The Business Case for Colocation in a Cloud Obsessed World Andy Huxtable: Colocation Product Management

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1 27 th February 2014 The Business Case for Colocation in a Cloud Obsessed World Andy Huxtable: Colocation Product Management

2 Today s Topics About CenturyLink Technology Solutions Trends in the IT Outsourcing market What to look for in a Colocation provider CenturyLink Colocation Follow up information 2

3 CenturyLink Technology Solutions Proven partner Entered the market as Savvis in 1995 Laser-focused on innovative enterprise IT solutions Broad portfolio of services to meet client needs Combined assets deliver greater value CenturyLink provides stability of a Fortune 150 company Direct and indirect channels in EMEA, US and Asia-Pac Continued Data Centre investment Data centre expansion in key markets Strategic agreement with IO s Intelligent Control platform Ongoing investment in DCIM and data centre technology Services 30% of Fortune % of global foreign exchange transactions daily Over $600B in US equity trades every month Manages ecommerce platforms for the world s top brands 3

4 Trends in IT Outsourcing Global IT Leadership Report Independent survey commissioned annually by CenturyLink since 2009 Research conducted by Vanson Bourne Latest survey conducted with 550 IT leaders in the UK, Europe, US and Asia Pacific 4

5 Organisations moving rapidly to IT outsourcing Strategic shift of IT infrastructure from an in-house to an outsourced model Within 5 years, 70% of all IT infrastructure will be outsourced Cloud is part of the picture but not the only part Organisations moving to a complex mix of IT infrastructure models 5

6 What makes outsourcing attractive? Cost reduction is still top of the list: however CIOs are no longer under duress to slash costs as a business survival tactic IT leaders are now looking for improved cost structures to enable competitive advantage 6

7 What cost savings are being achieved? Companies outsourcing IT are saving an average of 11%of annual budget Savings increase over time more than doubling in 5 years 7

8 Re-emergence of Colocation & Managed Services On-premise infrastructure is used by the majority of enterprises today In 2 years time, colocation will be the IT infrastructure model of choice It may take 5 years for public cloud to achieve dominance IT leaders will require hybrid solutions from their providers 8

9 What to look for in a Colocation Provider 9

10 100% proven Data Centre Uptime Global planning to establish emergency operations Hourly customer communications sent out. Staffing plan for onsite resources. Hurricane procedure checklist utilised in advance. Generator support: Vendors on site Fuel reserves and supply (Fuel burn rate formula) Diesel fuel tankers were parked on site in standby mode Hotel Rooms booked in advance Food/Water, Sleeping bags / air mattresses 100% uptime SLA supported by robust, global building management tools

11 Value for Money Flexible Commercial Terms Flexible Financials No hidden costs Transparent pricing Overall volume discounting commitment Service Flexibilities Ability to move between services without penalties Termless contracts Flexible contract terms including, business divestiture clause, and services elasticity clause 11

12 Global Data Centre footprint North America Europe Asia Pacific Savvis Data Centre New Savvis Data Centre Core Node Metro Ring Point of Presence 55+ data centres globally 2.4 million sq. ft. of raised floor 100% Uptime SLA SSAE 16 compliant

13 Global footprint: reflected in EMEA CenturyLink global capabilities are reflected in EMEA 6 data centres in EMEA 200,000 sq. ft. of raised floor 100% Uptime SLA Tier III plus SSAE 16 compliant, ISO27001, Carbon Trust Certified (UK), CEEDA (LO3) Savvis Data Centre New Savvis Data Centre Core Node Metro Ring Point of Presence CenturyLink proprietary and confidential 13

14 Customer Support 600+ CenturyLink in-house operations and engineering staff running the centres 24/7 90,000 hours of formal training each year ITIL and Six Sigma certified project managers Data Centre engineers have an average of 16 years experience Full service 24/7 Remote Hands (Gold) Support, delivered by the same engineers that support Savvis managed services Full structured cabling & suite layout services CenturyLink proprietary and confidential 14

15 Security Support for Hybrid Solutions APPLICATIONS AND WORKLOADS DevTest Big Data Collaboration Social & Mobile Disaster Recovery ecommerce Storage Colocation 55 global data centers 100% uptime SLA Gold level support 2 nd largest provider Managed Hosting Customized solutions Virtualization Superior portal Industry recognition Cloud Public, private IaaS Virtual private data center Hybrid solutions Connected Cloud Developer environments Global Network 430,000 route miles of fiber across the globe 70+ countries IP MPLS redundant global backbone 20% of the world s internet traffic Assess Plan Transition Operate Optimize Do-It-Yourself Co-managed Managed Fully Outsourced 15

16 The CenturyLink Colocation Difference Global Solutions Experience Operational Excellence People 55 Global data centers, Serving 85 countries Colo to Managed Hosting to Cloud Secure global Network Carrier diverse data centres World s 3 rd largest internet footprint 20% of the World s internet traffic Recognized as the #2 retail colo provider Leader in Gartner Magic Quadrants for IaaS, Managed Hosting & European Managed Hosting 60% of F100 financial companies Manage 20,000 private network circuits CenturyLink, $18B, F150 98% of F500 No data center downtime during Hurricane Sandy in 2012 SAS 70, SSAE 16 SOC 1, ISO % global power temperature and humidity SLA 100% proven data center uptime commitment 24/7 Gold Support Comprehensive Security ITIL and Six Sigma certified project managers 600+ engineers with thousands of certifications 90,000 hours of annual training Accountable for client satisfaction Migration and consolidation experts

17 Colocation Case Study Business Challenge Find alternative space for growing server inventory Control the spiralling cost of powering and cooling systems, and reduce environmental impact Reduce the time devoted to keeping their IT infrastructure going and get IT team out of reactive mode Establish robust Disaster Recovery and Back Up strategy through colocation to Savvis Reading Data Centre Solution Colocation services to support 179 business applications as well as Slough Borough Council website delivering critical services and information to over 125,000 residents Migration of web server hardware, application software and networking equipment took just 5 months The IT team is now able to work more strategically, and on value-added tasks because they re spending much less time on infrastructure maintenance and repair, and with significantly reduced power, cooling and capital costs, the council has more funds to invest. Simon Pallet, Head of IT Service Delivery, Slough Borough Council

18 Join us on Stand 815 in Cloud Expo Ask for an invite to our monthly UK Data Centre tour programme Visit our for more details on our Data Centre footprint and Colocation services Follow Contact us at 18

19 Thank You 2014 CenturyLink, Inc. All Rights Reserved. All other marks are the property of their respective owners.

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