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Thoughts and considerations for expanding internationally: culture, localization, culture and business models.
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CONFIDENTIAL & PROPRIETARY MATERIALCONFIDENTIAL & PROPRIETARY MATERIAL
MARKETING & STRATEGY FORINTERNATIONAL EXPANSION
American Marketing Association - San AntonioSEPTEMBER 22nd, 2012
@rackspace / @SanAntonioAMA / @gerardodada
Gerardo A. Dada, Head of Global Product Marketing@gerardodada
CONFIDENTIAL & PROPRIETARY MATERIAL
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CONFIDENTIAL & PROPRIETARY MATERIALAGENDA
Rackspace and the Cloud Our International Journey Why Expand Internationally Where to Start Business Models Localization Top Mistakes to Avoid
@rackspace / @SanAntonioAMA / @gerardodada
CONFIDENTIAL & PROPRIETARY MATERIALCONFIDENTIAL & PROPRIETARY MATERIAL
RACKSPACE® HOSTING
190,000+CUSTOMER
S84,000+ SERVERS
22,085+ VM≅70 PB STORED
4,500+ RACKERS
8 WORLDWIDE DATA CENTERS
GLOBAL FOOTPRIN
T120+ COUNTRIES
60%FORTUNE® 100
OFTHE
WE SERVE
Annualized Revenue
OVER $1BILLION $$$$
PORTFOLIO OF HOSTED SOLUTIONS
Dedicated - Cloud - Hybrid
A LEADERGartner Magic Quadrant for Managed Hosting
@rackspace / @SanAntonioAMA / @gerardodada
CONFIDENTIAL & PROPRIETARY MATERIAL
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CONFIDENTIAL & PROPRIETARY MATERIALWHAT IS THE CLOUD?
• Utility - Pay only for what you use
• Instant on
• Shared – investment is distributed
• Transparent
• No Upfront Investment - OpEx vs CapEx
Bottom Line: The cloud provides business agility and allows you to focus on your business
@rackspace / @SanAntonioAMA / @gerardodada
CONFIDENTIAL & PROPRIETARY MATERIAL
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CONFIDENTIAL & PROPRIETARY MATERIALRACKSPACE’S GLOBAL JOURNEY
GLOBAL FOOTPRIN
T120+ COUNTRIES
8 WORLDWIDE DATA CENTERS
2 SUPPORTCENTERS
The Rackspace strategy does not changeWe aim to be the service leader in every market we serve
@rackspace / @SanAntonioAMA / @gerardodada
CONFIDENTIAL & PROPRIETARY MATERIAL
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CONFIDENTIAL & PROPRIETARY MATERIALWHY EXPAND INTERNATIONALLY
• Have you exhausted the local market?• Good Reasons: growth, opportunity• Are you committed?
– Management Buy-in– Investment and resources– Patience
@rackspace / @SanAntonioAMA / @gerardodada
CONFIDENTIAL & PROPRIETARY MATERIAL
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CONFIDENTIAL & PROPRIETARY MATERIALWHERE TO START?
• Market Planning and Opportunity Analysis• Market Sizing - Addressable Opportunity• Legal Framework
– Taxes, Customs and regulations - NOM, ISO, UL , PII
• Demographics and business environment– Business may be centralized in one of a few cities– Propensity to buy in retail: touch & feel the products – Practicality of Ecommerce: credit card adoption, shipping
efficiency and trust
@rackspace / @SanAntonioAMA / @gerardodada
CONFIDENTIAL & PROPRIETARY MATERIAL
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CONFIDENTIAL & PROPRIETARY MATERIALBUSINESS MODELS
• Centralized versus localized model – Think globally but act locally – “Glocalization”: finding the balance between the two
• Selling internationally from one location• Indirect models
– Distributor, agent, reseller, etc.
• The core business strategy may not change (i.e RAX)
• Global web presence – How to do it right
@rackspace / @SanAntonioAMA / @gerardodada
CONFIDENTIAL & PROPRIETARY MATERIAL
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CONFIDENTIAL & PROPRIETARY MATERIALRACKSPACE.COM/ES
@rackspace / @SanAntonioAMA / @gerardodada
CONFIDENTIAL & PROPRIETARY MATERIAL
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CONFIDENTIAL & PROPRIETARY MATERIALLOCAL HOSTING IS BETTER (IS IT?)
@rackspace / @SanAntonioAMA / @gerardodada
CONFIDENTIAL & PROPRIETARY MATERIAL
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CONFIDENTIAL & PROPRIETARY MATERIALLOCALIZATION
• More than translation
• Religion• Language is different – UK vs US English
• Understanding history • Culture impact on logos and colors
Examples: Orkut in Brasil and Baidu in China
TIP: balance local and corporate resources
@rackspace / @SanAntonioAMA / @gerardodada
CONFIDENTIAL & PROPRIETARY MATERIAL
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CONFIDENTIAL & PROPRIETARY MATERIALNISSAN IN LATIN AMERICA
@rackspace / @SanAntonioAMA / @gerardodada
Nissan missed the fact that ‘moco’ means booger in Spanish…
CONFIDENTIAL & PROPRIETARY MATERIAL
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CONFIDENTIAL & PROPRIETARY MATERIALNIKE IN THE ARAB WORLD
@rackspace / @SanAntonioAMA / @gerardodada
Nike learned the hard way the fire design on their sneakers looks very similar to the Arabic word for Allah
CONFIDENTIAL & PROPRIETARY MATERIAL
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CONFIDENTIAL & PROPRIETARY MATERIALCULTURE
• History and attitudes between cultures– Good and bad (Malinchismo)
• The importance of titles and hierarchy – Business cards in Japan– Judging by looks and formality
• Importance of relationships and trust– In many countries business in done in person – Use of Alcohol and importance of social events
@rackspace / @SanAntonioAMA / @gerardodada
CONFIDENTIAL & PROPRIETARY MATERIAL
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CONFIDENTIAL & PROPRIETARY MATERIALCULTURE
@rackspace / @SanAntonioAMA / @gerardodada
CONFIDENTIAL & PROPRIETARY MATERIAL
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CONFIDENTIAL & PROPRIETARY MATERIALCOMMON MISTAKES TO AVOID
#1 – Insufficient commitment from management
#2 – No business or market plan & priorities
#3 – Underestimating emotions and relationships
#4 – Not understanding culture#5 – Going after too many
opportunities at once#6 – Expecting quick results
@rackspace / @SanAntonioAMA / @gerardodada
CONFIDENTIAL & PROPRIETARY MATERIAL
RACKSPACE® HOSTING | WWW.RACKSPACE.COM
THANK YOU
Gerardo A. Dada
@gerardodadawww.TheAdaptiveMarketer.com