data center trends 2014

© 2013 Belden Inc. | belden.com | @BeldenInc

Michael SalvadorTechnical Solutions Manager – Data Centers

Transition to the “Hyper” Data Center: Information Anytime, Anyplace, and on Any Device

© 2013 Belden Inc. | belden.com | @BeldenInc 2

• Industry Drivers• Business Trends• Technology Trends• Meeting the Critical Needs of the Data Center

Agenda


Industry Drivers and Trends


Worldwide DC Market Investment Growth

Source: DCD Intelligence, 2013 Census Report: Global Data Center Investment 2013

Global Investment:

$151.3 Billion US 8% increase from 2012

NAM

+8%US$44.7B

Latin America

+12.2%US$18.24B

Europe

+6.2%US$48.27B

MEA

+6.6%US$4.82B

Asia Pacific

+8.7%US$35.23B


The Nexus of Forces


• On demand business

Anytime, anywhere, any device data - Mobility

- Social media

- Cloud services

- Big data

Keeping up with the Digital Explosion

• Convergence of users, business, technology, and facilities

• Shift from functional to integrated enterprise platforms


− Increased Reliance of Business on The Data Center

− Decreased Enterprise Data Center Spending Due To: Virtualization Energy Efficiencies Outsources Services

• Multi-Tenant Data Centers

• Hyperscale Data Center Services

Business Trends For The Data Center


• In The Past, the Data Center Was:− Mechanism to Drive Business

− Supported Business

− Rarely Interactive with Consumer

− Businesses Established Practices and Created IT Around The Data Center

− Strict Control of All IT Aspects and Requests

− Risk Adverse – Protect the Business Assets

Increased Reliance of Business on The Data Center


• Today’s Modern Data Center− Central Hub of the Organization--REGARDLESS of Sizes and Verticals

− Globally Connected and Relied Upon

− Complete Mobile Access to Data

− True Device-Agnostic Connectivity

− New Types of End-Points (Zero-Client Technology) Users Access Their Data on 3-4 Devices Consistent Look and Feel Across All Platforms Best Possible User Experience – Regardless of What Device



• Businesses Must Recognize− New Technology Emergence Elevated the Value of the Modern DC

− Leverage Technology to Optimize Business

− Use of Technology as a Direct Business Model

− How to Create a Business Model around DC Compute Delivery


Shift How You Think About Creating A Business Model


Amazon’s Kindle and Digital Media Publishing

• $5B in Kindle E-Reader Sales*

• $3.8B in Digital Media Publishing*

• $192M in Advertising Revenue on their website*

• $4.5B in Amazon Web Services (Cloud)

• AWS has 55% of the IaaS Market

• 77M+ Users


*-Morgan Stanley EstimateRedefines Book Sales and Publishing Industry


Netflix Mail Order and Streaming Video Content• Begins Producing Own Content

• 44 Million Paid Subscribers Worldwide (33 Million in US)

• $1.18B in Revenue


Eliminates Traditional Video Distribution and Sales Business


Dropbox – Fast Data Replication and Synchronization• 200 Million Subscribers Worldwide (~ 30% paid)*

• Valued at $8 Billion *

• $110 Million in Revenue* (Mostly Advertisements)


*- Financial Times EstimateCreates New Methods of Data Distribution and Storage



Video Gaming Industry On-line Multi-Player Games• Physical Media Sales Decline in Favor of Digital Distribution

• New Web-Enabled Consoles Sales Increases

• Enhanced Features and Player to Player Sales Provide New Revenue Streams

• $67B in Revenues

Enhances User Experience, Connects Players Worldwide


Apples iTunes Music and More• Eliminates Traditional Music Purchasing Model

• Adding 500,000 New Accounts per Day, Second Only to Facebook’s Billion

• $37.5B in Revenue

Pandora Internet Radio• Design Your Own Content

• 54.9M Users

• $ 200.8 Million in Revenue (51% year-over year increase)


Revolutionizes Music Industry, Empowers Consumer with More Choices


− Virtualization

− Energy Efficiencies

Decreased Enterprise Data Center Spending

Virtualization

Goal: Highest Compute Performance Per kilowatt


Delaying the Next Data Center Build Out


Virtualization Adoption Trend

200820092010201120122013201420152016

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

21%30%

42%52%

61%68%

74%80%

84%

Percentage of Installed Virtualizable x86 Work-loads Running in a VM

Source: Gartner Forecasts 2013


Outsources Services • Multi-Tenant Data Centers

- Space and Services

- Looking at Cloud Services

- $6.5 Billion in Revenue



− Outsources Services Hyperscale Data Center Services

• Cloud Services

• $288 Billion Worldwide Revenue and growing



Hyperscale Data Centers Have Exploded On The Market

Large CloudProviders

Mega CloudProviders


Technology Trends


• Adoption of ‘Web-Scale’ IT designs and processes by the Enterprise

− Industrially Designed Infrastructure

− Web Oriented Architecture

− API Based Management

− Velocity Focused Processes

− Collaboratively Aligned Organization – Silos to Service Teams

− Risk Embracing Culture

− Open Source

Technology Trends


• Industrial Designed Infrastructure− Agile, Standardization, Scalable, & Rapid Deploy

− Energy Efficient

− Extensive Monitoring (Measure, Monitor, Manage)

− Lean Principles

− Vanity Free Designs – Use Holistic Design Principles

− Automated Processes

− Focus on Workflows NOT Workloads

− Focus on NOT where the work is located but WHAT the work is doing

Technology Trends


The Value of Faster – A Driver to Cloud Architectures

Source Gartner DC Conference Poll, 12/2012

“One of our core values is to move fast and break things. To challenge the traditional norms.”

-- Delfina EberlyDirector of U.S. Data Center Operations (Facebook)


• Successful Evolution to the Digital Enterprise− Open Minded Views

Less emphasis on manufacturer certifications for employees More rounded education in a variety of disciplines across technology and the organization Understanding that it’s all about the BUSINESS not individual egos and technology prejudices. Collaborative Approaches

− Constant Change

− Embrace Risk Culture

− Industrialized View Standardized Repeatable Processes Speed to Deploy Agile

Technology Trends


• Technology innovation is bringing new and exciting things to respond to the needs of today’s business− Convergence of Servers, Storage, and Networking is growing

− Software Defined Everything (SDx)

− Fabrics

− Extremely Low Energy (ELE) Servers

− Original Design Manufacturer (ODM) or DIY Servers (aka Skinless)

− Silicon Photonics

Technology Trends


• White Box Affect• ELE• Integration

Affect on Technology Due to Hyperscale Adoption

Source: HP Moonshot


AndODM/Self Build will Account for 10% X86 Server Shipments

DIY/ODM Challenges Traditional Vendors

Gartner Predicts by 2016One in Five Servers will be Bought by Hyperscale Companies


Self-Build/ODM Server Shipment Growth

Source: Gartner Data Center Conference 2013


Skinless Server Growth

Skinless Server Growth 2009-2013

Source: Gartner Data Center Conference 2013


Belden’s Approach and Solutions


Solving Customer Needs in Data Centers

Enterprise & SMB

COLO & Hosting

Government & Regulated

Unique Segment Challenges Complex Relationships

Enterprise & SMB

COLO & Hosting

Government & Regulated

End Users

Architects & Engineers Boardroom

Contractors & Installers

Support Teams


Increase Agility• Scalability:

• Flexible IT capacity that can rapidly adapt to changing business needs & technologies as they arise;

• Upgradeable: Rapid & seamless implementation, at managed cost, of throughput improvements & new technologies

• Interoperability:• Providing standardized resources and functions

across multiple systems that facilitate uniform operations and work flow;

Reduce Risk

• Application Availability

• Infrastructure Uptime• Reliable• Available• Secure

Reduce Cost• OPEX

• Power, Cooling

• CAPEX• Improved asset utilization;• Space, Equipment, Infrastructure

Increase Sustainability• Promote efficient use of

physical infrastructure resources

• Alignment with companies Environmental Stewardship metrics

Our Approach: Solving Customer Problems


Our Approach: Solving Customer Problems

Agility

Reduce CostsRapid Deployment

Technology Migration

• Global account support• Breadth of product• Engineering footprint• Manufacturing footprintResults in flexibility

Pre-term Connectivity:• Easy to configure• Faster to order• Better to installResults in satisfaction

• 10/40/100G systems• engineering capabilitiesResults in preparedness

• Simplified logistics• Optimized asset utilization• Energy efficiencyResults in sustainable infrastructure


A Systems Approach…

Fully-Optimized, Integrated Solutions

LOW HIGHValue Add

Air Flow & Power Solutions

Copper Systems

Fiber Systems

Racks and Enclosures

Pre-configured Racks

Pre-terminated Solutions

Cabling, Connectivity, & Cable Management Solutions Designed to Work Together


Collaborative Design Approach

Pre-Installation Installation Post-Installation

Requirements gathering Standards documentation Product specifications Partner training and

certification

Project management Engineering support Assessments Testing Compliance

MAC support Warranty support Product and application

review


Visit Our Customer Collaboration Center


Visit Our Customer Collaboration Center

Contact 1-800-Belden1 to Schedule Your Visit Today


To Wrap Things Up…

Listen Belden Data Center Experts

Committed to being a Trusted Advisor

Develop Data Center Ready Solutions

Broad standard product set to customize each

solution

Custom capabilities

Support Trained and Certified Partners

Technical Support, Warranties


• Disruptive Technologies are Driving Change− Nexus of Forces – Social, Mobile, Information, Cloud

More Empowerment to the Consumer Information Anytime, Anywhere, and on Any Device Big Data Collection Tracking Consumer Spending Habits New Technology Provides Agility & Speed to Market Inexpensive Cloud Allows More Experimentation (Fail

Faster)

To Tie It All Together….


• Business Challenges Today− Reduction of DC Spending:

Increasing Energy Efficiency Driving Virtualization and Cloud Technologies Increased Outsourced Services Opportunities

• Businesses Must Shift to New IT Model− Modern Data Center No Longer Just Supports

the Business

− Modern Data Center is the Hub of Business



• Hyperscale DC Innovation− New Data Center Designs

Industrialized Data Center Focus on Workflows not Workloads Culture of Risk

− New Technology ODM’s Growing Role ELE Server Technology Fabrics Software Defined Everything SDx



Questions?


Michael Salvador

BeldenTechnical Solutions Manager - Data Centers

[email protected]

Thank You

The Dude Abides