Modular Data Centers: Opportunities and Trends Impacting the Market

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Presenters

Expertise:

Over 5 years of Energy & Environment research and

consulting experience with particular focus on Data

Centers with specific focus on Power and Cooling.

• Market Assessment

• Geographic Expansion

• Technology and Competitive Strategies

• Market Due Diligence

• Partner and Mergers & Acquisition Identification

Gautham Gnanajothi, Senior

Industry Analyst & Team Leader

Energy & Environment,

Frost & Sullivan

Follow me on LinkedIn

https://www.linkedin.com/pub/gautham-gnanajothi/10/252/b85

Ted Reddicliffe, Chairman

Cannon Technologies Group

Follow me on LinkedIn

https://www.linkedin.com/in/tedreddicliffe

Professional Summary:

Ted Reddicliffe is the founder of the Cannon technologies Group

and has established a number of successful companies in divers

fields including, Electronics, Thick Film hybrid circuits, Defence

Sector contracting and more. Ted is a Chartered engineer and

has held chief executive positions in quoted and private sector

organisations in the UK, Europe and North America.

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Focus Points

Agenda

• Global Data Center Market Overview—Data Center of Tomorrow

• Overview

• Key Success Factors

• Market Restraints

• Customer Perspective

• Cooling & DCIM

• Key Growth Drivers

• Data Center Investment Trends

• Regional Investment Highlights – Snap Shot

• Market Outlook

• Segment Attractiveness – End User Verticals, Application Types

• Edge Computing

• Disaster Recovery

• Regional Attractiveness

• Market Adoption

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Global Data Center Market Overview—Data Center of Tomorrow

Trends Driving the Future of Data Centers

Hybrid Model: Cloud + Traditional.

Commoditised Data Center Services

Modular Design

Increased Rack Power Density

Horizon

Short Term Medium Term Long Term

HighImpact: Medium Low

Dominance of Emerging Economies

Source: Frost & Sullivan

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Global Data Center Market Overview—Data Center of Tomorrow (Continued)

Trends Driving the Future of Data Centres

Horizon

Short Term Medium Term Long Term

Key: DCIM—Data Centre Infrastructure Management

Alternative Cooling Technologies

Operating Temperature

Incremental Data Center Consolidation

Next-Gen DCIM

Alternative Power Sources

HighImpact: Medium LowSource: Frost & Sullivan

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Data Center Investment Trends

Source: DCD and Frost & Sullivan

0.0

2.0

4.0

6.0

8.0

10.0

0.0

40.0

80.0

120.0

160.0

200.0

2012 2013 2014 2015 E 2016 E

Rev($ B) 140.0 151.3 162.2 174.7 188.9

GR (%) 8.1 7.2 7.7 8.2

Inv

estm

en

t ($

Billio

n)

Gro

wth

Rate

(%

)

Total Data Center Market, Investment Forecast, Global, 2011 – 2015

0.0

40.0

80.0

120.0

160.0

2011 2012 2013 20142015

E

Outsourcing 28.0 32.8 37.5 43.3 50.5

IT Optimization 46.6 49.2 51.5 53.5 55.5

Facility Infrastructure 65.4 69.3 73.0 76.7 80.4

Inv

estm

en

t ($

B)

Year Facility Infrastructure IT Optimization Outsourcing

2014 5.1% 3.9% 15.5%

2015 E 4.8% 3.7% 16.6%

Data Center Market, Investment Forecast by Type, Global, 2011 – 2015

Data Center Market, Investment Growth Rate Forecast, by Investment Type, Global, 2014 and 2015

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Regional Investment Highlights – Snap Shot

Source: DCD & Frost & Sullivan Analysis

NA• Investment in in

2014: $47.4 billion, at a GR of 6.0%, accounting for 29.2% of the global investment

Estimated investment

in 2015: $50.3 billion,

GR = 6.2%

APAC • Investment in in



in 2015: $42.0 billion,

GR = 9.5%

Europe• Investment in in



in 2015: $53.5 billion,

GR = 5.5%

LATAM• Investment in in



in 2015: $23.3 billion,

GR = 13.1%

MEA• Investment in in



in 2015: $5.6 billion,

GR = 7.5%

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Modular Data Center – Market Outlook

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000

2015

2020

Ye

ar

*IT Telecom Banking & Financial Government Others

Modular Data Center Market: Revenue Split by Vertical Segment, Global, 2015–2020

Note: All figures are rounded. The base year is 2015. Source: Frost & Sullivan

$3.9 B

Revenue ($ )Million

$12.6 B

CAGR = 26.6%

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Segment Attractiveness – Edge Computing


0.0

10.0

20.0

30.0

40.0

0.0

4.0

8.0

12.0

16.0

2013 2014 2015 2016 2017 2018 2019 2020

Rev ($ B) 3.2 3.4 3.9 4.7 5.9 7.8 10.7 15.1

GR (%) 6.9 14.6 20.1 26.0 31.5 37.1 41.2

Re

ve

nu

e (

$ B

illi

on

)

MDEV G

Time

Mark

et

Valu

e

DEC

Asia & ME

C&E. Europe

North America

W. Europe

Africa & LATAM

Big Data Analytics Market, Revenues Forecast, Global, 2013 – 2020

Big Data Analytics Market Life Cycle Stage, By Region, 2014

• Bringing the data close to the end-user

• Executes real-time applications requiring highspeed response

• Local confinement of regional data processing

Edge Computing – Extension ofCloud Computing

Retail IndustrialAutomotive -Connected

Cars

Smart Grids Smart CitiesHealth Care–Connected

Health

Applications

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Segment Attractiveness – Disaster Recovery


0.0

10.0

20.0

30.0

40.0

50.0

60.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

2013 2014 2015 2016 2017 2018 2019

Rev ($ B) 5.1 7.7 11.3 16.1 22.2 29.7 38.4

GR (%) 49.4 46.8 42.9 38.2 33.9 29.2

Rev

en

ue (

$ B

illio

n)

Infrastructure as a Service Market: Total Revenue Forecast, U.S., 2012–2019

• Eliminate single points of failure – replicate or host physical or virtual servers by a third party

• Disaster Recovery as a Service (DRaaS) is increasingly gaining popularity – Subset of Cloud IaaS

• Disaster recovery (DR) options in the cloud have continued to evolve in the last 12 months, with more leading enterprise-class IaaS providers developing or procuring assets to bring cloud-based environment recovery to the market

• High demand for DRaaS is a key factor fuelling the growth of IaaS market – Global IaaS market is expected to grow at a CAGR of 25% over the next five years

• DRaaS market is expected to grow at a CAGR of 40% between 2015 and 2020.

Disaster Recovery – extension of Business Continuity

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Market Adoption

Source: Uptime Institute & Frost & Sullivan

Modular Data Center: End User Concerns Limiting Adoption, 2014

Cost

Security & Reliability

Scale is too Small

Flexibility

Measurement

Low High

Low High

Low High

Low High

Low High

1 52 3 4

1 52 3 4

1 52 3 4

1 52 3 4

1 52 3 4

Lack of Product Knowledge

Compatibility with Existing Infrastructure

Low High

1 52 3 4

• The Uptime Institute’s recent survey indicates

that majority of the market is still skeptical

when it comes to adoption.

• The containerized solutions are slowly loosing

their hold over the market to prefab modular

solutions.

Confident , 18%

Not at all Confident ,

21%Some what Confident,

61%

End User Confidence in Modular Data Center Technology, 2014

n=1,000

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