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“Connect to the Cloud”Equinix - Desktone Partnership

Presented to Network Service Providers: 01.22.13

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MTDCs are the Epicenter of the Cloud

• IDC said it expects the total number of data centers to fall from 2.94 million in 2012 to 2.89 million in 2016. The drop will be due to internal server rooms and closets and a decline in mid-sized data centers. Total data center space will grow from 611.4 million square feet in 2012 to more than 700 million square feet in 2016.

IDC: U.S. Datacenter 2012–2016 Forecast

• Over 25% of Hardware spend will be placed in .2% of Data Centers; ~1,100 Large SP facilities larger than 20k sf.

Gartner, “Market Trends: New Revenue Opportunities for Telecom Carriers in 2015” Sept 14, 2011

Total Data Center Traffic GrowthCloud Data Center Traffic Growth

Cisco Global Cloud Index: Forecast and Methodology, 2011–2016

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Performance and Security

• 52% of enterprises perceive insufficient responsiveness over network as actual or potential barriers to acquiring public cloud services

• “By 2014, more than 80% of all successful cloud service providers to large enterprises will integrate network optimization into their core offering to improve the user experience and reduce their bandwidth costs.”

• “Network consulting and integration services related to cloud will grow the fastest, in terms of % of services budget, over next two years (17.4% growth).”

• “The cloud market of the future belongs to providers that can offer secure, integrated, high-performance application delivery to end-users at a reasonable cost.”

Top Network Challenges

Majority of Respondents cited a cloud-ready network as the biggest infrastructure element required for further cloud deployments

Cisco Global Cloud Networking Survey - 2012

Infrastructure Requirements

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The number of workloads per installed cloud server will increase from 4.2 in 2011 to

8.5 by 2016

The number of workloads per installed

traditional server will increase from 1.5 in 2011 to 2.0 by 2016

Is Your Network Positioned to Capitalize?

Source: Cisco Global Cloud Index: Forecast and Methodology, 2011-2016

PE

PE

PESecurity, caching, app acceleration

Public IP – low margin

PE

PE

Private IP – high margin

Wo

rklo

ad

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Connect to the Cloud

Identify High-Growth Locations

Cloud customers increased from 500 to 900 in 2 years, connectivity spending increased 54%

Go Global

Cloud networking spend for multi-regional deployments is 35X single region deployments

Participate Widely in the Market

Our top 5 Cloud markets generate 500+ network sales per market, and grew 41% over 2 years

Equinix Cross Connect analysis: January 2010-Q3 2012

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The Platform Equinix Advantage

Global Data Centers

Scalability • 31 markets, 5 continents

Interconnection

Connectivity Portfolio• Peering, transit, direct

connect and exchange

Business Ecosystems

Marketplace Customers & Supply Chain Partners• Cloud• Content & Digital Media• Financial• Enterprise• Mobility

GlobalData Centers90+ Data Centers

6.5M+ Square Feet99.999% Uptime Record

Interconnection900+ Networks

100,004+ Cross ConnectsDirect to 90% of Internet Routes

BusinessEcosystems

Equinix Marketplace™4,000+ Businesses

Revenue Opportunities

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Deploy More Cloud Connection OptionsIncrease sales of high margin, cloud-friendly services

• Direct Connect– Reduce costs for high-throughput, secure

connections.– Speed time to market for integrations

• Ethernet Exchange– Reduce time to market by quickly reaching the most

lit buildings– Meet customer security and availability requirements

• Optimized Internet Access– Improve end-user experience with better

performance and reduced latency– Increase efficiency with direct connections to

broadband and mobile networks

• Value Added Services– Security– Application acceleration– Compression & caching– Application monitoring– Network monitoring

• Indirect Partner Path to Market– Equinix Technology Partners, e.g. Desktone

Direct Connect

Ethernet Exchange

Optimized Internet Access

“If Amazon were to go out and partner with Equinix and customers could go solo in the same Equinix data center as Amazon and cross-connect directly into Amazon? Score.”

Lydia Leong, Gartner

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Where is the Cloud Today/Tomorrow?• “Internet of Things” “Internet of Everything”

– In 2011: 15+ billion things on the web, with 50 billion+ intermittent connections.– By 2020: 30+ billion connected things, with over 200 billion with intermittent connections. – By 2015: in more than 70% of enterprises, a single exec will oversee all Internet connected things.

Source: Telegeography: Colocation Database Executive Summary, 10/12ICD: U.S. Datacenter 2012-16 Forecast

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Our Global Ecosystem FootprintOver 4,000 customers with 100,004+ interconnections growing at ~15% per year

NA Total

AP Total

EU Total

Cloud and IT Services Content and Digital MediaEnterprisesNetwork Financial Services

25%

9%19%15%

32%

27%

10%25%

19%

18%

22%

16%18%22%

23%

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Proximity to Power Your Performance

Market ChallengeCritical/Real-time applications drive distributed architecture

Impact• Defend critical revenue

streams• Optimize reliability and

redundancy • Improve end-user

experience

REAL-TIME <50MS

PRIORITY <100MS

BEST EFFORT >100MS

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Desktone & Equinix PartnershipRevolutionizing Desktop as a Service

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Desktop as a Service is Growing Rapidly

Over the next 2 years, resellers on average expect 21-25% of corporate PCs in developed markets will be virtualized

Virtualization software rose on average by 25% in 2011

Cowan & Company - June 2012

More than half of US enterprises are migrating to virtual desktops or considering a migration in the next 12 months

The value of the global cloud-based VDI market will reach $11.2 billion in 2012

Visiongain Report - 2012

Cisco Global Cloud Networking Survey - 2012

When asked about their plans

to deploy Virtual desktops:

>50% US Enterprises are migrating

79%

25%

35%

20%

Current or future Plans

Already using VDI

Planning VDI in next year

Planning VDI in 1 – 3 years

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Why Service Providers Offer DaaS…

Huge Market Potential – Customer Demand, Mobility Initiatives (BYOD)

Huge Margin Product Offering

Additional Infrastructure and Services Drag• Desktop Management Services, Back-Up, Anti-virus, Application Hosting, Migration

Services, Storage Services

Increase “Sticky” Monthly Revenue

Differentiate yourself from the competition

Low Risk• Pilot environments can be quickly established• Easy try and buy options for customers

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Why Equinix?• Follow the Workloads

– EQIX is home to over 900+ Cloud, IT & SI service companies– Workloads at MTDC are growing at 3X rate of traditional data centers– Telecoms services consumed by Cloud companies grew 41% in the last 2 years to 11K+ services

• Deliver Optimal User Experience – DaaS requires less than 20ms latency for good user experience– Closer to end user = lower latency– Network choice & fewer hops– Optimal User Experience = Greater user adoption

• Leverage Existing Network Investments– Expansion in existing markets

• Improve Time to Market Options– Pilot– Partner Ecosystem

• Network Choice & Density– End users will be on multiple networks– Deliver lowest latency routes

“We need a data center platform capable of supporting explosive growth, and deployed into three markets on three continents in just three months.”

— Raj Dutt, CEO, Voxel

“The interest in cloud-hosted desktops is at an all-time high as service providers such as Dell, Navisite, Fujitsu, Quest Systems and others are turning to Desktone for flexible, affordable virtual desktops that can be delivered as a cloud service. By partnering with Equinix we’re able to provide coverage, performance and flexibility for service providers that don’t have their own datacenter capabilities, eliminating latency issues and dramatically improving desktop performance.”

— Peter McKay, CEO Desktone

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Management, devices, apps, OS• Desktop management• Access devices (end-point) – PC, laptop, tablet, etc.• Applications – Word, Excel, LOB apps, antivirus, etc.• Image creation, deployment and maintenance• Operating system licenses – Windows clients/server

Software• Desktone DaaS software • Server/data store • SW patching & administration • Support and maintenance

Hardware• Servers • Storage (RAID protected)• Networking infrastructure • Hardware Administration • Support and maintenance

SERVICES PROVIDED

Facilities • Data center • Racks • Power and cooling • Security

Support•7x24 L2+ and Enterprise ITIL support for infrastructure & desktop admin•DaaS platform — certified support personnel •Integrated incident, service request &

escalation management system

DaaS ComponentsDIY or Leverage Equinix Partners to Help

COMPONENTS PROVIDED

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Who is Desktone?

A software company delivering

a robust software platform for

service providers to offer

virtual desktops as a service

Built from day 1 for service

providers

Chosen by largest service

providers

8 patents on desktop as a

service

Named IDC “Major Player” in

desktop virtualization category

Headquarters: Boston, MA

Service Provider Samples

Customer Samples

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Desktone’s Service Provider Benefits

For your Business…

Virtual DesktopsBLUEprint

OpenSource vs. Microsoft

Self-service vs. manual setup

5+ Year track record

Cost Effective

Easy to Try & Buy

Experience

Desktone Patents

Cloud-Hosted Desktop Provisioned Virtual Computing Multi-tenant Data Center Design Virtual Computing Services Network Others: VPN-less remote access to hosted desktop, connection broker

“best fit”

…with our Technology

Multi-tenancy

Scalability

Security

1000’s of “tenants” (customers) on one shared platform

Them: separate silo per customer

Tested to 500k desktops; virtually unlimited

Them: max 10k desktops

Firewall between service providers and virtual desktop users

Them: no segregation

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For More Information

Request a meeting at ITW, Chicago, May 13-15http://info.equinix.com/ITW11Meetings_LandingPage.html

Equinix & Desktone Partner to Offer Service Providers

Desktop-as-a-Cloud Servicehttp://www.equinix.com/company/news-and-events/press-releases/equinix-and-desktone-partner-to-offer-service-providers-desktop-as-a-cloud-service

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