A Futureproof Architecture for Digital Transformation

© 2018 Equinix.com

Empirical Insights of Digital Transformation

2

© 2018 Equinix.com

What is Digital Transformation?Improved Business Outcomes

3

“Improve customers’ experience”

"Create new business models"

“Develop new partnerships with suppliers”

54%

50%

45%

© 2018 Equinix.com

Until recently, Interconnection, the private exchange of data between companies, has never been quantified or analyzed

1. CAGR for 2017–2021. 2. Research and Markets, Global Managed MPLS Market, June 2018. 3. Cisco Visual Networking Index, 2017.

INSIGHTS INTO THE

GROWTH OF THE DIGITAL

ECONOMY

BY 2021 INTERCONNECTION

BANDWIDTH …

…IS EXPECTED TO OUTPACE THE GROWTH OF

INTERNET & MPLS TRAFFIC

MPLS2 Internet3 Interconnection

48%

26%

7%

IS EXPECTED TO GROW BY

48%TO

8,200Tbps

OF INSTALLED BANDWIDTH

OR EQUIVALENT TO

33ZB/year

1

© 2018 equinix.com

To scale, the building blocks of the digital economy required Interconnection…

PATTERN

ADJACENCIES

TYPE

TOPOLOGY

NETWORKS

INTERNET

Network to Network

1:M

E-COMMERCE & CONTENT

WEB

Network to Network

1:M

Front Ends

EXCHANGES

ELECTRONIC

TRADING

Finance to Finance

M:M

Systems

CLOUDS

CLOUD

Provider to Business

M:M

Controls

ENTERPRISES

DIGITAL

ECOSYSTEMS

Business to Business

M:M

Controls & Systems

1:M – One to Many M:M – Many to Many

5

SINCE Late ‘90s + 2000 + 2005 + 2010 + 2015 +

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Interconnection is at the center of today’s key macro trends

Digital Technology Use

Need to support

real-time interactions

Need to bypass the

internet and deploy data

and security locally

Cyber Security &

Data Sovereignty

Need for digital services

within proximity

Urbanization

Need to support global

business processes

connecting customers,

partners & employees

Digital Trade

Source: The Global Interconnection Index

© 2018 equinix.com

Global Software Defined Interconnection Platform enables Digital Transformation

5 Continents, 24 Countries, 53 Metro areas and 200 IT traffic exchange points (IBX data centers)

9,500+

Companies

Over 280,000

Interconnections

© 2018 Equinix.com

Equinix has studied over a thousand IT transformations

Customer

deployments

studied

Example

customers

studied

400+ 800+

IT use cases

identified 4 10 35+

1200+

Network Hubs Multicloud Connectivity Digital Integration

2016

2017 2018

8 © 2018 equinix.com

© 2018 Equinix.com

Gartner

Reports

incl. EQIX

Emerging

concept

5

2014

Validated

strategy

12

2015

Placed in

hype cycle

35

2016

Crossing

the Chasm

49

2017

“Interconnection

is a Top 10

Strategic Tech

Trend for 2018”

Gartner is telling the market “Interconnection Is a Top 10 Strategic

Tech Trend for 2018”

“Interconnection

is digital glue”“Edge requires

interconnection”“Colo hubs for

performance”

© 2018 Equinix.com

Enterprises leverage Interconnection to re-architect for the Digital Enterprise…

…within proximity of employees, customers and

partners.

#1Physics

Drives proximity,

density & gravity

#2 Volumesof increasing velocity

& workload variety

#3Regulationschange security and

control, with privacy

and compliance

Shift from centralized to

distributed …

… build hybrid / multi cloud

deployments …

APP

DATASET

KEY

MANAGEMENT

CACHE

IMAGES

IDENTITY

SERVICESMESSAGE

GATEWAY

Distribute

& colocate

data &

security

Connect

to multiple

clouds

Integrate

third-party

connections

1

3

Why?

1

0

Because... “Slow” is the new “Down”

© 2018 Equinix.com

MPLS

Before

Region

MPLS Ethernet

Circuit Costs

(monthly)

Average Latency

(ms)Total Bandwidth

Circuit Costs

(monthly)

Average Latency

(ms)Total Bandwidth

Region 1 $61,198 24 1 G $19,735 4 11 G

Region 2 $40,027 46 555 M $17,100 8 3.1 G

Region 3 $24,449 66 217 M $20,030 6 1.5 G

Region 4 $43,270 62 458 M $28,215 15 2.5 G

Region 5 $31,742 43 463 M $26,775 6 3.3 G

Region 6 $20,772 28 145 M $10,080 9 1.1 G

Summary $221,458 47 2.8 G $121,935 8 22.5 G

Latency Improvement: 83%

Bandwidth Increase: 700%

Cost Reduction: 45%

Customer Example: on the digital transformation journey with Equinix

11

After

VPN

© 2018 Equinix.com

To help guide this architecture journey, Equinix created IOA™, derived from lessons of 1,000+ customer deployments globally

Simplify the Network

✓Localize Traffic via Communication Hubs1

Create Security Guard Rails

✓Overlay a Mesh of Distributed Security Services2

Establish a Data Fabric

✓Deploy Tiered Storage and Data Sets Adjacent3

Integrate via Intersection Points

✓Overlay Distributed Integration Services4

© 2018 Equinix.com

IOA® Solution Kits for a Digital Strategy

13

© 2018 Equinix.com

To help accelerate a digital edge strategy we provide playbooks…

14

Equinix.com/resources (16+)

Interconnection Use Cases… Industry Examples

DIGITAL EDGE PLAYBOOKS • Industry Trends

• Business Constraints

• Needed Capabilities

• Strategy & Roadmap

Prescriptive strategy guide

comprised of…

• Enterprise Industries

• Service Provider Industries

• Common Interconnection

Use Cases

For…

© 2018 Equinix.com

Along with a Knowledgebase of blueprints and online community…

15

IOAKB.com (20 Blueprints…and counting!)

Interconnection Use Cases… Platform Blueprints

IOA® BLUEPRINTS • Digital Design Principles

• Detailed Strategy

• Solutions Steps

• Benefits & Outcomes

Architectural design patterns

based on an Interconnection

Oriented Architecture®

Available @ Booth

#300

Solution Blueprints Industry Blueprints

Hosted on open

community

800+ Companies

1190+

users

21 Industries

© 2018 Equinix.com

…to help design a solution kit for your digital strategy…

16

Playbooks –

Industry Perspective

Architecture Blueprints -

Platform Building BlocksCommon Use Cases

17