Enabling the Future of Networks, Enterprises & Clouds - PTC 2014 - Steve Smith, CEO, Equinix

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PTC’14 | January 21 Enabling the Future of Networks, Enterprises & Clou Steve Smith, CEO

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Steve Smith, CEO and president, delivered a keynote speech on growth projections for network and cloud services on Tuesday, January 21 at 9:30 AM HST. The keynote, entitled “Mapping the Future of Networks and Clouds Inside Equinix,” utilized data based on connectivity patterns within the company’s set of 95+ global data centers to provide a unique perspective on the trends that map the future of network and cloud service providers.

Transcript of Enabling the Future of Networks, Enterprises & Clouds - PTC 2014 - Steve Smith, CEO, Equinix

Page 1: Enabling the Future of Networks, Enterprises & Clouds - PTC 2014 - Steve Smith, CEO, Equinix

PTC’14 | January 21

Enabling the Future of Networks, Enterprises & Clouds

Steve Smith, CEO

Page 2: Enabling the Future of Networks, Enterprises & Clouds - PTC 2014 - Steve Smith, CEO, Equinix

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2© 2014 Equinix Inc.

Visit our PTC suite in Tapa Tower, Suite 2730www.equinix.com/cloud

The cloud is the paradigm shift for the next decade

…Interconnection is more critical than ever

…We enable networks, enterprises and clouds to connect

…#techtrends #winners #losers #whatnext?

Page 3: Enabling the Future of Networks, Enterprises & Clouds - PTC 2014 - Steve Smith, CEO, Equinix

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3© 2014 Equinix Inc.

Visit our PTC suite in Tapa Tower, Suite 2730www.equinix.com/cloud

Agenda

1. Our Global Interconnection Platform

2. Perspective on the Cloud Market

3. Enabling the Future Together

Page 4: Enabling the Future of Networks, Enterprises & Clouds - PTC 2014 - Steve Smith, CEO, Equinix

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4© 2014 Equinix Inc.

Visit our PTC suite in Tapa Tower, Suite 2730www.equinix.com/cloud

The Equinix Journey

Note: Based on the midpoint of our FY2013 guidance as announced on a Form 8-K filed with the SEC on 11/12/13. Does not constitute a reiteration or reaffirmation of such guidance.

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E

$- $- $13 $63 $77 $118 $164

$221 $287

$419

$705

$883

$1,196

$1,570

$1,896

$2,152

Equinix Revenues ($M)

Page 5: Enabling the Future of Networks, Enterprises & Clouds - PTC 2014 - Steve Smith, CEO, Equinix

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5© 2014 Equinix Inc.

Visit our PTC suite in Tapa Tower, Suite 2730www.equinix.com/cloud

The Global Platform

GlobalData Centers100 Data Centers

9.9M+ Gross Square Feet99.99999% Uptime

Interconnection950+ Networks

124,000+ Cross ConnectsWorld’s Largest Exchange Provider

BusinessEcosystems

Equinix Marketplace™4,400+ Businesses

Revenue Opportunities

Note: Cross-connect count includes Asia Tone and ancotel acquisitions.

Page 6: Enabling the Future of Networks, Enterprises & Clouds - PTC 2014 - Steve Smith, CEO, Equinix

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6© 2014 Equinix Inc.

Visit our PTC suite in Tapa Tower, Suite 2730www.equinix.com/cloud

Cloud & IT (24%)

Content & Digital Media (20%)

Enabling Ecosystems

Financial Services (21%)

Enterprises (9%)

Networks (26%)

Note: Percentage of monthly recurring revenues in Q3 2013, consisting primarily of revenues from colocation, interconnection and managed services as reported on Q3 2013 earnings call.

Page 7: Enabling the Future of Networks, Enterprises & Clouds - PTC 2014 - Steve Smith, CEO, Equinix

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7© 2014 Equinix Inc.

Visit our PTC suite in Tapa Tower, Suite 2730www.equinix.com/cloud

Agenda

1. Our Global Interconnection Platform

2. Perspective on the Cloud Market

3. Enabling the Future Together

Page 8: Enabling the Future of Networks, Enterprises & Clouds - PTC 2014 - Steve Smith, CEO, Equinix

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8© 2014 Equinix Inc.

Visit our PTC suite in Tapa Tower, Suite 2730www.equinix.com/cloud

Technology Trends Driving Traffic Growth

Trends

Internet of Things

19 billion networked devices in 2017 or 2.5 per capita2

30 billion things by 20206

Big Data 90% of the world’s data has been generated in the last 2 years6 >800% growth is expected by 2020, with 80% of new data unstructured

Apps Mobile apps are revolutionizing how we live our lives and are a $27B market this year, growing at an 85% rate3

Mobility 54% of all networked devices will be mobile-connected by 2017. An average smart phone will generate 2,576 MB of data traffic/month4

Social Information now flows real-time across global social networks

TradingTrading is now electronic and high-frequency, reflected in rapidly rising peak market data message volumes. More than 60% of foreign exchange volumes is electronically traded.

Traffic1

Global IP Traffic

Global Mobile Traffic

32

121

0.9

11.2

2012 2017

2012 2017

Exabytes per month

Exabytes per month

Source: [1][2][4] Cisco,[3] ABI Research,[5] Gartner,[6]IBM

Page 9: Enabling the Future of Networks, Enterprises & Clouds - PTC 2014 - Steve Smith, CEO, Equinix

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9© 2014 Equinix Inc.

Visit our PTC suite in Tapa Tower, Suite 2730www.equinix.com/cloud

Cloud Adoption Ramping Up

Source: Gartner (Feb 2013)

Global Public Cloud Market Size ($B) Global Private Cloud Market Size ($B)

2012 2016

Management & Security

IaaS

PaaS

SaaS

Business Process as a Service

Advertising

CAGR 12%-16% Total ~14%

2012 2016

Software

Hardware

Source: IDC – Worldwide Private Cloud IT Infrastructure Forecast (April 2013), McKinsey Cloud Initiative

CAGR 12%-16% Total ~15%

~10B

~$20B

~110B

~$212B

Page 10: Enabling the Future of Networks, Enterprises & Clouds - PTC 2014 - Steve Smith, CEO, Equinix

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10© 2014 Equinix Inc.

Visit our PTC suite in Tapa Tower, Suite 2730www.equinix.com/cloud

Cloud Disrupts the Tech Landscape

Source: (Evercore 2013)

Cloud Providers

Growth

PriceCustomization

Outsourced IT

Assisting enterprises to get to cloud

Cloud is easier to get

Networks

Increased traffic

Evolving value proposition to enterprises

Managed Services

Provide own cloud solutions

Less demand for managed services

Data Centers

Lower latency

Direct to IaaS data center

Hardware Vendors “DIY,”

eliminating vendor lock-in

Enabling cloud

Page 11: Enabling the Future of Networks, Enterprises & Clouds - PTC 2014 - Steve Smith, CEO, Equinix

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11© 2014 Equinix Inc.

Visit our PTC suite in Tapa Tower, Suite 2730www.equinix.com/cloud

Multi-tenant Data Centers Will Be Traffic Magnets

Global Data Center Traffic

2012 2013 2014 2015 2016 20170

1

2

3

4

5

6

7

8

Cloud Data Center (35% of CAGR)

Traditional Data Center (12% of CAGR)

CAGR 2012-2017: 25%

69%

31%54%

46%

Source: Cisco Global Cloud Index Report 2013

Zettabytes/Year

Page 12: Enabling the Future of Networks, Enterprises & Clouds - PTC 2014 - Steve Smith, CEO, Equinix

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12© 2014 Equinix Inc.

Visit our PTC suite in Tapa Tower, Suite 2730www.equinix.com/cloud

Interconnection/Low Latency Is Increasingly Important

Application Performance Requirements

%

PerformanceHigh <80ms RTD Med <40ms RTD Low <20ms RTD <1ms RTD

M2M TradingVirtual Desktop

Gaming

Video

Advertising

CRM

Payments

ERP

Finance

Test

Backup

Email

HRM

Source: Equinix

Workloads Deployed in the Cloud

Source: Rightscale

Development

Test

Customer Web Apps

Internal Web Apps

Batch Processing

Mobile

Social

Big Data

Gaming

0 10 20 30 40 50 60 70 80 90

Page 13: Enabling the Future of Networks, Enterprises & Clouds - PTC 2014 - Steve Smith, CEO, Equinix

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13© 2014 Equinix Inc.

Visit our PTC suite in Tapa Tower, Suite 2730www.equinix.com/cloud

Enterprises Migrate to Hybrid Cloud

Most G5000 enterprises moving to hybrid cloud environments

Enterprises evaluating hybrid cloud use cases

2013 20180%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Public

Hybrid

Private

Cloud User Respondents

– Companies with 1,000+ Employees

(N-855)

Business Requirement

• Key driver

Seasonal Peaks (E-commerce)

• Compute capacity during peak demand

Compliant Data(HIPAA, SOX)

• Sovereignty of enterprise information

Business Apps(ERP, CRM)

• Low latency requirements of core business applications

Big Data (Analytics)

• Large data volume workloads

Source: NorthBridge Venture Partners; Team analysis, Bain Analysis; Literature search; Gartner, IDC, Enterprise interviews (n=30)

Page 14: Enabling the Future of Networks, Enterprises & Clouds - PTC 2014 - Steve Smith, CEO, Equinix

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14© 2014 Equinix Inc.

Visit our PTC suite in Tapa Tower, Suite 2730www.equinix.com/cloud

Agenda

1. Our Global Interconnection Platform

2. Perspective on the Cloud Market

3. Enabling the Future Together

Page 15: Enabling the Future of Networks, Enterprises & Clouds - PTC 2014 - Steve Smith, CEO, Equinix

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15© 2014 Equinix Inc.

Visit our PTC suite in Tapa Tower, Suite 2730www.equinix.com/cloud

Mobility Centers Enabling mobile broadband

Our Business Is Cultivating Ecosystems

Peering Networks Scaling the Internet

Caching Delivering digital content

Magnet Client Hosting Architecting ecosystems

WAN Hubs Facilitating efficient enterprise networks

Cloud Hubs Enabling public, private, hybrid clouds

Direct Connect Improving cloud access

Proximity Hosting Enabling low-latency transactions

Esta

blis

hed

Emer

ging

Service Provider Networks Supporting mission-critical services

Page 16: Enabling the Future of Networks, Enterprises & Clouds - PTC 2014 - Steve Smith, CEO, Equinix

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16© 2014 Equinix Inc.

Visit our PTC suite in Tapa Tower, Suite 2730www.equinix.com/cloud

Equinix Is the On-ramp to the Cloud

Enterprise deployments (hybrid, private in Equinix)

Enables hybrid cloud deployments for mission-critical apps

Direct access to public clouds

Networks can reach multiple clouds in a single location

Page 17: Enabling the Future of Networks, Enterprises & Clouds - PTC 2014 - Steve Smith, CEO, Equinix

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17© 2014 Equinix Inc.

Visit our PTC suite in Tapa Tower, Suite 2730www.equinix.com/cloud

Robust Growth Expectations for IaaS and SaaS

Equinix Global Cloud Customers by Segment Q3’13

Equinix Global Revenue Growth for IaaS & SaaS

IaaS7%

SaaS29%

MS41%

SI7%

Other16%

Total: 1,200+

Projected growth

SaaS

IaaS

Observed growth

Today

Page 18: Enabling the Future of Networks, Enterprises & Clouds - PTC 2014 - Steve Smith, CEO, Equinix

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18© 2014 Equinix Inc.

Visit our PTC suite in Tapa Tower, Suite 2730www.equinix.com/cloud

Cloud Revenue Opportunity for NSPs Inside Equinix

$1.4 billion today 3x by 2017

Page 19: Enabling the Future of Networks, Enterprises & Clouds - PTC 2014 - Steve Smith, CEO, Equinix

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19© 2014 Equinix Inc.

Visit our PTC suite in Tapa Tower, Suite 2730www.equinix.com/cloud

The cloud is the paradigm shift for the next decade

…Interconnection is more critical than ever

…We enable networks, enterprises and clouds to connect

…#techtrends #winners #losers #whatnext?

Page 20: Enabling the Future of Networks, Enterprises & Clouds - PTC 2014 - Steve Smith, CEO, Equinix

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20© 2014 Equinix Inc.

Visit our PTC suite in Tapa Tower, Suite 2730www.equinix.com/cloud

Thank You