June 14th 2017 San Jose CA

1. WAN SUMMIT, San Jose
14 June 2017
BILL BARNEY
Chief Executive Officer
Reliance Communications & Global Cloud Xchange
HOW SMART
NETWORKS ARE
CHANGING THE
CORPORATE WAN

2.  Introduction
 IT and Networks have returned to the priority list of CEOs and CIOs globally
 Finance and Tech again rule the world and they use networks at their core
• The Fat and Skinny pipe dilemma
 Universal service finally showed up enabling new last mile tech to work
 Apps have moved from customization for the enterprise to
customization for the user
 Cloud can give competitors more “horse power” quickly and dangerously
 What do smart networks look like and how can they impact the enterprise?
 Every enterprise will build or buy and orchestration layer
 Like a search engine this layer will be dynamically pushed to the edge
 Access will be traditional Ethernet and MPLS at the high speeds and new tech
including SDN WAN and more
 Where does this leave the enterprise?
Agenda

3. IT is back as
a priority for
CIOs …

4. In the top 20 largest companies – IT is on average more than 20% of
their annual expenses and in some cases as much as 50%!!!
Rank Region
Industry
Segment
5/31/2012
Value ($B)
2011
Revenue ($B)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Apple
Exxon Mobil
PetroChina
Microsoft
ICBC
Wal-Mart
IBM
China Mobile
General Electric
AT&T
Royal Dutch Shell
Berkshire Hathaway
Chevron
Google / Alphabet
Nestlé
China Construction
Bank
Johnson & Johnson
Procter & Gamble
Wells Fargo
BHP Billiton
USA
USA
China
USA
China
USA
USA
China
USA
USA
Netherlands
USA
USA
USA
Switzerland
China
USA
USA
USA
Australia
Tech – Hardware
Financial Services
Energy
Tech – Software
Financial Services
Retail
Tech – Hardware
Telecom
Industrial
Telecom
Energy
Financial Services
Energy
Tech – Internet
Food / Beverages
Financial Services
Healthcare
Consumer Goods
Financial Services
Metals / Mining
$540
368
267
245
227
224
223
203
202
200
197
196
194
189
180
173
171
171
170
170
$128
434
318
72
70
447
107
84
143
127
470
141
236
38
90
58
65
84
73
75
Company
Source: CapIQ. Market value data as of 5/26/17
Note: For public companies, colors denote current market value relative to Y/Y market value. Green = higher, red = lower.
Rank Region
Industry
Segment
Current Market
Value ($B)
2016
Revenue ($B)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Apple
Google / Alphabet
Microsoft
Amazon
Facebook
Berkshire Hathaway
Exxon Mobil
Johnson & Johnson
Tencent
Alibaba
JP Morgan Chase
ICBC
Nestlé
Wells Fargo
Samsung Electronics
General Electric
Wal-Mart
AT&T
Roche
Bank of America
TOTAL
USA
USA
USA
USA
USA
USA
USA
USA
China
China
USA
China
Switzerland
USA
Korea
USA
USA
USA
Switzerland
USA
Tech – Hardware
Tech – Internet
Tech – Software
Tech – Internet
Tech – Internet
Financial Services
Energy
Healthcare
Tech – Internet
Tech – Internet
Financial Services
Financial Services
Food / Beverages
Financial Services
Tech – Hardware
Industrial
Retail
Telecom
Healthcare
Financial Services
$801
680
540
476
441
409
346
342
335
314
303
264
263
262
259
238
237
234
233
231
$7,207
$218
90
86
136
28
215
198
72
22
21
90
85
88
85
168
120
486
164
51
80
Company

5. Cloud is no longer just a way to create cheap enterprise computing – it is
revolutionizing how people use data!
SoftwareSecurityInfrastructure
Evolution
Breaking Apart
Data Bottleneck
Revolution
Data Integrated
into Everything
FIRST WAVE
Constrained Data...
Monolithic Systems, Expensive Storage,
Data for Targeted Use Cases
BUSINESS
INTELLIGENCE (BI)
Business Objects,
Cognos, Micro Strategy
DATA INTEGRATION
Informatica
DATA INTEGRITY
Microsoft, Oracle
Age of Oracle, Sybase
SECOND WAVE
Data Explosion / Chaos...
Decentralized Systems,
Cheap Storage, Big Data Everywhere
VISUALIZATION
PREP / WRANGLING
INFRASTRUCTURE-
CENTRIC SECURITY &
MANAGEMENT
Palo Alto Networks, FireEye
Age of Big Data
Hadoop, Teradata,
Netezza, NetApp, EMC,
Greenplum
CLOUD BI
ETL
CACHING
THIRD WAVE
Mass Data Intelligence...
Pervasive Systems, Big/Fast Storage,
Data Instruments the Business
DEPARTMENTAL
APPLICATIONS
Gainsight, Datadog,
InsideSales
ORGANIZATION-WIDE
ANALYTICS PLATFORMS
Looker, Domo, Anaplan
DATA-CENTRIC SECURITY &
MANAGEMENT
Ionic Security, Tanium
Age of Big/Fast
Redshift, BigQuery,
Spark, Presto
Source: Looker, Ionic Security, KPCB 2016

6. You used to only worry about the humans – now thanks to cheap networks the
machines can all join...
Source: Forbes “2017 Internet of Things Facts”
This year, we will have 4.9 billion
connected things....some predict that
by 2020, the number of Internet-
connected things will reach or even
exceed 50 billion.
In 2015, over 1.4 billion smart phones
will be shipped and by 2020 we will
have a staggering 6.1 billion
smartphone users.
By 2020, a quarter of a billion
vehicles will be connected to the
Internet, giving us completely new
possibilities for in-vehicle services
and automated driving.
Today, the market for Radio Frequency
Identification (RFID) tags, used for
transmitting data to identify and track
objects, is worth $11.1 billion. This is
predicted to rise to $21.9 billion in 2020.
Machine-to-machine (M2M)
connections will grow from 5 billion at
the beginning of this year to 27 billion
by 2024, with China taking a 21%
share and the U.S. 20%.
CISCO believes the IoT could
generate $4.6 trillion over the next ten
years for the public sector, and $14.4
trillion for the private sector.

7. Digital Innovation is pushing Wide Area Network boundaries globally
IT on Cloud
Guest
WiFi
HD Video
Online
Training
Social
Media
Mobile Apps
80%
30%
20-50%
Of employee and
customers are served
in branch offices*
Increase in Enterprise
bandwidth per year through
2018***
Of advanced threats will
target branch offices by 2016
(up from 5%)***
73%
Growth in mobile
devices from 2014-2018**
MORE
USERS
MORE
APPS
MORE
THREATS
MORE
DEVICES
Branch
Digital
Displays
Omni-channel
Apps
OS
Updates
* Tech Target, Branch Office Growth Demands New Devices., 2014 ** Cisco Mobility Landscape Survey, 2014
*** Gartner, Forecast Analysis: Worldwide Enterprise Network Services, Q2 2014 Update
**** Gartner: “Bring Branch Office Network Security Up to the Enterprise Standard, Jeremy D’Hoinne, 26 April. 2013.

8. These challenges are compounded by the fact that these new technologies are needed in the
emerging markets where there is very limited infrastructure…
227
91
14
20
26
20
5
3
2
9
196
324 369
92
6
8
47 69 14
4
318
151
113
219
5
21
73
77
54
4
5
7
96
66
2
3
2
2
8
19
36
14
24 2
30
34
41
10
15
53
53
25
17 11 16
33
30 19
3
4
6
5
5
The high concentration of Data Centers in USA and Europe are far from most users
in the Emerging Markets. Regulatory compliance, user experience, reliability
and cost factors will mandate significant movement of data closer to users.

9. And yet every CEO wants to find a way to operate in the emerging markets…
The Emerging Markets will dominate GDP and Internet growth in the next decade
22%
29%13%
11%
7%
9%
9%
15%
13%
1%36%
26%
0%
9%
Europe N. America Japan China
Emerging Asia (ex-China) Lat Am Middle East, Africa, Other
1985
$19T = World GDP
+4% Y/Y
Real GDP Growth Contribution by Region, 1985 / 2015
(Based on Purchasing Power Parity)
N. America +
Europe + Japan =
63% of Total
China +
Emerging Asia =
63% of Total
N. America +
Europe + Japan =
29% of Total
2015
$114T = World GDP
+3% Y/Y
China +
Emerging Asia =
18% of Total
India Internet Users, 2008 – 2016
GlobalInternetUsers(MM)
Y/Y%Growth
India Internet Users Y/Y Growth (%)
Source: IMF WEO,4/16. GDP growth based on constant prices (real GDP growth). PPP = Purchasing Power Parity exchange rate, national currency per international dollar. GDP
PPP = GDP adjusted by PPP rate. Emerging Asia includes Bangladesh, Cambodia, India, Indonesia, Lao, Malaysia, Mongolia, Myanmar, Nepal, Philippines, Sri Lanka, Thailand,
Vietnam and others and excludes China. GDP growth contribution based on annual snapshots stated above and not necessarily reflective of secular trends.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
50
100
150
200
250
300
350
400
450
500
2008 2009 2010 2011 2012 2013 2014 2015 2016

10.  IT resources have become more centralized while users are more distributed
 Private / public / hybrid Clouds are becoming commonplace
 Enterprise WANs consist of disparate network technologies and services
 Dedicated point-to-point circuits, performance MPLS, public Internet, Cloud, etc…
 Cloud computing has enabled the introduction of a new dynamic array of applications
 Increasing amount of “real-time” traffic
 Enterprise WANs are becoming ever-more complex with a disparate range of specialist
appliances and equipment from a variety of vendors
 Router, Firewall, Anti Virus, Storage,
IP Voice PBX, Proxy...
The CIO’s job has become much more complex…

11. ... and why
CEOs are worried...

12. CEOs in traditional industries are easy prey for the new model busters…
Marketplaces
Gross Merchandise Value (GMV), Time Shifted
Alibaba vs. eBay vs. Airbnb vs. Uber
Commerce
Gross Merchandise Value (GMV), Time Shifted
Amazon.com vs. JD.com
Enterprise
Est. Quarterly Revenue ($MM), Time Shifted
Salesforce vs. Slack
0
2
4
6
8
10
12
14
16
18
20
1 2 3 4 5 6 7 8
Alibaba/Taobao eBay
Airbnb Uber
0
20
40
60
80
100
120
140
160
180
200
1 3 5 7 9 11 13 15 17 19
JD.com Amazon.com
1 2 3 4 5 6 7 8 9 10 11 12 13
Salesforce Slack
Marketplaces Source: Company data, Morgan Stanley Research. eBay founded in 1995. Amazon founded in 1995. Alibaba.com founded in 1999 as B2B portal connecting Chinese manufacturers and
overseas buyers. Uber launched 2009, gave first ride in 2010. Airbnb founded in 2008..
Commerce Source: Publicly available company data, Morgan Stanley Research. JD.com launched B2C shipments in 2004, founded 1998 as an online magneto-optical store.
Amazon founded in 1995.
Enterprise Source: Slack. Graph starting point based on similar est. revenue figures. Salesforce quarterly revenue approximated from publicly disclosed annual GAAP revenues.
GMV($B)
Years Since Launch (T+)
GMV($B)
Years Since Launch (T+)
Revenue($MM)

13. CosttoSequence(perGenome)
$10M
2007: Digital Technology Leads To Cost Reduction
Illumina (Solexa) Launches the Genome Analyzer
Time to sequence a genome: 10 Months
$100M
$100K
$1M
$1K
$10K
Moore’s Law
2015: Step Function Reduction In Cost
Illumina Launches the X10 Time to sequence
a genome: 27 hours
Even drug companies have to realize the power of the Cloud and its
competitive advantage…
Introduction of Digital Technology Accelerates Cost Reduction Faster Than Moore’s Law
Source: National Institute of Health, National Human Genome Research Institute (7/17), Biology Reference, Illumina
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

14. 14
What do Smart Networks
Look Like?

15. We used to build networks like this…..
A Multitude of devices adds layers of complexity
Network functions such as VPN, firewall and WAN Optimisation are
provided by dedicated appliances / equipment at each site
Network connectivity is fixed
All traffic flows over the SLA-backed MPLS network unless there is a fault
regardless of criticality. Class of Service is used to prioritise traffic over MPLS
Internet is used mainly as a back-up technology or for “low criticality” sites
Fixed routing decisions are made by on on-premise devices
Applications are hosted in on-premise data centers
The multitude of appliances in branch is replicated by “control” devices
in the Data Center
Internet traffic “trombones” across the network to centralised Internet
gateways
The enterprise is anything but agile
Application performance visibility is limited
Connecting new locations, upgrading locations,
adding new services can take weeks or even months
with new circuits and equipment required
Branch site Data Center
Branch site
Internet
MPLS

16. The gap between network demands and available budget is becoming bigger
Source : Cisco Visual Networking Index, June 2014
Increase 3X in the next 5 years
GLOBAL IP TRAFFIC GROWTH:
Source : Nemertes Research, August 2014
60%WAN budgets will be flat or declining
LIMITED WAN BUDGETS:
Exhibit : The Widening Network Complexity Gap
Building Blocks of IT
End-pointsonthe
Network
VoIP/Video
Virtualization
Cloud Computing
Mobility
Bandwidth
On Demand
IoT
IT Budgets
Network
Complexity Gap
Source: ZK Research, 2014

17. Enterprise Networks today are looking to…
Hours Minutes
Provide LAN-like application performance
regardless of where applications are hosted from
Provide Application Visibility and Acceleration over
the Network and into the Cloud
1x 2x +
Allow for “traffic bonding” and make better use of available bandwidth
through “dynamic path selection” over multiple WAN connections
Deliver More Bandwidth for Lower Cost
Multiple Security Device
Unified
Security
Position
Deliver consistent security across the Enterprise
Ensure Security Over Any Connection
Multitude of appliances
Single
System
Provide IT functions as a virtualized subscription
based ‘Pay as you Go’ service
Orchestrate IT
SD WAN (Software-Defined WAN) does precisely this

18. STOC
FOC
FOC
FOC
Understanding the FOC
 High Power density data centers with strong fiber connectivity and internet
gravity
 Located in city and tech centers
 80% to 90% of cash generated from services and “spot services”
 High customer engagement with average customer growing at double digits
or more per year
 Expensive build at $12K to $14K a KVA
 Tech like investment vehicles with hyper growth and high velocity of
innovation
Understanding the STOC
 Lower power density with build costs ranging from $6K to $9K
a KVA
 Longer term stickier customers and revenue streams
 Located in low rent optimal cooling locations
 80% to 90% of cash generated from storage and “industrial
computing”
 Real estate like investment profile with REIT or Trust like
capital structures
Data Centers will be at the center of strategic operations
These will be two
specific kinds of centers:

19. Networks will get wider and thicker!
2017 2018 20202019
SD WAN and Wireless Tails
 FOCs and STOCS Emerging and
the stratification of wide and thick
networks becoming profound
 Increase capillarity to cloud
focused data centers
 Re-engineering of fiber backhauls
to high density tech sites
 Rapid growth spectrum based
Cloud Networks between
FOCs and STOCs
 Thin CDN like thin networks to
the edge
Third party tails

20. Orchestration ecosystems in your data centers will enable success
CRM, ERP, etc.
Already Integrated with 100+
Networks
Low cost, Pay as you go /device
Launch in weeks
Devices Networks IoT Services Platform IoT Apps / IT
deeplyintegrated
Automate
The Service Lifecycle
Orchestration
capability

21. ABILITYTOEXECUTE
ASSETS TO EXECUTE
CHALLENGERS
SINGLE OR LIMITED ASSETS ALL ASSET CLASSES AND GEOGRAPHIC REACH
LEADERS
ORACLE
AMAZON
ALIBABA
GLOBAL FIBER OPERATORS
MICROSOFT
GLOBAL DATA CENTER OPERATORS
US FIBER WHOLESALERS
EUROPENA FIBER WHOLESALERS
No one has emerged as the player in the new Software based networked world yet…

22. 22
Final Thoughts