Data Centre Infrastructure & Services

Agenda Data Centre – Need Market Size Drivers of Growth Infrastructure at Data Centre Services from Data Centre Business Models Available Challenges for the Industry & Way Ahead Case Study

What is Data Center Data Centers are specialized facilities that provides disaster resilient physical infrastructure, uninterrupted power with effective cooling and precision controlled environment with highest service levels to ensure high availability of customer mission critical environment.

Need of Data Center Availability Security – 75% of CIO’s in a recent survey said that slowdown has increased threats to IS Security Compliance 93% of CIO’s said that Governance, Risk & Compliance Program is important to counter slowdown on IS Security Increased Size of Data Storage Requirement Shortage of Skilled Manpower Reduced Cost of Operation – One of the Top 3 Management Priorities for Year 2010

Overall Data Center Market CAGR 30.93% With multiple players making large investments, significant increase in data center capacity is expected These investments are on account of increasing demand, primarily domestic demand for data center services 20% 80% International market Domestic market Source: Datamonitor Source: Gartner Data centers in the country get a significant part of their revenue from domestic customers

Targeted Segment - Government Data center services demand from government segment is expected to grow at 33% over the next four years and reach INR 286 Crore by 2012 Government and PSU sector IT spending was estimated to be of the order of INR 5,700-5,800 crores in 2007 with a CAGR of 15% for the period Government initiatives impacting IT in the public sector: – National E-Government Plan (NEGP) – Government \ PSU initiative to automate various functions and computerization of manual records Lack of skilled manpower within PSU’s and the government to handle IT operations Cost pressures along with better customer service demand Trend and key imperatives Source: Datamonitor & IDC

Demand drivers for growth in India Macroeconomic environment Indian GDP over the past few years has grown at a rate of 8% and is expected to grow at approximately 6% per year for the next few years – one of the most attractive GDP growth in the world. Increased demand for data center services The domestic demand for data center services is expected to grow with a CAGR of 22% to USD 1.8 billion by Availability of low cost bandwidth Bandwidth prices have been decreasing by over 20% per year over the past few years. IDC cost structures are coming closer to US counterparts which is making Indian data centers competitive. Other enablers Tax incentives by the Indian government to software parks, liberalization of FDI policy, increasing domestic IT consumption and increasing adoption of IT outsourcing by Indian companies and cost reduction pressures are the other enablers. Focused Government Initiatives Availability of Low Cost Bandwidth Increasing Domestic Data center Demand Other Enablers Macroeconomic Environment Attractive Market for IDC Services

Market Drivers for Outsourced DC Services High capital expenditure Reliability requirements Bundled services Quality space shortage Cost pressure due to recession Technology obsolescence Market Drivers for Third Party IDC High capital expenditure High capital expenditure for data centers makes it unviable for many companies to have captive IDC Reliability requirements Maintaining high reliability and availability is difficult for companies since IT networks is not their core competency Bundled services Outsourced data center service providers have the capability to provide full range of services including managed services Shortage of quality space Quality space is scarce especially in tier-1 cities. Third party providers are better positioned due to scale Cost pressures due to recession In these times of economic downturn, organizations are under intense pressure to reduce operating costs which acts as a driver for outsourcing Technology obsolescence Companies are concerned that their IT investments might be rendered useless with time

Customer’s Expectation from DC ► High strength reinforced concrete buildings to withstand earthquakes, floods ► Safeguards against electromagnetic and radio frequency radiations Infrastructure stability ► Facilities conform to ISO/IEC security specifications ► Perimeter security with a 24-hour security control system and auto alarms ► Manual screening at all entry and exit points ► CCTV camera monitoring with minimum 30-day archival record system ► Three levels of electronic access security - Access card, Numeric code and Biometric Scanning Site access and security ► Combustion protection plan with elimination of Hazardous Material ► Compliance with National Fire Protection Association (NFPA) 2001 standards ► Cross-zoned, multi-sensor detectors in overhead, below floor and within rack configuration ► High Speed Smoke Detection (HSSD) and LASER based very early aspiration- type fire detection system in server halls (VESDA) ► Fire Suppression with effective, eco-friendly, zero residue FM200 gas ► Individual rack level circuit breaker to localize short circuits ► Compartmentalization of power and data cables Fire safety ► Major players have their POP in the data center Carrier Neutrality

Customer’s Expectation from DC Highly stable, high voltage Tier I grids with dual feeds Dual distribution system with standby 2(N+1) equipment across the entire power supply chain, ensuring power uptimes of % 100% redundant UPS with battery backup 24 hour back-up diesel generators with full load capacity Customized power implementation with single-phase, three-phase power options Option of AC/DC power supply Capable of handling very high power density equipment High availability Power ► Precision-controlled humidity, ventilation and air-conditioning (HVAC), ensuring optimum performance and avoid equipment failure ► Temperature variance: 20° C +/-2° C, Humidity variance: 50%RH +/-5% ► Raised flooring for server halls to access data points and to channel airflow ► Airflow management grille work, capable of removing the possible ‘hot-spot’ ► Dust filtration up to 5 microns. Chemical filtration to neutralize dangerous environmental gases ► Central Building Management System (SCADA) ► Capable of handling high localized cooling requirements for modern day power hungry equipment Precision controlled environment ► Skilled manpower across the platform both in hardware and software to deliver right and timely solution to the customer Support

Infrastructure Classified -Tiers – Uptime Institute Tier-I Tier-II Basic Site Infrastructure Redundant Capacity Components ► Non-Redundant capacity components and single non-redundant distribution paths serving the site’s computer equipment. ► Component or Path failure will impact computer systems ► Susceptible to disruption from both planned and unplanned activities. ► Redundant capacity components and single non-redundant distribution paths. ► Component or distribution path failure may impact computer systems. ► Susceptible to disruption from both planned and unplanned activities. ► Redundant UPS and generators required. Annual Downtime & Site Availability – 28.8Hours & % Annual Downtime & Site Availability – 22.0Hours & %

Tier-III Tier-IV Concurrently Maintainable Fault Tolerant ► Redundant capacity components and multiple redundant distribution paths. ► Usually one path active other passive. ► All capacity component and element of distribution path can be removed on a planned basis without disruption. ► Susceptible to disruption from unplanned activities. ► Risk of disruption elevated during maintenance activities. ► Operation errors or spontaneous failures can cause disruption ► Redundant capacity components and multiple active redundant distribution paths. ► Single worst case failure will not cause interruption. ► Capacity component and element of distribution path can be removed on a planned basis without disruption. ► Complementary systems and distribution paths must be compartmentalized ► Not susceptible disruption from single unplanned worst-case event. ► Site is not susceptible to disruption from any planned work activity. ► Risk of disruption elevated during maintenance activities. Annual Downtime & Site Availability – 1.6Hours & 99.98% Annual Downtime & Site Availability – 0.4Hours & % Infrastructure Classified -Tiers – Uptime Institute

Value Chain for Data Center Services Co-location services Managed services VAS Hosting services Value added, High margin, complex offering, higher skills Commodity, low margin, simple offering, lower skills Basic Business (about 85% of data center revenues) Earn additional income (about 10% of data center revenues) Value adds (about 5% of data center revenues)

Service portfolio of DC Data center services Hosting servicesManaged services Co-location Dedicated hosting Managed security Server mgmt Network mgmt DR & Managed storage Backup & restore DDoS Defense Application specific web hosting like blog, social n/w, games Basic server monitoring Managed OS Virtual private servers Shared hosting Managed DB Managed load balancing Archive & compliance Storage solutions SaaS (ERP, CRM, Proj. mgmt, star office Network device mgmt services Managed firewall Managed Intrusion detection Vulnerability assessment Patch test & application Server hardening Penetration testing AV streaming services Unified communicatio ns Managed video surveillance Hosted call center Value added services Hosted RIM services These services are NOT typical data center services These are typical data center services

Flexible Service Model Available Now Coming Soon Space, Power, B/W Hardware OS & DB Managed Services SP Provided Customer Provided SP Provided Customer Provided SP Provided Optional - SP ProvidedSP Provided Professional Services Optional – SP ProvidedSP Provided Managed Colocation Services Monitoring & Management Services Managed Dedicated Hosting Services Managed Utility Services Customer wants to outsource their IT environment for exclusive usage Customer wants maximum performance, scale & value Customer wants to leverage external expertise Customer wants to control operations

Key challenges for Data Centers in India Challenges for Indian data centers Environmental concerns Power and bandwidth charges Availability of quality real estate Availability of quality manpower Availability of power Power infrastructure in India is extremely poor compared to some of the leading countries. Availability and quality of power are huge concerns for Indian data centers Power charges Blended power charges (from sub station and DG sets) are much higher as compared to other countries Bandwidth charges Bandwidth charges in India are still on the higher side as compared to other countries Availability of quality real estate There is a huge shortage of seismically stable real estate that has good power infrastructure, proximity to customers especially in tier 1 cities Availability of quality manpower Hiring and retaining quality manpower in India is increasingly becoming a big challenge Environmental concerns Though India does not have target to cut emissions, it is at the center of a huge international debate and soon, there will be need to make data centers more energy efficient

Top Global Data Center Trends Virtualization: – 40% of respondents foresee virtualization having an impact on their data center space requirements – One of the Top 5 technology priorities for next year (CIO Tech Trend Survey 2009) – Virtualization is expected to mature in Right now most data centers are running virtualization in test environments. Virtualization technology can be expected to move into production environments Cloud Computing: – Cloud computing refers to delivering IT infrastructure as a service to the enterprise –. 69% of CIO’s feel that there is more to Cloud Computing than Hype – Companies like Amazon.com, Google and Salesforce.com already offering the complete cloud computing environments Managed services growth: – Co-location clients are increasingly interested in managed services provided by co-location providers. 53% of respondents view "Remote Hands as a Service" as an important value-add service. Energy efficient data centers: – Current Facilities are not Energy Efficient: 80 percent of surveyed companies report that their current data center facilities have a PUE energy efficiency rating of 2.0 or more and 26 percent report PUE of 3.0 of higher – Energy Usage Measurement is the rule: 70 percent of surveyed companies globally meter power usage in their data centers

Future trends Market will be divided into two types of players — Small Players mainly offering hosting and collocation services, and Large Players mainly into comprehensive and value-added data center services Pure Collocation will reduce and addition of more value additions in terms of services around data centers Consolidation of Level 2 Data Centers into either Level 3+ or Level 4 Third-party data centers will be Increasingly Utilized Penetration into tier-II and tier-III cites

Managed Services for On-Line Examination Portal Client - A Startup On – Line Examination Company with little IT Infrastructure - More than 2000 Concurrent Users Trimax IT Infrastructure & Services Ltd - ISO / certified - Employee Strength of more than centers across India - Service offering – Managed Services for Banking, Insurance, Telecom, Travel, Retail Vertical Business Case The client sought a partner capable of providing Managed Services with guaranteed SLAs for Infrastructure, Bandwidth and IT Availability Proposed Services - Managed Video Conferencing Services Offered - Managed Hosting - Guaranteed SLA of 99.5% Availability of Infrastructure - Very High Bandwidth for Short Duration ParametersTargetCurrent SLA99.5%> 99.5% Time to Implement New Infrastructure 21 Days15 Days Penalty0% Customer Acknowledgement - Positive VOC - Zero Breakdown

Case Study – A Large PSU Bank Client - A Large PSU Bank In India - Branch Network in 27 of 28 States across India - More than 4000 Locations In India - More than 500 ATMs across India Trimax IT Infrastructure & Services Ltd - ISO / certified - Employee Strength of more than centers across India - Service offering…Managed Services for Banking, Insurance, Telecom, Travel, Retail Vertical Business Case The client sought a partner capable of providing Managed Services for connectivity across India in a cost effective manner with guaranteed SLAs Proposed Services - Managed Video Conferencing - Managed Messaging Hosting Service - Managed Co-Location Service Services Offered - Project Management for fresh connectivity - Conversion of existing links under Managed - Services - Monitoring & Management of Links - ISP Coordination - Guaranteed SLA of 99.5% ParametersTargetCurrent SLA99.5% Time to Implement New Link 21 Days18 Days Penalty0% Customer Acknowledgement - Positive VOC - Implementation of 200 New Links in 18 Days

Discussions

Adding Values to Commodity Product Case Study

Shift to Experiences: Adding Value to Commodity Product Minimum $0.23$1.48$4.98 $0.04$0.74$1.99 Commodity Good Service Experience Maximum Graphic: BusinessWeek, 2005 Source: Pine and Gilmore, The Experience Economy, 1999