The Evolution of the Data Center

June 7, 2011

2011 Windstream Communications, Inc.

Introduction

Zeus Kerravala, Yankee Group Senior Vice President and Distinguished Research Fellow As head of the Research Council, Mr. Kerravala provides thought leadership and drives the strategic thinking of the research organization. Much of his expertise involves working with customers to solve their business issues through the deployment of infrastructure technology. Rob Carter, Windstream Hosted Solutions Director of Managed Hosting Services Rob Carter serves as Director of Managed Hosting Services for Windstream Hosted Solutions. In this role he is responsible for overseeing Cloud Computing, Engineering, Hosting Services Implementation and Support, as well as Pre-Sales Solutions Engineering.

The CIO Headache

Speed to market remains a top business priority. Distributed enterprises drive a collaborative culture. Line-of-business executives want better control over IT IT. Consumer technology is heavily influencing orker behavior. infl encing worker beha ior IT needs greater agility to respond to the business faster.

Proof Point 1: Workforce Is Increasingly Mobile

Morethan50% oforganizations f i ti spendmorethan40% oftheirdayaway fromtheirdesk

40%ofemployees havehigh speed havehighspeed datacards

38%of enterprisesidentify acellularphoneor smartphone astheirprimary device

4%ofworkers usetablets business purpose

45%of corporations areinterested inmobile applications

Proof Point 2: The Nature of Work Is Transforming

Collaborationacross theenterprise Speedsinnovations,makesbestuse of(expensive)humanresources

Collaborationoutside theenterprise Consumertechnologyisheavily influencingthewayuserswork

Channel Partner EMEA Sales Manager Global Director

APAC Sales Manager

US Office Manager

Remote Worker

Proof Point 3: Budgets Are Under Fire How will the economic outlook for 2010 impact your organizations technology investments? Would you say, you expect

Base: Asked everybody

2010 Was a Watershed Year in IT

Workers Demand a Better Experience

WiFi Becomes Preferred Access

Cloud Computing Matured Device Evolution Takes a Leap

Wireline Speed Jump

Data Center Delivery Addresses The Mobile World

Mobile Computing = 10 billion units

Internet Computing Era ~ 1 Billion units

PC Computing Era ~ 100M units

Minicomputer Era ~ 10M units

Mainframe Era ~ 1M units

1960s

1970s

1980s

1990s

2000s

2010s

2020s

Key Trends Impacting the Data Center

Reduce Cost and Raise Productivity

IT as a service

Applications availability

Green ITpower, cooling and space

Server virtualization higher performance

Network and storage convergence

VM-Level awareness

Workload provisioning

Colocation Services

Includes third party management of servers, networking, storage, application delivery controllers and other infrastructure Provides infrastructure driven management solutions g Can be used as a part of a long term cloud strategy Strong BCDR value proposition Similar to cloud, provides buy versus build and shifting Capex to Opex

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Top Drivers of Colo Services

Scalability and performance of IT infrastructure Cost red ction reduction Improved BCDR capabilities
3000 Users 4000 Users 2000 Users 1000 Users

Faster technology upgrades/migration Meeting compliance and regulatory requirements Time to market IT infrastructure consolidation Lack of internal IT resources

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Colo/Hosting Segmentation

Shared Web Hosting Private Virtual Servers Dedicated Hosting Managed Hosting Private Colocation Hybrid Colocation

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Why cloud? Why now?

Maturity of virtualization D li Delivers a fl ibl IT model flexible d l The most cost effective, scalable way to deliver applications and services Network speed evolution p makes cloud a reality Various consumption models Its the computing model that best fits our IT strategy and worker profiles

Cloud Computing: A Not So New Kid On The Block

What cloud offers: Resources on demand Instant provisioning Pay-as-you-use Online access What is debatable: Its outsourcing by another name Cheap Secure

A new operational model for enterprise IT

Basic Building Blocks For Cloud Services

Application layer delivering productivity, collaboration and business applications on a subscription basis

Secu urity and Complia d ance

SaaS: Software as a Service

PaaS: Platform as a Service

Management platform & tools to develop, deploy and integrate cloud-based applications.

IaaS: Infrastructure as a Service

Pool f P l of computing resources ti (servers, storage) helping IT staff & developers to scale requirements in real-time, on a per-usage basis.

Virtualization of physical infrastructure Usingprivate gp orpublic resources

Bright Future For Clouds In The Minds of Enterprises

Aligns well with new CIO mandate Overall, enterprises are optimistic about cloud computing General concepts of elasticity, on-demand, capex-to-opex conversion of IT all resonate with decision-makers at a high level Enterprises recognize the value proposition of cloud but need to see some barriers/concerns addressed

Opinion about cloud computing

Top use cases for cloud computing

SaaS

PaaS

IaaS

Base:OrganizationsthathavealreadydeployedPaaSorIaaS

Lower support costs lead SaaS drivers

Top drivers are based on reducing cost and complexity Considering larger organizations have been more likely to adopt SaaS, they have learned from experience the hidden costs of premises premisesbased implementations

Base: Organizations that already deployed or plan to deploy SaaS within 24 months

Infrastructure, people costs drive IaaS interest

On-demand storage and virtualized backup/recovery options are of great interest to enterprises p

Base: Organizations that already deployed or plan to deploy IaaS within 24 months

Status check: IT assets shifting to cloud

Last year

Today
Less than a third of IT assets

In 3 Years

89% software apps (n=214) 86% server platforms (n=97) 88% storage (n=113)

73% 76% 73%

32% 23% 43%

More than half of IT assets

8% software apps (n=214) 5% server platforms (n=97) 4% storage (n=113)

11% 7% 12%

38% 48% 39%

Data Center Vision: Connected Clouds

Businesses Have Freedom of Choice

Public Cloud

Private Cloud Colocation

A Federation of Clouds Based on Open Standards Application Fluidity IT service mobility

Summary
Consumerization,virtualizationandmobilityaretransformingIT DataCenterdeliveryistheonlyscalable,costeffectivemethodofmeeting D t C t d li i th l l bl t ff ti th d f ti currentITchallenges AllowsformultiOS,deviceindependentsolutions Visionofthedatacenterincludesprivatecloud,publiccloudcomputingand managed/colocationservices Cloudcomputingisanewoperatingmodelthatcanofferondemand Cloud computing is a new operating model that can offer on demand computeresourcestoscaleITandprovidefastertimetomarket Colocationservicescanaugmentacompaniescloudcomputingstrategy Colocation services can augment a companies cloud computing strategy

Windstream Hosted Solutions

Rob Carter
Director of Managed Hosting Services

Windstream Hosted Solutions

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Windstream Snapshot
S&P 500 company with full suite of IP-based voice and data services, MPLS networking, data center and managed hosting services and communication systems to businesses and government agencies $4 billion in annual revenues 10,000 employees 29 states and District of Columbia Data centers: 13 60 000 route miles of l 60,000 t il f local l and long-haul fiber network

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Data Center Footprint

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So Whats Next?

Make the right decision for your business now that makes sense in the future

One size does not d t fit all Colocation to Cloud, Cloud they all have their place depending on p g technical / business requirements
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Windstream Data Center Approach

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Cloud Flexibility

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Its the Cloud; Who Cares?

Cloud infrastructure still relies on the same power cooling power, cooling, and connectivity as physical infrastructure, therefore its important to partner with a reliable, experienced provider
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Selecting the Right Cloud

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Uptime SLAs

Understand what youre buying:

Uptime SLA Allowable Downtime per month Allowable Downtime per year

99.5% 99.9% 99.95% 99.99% 99 99%

3.6 hours 43.7 minutes 21.8 minutes 4.4 4 4 minutes

43.8 hours 8.8 hours 4.4 hours 52.6 52 6 minutes

SLAs generally apply to infrastructure and not the application Adjust accordingly

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Managed Hosting Offerings

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Managed Services Benefits

Augment existing staff for critical projects B kl d of revenue d t i bilit t get Backload f due to inability to t implementations completed Freezes on hiring left a small internal talent pool and caused a rush to hire qualified candidates Leverage a large pool of resources for the price of one FTE Multi-vendor benefits 24x7 Coverage SLAs

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Why Data Center?

Hurricane Katrina, 2005: The 2005 hurricane season was the most active Atlantic hurricane season in recorded history with 27 named storms, seven making landfall in the U.S., causing billions of dollars in damages. Hurricane Katrina was the most destructive of these. For nearly 30 days, downtown New Orleans was without full power, and therefore unable to maintain business operations. Many communications providers were unable to serve their communities during this time, but Windstream customers were in service for the duration. Businesses with equipment in Windstreams New Orleans collocation site were still able to serve their customers, locally and globally. Nashville Floods of 2010: On May 3, 2010 the Cumberland River reached 51 feet in Nashville, TN, 12 feet above flood stage. Hundreds of businesses were closed due to flooding and power loss. When other service providers data centers became flooded, Windstream was able to provide emergency service in its Nashville Data Center to get these businesses back in operation. Longtime Windstream customers were able to ride out the disaster with the peace of mind that their equipment and end users experiences were safe.

USA Tornadoes of 2011: 875 tornadoes with current damage estimates of roughly $9 billion (Estimate as of May 24) and 499 fatalities. Some Windstream data centers were within miles of tornado destruction, but no customers were impacted due to robust redundant facilities, solid preventative maintenance programs, practiced emergency response procedures, and great vendor / supplier relationships
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Enterprise-Class Colocation
Tier II and III, SAS 70 Type II compliant data centers System + System uninterruptible power supply (UPS) systems, and carrier neutral network connections Heating, ventilation and air conditioning (HVAC) systems to maintain temperature and humidity within strict tolerances Hardened facilities with automated facility management tools Fire control with early warning smoke detection, clean agent suppression and/or dry-pipe sprinkler system 24 x 365 NOC & facilities staff provide for high security externally and internally Service Level Agreement (SLA) backed guarantee of 100% power availability p years old ( (10k sf or larger) g ) Modular builds - most expansions are less than four y 24-36 in raised floor no open systems or racks

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Summary

Pick a partner that you can trust and will pa a a u a d adjust as your needs change

Have solid requirements and know what you are buying

Focus on what you do well and outsource where it makes sense

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Question and Answer Session

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Thank Th k you! !
Presentation and replay will be available at XXXXX

2011 Windstream Communications, Inc.