Understanding Persistent Connectivity: How IoT and Data Will Impact the Connected Data Center

Understanding Persistent Connectivity: How IoT and Data Will Impact the Connected Data Center Speaker: Bill Kleyman, EVP of Digital Solutions - Switch AFCOM and Informa Writer/Contributor (@QuadStack) #DATACENTERWORLD #CPEXPO CHANNELPARTNERSCONFERENCE.COM DATACENTERWORLD.COM

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Our Agenda 1 The Connected Device We ve Come a Long Way 2 Defining IoT, Components, and Data Sources 3 How This Impacts Our Data Centers 4 A Focus on Security and Best Practices 5 Final Thoughts #DATACENTERWORLD DATACENTERWORLD.COM

Internet of Things and Everything Every company becomes a technology company, Every company becomes a security company, Every company evolves into a digital entity.

Defining IoT, Critical Components, and Understanding Data Sources

All Data is NOT Created Equal

Embedded Data By 2025, embedded data will constitute nearly 20 percent of all data created. Embedded data could come from a number of origins, including wearable devices, IoT, cars, building automation, machine tools, RFID readers, chip cards, and so much more. The embedding of computing power in a large number of endpoint devices has become a key contributor to data growth in our present era. Today, the number of embedded system devices feeding into data centers is less than one per person globally, and over the next 10 years, that number will increase to more than four per person. While data from embedded systems tends to be very efficient compared with data from entertainment and other consumer usage, the number of files generated will be very large, measuring in the quintillions per year. All these embedded devices creating data fuel the growth and value of Big Data applications and metadata.

Productivity Data Productivity data comes from a set of traditional computing platforms such as PCs, servers, phones, and tablets. This information will also continue to rise as we become much more mobile. By 2025, connected users will number 75% of the world s population, including previously unconnected groups like young children, the elderly, and people in emerging markets. The growth of the real-time data being generated from all of these data points will cause a shift in the type of digital storage needed in the future. It will also heighten the focus on low-latency responsiveness from enterprise edge computing storage solutions and offerings.

Why Does This Matter To Your Data Center? Two Lenses: One for The Data Center The Other For Your Customers

Use-Cases: What is a connected thing? Healthcare/ Pharma Financial/ Education Gov t/fed/sled Generic New devices helping save lives. Mobile users being more productive. Revolutionizing patient care services. Creating healthcare competitive advantages. IoT compression devices! Reacting at the pace of the market. New devices help bridge vast distances. Allowing students and users to access data with devices they re comfortable with. Smartboards and connected classrooms! Supporting greater levels of security and visibility. Supporting new operations, field agents, and initiatives. Leveraging cloud, new connected devices, and more use-cases. Asset tagging, mapping, and tracking! Helping to reduce cost and complexity. Allowing organizations of all sizes to compete more effectively. New ways to communicate and collaborate. Supporting next-gen mobility. Connected cranes, manufacturing!

Data Source, Location, and Latency are a BIG part of this!

Edge Compute Capacity While just 23% have currently implemented edge compute capacity, an additional 34% plan to do so within the next three years. The typical respondent expects fewer than six edge locations (61%). Plans for Deploying Edge Compute Capacity # of Edge Locations (Implemented or Planned) 61% 43% 23% 21% 13% 30% 20% 21% 17% Currently implemented Will implement within 12 months Will implement within 3 years No plans Fewer than 6 6 to 10 11 tp 20 21 to 40 More than 40

Impact of New Technologies on the Data Center Most respondents believe new technologies will impact the data center, especially with regard to machine learning, data-driven solutions and AI (85%). Do you feel that new technologies like IoT and Smart Sensors will impact the data center? No, we're not seeing IoT or Smart Sensors within the data center today. Yes, IoT and Smart Sensors will help redefine data center Yes, we're seeing IoT and Smart Sensors and are actively looking into deploying this for our data Yes, we're seeing IoT and Smart Sensors deployed within data centers today. 19% 21% 26% 34% Will Machine Learning, Data-Driven Solutions, and AI impact the data center in the near future? Yes, these will be critical technologies to improve efficiency. Yes, these will be heavily leveraged to make better decisions and impact both Yes, they will be integrated into core data center management systems to improve resiliency, No, these solutions won't be integrated or work within the data center. 15% 33% 30% 39%

Working with a Smarter Data Center

Data Center Services Leveraged or Planned Respondents are most likely to currently leverage data analytics (52%), followed by big data (37%). Currently leveraging Plan to leverage within 3 years Plan to leverage within 12 months No plans to leverage Data analytics 52% 18% 12% 17% Big data 37% 22% 13% 27% Machine learning 21% 25% 22% 33% AI 17% 25% 24% 34% Question: What is the status of the following services within your data center? Base: All respondents (n=195).

Data Center Services Leveraged or Planned Respondents are most likely to currently leverage data analytics (52%), followed by big data (37%). Currently leveraging Plan to leverage within 3 years Plan to leverage within 12 months No plans to leverage Data analytics 52% 18% 12% 17% Big data 37% 22% 13% 27% Machine learning 21% 25% 22% 33% AI 17% 25% 24% 34%

Recommendations and Security Best Practices

The Industrialization of Hacking Sophisticated Attacks, Complex Landscape Hacking Becomes an Industry Phishing, Low Sophistication 1990 1995 2000 2005 2010 2015 2020 Viruses 1990 2000 Worms 2000 2005 Spyware and Rootkits 2005 Today APTs Cyberware Today +

The Economization of Hacking o Social Security Number: $1 o DDoS as a Service: About $7/hour o Medical Records: >$50 o Credit Card Data: $0.25 - $60 o Bank Account Info: >$1,000 (Depending on the type of account and balance) o Mobile Malware: $150 o Malware Development: $2,500 (commercial malware) o Spam: $50 for about 500k emails (depending on number of emails and destination) o Custom Exploits: $100k - $300k o Facebook Account: $1 for an account with at least 15 friends Rapid digitization of consumers' lives and enterprise records will increase the cost of data breaches to $2.1 trillion globally by 2019.

Primary Security & Infrastructure Threats The primary threat to respondent security and infrastructure is ransomware (56%), followed by outside human threats (48%), advanced persistent threats (44%), inside human threats (42%), loss if PII (40%) and DDoS (37%). Ransomware Outside threats (human) 48% Advanced Persistent Threats - Theft of IT and 44% Inside threats (human) 42% Loss of PII. (Personally Identifiable Information) 40% DDoS 37% Inadequate / non-existent business continuity 28% Data Exfiltration 24% Outages due to the implementation of new 23% Political instability 22% 56%

Very Important: Productivity and Intelligence Based on Context Who? Employee Attacker Guest What? Personal Device Sensor Company Asset How? Wired Wireless VPN Where? @ Starbucks Headquarters When? Weekends (8:00am 5:00pm) PST

Top 5 key factors in Designing an IoT Security Strategy Design 1. Control everything that will be connecting into your network. 2. Design policies (security, optimization) around all devices. Deploy 3. Ensure that your IoT technologies align with the business and the user. 4. Security must remain agile and support new devices, and threats. Manage 5. Use smarter management tools for better cloud, IT, and IoT controls.

Wrapping Things Up: Final Thoughts and Recommendations for the Future

3 Key Things You Have Learned During this Session 1. Defining the Connected Device 2. How IoT and Edge Impact Your Data Center 3. Securing Devices and Data

Thank you! Network: Linkedin.com/in/BillKleyman Follow: @QuadStack @Switch Social: Facebook.com/BillKleyman