India Data Center Business Plan-FY 2016-17Umesh Jamwal

Independent Consultant August 24,2015

ujamwal3@gmail.com

Summary Data center growth segment Data center and emerging markets growth India data center market revenues-TAM Competitive landscape Compelling event and top initiatives for 2016-17 Action Plan - 2016-17 Data Centre Growth Plan 2015-17

Agenda

Key Market Drivers in the Region - Cloud Services(CaaS, IaaS, SaaS, PaaS)~$5B by FY 2017 - Social Media and Digital Entertainment Networks - Healthcare - BFSI - Retail,E-Commerce - Govt., E-Governance, Digital India - Smart Cities - BYOD, Enterprise Mobility, security - SMB - Communication Service Providers , ISPs, MSOs etc. - Managed Services~$5B by FY 2017 - Co-location/hosted services~$2B by FY 2017 - Utilities

Region(Territory)Summary

20%

15%

20%

20%

15% 10%

Banking and Financial ServicesManufacturingCommunication Service ProvidersRetail/E-CommerceSocial media/Enter-tainmentGovernment/E-Governance

Data Centre Growth Segment

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

5.80%

18.90%

9.60% 7.60%

37.80%

60.00%

FY 2015

Data Center and Emerging Markets Growth

INDIA - DATA Centre Market Revenue

Table 1: Indian IT Infrastructure Revenue By Technology (US $M)Source: Gartner, (September 2014)

Servers Storage Enterprise Networking

$0

$200

$400

$600

$800

$1,000

$1,200

$677

$409

$948 $724

$436

$970

$761

$460

$1,007

201520162017

Disruptive factors : Network purchase trends will force dramatic changes in the region

for the survival of DC players:

◦ Big Cloud Provider Dominance (CaaS, IaaS,SaaS,PaaS)(example – Amazon, VMware, Google, Azure, Baidu, NTT, Softbank have all set up their own DC in India)

◦ Dell-Low-latency, high density, multi-rate GbE switches from Dell/Force 10◦ Arista-Low footprint, high density gigE, 10G switches with ultra low-latency,

complete separation of networking state ,route and packet processing, extensible and customizable

◦ Data Center consolidation and virtualization ◦ Enterprise Mobility◦ New Applications- SAP/4 HANA, Big Data Analytics, Apache Hadoop/Cloudera◦ Emerging technologies-SMAC◦ Network Security, SDN/NFV Opendaylight, ONF standards (example – DDoS amp attacks, bots vulnerability , signaling storm ,cache

poisoning , including VLT, OpenFlow , Open Automation, Cloud Stack integration with OpenStack, Microsoft, VMware, Docker and others, offer half the power consumption and costs up to 50 percent less than the current generation of 1GbE switches. Hardware/software (container/appliance)solution for shorter sales cycle and more competitive pricing

Competitive Landscape

BFSI-Financial Inclusion - 40% Bank accounts vs 70% Mobile connections - Mobile banking for 1Billion mobile subscribers in India

Enterprise prefer 3rd party Data-centers- In-house solution is not viable due to real estate cost in tier-1 cities- Non-availability of bandwidth in tier-2 cities- Power back-up 24x7 , SLA Five Nines is N/A in tier-2 cities- Carbon emission and Greenfield environ friendly operations

Network Automation

BYOD Applications, collaboration tools for workplace productivity , enterprise mobility- Smartphone, Tablets etc.

Global availability, remote management , low latency , high density, flexible 1,10,25,40,50 and 100 GbE switches, NXT GEN multi-rate, Open Enabled architectures-ONIE

Cloud Services-Multi-tenancy subscription model

Regulatory Compliance, network security, bots ,malware vulnerability and protection

New Markets and business models

Compelling Event and Top initiatives - 2016-17

Action Plan for 2016-17•X86 Servers, Storage, Network Automation Engines , Ethernet switches/networking eqpt.

•Up-Sell, Cross-sell into existing accounts, Support renewals

•On-prem, real-time , networked cloud(pvt.+public) and hybrid data center solution

Applications Centric

Infra

•Enterprise•Government•BFSI•CSPs, MSOs•Utilities (Oil & gas, power)•Transportation•Smart Cities•Make in India

Market Segment

Q1 to Q4

Data Centre Growth plan($M)

x86 s

erver

Storag

e

Enter

prise

netw

orking

Cloud s

ervice

s DC

others

0102030405060708090

3525

65

10 10

40 45

75

20 17

45

65

85

30 25CY2015CY2016CY2017