The Cloud is Changing the tech land scape gloablly and within five years we will find it impacting all business whether they are traditional bricks and mortar type businesses or technology. it is going to be a fun ride

1. BILL BARNEY
Chief Executive Officer
Reliance Communications & Global Cloud Xchange
SHAPING THE FUTURE
OF TECHNOLOGY
INFRASTRUCTURE
DATACLOUD ASIA I 22 MARCH 2018 I SINGAPORE

2. Agenda
⎯ Digital Transformation: From Hype to Reality
⎯ Opportunities in this Disruptive Era
⎯ The Challenges for Enterprises CIOs
⎯ Shaping the Future of Technology Infrastructure
⎯ Final Thought

3. Digital Transformation:
From Hype To Reality...
Breakthrough leads to
sequencing of human genome
using pocket-sized device

4. Digital Transformation:
From Hype To Reality...
Rapid growth of
Artificial Intelligence
deliver both
opportunities and fears

5. Digital Transformation:
From Hype To Reality...
The use of cryptocurrency and
blockchain technology are
disrupting how we do business…

6. We are on the threshold of a massive
explosion of connected things

7. Source: IBM
10+ billion devices are
connected
Number expected to increase
dramatically
1950
5,000
1975
10,000
2003
500 million
2009
2.5 billion
2014
10 billion
2020
30 billion
2050
> 100 billion

8. Source: IBM
IoT has the potential to create
economic impact of $2.7 trillion
to $6.2 trillion annually by 2025
2009
2.5 billion
2014
10 billion
2020
30 billion
2050
> 100 billion

9. Cloud Adoption =
Reaching New Heights
+
Creating New Opportunities

10. Infrastructure continues
to expand beyond the
data center core into the
Cloud...

11. Disruptive Opportunities:
Source: Statista, November
2017
⎯ Most of these companies use their
internal Clouds, yet have not yet
built it for the rest of the enterprises.
⎯ Amazon and Tencent have an
early lead in compute and storage,
yet have very limited high-end
global distribution.
While infrastructure continues to expand beyond the Data
Center Core into the Cloud, there has yet to be a value creator
in the global infrastructure space
452.3b
488.7b
528.5b
529.9b
549.1b
645.9b
718.8b
889.0b
Market capitalization of the World’s most valuable companies (as of November 21, 2017)
#1

12. Source: Focus Economics
⎯ 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 do not have Internet
access
⎯ India continues to be the world’s fastest growing
economy.
Disruptive Opportunities:
1.8504
2.2010
2.2070
2.9450
3.0080
3.2110
4.2330
5.1130
13.9410
21.1050
1.7870
2.0950
2.1310
2.7870
2.8070
2.8760
3.9900
4.9990
13.0930
20.2520
Canada
Italy
Brazil
France
UK
India
Germany
Japan
China
USA
1.8%
1.1%
2.5%
1.6%
1.4%
7.5%
1.7%
1.0%
6.1%
2.0%
2.2%
1.3%
2.3%
1.8%
1.3%
7.4%
2.0%
1.2%
6.4%
2.4%
2018
2019
Top 10 World’s Biggest Economies for 2018 and 2019
Real GDP variation in % Nominal GDP in USD Trillion
Growth is in the Emerging Markets! Whoever can deliver
innovation and expansion across emerging markets will
reap in the biggest benefits…
#2

13. Disruptive Opportunities:
Data Centers and fiber are again emerging as the key building
blocks
Yet there is no
leading player in the
Emerging Markets
Corridor in the
data center space,
only one in the
orchestration space
and a mere two
competitors with
fiber leadership
#3

14. Challenges for Enterprise
CIOs
What are the challenges for Enterprise CIOs?

15. “In the new digital economy,
CIOs must manage by leading
in 3D; forging an IT
organization that can
simultaneously innovate,
integrate and incorporate... “
Joe Pucciarelli
Group VP & IT Executive
IDC

16. 1. IT resources have become more centralized
while users are more distributed
2. Enterprise WANs consist of disparate network
technologies and services
3. Cloud computing has enabled the introduction
of a new dynamic array of applications
4. Enterprise WANs are becoming ever-more
complex with a disparate range of specialist
appliances and equipment from a variety of
vendors
The CIO’s job has become
much more complex…

17. Enterprise Networks today are looking to…
Minutes
Provide application visibility and
acceleration over the network
and into the Cloud
2x +
Deliver more bandwidth
for lower cost
Ensure security over any
connection
Orchestrate IT
Trending towards a hybrid SD WAN (Software-Defined WAN) model…
Hours 1x
Multitude of
appliances
Single systemMultiple Security
Device
Unified security position
1 2
3 4

18. Digital Innovation continues to push Wide Area
Network boundaries globally
80%
30%
20-50%
OF EMPLOYEE AND
CUSTOMERS ARE SERVED
IN BRANCH OFFICES*
INCREASE IN ENTERPRISE
BANDWIDTH PER YEAR
THROUGH 2018***
OF ADVANCED THREATS WILL
TARGET BRANCH OFFICES BY
2016 (UP FROM 5%)***
73%
GROWTH IN MOBILE
DEVICES FROM 2014-2018**
MORE
USERS
MORE APPS
MORE
THREATS
MORE
DEVICES
Branch
* Tech Target, Branch Office Growth Demands New Devices., 2014 ** Cisco Mobility Landscape Survey, 2014
*** Gartner, Forecast Analysis: Worldwide Enterprise Network Services, Q2 2014 Update
**** Gartner: “Bring Branch Office Network Security Up to the Enterprise Standard, Jeremy D’Hoinne, 26 April. 2013.
Devices

19. Shaping the future of
technology infrastructure

20. Soon to be basic Enterprise CIO requirements…
Orchestrate
Network
Services with
Cloud-Like
Agility
Add new sites &
network functions on-
demand
Fully-Leverage
Low Cost
Network
Technologies
Make use of broadband
and 4G without
compromise on security or
performance
Better Utilize
Available
Bandwidth
including “Back-
Up” Circuits
“Pool” bandwidth through
intelligent load balancing
Match
Application
Traffic to
Connectivity
Type
Optimize application
performance and routing
decisions “on-the-fly”
Run Multiple
Network
Functions on a
Single Piece of
Hardware
Powerful, x86-based
vCPE run Virtualized
Network Functions to
save on Capex and
running costs
1 2 3 4 5

21. 0
10000
20000
30000
40000
50000
60000
1 2 3 4 5 6 7 8 9 10
USDinRevenuePerRack
KVA Per Rack
Network Costs
Build Costs
Operating Costs
Data Center Margin
Network Margin
Source: RCOM/GCX Research
Sure Bet for the Future: The Networked Datacenter
100 MVA facilities with
Exabytes of Fiber capacity
will be the centers of the
next decade
#1

22. STOC
FOC FOC
FOC
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
Sure Bet for the Future: Distributed, Focused Compute Centers
#2

23. Data Centers with
Orchestration Ecosystem
DEVICES
NETWORKS
IoT SERVICES
PLATFORM
IOT APPS / IT
ORCHESTRATION
CAPABILITY
#3
Sure Bet for the Future:

24. ABILITYTOEXECUTE
ASSETS TO EXECUTE
CHALLENGERS
SINGLE OR LIMITED ASSETS ALL ASSET CLASSES AND GEOGRAPHIC REACH
LEADERS
ORACLE
AMAZON
ALIBABA
GLOBAL FIBER OPERATORS
MICROSOFT
GLOBAL DATA CENTER OPERATORS
US FIBER WHOLESALERS
EUROPEAN FIBER WHOLESALERS
The future Cloud Infrastructure Quadrant leaders have not yet emerged

25. Final Thought

26. 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...