Data cloudasia2018 final
- 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...