The Journey to Digital in the Interconnected World

® Introducing Equinix Digital Disruption – Equinix Point of view Solving for Digital Confidential

Founded in 1998 to help the internet scale EQUI N I X Equality Confidential

Enabling industries to become interconnected Networks came to connect to other networks to scale

Invested ~$13 billion to scale the business • • 53 quarters of top-line growth

Creating the place Where Opportunity Connects™ ecosystems 175 k Unmatched global footprint cross connects

Cultivating digital ecosystems A diverse platform of ecosystem participants exchanging commerce, insights and ideas

Establishing a global platform for digital enablement Cloud Exchange Confidential – © 2016 Equinix

Digital is here and now, forcing businesses to transform B 2 C e. Commerce

Digital is disrupting all industries Industrial Internet Confidential – © 2016 Equinix Inc. Location.

Digital is creating an economic revolution $90. 0 T World gross domestic product $27.

Digital is forcing technology to become the priority CEOs say technology is the chief

Digital is accelerating the rate of change How do you anticipate the pace of

Digital is driving CIOs to deliver new capabilities 71% Mobile solutions 59% 66% 62%

Digital requires an emphasis on security Cloud-side Security at the core Encryption of “data

To transform, BUSINESS and IT needs to disrupt… from siloed and fixed… … to

To disrupt, IT needs to re-architect Flip the architecture Simplify the topology Deploy hybrid

A re-architecture requires four steps Digital Playbook Confidential – © 2016 Equinix Inc. 1

Take those steps on Platform Equinix™ HANA Connect to clouds Integrate ecosystems Distribute data

Confidential – © 2016 Equinix Inc. Equinix. com 22

Slides: 22

Download presentation

The Journey to Digital in the Interconnected World Digital Engagement in Finance Markets. Media Webinar Barry W. Smith | MD, Global Capital Markets Presented on: June 14, 2016 Confidential – © 2016 Equinix Inc. Equinix. com 1

Enabling industries to become interconnected Networks came to connect to other networks to scale the Internet. Content providers came to connect to networks to reach end users. Ecosystems began to emerge, first with financial customers, then with content providers. Cloud providers joined to capitalize on our network density and reach enterprises. Enterprises came to re-architect their IT, to access the cloud, reduce costs and improve user experience. Interconnections Networks Content & Digital Media Financial Services Cloud Enterprise Confidential – © 2016 Equinix Inc. Equinix. com 4

Invested ~$13 billion to scale the business • • 53 quarters of top-line growth Forbes list of most innovative companies 140 of the Fortune 500 are customers S&P 500 Index Member $ 3, 595 $ 2, 725 $ 2, 444 $ 2, 152 $ 1, 887 $ 1, 569 $ 1, 189 $ 882 $ 705 $ 419 1998 1999 Confidential – © 2016 Equinix Inc. 2000 $ 164 $ 13 $ 77 $ 118 $ 221 $ 63 2001 2002 2003 2004 2005 2006 2007 Equinix. com 2008 2009 2010 2011 2012 2013 2014 2015 2016 E 5

Creating the place Where Opportunity Connects™ ecosystems 175 k Unmatched global footprint cross connects 145+ data centers in 40 top markets on five continents global reach and consistency 5 high quality continents 99. 9999% availability Interconnection 8, 000+ companies connect directly to their customers and partners through the largest digital exchanges in the world Access to the broadest networked ecosystems More than 1, 400 networks, 2, 600+ cloud/IT providers and 500+ content providers Confidential – © 2016 Equinix Inc. Equinix. com 6

Cultivating digital ecosystems A diverse platform of ecosystem participants exchanging commerce, insights and ideas Service Provider Cloud Content Network Confidential – © 2016 Equinix Inc. Enterprise 28% 14% 25% 20% 13% Equinix. com Financial Enterprise 7

Establishing a global platform for digital enablement Cloud Exchange Confidential – © 2016 Equinix Inc. 5 Continents 21 Countries 40 Metros 145 IBX Data Centers 5 Continents 11 Countries 21 Metros 79 IBX Data Centers Equinix. com 8

Digital is here and now, forcing businesses to transform B 2 C e. Commerce B 2 B e. Commerce Digital Advertising $1. 7 T $1. 1 T ▲ 18% ▲ 8% $72 B B 2 B Acquired Customers via Company Blog 57% B 2 B Customer Support via Facebook 44% Skype for Business Hours 1. 6 B New Commerce and Collaboration Models New Connectivity and Data Models 4. 9 B 2. 1 T ▲ 30% ▲ 76% Connected Devices App Usage Sessions 4. 4 ZB ▲ 40% ~50% ENT adopting hybrid cloud by 2017 Data Created & Stored Hybrid Cloud 20 B $176 B ▲ 22% ▲ 16% Mobile Application Spend Cloud Services Spending * Equinix Vertical & Market Insights, 451 Digital Infrastructure Research, Gartner Digital Business Research, Forrester Digital Enterprise Research Confidential – © 2016 Equinix Inc. Equinix. com 10

Digital is disrupting all industries Industrial Internet Confidential – © 2016 Equinix Inc. Location. Aware Ride Share Data-enabled Fitness Virtual Point-of -Sale Equinix. com Anywhere Retailing Connected Drive Community- Based Room Share 11

Digital is creating an economic revolution $90. 0 T World gross domestic product $27. 50 T $12. 10 T $0. 36 T 1850 1970 1990 2020 Industrial economy IT economy Internet economy Digital economy All figures are in trillions; 1990 international dollars; Source: Department of Economics, UC Berkeley, Bain - The Great Eight: Trillion-Dollar Growth Trends to 2020. Confidential – © 2016 Equinix Inc. Equinix. com 12

Digital is forcing technology to become the priority CEOs say technology is the chief external influence on their enterprises Technology factors Market factors Regulatory concerns Macro-economic factors People skills Socio-economic factors 2004 2006 2008 2010 2012 2013 2015 Source: IBM C-Suite Study 2016 - The CEO Point of View Confidential – © 2016 Equinix Inc. Equinix. com 13

Digital is accelerating the rate of change How do you anticipate the pace of technology will change in your industry over the next three years? 1% 86% say pace will increase rapidly and/or at an unprecedented rate 12% say it will increase slowly 1% say it will remain the same 86% 1% say it will decrease Source: Accenture - Technology Vision 2016 survey Confidential – © 2016 Equinix Inc. Equinix. com 14

Digital is driving CIOs to deliver new capabilities 71% Mobile solutions 59% 66% 62% Cloud computing and services 61% Internet of Things (Io. T) 56% 40% 36% Cognitive computing 21% Advanced manufacturing technologies 30% 18% New energy sources and solutions Bioengineering Man-machine hybrids 24% 8% 13% CIOs All other Cx. Os 5% 10% Source: IBM C-Suite Study 2016 – The CIO Point of View Confidential – © 2016 Equinix Inc. Equinix. com 15

Digital requires an emphasis on security Cloud-side Security at the core Encryption of “data at rest” and “data in motion” within the network for exposure to authorized users only Database of authentication keys Security software and applications Reliable authentication to validate users and their access requests and to initiate a secure channel Authentication key Client-side Security software and portable objects Security at the edge Source: www. convergedigest. com/ (Gemalto & Safe. Net) Confidential – © 2016 Equinix Inc. Equinix. com 16

To transform, BUSINESS and IT needs to disrupt… from siloed and fixed… … to integrated and dynamic Hierarchical Model Customers Mobile sales and Payments Omni-channel Storefront Privacy R&D Raw Materials Suppliers Sales Marketing Warehouse/ retailer Supplier network Customers Digital products Confidential – © 2016 Equinix Inc. Equinix. com API Digital services Research and innovation 18

To disrupt, IT needs to re-architect Flip the architecture Simplify the topology Deploy hybrid footprint Clouds Edge h Pus Edge Pus h Core Confidential – © 2016 Equinix Inc. Colo Hubs Centralized Data Center Equinix. com 19

A re-architecture requires four steps Digital Playbook Confidential – © 2016 Equinix Inc. 1 Localize the network 2 Create security guardrails 3 Establish data fabric 4 Interconnect digital ecosystems locally Equinix. com 20