Cyprus: a Gateway to the World

Transcription

1 Cyprus: a Gateway to the World CHRIS VAN ZINNICQ BERGMANN Head of Carrier Sales Europe & North America GLOBAL CLOUD XCHANGE Digital Transformation October 2017

2 Observations on the Impact of the Cloud Revolution

3 In five years tech and finance companies have become the world s largest companies and will be the largest consumers of networks and data centers Rank Company Region Industry Segment 5/31/2012 Value ($B) 2011 Revenue ($B) Rank Company Region Industry Segment Current Market Value ($B) 2016 Revenue ($B) Apple Exxon Mobil PetroChina China Microsoft ICBC China Wal-Mart IBM China Mobile China General Electric AT&T Royal Dutch Shell Netherlands Berkshire Hathaway Chevron Google / Alphabet Nestlé Switzerland China Construction China Bank Johnson & Johnson Procter & Gamble Wells Fargo BHP Billiton Australia Tech Hardware Financial Services Energy Tech Software Financial Services Retail Tech Hardware Telecom Industrial Telecom Energy Financial Services Energy Tech Internet Food / Beverages Financial Services Healthcare Consumer Goods Financial Services Metals / Mining $ $ Apple Google / Alphabet Microsoft Amazon Facebook Berkshire Hathaway Exxon Mobil Johnson & Johnson Tencent Alibaba JP Morgan Chase ICBC Nestlé Wells Fargo China China China Switzerland Samsung Electronics Korea General Electric Wal-Mart AT&T Roche Switzerland Bank of America TOTAL Tech Hardware Tech Internet Tech Software Tech Internet Tech Internet Financial Services Energy Healthcare Tech Internet Tech Internet Financial Services Financial Services Food / Beverages Financial Services Tech Hardware Industrial Retail Telecom Healthcare Financial Services $ $7,207 $ Source: CapIQ. Market value data as of 5/26/17 Note: For public companies, colors denote current market value relative to Y/Y market value. Green = higher, red = lower.

4 Ubiquity of low cost networks has created an explosive growth in non human growth of the internet This year, we will have 4.9 billion connected things...some predict that by 2020, the number of Internetconnected things will reach or even exceed 50 billion. In 2015, over 1.4 billion smart phones will be shipped and by 2020 we will have a staggering 6.1 billion smartphone users. By 2020, a quarter of a billion vehicles will be connected to the Internet, giving us completely new possibilities for in-vehicle services and automated driving. Machine-to-machine (M2M) connections will grow from 5 billion at the beginning of this year to 27 billion by 2024, with China taking a 21% share and the U.S. 20%. Today, the market for Radio Frequency Identification (RFID) tags, used for transmitting data to identify and track objects, is worth $11.1 billion. This is predicted to rise to $21.9 billion in CISCO believes the IoT could generate $4.6 trillion over the next ten years for the public sector, and $14.4 trillion for the private sector. Source: Forbes 2017 Internet of Things Facts

5 Digital Innovation is pushing Wide Area Network boundaries globally 80% Of employee and customers are served in branch offices* MORE USERS HD Video Omni-channel Apps IT on Cloud 73% Growth in mobile devices from ** MORE DEVICES Guest WiFi Social Media Digital Displays OS Updates Online Training Mobile Apps Branch 20-50% Increase in Enterprise bandwidth per year through 2018*** 30% Of advanced threats will target branch offices by 2016 (up from 5%)*** MORE APPS MORE THREATS * Tech Target, Branch Office Growth Demands New Devices, 2017 ** Cisco Mobility Landscape Survey, 2017 *** Gartner, Forecast Analysis: Worldwide Enterprise Network Services, Q Update

6 The Emerging Markets will dominate GDP and Internet growth in the next decade Real GDP Growth Contribution by Region, 1985 / 2017 The world s fastest growing economies Forecast GDP growth, % 11% 9% 13% China + Emerging Asia = 18% of Total 1985 $19T = World GDP +4% Y/Y 22% 29% 3% 40% 6% N. America + Europe + Japan = 63% of Total 9% 18% China + Emerging Asia = 58% of Total Europe N. America Japan China 2017 $127T = World GDP +3% Y/Y 18% N. America + Europe + Japan = 33% of Total 12% 3% Global Internet Users (MM) 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 8.3% Ethiopia 7.6% 7.5% 7.2% 7.2% 7.0% 7.0% 6.9% 6.9% 6.9% Uzbekistan Nepal India Tanzania Djibouti Laos Cambodia Myanmar Philippines Emerging Asia (ex-china) LatAm Middle East, Africa, Other Source: IMF WEO,4/16. GDP growth based on constant prices (real GDP growth). PPP = Purchasing Power Parity exchange rate, national currency per international dollar. GDP PPP = GDP adjusted by PPP rate. Emerging Asia includes Bangladesh, Cambodia, India, Indonesia, Lao, Malaysia, Mongolia, Myanmar, Nepal, Philippines, Sri Lanka, Thailand, Vietnam and others and excludes China. GDP growth contribution based on annual snapshots stated above and not necessarily reflective of secular trends. Source: World Bank

7 Cloud Computing will allow the 3.8B non-users to join the Internet ,410 1, ~3.36B Internet Users Internet Users (mn) Potential New Users (mn) Africa Asia Europe Middle East North America Latin America / Caribbean Oceania / Australia 75% of world s population is in Emerging Markets and is underserved; Emerging Markets saw 1400% Internet growth in last 5 years; 4 Billion+ people still don t have Internet access.

8 For Global CEOs the emerging markets will be the holy grail for growth yet the most cumbersome in terms of infrastructure The high concentration of Data Centers in and Europe are far from most users in the Emerging Markets. Regulatory compliance, user experience, reliability and cost factors will mandate significant movement of data closer to users Source: datacentermap.com

9 Distributed focused compute centers will be the wave of the future with Cloud centers replacing traditional data centers in the next decade 9% 11% 13% 15% % of Total ITInfrastructureSpend 75% 14% 17% 20% 22% 50% 76% 72% 67% 63% 25% 0% TraditionalData Center Public Cloud Private Cloud Understanding the FOC High Power density data centers with strong fiber connectivity and internet gravity Located in city and tech centers 80% to 90% of cash generated from services and spot services High customer engagement with average customer growing at double digits or more per year Expensive build at $12K to $14K a KVA Tech like investment vehicles with hyper growth and high velocity of innovation Understanding the STOC Lower power density with build costs ranging from $6K to $9K a KVA Longer term stickier customers and revenue streams Located in low rent optimal cooling locations 80% to 90% of cash generated from storage and industrial computing Real estate like investment profile with REIT or Trust like capital structures Source: IDC Worldwide Quarterly Cloud IT Infrastructure Tracker; Gartner; CloudHealth estimates

10 The Emerging Markets will play host to the biggest revolution The Emerging Markets Corridor will be the biggest beneficiary of the Cloud as requirements continue to grow The Emerging Markets Corridor connects over 2.0bn Internet subscribers currently and is expected to account for over 70% of the world s smart phone growth and over 80% of the world s GDP growth over the next 5 years Note: Data above based on countries including the US and those in the Middle East, Europe and Asia ex-china Source: WCIS and EIU data

11 Orchestration ecosystems in data centers will enable success Devices Networks IoT Services Platform IoT Apps / IT deeply integrated Orchestration capability Automate The Service Lifecycle Low cost, Pay as you go /device Launch in weeks Already Integrated with 100+ Networks CRM, ERP, etc.

12 Cyprus

13 Connections to Cyprus Poseidon Hawk Lev MedNautilus

14 Europe-Middle East-Asia-Africa

15 GCX Hawk Cable System Landing Partner for Hawk in Cyprus

16 GCX SUBSEA NETWORK & INFRASTRUCTURE Global network is used by: MOST OF THE WORLD S LARGEST CARRIERS LEADING OTT PROVIDERS A VAST NUMBER OF LEADING CONGLOMERATES, BANKS & ENTERPRISES PUBLIC AND GOVERNMENT ORGANIZATIONS

17 Cyprus At the crossroads between Europe, the Middle East/Asia, Africa Member of the European Union, stable environment Low taxation and avoidance of double taxation with many Middle East countries, India Switzerland of the region Existing subsea cable infrastructure 300M people within 30ms RTD Data centre infrastructure(?) = Ideal hub for OTTs, technology and financial companies

18 Final Thoughts

19 Whoever masters the combination of Cloud orchestration, fiber ubiquity and low cost global access to competing computing resources will be the technology infrastructure company of the next decade...

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