1. DATACLOUD ASIA
23 February 2017 / Singapore
BILL BARNEY
Chief Executive Officer
RELIANCE COMMUNICATIONS & GLOBAL CLOUD XCHANGE
2017:
THE CLOUD
REVOLUTION
CONTINUES…

2. 1. Observations On The Impact Of The Cloud Revolution
2. 2017 And Beyond: The Disruptive Opportunities
3. The Sure Bets of the Future
4. Final Thoughts
Agenda

3. Observations on the Impact of
the Cloud Revolution

4. Cloud has enabled new forms of Data Generators
Source: Apple, DJI, Waze, Tesla, Microsoft, Ring, Fitbit, B & H Foto & Electronics.

5. The Facts:
Source: Forbes “2017 Internet of Things Facts”
This year, we will have 4.9 billion
connected things....some predict that
by 2020, the number of Internet-
connected things will reach or even
exceed 50 billion.
In 2015, over 1.4 billion smart phones
will be shipped and by 2020 we will
have a staggering 6.1 billion
smartphone users.
By 2020, a quarter of a billion
vehicles will be connected to the
Internet, giving us completely new
possibilities for in-vehicle services
and automated driving.
Today, the market for Radio Frequency
Identification (RFID) tags, used for
transmitting data to identify and track
objects, is worth $11.1 billion. This is
predicted to rise to $21.9 billion in 2020.
Machine-to-machine (M2M)
connections will grow from 5 billion at
the beginning of this year to 27 billion
by 2024, with China taking a 21%
share and the U.S. 20%.
CISCO believes the IoT could
generate $4.6 trillion over the next ten
years for the public sector, and $14.4
trillion for the private sector.

6. We are seeing unprecedented growth because the “global data”
ecosystem is finally here
SourcesofLeverageforGlobalInternetGrowth
The Network
Large investments in fiber optic & last-mile cables created connectivity that
facilitated the early Internet growth
The Software
Optimizing the network with software became far more capital efficient than
additional capex buildouts...ultimately resulting in the creation of pervasive
networks (siloed data centers ➔ AWS)...& then pervasive software (Siebel ➔
Salesforce)
The Infrastructure
Emergence of pervasive software created the need to optimize the performance
of the network & store extraordinary amounts of data at extremely low prices
The Data
Next Big Wave = Leveraging this unlimited connectivity & storage to collect /
aggregate / correlate / interpret all of this data to improve people’s lives & enable
enterprises to operate more efficiently
Source: Adam Ghetti, Ionic Security; Ted Schlein, KPCB.

7. The “Third Wave” of Cloud Innovation will bring hyper-growth and unprecedented appetite
for fiber and big computing
New Major Technology Cycles = Often Support 10x More User & Devices,
Driven by Lower Price + Improved Functionality
Increasing
Integration –
lower cost
Note: PC installed base reached 100MM in 1993, cellphone / Internet users reached 1B in 2002 / 2005 respectively;
Source: ITU, Morgan Stanley Research.
Computing Growth Drivers Over Time, 1960 – 2020E
1960 1970 1980 1990 2000 2010 2020
1MM+
Units
10MM+
Units 100MM+
Units
10B+
Units??
1B+
Units/Users

8. The falling costs are a huge catalyst of growth
Global Data Growth Rising Fast = +50% CAGR since 2010...
Data Infrastructure Costs Falling Fast = -20% CAGR
PetabytesofData
CostperGBofStorage
$0.20
$0.15
$0.10
$0.05
10B
8B
6B
4B
2B
0B
2010 2011 2012 2013 2014 2015
Data in Digital Universe (Petabytes) Storage Costs ($/GB)
Data in Digital Universe vs. Data Storage Costs, 2010 – 2015
Source: IDC, May 2016.

9. Hyper-growth and unprecedented appetite for fiber and big computing in the “Third Wave”
of Cloud Innovation…SoftwareSecurityInfrastructure
Evolution
Breaking Apart
Data Bottleneck
Revolution
Data Integrated
into Everything
FIRST WAVE
Constrained Data...
Monolithic Systems, Expensive Storage,
Data for Targeted Use Cases
BUSINESS
INTELLIGENCE (BI)
Business Objects,
Cognos, Micro Strategy
DATA INTEGRATION
Informatica
DATA INTEGRITY
Microsoft, Oracle
Age of Oracle, Sybase
SECOND WAVE
Data Explosion / Chaos...
Decentralized Systems,
Cheap Storage, Big Data Everywhere
VISUALIZATION
PREP / WRANGLING
INFRASTRUCTURE-
CENTRIC SECURITY &
MANAGEMENT
Palo Alto Networks, FireEye
Age of Big Data
Hadoop, Teradata,
Netezza, NetApp, EMC,
Greenplum
CLOUD BI
ETL
CACHING
THIRD WAVE
Mass Data Intelligence...
Pervasive Systems, Big/Fast Storage,
Data Instruments the Business
DEPARTMENTAL
APPLICATIONS
Gainsight, Datadog,
InsideSales
ORGANIZATION-WIDE
ANALYTICS PLATFORMS
Looker, Domo, Anaplan
DATA-CENTRIC SECURITY &
MANAGEMENT
Ionic Security, Tanium
Age of Big/Fast
Redshift, BigQuery,
Spark, Presto
Source: Looker, Ionic Security, KPCB 2016

10. Current Generation of Internet Leaders = Growing Faster than Previous Generation
Marketplaces
Gross Merchandise Value (GMV), Time Shifted
Alibaba vs. eBay vs. Airbnb vs. Uber
Commerce
Gross Merchandise Value (GMV), Time Shifted
Amazon.com vs. JD.com
Enterprise
Est. Quarterly Revenue ($MM), Time Shifted
Salesforce vs. Slack
0
5
10
15
20
1 2 3 4 5 6 7 8
Alibaba/Taobao
eBay
Airbnb
0
20
40
60
80
100
120
140
160
180
200
1 3 5 7 9 11 13 15 17 19
JD.com Amazon.com
1 2 3 4 5 6 7 8 9 10 11 12 13
Salesforce Slack
Marketplaces Source: Company data, Morgan Stanley Research. eBay founded in 1995. Amazon founded in 1995. Alibaba.com founded in 1999 as B2B portal
connecting Chinese manufacturers and
overseas buyers. Uber launched 2009, gave first ride in 2010. Airbnb founded in 2008..
Commerce Source: Publicly available company data, Morgan Stanley Research. JD.com launched B2C shipments in 2004, founded 1998 as an online magneto-
optical store. Amazon founded in 1995.
Enterprise Source: Slack. Graph starting point based on similar est. revenue figures. Salesforce quarterly revenue approximated from publicly disclosed annual
GAAP revenues.
GMV($B)
Years Since Launch (T+)
GMV($B)
Years Since Launch (T+)
Revenue($MM)

11. The Cloud market is exploding!
World wide Hosting & Cloud Market Size, 2010 – 2019
Source: 451 Research, Cloud Computing Market Monitor, 2016 & Transforming Network Infrastructure
26,162
31,358
38,507
49,188
59,806
71,912
85,402
100,333
116,619
134,411
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

12. “Data is moving from something you use
outside the workstream to becoming a
part of the business app itself.
It’s how the new knowledge worker is
actually performing their job.”
FRANK BIEN, CEO OF LOOKER, 2016

13. 2017 and Beyond:
The Disruptive
Opportunities

14. If Jobs were alive today he would likely say...
“Whoever masters the combination of
server orchestration, fiber ubiquity and low
cost global access to competing computing
resources will be the technology
infrastructure company of the next decade”
And this is just the beginning...
“We’re going to demote the PC and
the Mac to just be a device. And
we’re going to move the digital hub,
the center of your digital life,
into the Cloud” --Steve Jobs

15. Company Region 2017 Market Cap ($Bn)
Apple USA 698.89
Alphabet Inc. (Google) USA 580.78
Microsoft USA 500.51
Facebook USA 387.40
Amazon.com USA 397.47
Alibaba China 258.12
Tencent China 246.76
AT&T USA 249.94
China Mobile China 234.98
Samsung Electronics Korea 230.43
Verizon USA 198.21
IBM USA 179.36
Intel USA 169.70
Oracle USA 168.57
TSMC Taiwan 164.42
Cisco Systems USA 160.43
SAP Germany 113.65
NTT Japan 87.45
Disruptive Opportunity #1 : There has yet to be a value creator in the
global infrastructure space
Source: Ycharts, Feb 2017
Most of these companies used
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.

16. 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
EUROPENA FIBER WHOLESALERS
The Future Cloud Infrastructure Quadrant

17. Note: Data above based on countries including the US and those in the Middle East, Europe and Asia ex-China
Disruptive Opportunity #2 : Whoever can make the emerging markets their home
markets will have an unprecedented advantage with huge demand ahead
Innovation and expansion across emerging markets will reap biggest benefits of the Cloud as requirements continue to grow
 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.

18.  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.
Source: WCI and EIU data
The Emerging Markets Corridor connects over 2.0bn Internet subscribers currently and
is expected to account for over 70% of the world’s smart phone growth and over 80% of
the world’s GDP growth over the next 5 years
Digital user distribution by region – JAN 2017
Each region’s share f the world’s population, global internet and
social media users, and global mobile connections
T: Total Population A: Active social Media Account I: Internet Users M: Mobile Connections
North America
T:5% A: 8%
I: 8% M: 5%
West Europe
T:6% A: 8%
I: 9% M: 7%
East Europe
T:6% A: 7%
I: 8% M: 8%
East Asia
T:22% A: 33%
I: 24% M: 22%
Central America
T:3% A: 4%
I: 3% M: 3%
Middle East
T:3% A: 3%
I: 4% M: 4%
Central Asia
T:1% A: <1%
I: 1% M: 1%
Southeast Asia
T:9% A: 11%
I: 9% M: 11%
South America
T:6% A: 9%
I: 7% M: 7%
Africa
T:16% A: 6%
I: 10% M: 13%
South Asia
T:24% A: 9%
I: 16% M: 19%
Oceania
T:1% A: 1%
I: 1% M: 1%
Cloud computing will exponentially increase the speed of Internet penetration...

19. Growthin20125
Growth Potential (2015-2022)
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%
Japan
Growth Markets
Indonesia
India
China
ThailandVietnam
High Growth Markets
Mature Markets
Australia
Philippines
Hong Kong
Singapore
Malaysia
South
Korea
Taiwan
New Zealand
Data Center Owners will be big winners in the next decade, and the Emerging
Markets will be growth engines of these Data Centers...
Note: CAGR for the period 2015-2022
Note: All figure are rounded; the base year is 2015. Source: Frost $ Sullivan analysis.

20. Disruptive Opportunity #3: There is no leading player in the emerging market corridor
in the data center space, only one in the orchestration space and lastly a mere two
competitors with fiber leadership
227
91
14
20
26
20
5
3
2
9
196
324 369
92
6
8
47 69 14
4
318
151
113
219
5
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73
77
54
4
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96
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10
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53
53
25
17 11 16
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6
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5
The high concentration of
Data Centers in USA and
Europe are far from most
users in the Emerging
Markets. Regulatory
compliance, user
experience, reliability
and cost factors will
mandate significant
movement of data
closer to users.

21. The Sure Bets of
the Future for
Cloud Providers

22. 0
10000
20000
30000
40000
50000
60000
1 2 3 4 5 6 7 8 9 10
USDinRevenuePerRack
KVA Per Rack
100 MVA facilities with Exabytes of Fiber capacity
will be the centers of the next decade
Network Costs
Build Costs
Operating Costs
Data Center Margin
Network Margin
Source: RCOM/GCX Research
Sure Bet #1: The Networked Data Center will be at the Core of future

23. Sure Bet #2: Distributed focused compute centers will be the wave of the future
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

24. Sure Bet #3: With Orchestration ecosystems in your data centers, you will win!
CRM, ERP, etc.
Already Integrated with 100+
Networks
Low cost, Pay as you go /device
Launch in weeks
Devices Networks IoT Services Platform IoT Apps / IT
deeplyintegrated
Automate
The Service Lifecycle
Orchestration
capability

25. 25
Final Thoughts

26. 26
Whoever masters the combination of server
orchestration, fiber ubiquity and low cost global
access to competing computing resources will
be the technology infrastructure company of the
next decade...