of our revenue comes from customers deployed across multiple regions*As announced on Q4 2012 results call, and as filed on Form 8K, on February 13, 2013. Excludes the impact from the sale of 16 IBX data centersto 365 Main as announced on 9/4/12. 3
  4. 4. Reach Customers Around the World Market Challenge Expanding addressable market; ensuring consistent performance for global customers Equinix Advantage Asia • 6 metros • 250+ available networks Americas • 15 metros • 450+ available networks EMEA • 10 Metros • 375+ available networks 4
  5. 5. Creating the Right ApplicationArchitecture for your Business 5
  6. 6. 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 home 6
  7. 7. Application Performance Matters Market ChallengeBUSINESS CRITICALITY Delivering application performance to meet customer expectations Impact Right performance for each application Higher user satisfaction Increased adoption, Best Effort Priority Real-Time Proximity customer loyalty, and >100ms <100ms < 50ms < 5ms >2000km < 2000km < 500km < 50km revenue LATENCY SENSITIVITY Performance matters for end user experience 7
  8. 8. Your Application Performance Drives Your Revenue “Users really respond to speed. A half of a second delay caused revenues to drop by 20%.” — Google Poor Performance Slows adoption Reduces user satisfaction Decreases revenue and market share Creates a negative brand image 8
  9. 9. Network Traffic is Exploding Global IP Traffic Global Mobile Traffic 10.8 110 Exabytes Exabytes per Month per Month 30.7 0.6 2011 2016 2011 2016Source: Cisco 9
  10. 10. Users are Constantly Connected70% of Internet users will have 5 or more devices,with ~15 billion devices added over the next 3-5 years 3,000 Global Internet Device Sales 2,500 Tablets (millions) 2,000 We are here 1,500 Smartphones 1,000 500 Personal Computers 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E 2013E 2014E 2015E 2016ESource: Kleiner Perkins and BI Intelligence 10
  11. 11. “There’s an App for that” Apps are changing how we live and work; the market is doubling each year Global Mobile App Revenue 30.0 25.0 20.0 Total Revenue ($ billions) 15.0 10.0 Mobile Apps 5.0 0.0 2008 2009 2010 2011 2012 2013 2014Source: Gartner 11
  12. 12. The Old Way of Delivering ITServing 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 jobs 12
  13. 13. Focus on Quality of Experience (QoE)Poor application performance impacts your employees, customers, and partners 13
  14. 14. What if……your IT architecture enabled you to… Become more agile Realize better performance Become more cost-efficient Choice Speed Reliability Applications Flexibility Speed-to-market Scale Security • Quickly adapt to business needs • Higher application performance • Improve integration Networks • Stay in control through greater • Improve the end-user experience • Efficiently consolidate supplier choice • Improve scalability and availability • Cloud-enablement • Directly connect to the partners • Meet critical security and • Leverage increased supplier and services you need compliance objectives choice Data • Transition CapEx to OpEx Attain more control over applications, networks, and data 14
  15. 15. Move to a Distributed, Global ArchitectureAll 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 15
  16. 16. The Path to Better Application Performance Identify and Locate Your Users: Include customers and partners as well as employees Establish Application Requirements: Determine the performance characteristics of the applications your users depend on Optimize Your Network: Deploy network performance hubs (NPHs) on an optimized backbone Distribute Your Applications: Locate applications within their required service radius Optimize Service Consumption: Consider a variety of IT delivery methods, including public and private clouds, managed services, and SaaS-based vendors 16
  17. 17. Equinix-on-Equinix and theCloud-Enabled Enterprise 24
  18. 18. Opportunities of the Cloud• Cloud gives Enterprise IT new choices: – Applications – Compute power – Storage• Cloud enables innovation• Hybrid Cloud is where we are headed 26
  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 Research 27
  20. 20. The Cloud-Enabled Enterprise Enterprise Private Cloud Integrate & Leverage Cloud ServicesSTEP 3 -Assemble a solution within our ecosystemLeveragedirect access Benefitsto public Reduce capital expenditurescloud service Maximize supplier choiceproviders Optimize performance Evolve into a less complex, lower cost, more Public Cloud reliable and higher performance environment Providers Enterprise Private Cloud Enable the Enterprise Cloud -Tie into Network Performance HubsSTEP 2Deploy key Performance ImprovementApplications 40% less variability in end-to-end transit timeto an 15% faster page load timesEnterprise 80% reduction in downtimePrivate Maximize performance for business-criticalCloud and latency sensitive applications. Migrate strategic application work loads Optimize the Wide Area Network -Deploy strategic Network PerformanceSTEP 1 HubsOptimize TCO Reduction RangesNetwork Local Loop elimination at NPH – 15-30%Performance Tier 1 providers only in home markets – 20-by deploying 30%Network Leverage Tier 2 metro providers – 35-60%Performance Applications: private WAN connectivity, publicHubs (NPH) internet, firewall-UTM, VPN connectivity, voice, video and collaboration technologies
  21. 21. The Catalyst: Network Performance Hubs (NPH)Allows CIOs to easily and inexpensively connect to over 900 network serviceproviders and 300+ Cloud providers available on Platform Equinix Network Services • Local access (direct fiber, private line, Ethernet, etc.) • Long Haul (fiber, TDM, etc.) • IP • VPN connectivity • Voice, video and collaboration services • SIP trunking • CDN • Mobile platform gateways • Internet Connect • Ethernet Connect • Cloud Connect 29
  22. 22. The “1 - 2 - 3” of Connecting to the CloudConnectivity options to cloud services Network Performance Hub (NPH) Internet Connect Equinix Enterprise Users Ethernet Connect Direct Connect 30
  23. 23. What is the Equinix-on-Equinix Program? Equinix operates data centers and network exchanges globally Equinix IT uses our own services to run our business The Equinix-on-Equinix program focuses on areas where the use of our Platform Equinix provides Equinix IT an edge or an advantage The program describes Equinix services that are available to our customers, none are exclusive to Equinix IT 31
  24. 24. Equinix Hybrid Cloud DevelopmentMoved/moving from all on-premise to Hybrid approach Standardized Private Cloud technologies for delivering CPU, RAM and Storage to meet demand Standardized Private Cloud technologies coupled with Public Cloud options to expand on-demand Cloud Management 32
  25. 25. Q&A Singapore SG3 34
  26. 26. Thank you! Sydney SY3 35