Enabling the Future of Networks, Enterprises & Clouds Steve Smith, CEO PTC 14 January 21
The cloud is the paradigm shift for the next decade Interconnection is more critical than ever We enable networks, enterprises and clouds to connect #techtrends #winners #losers #whatnext? 2
Agenda 1. Our Global Interconnection Platform 2. Perspective on the Cloud Market 3. Enabling the Future Together 3
The Equinix Journey 2,152 1,896 1,570 Equinix Revenues ($M) 883 1,196 705 $- $- $13 $63 $77 $118 $164 221 287 419 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E Note: Based on the midpoint of our FY2013 guidance as announced on a Form 8-K filed with the SEC on 11/12/13. Does not constitute a reiteration or reaffirmation of such guidance. 4
The Global Platform Global Data Centers 100 Data Centers 9.9M+ Gross Square Feet 99.99999% Uptime Interconnection 950+ Networks 124,000+ Cross Connects World s Largest Exchange Provider Business Ecosystems Equinix Marketplace 4,400+ Businesses Revenue Opportunities Note: Cross-connect count includes Asia Tone and ancotel acquisitions. 5
Enabling Ecosystems Cloud & IT (24%) Financial Services (21%) Networks (26%) Content & Digital Media (20%) Enterprises (9%) Note: Percentage of monthly recurring revenues in Q3 2013, consisting primarily of revenues from colocation, interconnection and managed services as reported on Q3 2013 earnings call. 6
Agenda 1. Our Global Interconnection Platform 2. Perspective on the Cloud Market 3. Enabling the Future Together 7
Technology Trends Driving Traffic Growth Internet of Things Big Data Trends 19 billion networked devices in 2017 or 2.5 per capita 2 30 billion things by 2020 6 90% of the world s data has been generated in the last 2 years 6 >800% growth is expected by 2020, with 80% of new data unstructured Traffic 1 Global IP Traffic Exabytes per month 121 Apps Mobile apps are revolutionizing how we live our lives and are a $27B market this year, growing at an 85% rate 3 32 Mobility 54% of all networked devices will be mobile-connected by 2017. An average smart phone will generate 2,576 MB of data traffic/month 4 2012 2017 Global Mobile Traffic Exabytes per month Social Information now flows real-time across global social networks 11.2 Trading Trading is now electronic and high-frequency, reflected in rapidly rising peak market data message volumes. More than 60% of foreign exchange volumes is electronically traded. 0.9 2012 2017 Source: [1][2][4] Cisco, [3] ABI Research, [5] Gartner, [6] IBM 8
Cloud Adoption Ramping Up Global Public Cloud Market Size ($B) Global Private Cloud Market Size ($B) ~$212B ~$20B CAGR 12%-16% Total ~14% Management & Security CAGR 12%-16% Total ~15% Software IaaS Hardware ~110B PaaS ~10B SaaS Business Process as a Service 2012 2016 2012 2016 Source: Gartner (Feb 2013) Source: IDC Worldwide Private Cloud IT Infrastructure Forecast (April 2013), McKinsey Cloud Initiative 9
Cloud Disrupts the Tech Landscape Cloud Providers Growth Price Customization Networks Increased traffic Evolving value proposition to enterprises Outsourced IT Assisting enterprises to get to cloud Cloud is easier to get Managed Services Provide own cloud solutions Less demand for managed services Hardware Vendors Enabling cloud DIY, eliminating vendor lock-in Data Centers Lower latency Direct to IaaS data center Source: (Evercore 2013) 10
Multi-tenant Data Centers Will Be Traffic Magnets Zettabytes/Year 8 7 Global Data Center Traffic CAGR 2012-2017: 25% 6 5 4 3 2 46% 69% Cloud Data Center (35% of CAGR) Traditional Data Center (12% of CAGR) 1 54% 31% 0 2012 2013 2014 2015 2016 2017 Source: Cisco Global Cloud Index Report 2013 11
Interconnection/Low Latency Is Increasingly Important Workloads Deployed in the Cloud Application Performance Requirements Gaming Performance High <80ms RTD Med <40ms RTD Low <20ms RTD <1ms RTD Big Data Social Test CRM Virtual Desktop M2M Trading Mobile Batch Processing Backup Payments Gaming Internal Web Apps Customer Web Apps Email ERP Video Test Development HRM Finance Advertising 0 20 40 60 80 100 % Source: Rightscale Source: Equinix 12
Enterprises Migrate to Hybrid Cloud Most G5000 enterprises moving to hybrid cloud environments Enterprises evaluating hybrid cloud use cases 100% 90% 80% 70% 60% Cloud User Respondents Companies with 1,000+ Employees (N-855) Public Business Requirement Seasonal Peaks (E-commerce) Key driver Compute capacity during peak demand 50% 40% 30% 20% Hybrid Private Compliant Data (HIPAA, SOX) Business Apps (ERP, CRM) Sovereignty of enterprise information Low latency requirements of core business applications 10% 0% 2013 2018 Big Data (Analytics) Large data volume workloads Source: NorthBridge Venture Partners; Team analysis, Bain Analysis; Literature search; Gartner, IDC, Enterprise interviews (n=30) 13
Agenda 1. Our Global Interconnection Platform 2. Perspective on the Cloud Market 3. Enabling the Future Together 14
Our Business Is Cultivating Ecosystems Mobility Centers Enabling mobile broadband Direct Connect Improving cloud access Cloud Hubs Enabling public, private, hybrid clouds WAN Hubs Facilitating efficient enterprise networks Proximity Hosting Enabling low-latency transactions Magnet Client Hosting Service Provider Networks Architecting ecosystems Supporting mission-critical services Caching Delivering digital content Peering Networks Scaling the Internet 15
Equinix Is the On-ramp to the Cloud Enables hybrid cloud deployments for mission-critical apps Enterprise deployments (hybrid, private in Equinix) Direct access to public clouds Networks can reach multiple clouds in a single location 16
Robust Growth Expectations for IaaS and SaaS Equinix Global Cloud Customers by Segment Q3 13 Equinix Global Revenue Growth for IaaS & SaaS Other 16% IaaS 7% Today IaaS SI 7% SaaS 29% Observed growth SaaS Projected growth MS 41% Total: 1,200+ 17
Cloud Revenue Opportunity for NSPs Inside Equinix today 3x by 2017 $1.4 billion today 18
The cloud is the paradigm shift for the next decade Interconnection is more critical than ever We enable networks, enterprises and clouds to connect #techtrends #winners #losers #whatnext? 19
Thank You 20