3. Where Global Business and Growth Connect
Enabling you to keep pace with the rapid expansion of the digital marketplace
• The widest network-neutral footprint
– 31 strategic global markets
• The strongest balance sheet in our
industry*
– $1.895 billion in annualized revenues
– $547 million cash, cash equivalents &
investments
– $4.4+ billion investment in capacity 2007-2012
• The most dynamic ecosystem in the
industry
– 4,000+ global customers
– 58% of our revenue comes from customers
deployed across multiple regions
*As announced on Q4 2012 results call, and as filed on Form 8K, on February 13, 2013. Excludes the impact from the sale of 16 IBX data centers
to 365 Main as announced on 9/4/12.
3
4. Reach Customers Around the World
Market Challenge
Expanding
addressable market;
ensuring consistent
performance for global
customers
Equinix Advantage
Asia
• 6 metros
• 250+ available
networks
Americas
• 15 metros
• 450+ available
networks
EMEA
• 10 Metros
• 375+ available
networks
4
6. Are You Focused on Your End-Users?
Both business and end-user expectations are continually increasing
CxOs want
A new business model for
consuming IT resources
High end-user satisfaction
and adoption
End-users expect
Rich application services
More speed and higher
reliability
Anytime/anywhere access
Ease of use
Greater innovation
A high quality online
experience
At least what they have at
home
6
7. Application Performance Matters
Market Challenge
BUSINESS CRITICALITY
Delivering application
performance to meet
customer expectations
Impact
Right performance for
each application
Higher user satisfaction
Increased adoption,
Best Effort Priority Real-Time Proximity customer loyalty, and
>100ms <100ms < 50ms < 5ms
>2000km < 2000km < 500km < 50km revenue
LATENCY SENSITIVITY
Performance matters for end user experience
7
8. Your Application Performance Drives Your Revenue
“Users really respond to
speed. A half of a second
delay caused revenues to
drop by 20%.”
— Google
Poor Performance
Slows adoption
Reduces user
satisfaction
Decreases revenue
and market share
Creates a negative
brand image
8
9. Network Traffic is Exploding
Global IP Traffic Global Mobile Traffic
10.8
110
Exabytes
Exabytes
per Month
per Month
30.7
0.6
2011 2016 2011 2016
Source: Cisco
9
10. Users are Constantly Connected
70% of Internet users will have 5 or more devices,
with ~15 billion devices added over the next 3-5 years
3,000
Global Internet Device Sales
2,500 Tablets
(millions)
2,000
We are here
1,500
Smartphones
1,000
500
Personal Computers
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012E
2013E
2014E
2015E
2016E
Source: Kleiner Perkins and BI Intelligence
10
11. “There’s an App for that”
Apps are changing how we live and work; the market is doubling each year
Global Mobile App Revenue
30.0
25.0
20.0
Total
Revenue
($ billions)
15.0
10.0
Mobile Apps
5.0
0.0
2008 2009 2010 2011 2012 2013 2014
Source: Gartner
11
12. The Old Way of Delivering IT
Serving the World from One Central Location
1
2
3
4
1. Headquarters Experience – Users located in close proximity to where
applications are hosted experience good application performance
2. Branch Office Experience – Still positive end-user experience, but
certain applications may be impacted
3. Remote Office Experience – Negative end-user experience because of
distance from application delivery
4. Kill-Me-Now Experience – Users find it very difficult to do their jobs
12
13. Focus on Quality of Experience (QoE)
Poor application performance impacts your employees, customers, and partners
13
14. What if…
…your IT architecture enabled you to…
Become more agile Realize better performance Become more cost-efficient
Choice Speed Reliability
Applications Flexibility
Speed-to-market Scale Security
• Quickly adapt to business needs • Higher application performance • Improve integration
Networks
• Stay in control through greater • Improve the end-user experience • Efficiently consolidate
supplier choice • Improve scalability and availability • Cloud-enablement
• Directly connect to the partners • Meet critical security and • Leverage increased supplier
and services you need compliance objectives choice
Data • Transition CapEx to OpEx
Attain more control over applications, networks, and data
14
15. Move to a Distributed, Global Architecture
All Users Get a Headquarters Experience
Old Way
Long routes
Choke points
Fault prone
Service variability
Variable QoE
New Way
Optimized routes
Fast throughput
Resilient
Consistent service
Higher QoE
15
16. The Path to Better Application Performance
Identify and Locate Your Users: Include customers
and partners as well as employees
Establish Application Requirements: Determine the
performance characteristics of the applications your
users depend on
Optimize Your Network: Deploy network
performance hubs (NPHs) on an optimized backbone
Distribute Your Applications: Locate applications
within their required service radius
Optimize Service Consumption: Consider a variety
of IT delivery methods, including public and private
clouds, managed services, and SaaS-based vendors
16
18. Opportunities of the Cloud
• Cloud gives Enterprise IT new choices:
– Applications
– Compute power
– Storage
• Cloud enables innovation
• Hybrid Cloud is where we are headed
26
19. Cloud is Still in the Early Innings
Workloads are moving away from on-premise environments
Cloud - Today
How can Enterprises cross the Chasm?
e=Morgan Stankey research estimates.
Source:IDC, Morgan Stanley Research
27
20. The Cloud-Enabled Enterprise
Enterprise Private
Cloud
Integrate & Leverage Cloud Services
STEP 3 -Assemble a solution within our ecosystem
Leverage
direct access
Benefits
to public Reduce capital expenditures
cloud service Maximize supplier choice
providers Optimize performance
Evolve into a less complex, lower cost, more
Public Cloud
reliable and higher performance environment
Providers
Enterprise Private Cloud Enable the Enterprise
Cloud
-Tie into Network Performance Hubs
STEP 2
Deploy key Performance Improvement
Applications 40% less variability in end-to-end transit time
to an 15% faster page load times
Enterprise 80% reduction in downtime
Private Maximize performance for business-critical
Cloud and latency sensitive applications. Migrate
strategic application work loads
Optimize the Wide Area Network
-Deploy strategic Network Performance
STEP 1 Hubs
Optimize TCO Reduction Ranges
Network Local Loop elimination at NPH – 15-30%
Performance Tier 1 providers only in home markets – 20-
by deploying 30%
Network Leverage Tier 2 metro providers – 35-60%
Performance Applications: private WAN connectivity, public
Hubs (NPH) internet, firewall-UTM, VPN
connectivity, voice, video and collaboration
technologies
21. The Catalyst: Network Performance Hubs (NPH)
Allows CIOs to easily and inexpensively connect to over 900 network service
providers and 300+ Cloud providers available on Platform Equinix
Network Services
• Local access (direct
fiber, private
line, Ethernet, etc.)
• Long Haul (fiber, TDM, etc.)
• IP
• VPN connectivity
• Voice, video and
collaboration services
• SIP trunking
• CDN
• Mobile platform gateways
• Internet Connect
• Ethernet Connect
• Cloud Connect
29
22. The “1 - 2 - 3” of Connecting to the Cloud
Connectivity options to cloud services
Network
Performance
Hub (NPH)
Internet
Connect
Equinix Enterprise
Users
Ethernet
Connect
Direct Connect
30
23. What is the Equinix-on-Equinix Program?
Equinix operates data centers and
network exchanges globally
Equinix IT uses our own services
to run our business
The Equinix-on-Equinix program
focuses on areas where the use of
our Platform Equinix provides
Equinix IT an edge or an advantage
The program describes Equinix services
that are available to our customers, none
are exclusive to Equinix IT
31
24. Equinix Hybrid Cloud Development
Moved/moving from all on-premise to Hybrid approach
Standardized Private Cloud technologies for delivering CPU, RAM and Storage to meet demand
Standardized Private Cloud technologies coupled with Public Cloud options to expand on-demand
Cloud Management
32
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:$1.895+ billion plus in annualized revenues for 2011$547 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 7 million sq. ft. across 31 strategic marketsRobust expansion plan Supporting message: Financial strengthWe have the strongest balance sheet in our network-neutral retail colocation industry$1.895 billion plus in annualized revenues for 2012$547 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 $4.4 billion to create over 7 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
Key message: Dan’s Script: It’s not about one data center. It’s about connected data centers around the globe.We are everywhere you need to be and moving into markets you will need.We have 90+ Data centers worldwide covering 31 strategic global metro markets.By working with one global partner, you simplify vendor management, billing, scoping, etc. We listen to our customers / and use third party data, e.gTeleGeography to pin point new sites where *you* need to be. Supporting message – Global platform for simplicityVendor management, billing, scoping, etc. are simplified when working with one global partnerSupporting message – The right networks in the right places for performanceEquinix has the bandwidth choice and is strategically located to optimize performance Supporting message – Expansion when you need itReduce the geographic diversity demanded of your IT team by leveraging Equinix as a supporting resourceEquinix’s consistent global infrastructure simplifies your growth pathEquinix has teams around the globe to provide on-site support to address issues and solve implementation challenges
The traffic is coming!From the dawn of civilization to 2003, the world had only collected 5 exabytes [source]In 2015 we expect to generate over 80 exabytes per month of IP traffic and over 6 exabytes of Mobile traffic [Cisco]Business models are being upended to content with technology and globalizationThe digital divide is reversing as economic power is shifting to the East with Emerging Markets taking center stageThe implication of Equinix: These exabytes need to be housed and connected, and that where Equinix fits in…
Trend #1: The consumerization of technology70% of Internet users are expected to have 5 or more devices, resulting in 15 billion devices over the next 3-5 years [source]In 2011, “something profound happened” exceeded the number of PCs soldTablet sales should surpass PC sales in the next 2-3 years, and “this naturally changes everything”The implication of Equinix: The desktop of yesterday is becoming more and more virtual with the proliferation of devices
Trend #2: Re-imagination of everything we do (Mary Meeker & Kleiner Perkins)Apps are revolutionizing how we live our lives and are a $10B market doubling each yearWe listen to music on PandoraWe watch videos on YouTubeWe communicate with TwitterWe make payments using SquareWe socialize using FacebookWe hire using Linked In…The implication of Equinix: These companies, more often than not, are our customers and require highly reliable global data center capacity fast
Slide 8 – Script NotesWhat would greater control of your infrastructure deliver to your business?By optimizing your infrastructure within Platform Equinix, you stay in control by selecting the suppliers who can best serve your needs, driving performance up and costs down. By enabling centralized cloud deployment, you utilize resources more effectively to drive higher uptime and availability and improve cost-efficiency.The result? You are no longer locked in to a single service provider relationship constraining these cost and performance benefits. As you increasingly leverage greater choice and control, your business gains the flexibility and speed-to-market it needs to meet crucial network, application and business data demands.
Platform Equinix enables a global, distributed service delivery architectureThis is an open model, particularly, in the top tier which can include Biz Suite or a "bring your own datacenter”
Hyperlinks have been added for “FrameWork”, “Application” and “Service Migration Dates”1) The sequence is to start with “Service Migration Dates”. This is the Nirvana of managing the programme and diagrammatically demonstrates the functionality but does not labour on the pain involved in getting to this point.2) Depending on the audience and whether “Application Complexity Analysis” is required, the next steps are from left to right starting with “Framework” and then “Application” through each stage3) The final step is “Migration Execution” => “Framework”. At this point it provides an overview of the typical inputs from 3rd parties and validates the “Task Repository”Dean Riach – 07th July, 2009
LegacyOne-size(or brand)-fits-all deployments to on-premise standardized platformsNo ability to expand on-demandDeployment timelines of up to 6 weeks when procurement requiredEvolvedOptions to deploy on-premise or hosted cloud providersAbility to expand on-demand when required with little to no delayAbility to expand on-premise for longer lasting services in ‘production like’ environments