DC Market Trends and the key focus areas within May 2015 Andrew Kirker General Manager – Datacentres Schneider Electric

Agenda Datacentres – Still a great market and a disruptive force ! The DC Ecosystem – how DC resource is procured and used these days Global and local market stats - rear view mirror and crystal ball Areas of focus within the DC ecosystem Summary

Global Confidence Levels Source:Piper

Datacentres – a disruptive force in modern commerce!

Taxi Industry

Banking Industry

Dating Industry

In 2014 what did people do in one internet minute?

In 2014 what will machines do in one internet minute?

The Internet of ALL things 1990 2000 2010 2020 Number of Meaningful interactions Number of connections

Data Growth and Telco challenge We will store it as well…..

How DC resource is procured and used these days

DC Markets On Premise “Captive” Data Centre Services Cloud Services IAAS PAAS SAAS Enterprise DC Server Room Colocation Managed Hosting

Markets Defined - Datacentre and Cloud Services Datacentre Services Business Process Application OS Server Network Infrastructure Managed Services Managed Unified Communications Managed WAN Optimisation Managed Security Managed Infrastructure Other Managed Hosting Rental of servers with basic services such as Monitoring and System Reboot Colocation Pure rental of data centre floor space, cage, or empty racks with basic power and bandwidth Service Level Price chargeable to customers Cloud Services Cloud Clients Web, browser, mobile app, thin client, terminal emulator ....... SaaS CRM, email, virtual desktop, communication, games....... PaaS Execution, runtime, database, web sever, development tools ....... IaaS Virtual machines, servers, storage, load balancers, network ....... Infra-structure Platform Application

Markets Defined - On Premise and Datacentre Access

So what are customers really doing? On Premise Datacentre? Colocation? Managed Hosting? Managed Services? IAAS? PAAS SAAS? Lets start with some history...

First they did this Primary Data Centre

And then they did this Primary Data Centre Disaster Recovery

Then some went... Active If money was no object…

Then they Data Centre Services Primary Active/DR

Building a Datacentre Ecosystem Now they are Cloud Services Data Centre Services On Premise Building a Datacentre Ecosystem

How the IT Ecosystem decisions are made Cloud Services Data Centre Services On Premise Application Dependent Datacentre Ecosystem

The Global View

IT Environment and DC Business drivers Evolution Reliable & Precision Datacentre Efficient & Reliable Datacentre Fast to deploy & Flexible Datacentre 2020 2005 2015 2000 1995 2025 Hardware Protection Data Protection Network Economy

Where are the servers going? Source: IDC, in number of X86 servers

Global market in 2014 by the numbers IT market +4% $62bn+23% Public Cloud +1% Server $25bn DCS Market +15% 8M Sqm 3M+ Racks 80% Utilisation Sources – DCD, IDC, F+S, SE Internal

The Local View

Australian market in 2014 by the numbers IT Market +1.7%.(inc Mobility) +8.5% Server (density optimised) Majority of IT market growth from Mobility -8% Rack/Tower x86 $823m+18% DCS (~$566Colo) $900M+17% Public Cloud 240,000/480,000 sqm 4.5kW 8500 GWh up 6% ~85,000 in DCS $7-12M per MW +9% Increase in Energy Costs Sources – DCD, IDC, F+S, SE Internal

Focus Areas within the DC Ecosystem

Strategy, re-architecture and move Data Centre Services On Premise Cloud Services Data Location ? Financial Model? SLAs ? Latency ? Physical Location ? Providers Facility ? Redundancy ? Visibility ? Down Sizing ? Efficiency ? Availability ? Modularity ?

Right Sizing what’s left behind On Premise PUE = Total Power IT Load 75% 100KW = IT Load 200KW Total Power = (IT Load + Infrastructure) 2.0 = PUE $157,680 = $ on Support infrastructure 25KW = IT Load 100KW Total Power = (IT Load + Infrastructure) 4.0 = PUE (not optimised) $118,260 = $ on Support infrastructure 25% Could be PUE 1.5 and save nearly $100K per year in energy on support infrastructure

Software Defined Datacentre Infrastructure 90+% Manage to limit 0% Zombie Servers Capacity planning Budget savings Dramatic reduction in human error High availability where needed Non Software Defined 80% Manage to limit 5% Zombie Servers Capacity emergencies Budget Blow-outs 50% + of downtime human error High availability everywhere

The On-Premise DC – many ways to approach Traditional Central UPS CRACs Raised Floor Cold Aisle Containment Modular DC POD System Modular power cooling High density Ultra low PUE Prefab Speed & Simplicity Redeployment Performance Opex Models

Comms Links and Access Nodes Customers Cloud Provider Your On Premise DCS Provider Your People

Summary Datacentres are not going away, they are the engine room of commerce. The world would stop without them! Organisations now aquire their DC using a menu of offers to build an Ecosystem In building the Ecosystem there is a number of areas that require focus for the IT manager and are an opportunity for IT resellers and contractors alike.