1. 1 EIT 4.1 Thinking Different: Data Centers and IoT Chris Crosby, CEO, Compass Datacenters

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3. 3 Accelerated Evolution Rapid period of change Old rules no longer apply Structure Roles Decision making Data center role shift All-in-one versus matching need Avoid load group mis-match Scale matters

4. 4 Driving the Change Convergence of data types Large rich packets (video) Billions of small packets (IOT) Value of data Inverse relationship with latency End user requirements/expectations Data must be as close to end user as possible – generational shift

5. 5 Not Ready for Primetime, Part 1 The mega data center can’t do it all Geography Can’t get close enough to the customer Latency becomes a serious issue Applications processing capability We used to call billions of tiny packets DOS Now it’s business as usual “Intelligence” isn’t distributed Network Fat pipes are no longer enough Latency matters Hetero v. Homogeneous The big guys build for single apps Too expensive/inefficient for most enterprises

6. 6 Not Ready for Primetime, Part 2 Existing “network” structures Single data center 2-level (maybe) Centralized with DR with usually some synchronous requirements Centralized w/big pipe to regional Regulatory environments pushing for more Not optimized for “next generation” requirements Difficult to hold “localized” content Design didn’t anticipate volume Ability to process volume in real time Even if it isn’t your app set, it will affect the public network

7. 7 The Stratified Structure Hierarchical structure 3 levels Data center(s) at each level have specific function Based on division of labor Improve processing capability Distributed throughout the structure Better support for converged architecture Mission critical at all levels Why? $10M - $20M investment in just a few racks of gear Even the “cloud” has 10-20 racks that run all the commodity infrastructure

8. 8 Cost of Redundancy Versus Software Mission critical at the edge Cost to put into the software versus the cost to put it into the hardware Just like in your car, what you can afford today is different than 5 years ago

9. 9 Roles Centralized hubs Primary applications processing/storage points Applications are “non-divisible” Edge data centers Regional centers Support one or more micro DC’s Perform regional processing/cache function Ex: Determine what goes upstream Micro data centers Initial interaction point Repositories for high demand content Located to provide lowest level of latency 9

10. 10 The Stratified Structure Requirements Flexibility Must be able to adapt to shifts in demand Dynamic 80/20 rule Security At all levels Ability to identify attacks Dynamic re-routing of traffic Mission critical at all levels Maximize uptime Protect high cost equipment Converged equipment = more expensive Tier III/IV (hub) If size dictates, commodity compute storage at hub Tier III (edge, micro) Geography Data centers located where they are needed Especially at edge, micro levels Location decisions driven by customer locations Commodity Level Converged Level

11. 11 Planning for Stratified From tactical to strategic More than we need a new data center in Cleveland Need to think in 5-10 year periods Not 12-24 months Impact from outside, NOT just inside Security Network Considerations Applications End users Locations Requirements Expectations Network Technical and financial Management and control

12. 12 Summary Nature of data forcing the change Majority of existing data centers/networks not ready Stratified networks will become more prevalent 2 major considerations: Keep data closer to users Lowest possible latency—generational shift in workers Data center roles will become more specific Based on hierarchical location Planning will have to change Tactical to strategic

13. 13 3 Key Things You Have Learned During this Session 1.Do we need bigger data centers 2.Where is the edge 3.What will we see in the next 24 months

14. 14 Thank you Chris Crosby ccrosby@compassdatacenters.com