In this presentation Chris Crosby discusses how the industry is evolving based on new technological innovations

1. Creative Destruction and the Data
Center or,
Will I Still Have a Job in Five Years?
Chris Crosby, CEO, Compass Datacenters

2. Who We Are
2
• Compass Datacenters provides dedicated, hardened data
centers
• Built using our patent pending architecture
• Uptime Institute Tier III certified design and constructed
• LEED certified
• Wherever you want it
• Controlled by you
• Ownership or lease
• Operations and security
• Expansion
• Simplify Capacity Planning
• Growth in 1.2MW Increments
• The building is the module
“That’s Not Modular. That’s a Building”

3. The Evolution of an Industry
3
The False Start
Founded
Founded
Founded
Founded
IPO
IPO
First Container
The Wild West
Attack of the Acronyms
Initial mentions begin
Everybody into the pool
1990 2000 2010

4. Where We Are Now
• We create a lot of data
• 15 petabytes of new data created every day
• 90% of today’s digital data created in past 2 years (IBM)
• 145 billion emails sent per day
• 75% of today’s data generated by individuals
• Enterprises will ultimately have liability for 80% of it
• In the future—We’re going to create a lot more
4

5. Where We Are Now
5
• Context
• Fortune 500 companies
account for ~⅔ of US GDP
of$16T
• Questions
• How many of these
enterprises will have private
clouds?
• Who supports these
companies?
• Death of the server closet?
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
$20,000
2012 2013 2014 2015 2016
SoftwareasaService
PlatformasaService
InfrastructureasaService
CAGR 29%
CAGR 41%
CAGR 37%
Cloud Computing Market Forecast: Revenue ($M)
451 Research: Market Monitor

6. What’s Next?
• So, does everything wind up in the cloud?
• No, technically speaking the cloud can’t exist without data centers
• Functional roles become clarified
66

7. What’s Next?
Data centers
become BIGGER
and Smaller
Leave the Googles
and Apples out of
the discussion
Homogeneous
environments
Unique
requirements
Distributed
“architectures” will
emerge
Data center
volumes
Latency
requirements
push processing
requirements to
the edge…literally
7

8. What Next?
• Certifications and standards will become more
important
• Importance of data, user expectations increase reliability
requirements
88

9. What Next?
• Customization
9
• Industry legacy
• Start with a whiteboard each time
• Will fade as a requirement
• Too expensive for all but biggest sites
• Industrialization
• Introduced by Digital Realty in 2006
• VPAs, Standard designs
• Some repeatability, supply chain
• Will hold serve amongst the larger MTDC providers
• There model can’t adapt
• Will compete on services
• Productization
• Complete solution – integrated supply chain
• Serves a well-defined segment of the market
• Drives out cost, time through lean
• Increases quality, consistent operations
• Includes features market wants as a standard
• Small group of companies will make this jump
• Will dominate on the edge
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10. What’s Next?
• What about SDN, SDDC and all those other acronyms?
• Don’t hold your breath
• More style than substance
• Basic blocking and tackling has to come first
• How about just telling me what I’ve already got?
• Everybody’s got one
• No standard
• Need an HP OpenView for the data center
• Yes, it will probably require some sort of group/committee
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11. The Next Five Years
11
• 8-12 month pricing cycles continue with 10%-30% variance
on pricing
• Continued 20%-100% margin of delta of build costs
• Heavy Private Equity investment will lead towards an
accelerated maturation cycle for next 5-years
• Build-to-exit versus build to last
• Four Seasons in Cancun
• Public company investment: management for quarter versus the long
run
• Companies get bigger ($1B+)
• Consolidation and growth
• Very large and niche with little to no middle tier
• New entrants from “real” companies
• Verizon, Iron Mountain, IBM
• Differentiation through productization and specialization

12. Summary
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• Applications are driving demand
• Private cloud
• Increasing awareness of first cost v. TCO trade-offs
• It’s not just the metric but what it costs to get there
• Greater focus on ROI on capital
• Forcing re-examination of “old” data center models
• All things to all people
• Death of dry cleaner mentality
• Next phase of evolution
• Productized full featured, standard products
• More responsive to new customer requirements
• More efficient, better ROI on capital
• Compliance and certification
• Consolidation is coming
• Building/operating to exit v. Building/operating to last
• “Real” companies entering market with long term visions
• Plan of the “who is god” factor

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