Equinix - supporting Cloud opportunities in Europe

Editor's Notes

• #3: This slide is your opportunity to establish credibility and introduce yourself. Based on what Equinix has learned working with cutting-edge digital companies worldwide, you should speak with authority on trends, challenges and solutions.Keep this slide very short. Key message: Equinix is the clear leader among global data center providersDan’s Script: I am proud of my company, and the milestones we have achieved in 10 years.We are the largest network-neutral data center provider globally / operating in over 31 strategic markets.We have the strongest balance sheet in our industry with:$1.6+ billion plus in annualized revenues for 2011$1,076+ million plus cash, cash equivalents & investments, to support a capital-intensive businessOver 4,000 customers including many of the most progressive global businesses Supporting message: Global reachThe largest network-neutral data center provider globallyMore than 6.5 million sq. ft. across 30 strategic marketsRobust expansion plan Supporting message: Financial strengthWe have the strongest balance sheet in our network-neutral retail colocation industry$1.6+ billion plus in annualized revenues for 2011$1,076+ million plus cash, cash equivalents & investments, to support a capital-intensive business28% CAGR 2007-2009We have staying power and the ability to scaleCash flow positive since 2003Since 2007 we have invested over $3.3 billion to create over 6.5 million sqft of data center space Supporting message: Largest base of happy, growing customers in the industryA world of customer and supplier opportunities in our sites Over 4,000 customers including many of the most progressive global businessesOur great track record of service means happy, growing customers58% of our revenue comes from customers deployed across multiple regions91% of our customers will recommend Equinix (December2009 annual survey)Key message: Equinix is the clear leader among global data center providers
• #6: Insert footnote on carrier HC
• #9: Your customers have likely seen these numbers before…so get them to relate these trends to their business. Are their bandwidth needs growing? How does mobility alter their business model? Which trends create new sources of revenue? Which will grow cost centers? Key message: Growth brings new opportunities, but also new challenges. Dan’s Script: It’s not enough to manage your digital supply chain. You need one that can deal with volume demands that multiply every yearGrowth brings new opportunities, but also new challenges and new competitors. At Equinix, we track some of the key trends in our industry so you don’t have to.Globalization: The Internet has enabled any size company to do business globally. Matter of fact your competition is no longer down the street; it’s in India, China, Germany, basically, worldwide.Power: The more successful you are online or in the digital economy, the quicker your infrastructure needs to grow….you will need facilities and power that can grow with your success. You will also need to have a global partner that can scale with your globalization.IP Traffic and Video traffic: Tied to infrastructure is demand on IP traffic. Cisco predicts a Fourfold increase in IP traffic by 2015 or the equivalent of 12 billion DVD crossing the internet every month. Cisco also highlights that Video is the biggest driver of online traffic, and the most latency-sensitive.Mobility: The fastest driver of IP growth – everyone is buying smart phone devices. Mobile data traffic is predicted to grow 26-times by 2015 and 3-times faster than fixed IP traffic.I want you to know that Equinix is closely tracking these trends to help you stay one step ahead of the marketplace and your competition.  Supporting point: Mobile trafficGlobally, mobile data traffic will increase 26 times between 2010 and 2015. Global mobile data traffic will grow three times faster than fixed IP traffic from 2010 to 2015. (Cisco 2011)37% of information workers use a smart phone for business purposes (IDC 2010) Supporting point: Video trafficVideo is the biggest driver of online traffic, and the most latency-sensitive (Cisco 2010)Internet video is now 40 percent of consumer Internet traffic, and will reach 62 percent by the end of 2015, not including the amount of video exchanged through P2P file sharing. The sum of all forms of video (TV, video on demand [VoD], Internet, and P2P) will continue to be approximately 90 percent of global consumer traffic by 2015 (Cisco 2011) Supporting point: Global IP trafficGlobal IP traffic has increased eightfold over the past 5 years, and will increase fourfold over the next 5 years(Cisco 2011)In 2015, the gigabyte equivalent of all movies ever made will cross global IP networks every 5 minutes. Global IP networks will deliver 7.3 petabytes every 5 minutes in 2015. (Cisco 2011) Supporting point: Cloud services growthCloud services revenue will grow 3 times from 2008 to 2013 (Gartner 2009)By 2012, 20% of businesses will own no IT assets (Gartner 2010)Expect more virtualization on the IT roadmap, such as virtualized desktop. This creates new requirements for interconnection and demand for performance. Supporting point: Support increasing power needs when capital is tightData center power needs are escalating rapidly. These also place a strain on site cooling infrastructure.To build your own data center capacity, budget >$1,000 per sqft to build at today’s power densities, this will rise in future.Even if capital and space are available, large blocks of incremental power may not be easy to obtain from local utilitiesPotential changes in efficiency and emissions regulations could make power even more complex to build and manage in futureSupporting point: The globalization of businessThe past decade has seen a sharp increase in globalization. In 2000, the headquarters of 451 of the Fortune 500 were concentrated in just 10 countries. In 2010, 98 of the Fortune 500 are now headquartered outside these top 10 countries. Globalization and distribution creates more inter-region IP business traffic, adding cost and performance pressure to wide area networks. Achieving consistent global standards and customer experience requires corporations to select vendors with the broadest possible global coverage.