Data Center Strategy

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1 Data Center Strategy Mark Roenigk Chief Operating Officer

2 This presentation outlines general information regarding our services and is for informational purposes only; all statements and information are provided as is and are presented without warranty of any kind, express or implied. Our product/services offerings are subject to change without t notice. Trademarks and Service Marks Rackspace and Fanatical Support are service marks of Rackspace US, Inc. registered in the United States and other countries. Trademarks and tradenames appearing in this presentation are the property of their respective holders. We do not intend our use or display of other companies tradenames, trademarks, or service marks to imply a relationship with, or endorsement or sponsorship of us by, these other companies.

3 Where are things headed? 3 Incredible Convergence of Technologies in the coming 6-18 months The Race for Space Demand for data center space has continued through the economic downturn, as the growth of online services and digital it data has prompted companies to continue to expand. 92% of current users of data center space will continue to increase their use of mission-critical facilities: 67% are in active expansion mode. 41% are now using a wholesale l data center provider or other third-party company for their expansion. 51% operate three or more data centers, including 26%percent who operate in at least 10 data centers. A growing number of major data center users are seeking to preserve capital by making more use of third-party providers, a trend that has boosted the fortunes of wholesale data center providers that lease turn-key plug-and-play space. Strong Interest in Green IT It is projected that the drive to build greener data centers will push data center investments from $7.5 billion today to over $41 billion by Increasingly important to customers. *Source - Data Center Knowledge

4 Where are things headed? 4 Huge Investments are being made CI predicted that the talent pool of "qualified senior level technical & data center professionals" will shrink 45% by What will a Data Center be like in 5 years?

5 CAPEX / OPEX / TCO Debate 5 Owning a data center requires capital expenditure, while using an external hosting/cloud service that offers pay-as-you-go service falls into ongoing operating expenditures Data Center Costs Direct costs that accompany running a server: power, floor space, storage, and IT operations to manage those resources. Indirect costs of running a server: network and storage infrastructure and IT operations to manage the general infrastructure. Overhead costs of owning a server: Procurement, DC Ops & Engineering and IT staffing. Most IT organizations really don't have a clear understanding di of their true costs from a Total Cost of Ownership perspective Up to 30% of all servers are comatose. Virtualization is just one of many evolving technologies that increase server utilization. Increasing server utilization from 5% to 75% drops the raw cost per compute cycle by 15 times. Vertical integration and standardization can cut server costs by up to 25%.

6 6 Business Concerns/Considerations Security, Security and Security Cyber threats Customer data/privacy Wall Street Journal test Can we move all of our important metrics in the right direction? Simplify and re-focus on our core? Increase reliability and uptime? Reduce our cost structure both short and long term? Scale up or down to meet unpredictable /changing business environment? Financial and Business Considerations Global considerations Do we really need to tie up cash in heavy capex infrastructure? Do we want to own Data Center assets for a long period of time? What would we do with those assets in change business climates? Technology changes very quickly concerns with obsolescence? Compliance (SOX, SAS70 etc)

7 Computing Concerns and Considerations 7 Reliability is necessary up & down the Technology Stack Security Mail Collaboration Databases Windows Virtualization Linux Compute Back-Up Storage Traffic Mgmt Security Infrastructure

8 Computing Concerns and Considerations 8 Reliability is necessary up & down the Technology Stack Automation & VisibilitySecurity Mail Collaboration AutoHost Provisioning Security Monitoring Control Panel Provisioning for Cloud Automated t dalerts - Compute & Storage Databases Windows Compute Virtualization Linux Back-Up Storage Traffic Mgmt Security Infrastructure

9 My Experience 9 Building Global Webscale Data Centers to support online gaming. Collecting and archiving the financial records of over 40 million small and medium businesses per year and processing over 15 million tax returns within a 24 hour period. Creating the worlds largest digital audio recording archive in the world and streaming content globally. Virtualization & Outsourcing internal IT infrastructure. Creating Scalable Compute to handle over 80 million transactions every day. y THIS USED TO BE REALLY DIFFICULT, THE CONVERGENCE OF TECHNOLGIES IS MAKING THESE ACTIVITIES MUCH EASIER AND LESS EXPENSIVE...

10 A Computing Solution for Every Budget & Every Need 10 RACKSPACE MANAGED HOSTING RACKSPACE CLOUD HOSTING RACKSPACE & APPS Managed devices, OS, and infrastructure allows you to focus on your business applications Offers a variety of managed services including backup, storage, administration, database, etc. on dedicated equipment Massively scalable, affordable IT hosting as a service across the Internet Offers users instant, pay per use access to a large scale l hardware infrastructure that scales easily to adjust for demand An platform managed, maintained and supported by experts, taking the headache out of running your own server Choose from Microsoft Hosted Exchange, Noteworthy or a combination of the two RACKSPACE CAN HELP YOU SCALE YOUR COMPUTING NEEDS WITH WORLD CLASS INFRASTRUCTURE AND A FULL PORTFOLIO OF COMPUTING PRODUCTS & SERVICES

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