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The Datacenter is the Heartbeat of

Today’s IT Transformation

Ted Chamberlin, VP of Cloud Market Development, Coresite

November 14, 2013

The network is the computer…again

Early 90s The network-enabled

consolidation of IT

Mid 90s-2000s Virtualization is king

2010+ Interconnect and edge computing (SDN, too!)

What’s driving this new order?

“The data center sits at the core

of IT transformation”

Ian Brown Senior Analyst IT Services,

Ovum

Sources: Evercore Partners, Ovum, Cisco

As organizations progress in cloud maturity, the types of workloads they deploy in the cloud broaden

beyond the usual dev., test and customer facing applications

More than 50% of organizations that are cloud-focused are also running internal web apps, batch

processing and mobile apps in the cloud

Workloads: Application growth in the cloud

Source: RightScale State of Cloud Report 2013

The mobile cloud

84% of Total Mobile Data Traffic will be due to Cloud in 2017 Source: Cisco VNI Mobile Forecast 2013

Mobile data: the next wave

Mobile data traffic is

expected to grow to 11.2

exabytes per month by

2017, a 13-fold increase

over 2012

Over 67% of traffic growth

coming from Smartphones

Over 66% of traffic in 2017

derived from mobile video

Source: Cisco VNI Mobile Forecast 2013

Communities Drive Cloud Adoption

Source: 451 Group

Hybridized It

environments: becoming

the rule, not the

exception

Networked clouds:

catalyst of enterprise

cloud adoption

CSP opportunities:

optimized on-net cloud

services; performance-

oriented cloud bridging or

direct-connect solutions;

cloud brokerage models IAAS PaaS SaaS

The Ethernet enabled data center is the

“services bus” Data Center Networking 35% penetration of Ethernet switching in the datacenter by 20163

Outsourcing to Increase Internal data center spend and spending on companies' own data center

infrastructures will fall from 80% of spending to 65% of spending by 20161

Virtualization Dominates By 2016, 71% of server workloads will be virtualized, up from 46% in 20111

Increasing Cloud Workloads By 2016, nearly 2/3rds of all workloads will be processed in the cloud2

Over 20% of new enterprise workloads (including cloud) will end up in multi-tenant data centers by 2015, up from 10-12% today1

Sources: 1Forecast Analysis: Data Center, Worldwide, 2010-2016, May 2012: 2Cisco Global Cloud Index: 2011–2016; 3IDC: Cloud Services, Network Virtualization & SDN: What does this mean to the Carrier Ethernet Eco-system?

Implications for CoreSite What do the trends mean to the cloud and data center networking

community?

Campus expansions in key hubs across eight markets

Cloud-connected, network-rich data center campuses

Open Internet Exchange, Open Cloud Exchange and the CoreSite Mesh

Customer experience initiatives

Interconnection as the enabler

Public IP exchange

Dark fiber tethering

Private Ethernet exchange

Extensive lit building infrastructure

Best-of-breed network enablement

partners

IP, cloud, mobile and private

networking customer communities

The CoreSite Mesh

Cloud-connected data center

Internet and Peering Hybrid IT Management Private Networking

and Cloud Exchange Mobility Applications (IPX)

Open Internet Exchange Open Cloud Exchange Direct Connect

MPLS/Ethernet

Subsea cable /

core nodes

Advertising

Ethernet backhaul

Towers

Mobile applications

Network Nodes (WAN HUB – IP Peering,

Fiber, Ethernet & MPLS)

(<100kw)

Aggregation Nodes (Cloud HUB &

NW Core Nodes)

(100kw – 1M)

Compute Farms (Cheap power,

non-latency sensitive)

(>500kw – 3MW) Note: Some big data

applications have latency

performance implications

Undifferentiated Performance

Sensitive Applications

Coresite’s architecture is the secret sauce

Ecosystem

Solutions

Linking applications, infrastructure, facilities and networks

The CoreSite Mesh- What is it? CoreSite initiative to build interconnection and network density

Strategic accounts from four key ecosystems

Internet and Peering

Private Network WAN – MPLS, Ethernet and fiber

Mobility

Cloud and IT Services – Hybrid and multi-cloud architectures in the cloud

Provides network diversity, vendor choice, and increased competition for

customers

The Mesh is the magnet that brings other

organizations into the community

The cloud marketplace

• Significant worldwide growth in demand for public, private, and hybrid cloud services

– Growth continues to explode in all clouds and deployment types (32% last year alone)

• Increasing needs for reliable connectivity with reduced technical and administrative complexity

– Single sign-on portal and up/down scaling of resources are must haves

• Faster service activation cycles

• Competitive off-net costs

Source: GigaOM, April 2012

Industry Cloud Growth

A Growing Opportunity

AWS Direct Connect Access Use Case

CoreSite’s interconnection fabrics via site-to-site solution

• Enables customer connectivity to greater number of AWS locations

• Provides access to: – Open Cloud Exchange

– Any2 Internet Exchange

– Internet Exchange Partners • AMS-IX, DE-CIX, NYIIX

• Access to all carrier network providers natively located at CoreSite facilities

Customer

Any2 or

Cloud Exchange

Remote data center

deployment

Site-to-site

solution

CoreSite’s Solution Customer Commitment

CoreSite will provide necessary dark fiber or lit transport connection between

CoreSite Cloud Exchange switch and remote AWS switch

Customer will participate in the CoreSite interconnection fabric and establish a

series of logical connections to create end-to-end VLAN

Future of the Open Cloud Exchange

• Providers natively built-out in

CoreSite datacenters

• Ability to tether into specific

markets

• Customers access any provider

via Cloud Exchange

• Cloud providers can accelerate

services to Enterprise

customers

• Cloud enablement, SaaS and

PaaS are next targets

Custom

er

Open Cloud

Exchange

Secure, high-performance on-ramps

IaaS #2

PaaS #1

SaaS #1

Iaas #3

SI

CoreSite North American markets AWS data center networking use case

Seattle

Portland

Dallas

Atlanta

Toronto

Potential Future Market

Open Cloud Exchange Facility

AWS Direct Connect Facility

On-ramp to support growth of Clouds! Building blocks for growth

• Strategic goal: “Ethernet

on-ramp to the cloud”

• Foundation is our growth-

enabled data center campus

locations

• Coresite’s interconnection

products are layered on

– IX: Public Layer 3

– CX: Private Layer 2

– Direct: Base XC

On-boarding

Software Tools

Marketplace

of Services

IT Building

Blocks

Cloud Management System

Cloud Orchestration

Providers

Private Cloud Public Cloud

Cloud-enabled Data Center Campus

Internet

Exchange

(IP Peering)

Cloud

Exchange

(Ethernet)

AWS Direct

Connect

(XCs)

Partnerships with best-in-class cloud management applications

Partner deployment Success

• Enterprise storage-as-a-service provider that creates

NAS and SANs in the cloud.

• Specializes in highly available, low latency toleration

workloads- digital asset management, Asynchronous

replication, etc.

• Coresite’s LA campus contains large ecosystem of

studios, production houses, CDNs and content providers.

• CS and Zadara work jointly to provide solutions.

Partner deployment Success

• XO is an integrated communications providers who

delivers voice, data and cloud solutions.

• XO looked for a neutral partner to offer their enterprise

cloud, cloud vault and cloud drive offerings, while

allowing client to take advantage of using XO’s WAN

offering for private connections.

• They view the Open Cloud exchange as an innovative

business model to reach customers of both network and

cloud.

• All of you are erudite, IT/Cloud professionals so just 1 recommendation..

Recommendations

• Don’t build your network around your cloud,

build your clouds around your network.

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