Building Interconnection 2017 Steps Taken & 2018 Plans

Transcription

1 Building Interconnection 2017 Steps Taken & 2018 Plans 2017 Equinix Inc.

2 2017 Key Highlights Expansion - new markets Launch - Flexible DataCentre Hyperscaler edge Rollout - IXEverywhere - SaaS, IoT & Ecosystems Upgrade - Cloud Exchange Remote Connection - IaaS everywhere Research - Global Interconnection Index

3 Our global reach is growing Broad geographic reach and significant scale within each region 5 Continents 24 Countries 48 Metro areas 189 Data centers 18 metros 87 IBXs 22 metros 73 IBXs 8 metros 29 IBXs >7,000 employees 58 quarters of growth 242k cross connects 9,500+ customers Top 10 customers are deployed on 60+ IBXs (on average) and make up 17% of recurring revenues 2017 Equinix Inc. 3

4 We ve made some strategic acquisitions Rationale Gain strategic control of NoTA Enter new markets (Culpeper, Houston, Bogota) Deepen customer base in energy and government Acquire 18MW DC in Slough Signed MSFT for hyperscale footprint Entry into 6 th largest economy in Europe Captures key CLSs in Lisbon and Seville Well-positioned to address HIT demand in market Scalable facility in Istanbul Key hub of global commerce between Europe and Asia Well-positioned to address HIT demand in market Markets Americas London Madrid, Barcelona, Sevilla, Lisbon Istanbul 2017 Equinix Inc. Confidential 4

5 Cloud & Internet Exchange Everywhere Note: Milan and Helsinki rolling out now 2017 Equinix Inc. Confidential 5

6 ECX Connectivity Geographic Availability North America Local (Within Metro) & Remote (Within Region) EMEA Local Connectivity Only (Within Metro) APAC/Brazil Available Markets Osaka, Tokyo, Hong Kong, Singapore, Sydney, Melbourne, Sao Paulo Available Markets Atlanta, Ashburn, Chicago, Silicon Valley, Dallas, Los Angeles, Miami *, New York, Seattle, Toronto Available Markets Amsterdam, London, Frankfurt, Helsinki*, Dublin, Manchester, Milan*, Paris, Stockholm, Zurich * NOTE: Miami and Denver will be coming soon * NOTE: Helsinki and Milan will be coming soon

7 Interconnection is at the center of today s key macro trends TREND Digital Technology Use Urbanization Cyber Security & Data Sovereignty Digital Trade NEED Forces the need to support real-time interactions Need for Digital Services within proximity Need to bypass the internet and deploy data and security locally Need to support global business processes connecting customers, partners & employees $1.36T 50 Metro Hubs 60% / 18+ 9x IMPACT In additional economic output in the world s top 10 economies by 2020, per Accenture Over 2 billion people are expected to migrate to major cities by 2035, creating 50 metro hubs, per Connectography by Parag Khanna Suffer major service failures by 2020, due to inability to manage digital risk, per Gartner Major countries block certain data transfers out of country, per ITIF Increase in total services exports delivered digitally by 2020, per McKinsey 2017 Equinix Inc. Confidential 7

8 By 2020, the Global Interconnection Index predicts Interconnection Bandwidth will outpace the growth of internet traffic by 2X and 6X the volume INTERCONNECTION BANDWIDTH GROWTH IS EXPECTED TO OUTPACE THE GROWTH OF INTERNET & MPLS TRAFFIC 5000 TBPS OF INTERCONNECTION BANDWIDTH IN ONE MINUTE COULD CONCURRENTLY PROCESS 45% IS EXPECTED TO GROW BY 45% TO 24% 5000TBPS OF INSTALLED BANDWIDTH 4% MPLS Internet Interconnection Interconnection Bandwidth is defined as the total capacity provisioned to privately and directly exchange traffic with a diverse set of counterparties and providers at distributed IT exchange points 2017 Equinix Inc. Confidential 8

9 2020 Forecast Interconnection Bandwidth by Industry Segment Interconnection Bandwidth is defined as the total capacity provisioned to privately and directly exchange traffic with a diverse set of counterparties and providers at distributed IT exchange points 2017 Equinix Inc. Confidential 9

10 2020 Forecast: Interconnection Bandwidth by Enterprise Use Cases ENTERPRISES PROVISIONING INTERCONNECTION BANDWIDTH FOR DIRECT CONNECTION TO Enterprises are defined as companies with a primary business purpose including Banking and Insurance, Manufacturing, Securities & Trading, Business & Professional Services, Energy & Utility, Retail, Healthcare and Government Interconnection Bandwidth is defined as the total capacity provisioned to privately and directly exchange traffic with a diverse set of counterparties and providers at distributed IT exchange points 2017 Equinix Inc. Confidential 10

11 2018 Plans Continue expansion grow the edge As businesses build out to the edge, they also build Hybrid IT This time the edge is for ENTERPRISE More interconnections - More purposes Everyone, Everywhere, Everything

12 The Pace of Change Is Not Equal Leading Hyperscale Data Centers Cloud as a Percent of IT Spending #GartnerSYM 3 CONFIDENTIAL AND PROPRIETARY I 2017 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.

13 Continuing to build the 10ms Edge 2017 Equinix Inc. Confidential 13

14 Cloud Drives Digital and a New Shape and Mix of IT Traditional Cloud Edge Users Efficiency Customization Productivity IT Vending Agile Deployment Agile/Massive Scale Economies of Scale Rapid Innovation Local Intelligence Local Data Local Interaction Low Latency Real-Time Processing Agile/Digital Back Office Agile/Digital Front Office Agile/Digital Consumers #GartnerSYM 11 CONFIDENTIAL AND PROPRIETARY I 2017 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.

15 Hybrid Charting the Journey to the Mix Traditional Aggregation Hybrid IT: A trusted broker and provider for all IT services from many providers and styles Private Clouds Public Cloud Customization Integration Accelerate Time to Value Add Value Protect the Enterprise Edge Governance #GartnerSYM 14 CONFIDENTIAL AND PROPRIETARY I 2017 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.

16 Transform Enterprise network performance with Interconnection Oriented Architecture (IOA ) Before IOA Strategy After with Equinix Traditional Enterprise Connectivity Monolithic application operations & data storage Traditional network routing & provisioning Limited options for Interconnection Transform with Platform Equinix and IOA strategy Establish digital edge deployments Optimize network topology Ensure global reach and interconnect to Clouds Distribute apps, analytics and database improvements Improve user performance with closer connections

17 EMBRACE LEGACY TECHNOLOGY

18 AVOID THIS APPS

19 NUMBER OF ECOSYSTEM PARTNERS TOP PERFORMERS (n=105) 143 TYPICAL PERFORMERS (n=712) TRAILING PERFORMERS (n=24) TWO YEARS AGO TODAY TWO YEARS FROM NOW Source: 2017 CIO Agenda

20 Interconnection Is Now Standard in Enterprise 10,000+ dedicated connections to major cloud providers at Equinix globally Cloud Architecture Enterprise Locations Colocated Enterprise Customer Equinix Interconnection Platform Cross Connects Remotely-located Enterprises Network Service Providers Cloud Exchange 10,000+ Private Circuit Internet Exchange 1Q16 2Q16 3Q16 4Q16 1Q17 Growth of Dedicated Connections to Top 5 Clouds 2017 Equinix Inc. 20

21 Cloud Exchange is Evolving to Address these challenges Pre-August: Connect to Clouds October 2017: Connect to Private Destinations August 2017: Connect to Cloud Between Markets

22 How this changes things CSPs NSPs PUBLIC DESTINATIONS PRIVATE DESTINATIONS Equinix Cloud Exchange Partners Customers Themselves

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