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"Moving End User Computing to the Cloud to Accelerate Cloud-based Revenues: Enabling Windows Desktops and Apps as a Cloud Service

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This session spotlights an emerging opportunity for network service providers: Desktop-as-a-Service (DaaS), the delivery of virtual desktops from the public cloud via service providers. IDC predicts that the hosted virtual desktop market will have an 85% CAGR over the next five years. Cloud workloads at multi-tenant data centers (MTDC) are growing at 3X the rate of traditional data centers, while telecommunications services consumed by cloud companies grew 41% in the last two years.

By following the migration to MTDCs and aligning with the right partners to build a differentiated solution, can network service providers grow revenue by expanding their highest-margin services faster than before. Panelists represent best-in-class vendors for storage, desktop-as-a-service, compute, ecosystem interconnection and a global delivery platform. Learn how NetApp, Desktone, Cisco, and Equinix have partnered to create a DaaS “infrastructure in a box” that helps service providers launch innovative services that can deliver new revenue streams, greater customer value and loyalty.

Topics covered:
• The service bundle: simplified solution stack packaging, infrastructure through application, "revenues in a box"

• Key benefits: low latency, security, time to market and location flexibility (e.g. the ability to offer the service when and where customer base needs it, versus where the NSP has physical data center capacity)

• Third-party validation

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"Moving End User Computing to the Cloud to Accelerate Cloud-based Revenues: Enabling Windows Desktops and Apps as a Cloud Service

  1. 1. www.equinix.com“Connect to the Cloud”Equinix - Desktone PartnershipPresented to Network Service Providers: 01.22.13
  2. 2. www.equinix.com 2MTDCs are the Epicenter of the Cloud• IDC said it expects the total number of data centers tofall from 2.94 million in 2012 to 2.89 million in 2016. Thedrop will be due to internal server rooms and closets anda decline in mid-sized data centers. Total data centerspace will grow from 611.4 million square feet in 2012 tomore than 700 million square feet in 2016.IDC: U.S. Datacenter 2012–2016 Forecast• Over 25% of Hardware spend will be placed in .2% ofData Centers; ~1,100 Large SP facilities larger than 20ksf.Gartner, ―Market Trends: New Revenue Opportunities for TelecomCarriers in 2015‖ Sept 14, 2011Total Data Center Traffic GrowthCloud Data Center Traffic GrowthCisco Global Cloud Index: Forecast and Methodology, 2011–2016
  3. 3. www.equinix.com 3Performance and Security• 52% of enterprises perceive insufficientresponsiveness over network as actual orpotential barriers to acquiring public cloudservices• ―By 2014, more than 80% of all successful cloudservice providers to large enterprises willintegrate network optimization into their coreoffering to improve the user experience andreduce their bandwidth costs.‖• ―Network consulting and integration servicesrelated to cloud will grow the fastest, in terms of% of services budget, over next two years(17.4% growth).‖• ―The cloud market of the future belongs toproviders that can offer secure, integrated, high-performance application delivery to end-users ata reasonable cost.‖Top Network ChallengesMajority ofRespondents cited acloud-ready networkas the biggestinfrastructure elementrequired for furthercloud deploymentsCisco Global Cloud Networking Survey - 2012InfrastructureRequirements
  4. 4. www.equinix.com 4The number of workloadsper installed cloud serverwill increase from 4.2 in2011 to 8.5 by 2016The number ofworkloads per installedtraditional server willincrease from 1.5 in2011 to 2.0 by 2016Is Your Network Positioned to Capitalize?Source: Cisco Global Cloud Index: Forecast and Methodology, 2011-2016PEPEPESecurity, caching,app accelerationPublic IP –low marginPEPEPrivate IP –high marginWorkload
  5. 5. www.equinix.com 5Connect to the CloudIdentify High-GrowthLocationsCloud customers increasedfrom 500 to 900 in 2years, connectivity spendingincreased 54%Go GlobalCloud networking spend formulti-regional deployments is35X single regiondeploymentsParticipate Widely in theMarketOur top 5 Cloud marketsgenerate 500+ networksales per market, and grew41% over 2 yearsEquinix Cross Connect analysis: January 2010-Q3 2012
  6. 6. www.equinix.com 6The Platform Equinix AdvantageGlobal Data CentersScalability• 31 markets, 5 continentsInterconnectionConnectivity Portfolio• Peering, transit, directconnect and exchangeBusiness EcosystemsMarketplace Customers &Supply Chain Partners• Cloud• Content & Digital Media• Financial• Enterprise• MobilityGlobalData Centers90+ Data Centers6.5M+ Square Feet99.999% Uptime RecordInterconnection900+ Networks100,004+ Cross ConnectsDirect to 90% of Internet RoutesBusinessEcosystemsEquinix Marketplace™4,000+ BusinessesRevenue Opportunities
  7. 7. www.equinix.com 7Deploy More Cloud Connection OptionsIncrease sales of high margin, cloud-friendly services• Direct Connect– Reduce costs for high-throughput, secureconnections.– Speed time to market for integrations• Ethernet Exchange– Reduce time to market by quickly reaching the mostlit buildings– Meet customer security and availability requirements• Optimized Internet Access– Improve end-user experience with betterperformance and reduced latency– Increase efficiency with direct connections tobroadband and mobile networks• Value Added Services– Security– Application acceleration– Compression & caching– Application monitoring– Network monitoring• Indirect Partner Path to Market– Equinix Technology Partners, e.g. DesktoneDirect ConnectEthernetExchangeOptimizedInternet Access―If Amazon were to go out and partner with Equinix andcustomers could go solo in the same Equinix data center asAmazon and cross-connect directly into Amazon? Score.‖Lydia Leong, Gartner
  8. 8. www.equinix.com 8Where is the Cloud Today/Tomorrow?• “Internet of Things”  “Internet of Everything”– In 2011: 15+ billion things on the web, with 50 billion+ intermittent connections.– By 2020: 30+ billion connected things, with over 200 billion with intermittent connections.– By 2015: in more than 70% of enterprises, a single exec will oversee all Internet connected things.Source: Telegeography: Colocation Database Executive Summary, 10/12ICD: U.S. Datacenter 2012-16 Forecast
  9. 9. www.equinix.com 9Our Global Ecosystem FootprintOver 4,000 customers with 100,004+ interconnections growing at ~15% per yearNA TotalAP TotalEU TotalCloud and IT ServicesContent and Digital MediaEnterprisesNetworkFinancial Services25%9%19%15%32%28%10%25%19%18%22%16%18%21%23%
  10. 10. www.equinix.com10Proximity to Power Your PerformanceMarket ChallengeCritical/Real-timeapplications drivedistributed architectureImpact• Defend critical revenuestreams• Optimize reliability andredundancy• Improve end-userexperienceREAL-TIME <50MSPRIORITY <100MSBEST EFFORT >100MS
  11. 11. www.equinix.com 11Desktone & Equinix PartnershipRevolutionizing Desktop as a Service
  12. 12. www.equinix.comDesktop as a Service is Growing RapidlyOver the next 2 years, resellerson average expect 21-25% ofcorporate PCs in developedmarkets will be virtualizedVirtualization software roseon average by 25% in 2011Cowan & Company - June 2012More than half of US enterprisesare migrating to virtual desktopsor considering a migrationin the next 12 monthsThe value of the globalcloud-based VDI market will reach$11.2 billion in 2012Visiongain Report - 2012Cisco Global Cloud Networking Survey - 2012When askedabout their plansto deployVirtual desktops:>50% USEnterprisesare migrating79%25%35%20%Current or future PlansAlready using VDIPlanning VDI in next yearPlanning VDI in 1 – 3 years
  13. 13. www.equinix.comWhy Service Providers Offer DaaS…Huge Market Potential – Customer Demand, Mobility Initiatives (BYOD)Huge Margin Product OfferingAdditional Infrastructure and Services Drag• Desktop Management Services, Back-Up, Anti-virus, Application Hosting, MigrationServices, Storage ServicesIncrease ―Sticky‖ Monthly RevenueDifferentiate yourself from the competitionLow Risk• Pilot environments can be quickly established• Easy try and buy options for customers
  14. 14. www.equinix.com14Why Equinix?• Follow the Workloads– EQIX is home to over 900+ Cloud, IT & SI service companies– Workloads at MTDC are growing at 3X rate of traditional data centers– Telecoms services consumed by Cloud companies grew 41% in the last 2 years to 11K+ services• Deliver Optimal User Experience– DaaS requires less than 20ms latency for good user experience– Closer to end user = lower latency– Network choice & fewer hops– Optimal User Experience = Greater user adoption• Leverage Existing Network Investments– Expansion in existing markets• Improve Time to Market Options– Pilot– Partner Ecosystem• Network Choice & Density– End users will be on multiple networks– Deliver lowest latency routes“We need a data center platform capable of supporting explosivegrowth, and deployed into three markets on three continents injust three months.”— Raj Dutt, CEO, Voxel“The interest in cloud-hosted desktops is at an all-time high as service providers such asDell, Navisite, Fujitsu, Quest Systems and others areturning to Desktone for flexible, affordable virtualdesktops that can be delivered as a cloud service.By partnering with Equinix we’re able to providecoverage, performance and flexibility for serviceproviders that don’t have their own datacentercapabilities, eliminating latency issues anddramatically improving desktop performance.”— Peter McKay, CEO Desktone
  15. 15. www.equinix.comManagement, devices, apps, OS• Desktop management• Access devices (end-point) – PC, laptop, tablet, etc.• Applications – Word, Excel, LOB apps, antivirus, etc.• Image creation, deployment and maintenance• Operating system licenses – Windows clients/serverSoftware• Desktone DaaS software• Server/data store• SW patching & administration• Support and maintenanceHardware• Servers• Storage (RAID protected)• Networking infrastructure• Hardware Administration• Support and maintenanceSERVICESPROVIDEDFacilities• Data center• Racks• Power and cooling• SecuritySupport•7x24 L2+ and Enterprise ITIL supportfor infrastructure & desktop admin•DaaS platform — certified support personnel•Integrated incident, service request &escalation management systemDaaS ComponentsDIY or Leverage Equinix Partners to HelpCOMPONENTSPROVIDED
  16. 16. www.equinix.comWho is Desktone?
  17. 17. www.equinix.comDesktone’s Service Provider BenefitsFor your Business…Virtual DesktopsBLUEprintOpenSource vs. MicrosoftSelf-service vs. manual setup5+ Year track recordCost EffectiveEasy to Try & BuyExperienceDesktone Patents Cloud-Hosted Desktop Provisioned Virtual Computing Multi-tenant Data Center Design Virtual Computing Services Network Others: VPN-less remote access to hosted desktop, connection broker ―bestfit‖…with our TechnologyMulti-tenancyScalabilitySecurity1000’s of ―tenants‖ (customers)on one shared platformThem: separate silo per customerTested to 500k desktops; virtuallyunlimitedThem: max 10k desktopsFirewall between service providersand virtual desktop usersThem: no segregation
  18. 18. www.equinix.com 18For More InformationRequest a meeting at ITW, Chicago, May 13-15http://info.equinix.com/ITW11Meetings_LandingPage.htmlEquinix & Desktone Partner to Offer Service ProvidersDesktop-as-a-Cloud Servicehttp://www.equinix.com/company/news-and-events/press-releases/equinix-and-desktone-partner-to-offer-service-providers-desktop-as-a-cloud-service/

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