Media & Entertainment

Media & Entertainment Data Center and Cloud Battle Card

For Internal use onlyAll USD numbers converted to INR with conversion rate of $1 = INR 71 Sources: Public reports & whitepapers, company websites, primary interviews Media & Entertainment –DC and Cloud Battle Card

Industry The Indian media and entertainment (M&E) industry is among the top five fastest-growing business Overview segments in the country, driven by increasing digitalization and high internet usage

The industry is expected to be worth By 2020, an average person will INR 2,660 Bn by FY 2023 spend 84 minutes a day INR 1,436 Bn (2018) CAGR: ~13.1% (2018–2023) watching videos online; it was 56 minutes in 2017

Media companies spent INR Cloud computing adoption in 114.9–143.6 Bn on ICT the global M&E industry to TV & Print Digital Gaming Radio & infrastructure (2018) grow 9x during 2014–2020 Films Adv. Music 811 Hotstar, Zee5, Voot, and 319 Media companies spent INR 9.5– 116 SonyLiv account for 80–90% of 44 40 12.0 Bn (8–9%) on cloud services the non-user generated content (2018) streaming market in India Source: KPMG report 2018, Highlighted top 5 segments only in the above depiction

Industry Digital-focused local business models are gaining momentum due to rapid digitalization, growing digital Drivers advertising, and data localization through cloud and other advanced technologies

Growth in Digital Infrastructure Growth in Digital Advertising

Average data consumption per person INR 189.9 Bn India’s digital advertising revenue is to reach 18 GB per month by 2023 expected to register a CAGR of 32% during 2017–2020

INR 82 Bn 800 Mn VoLTE subscribers by 2023, with Mobile internet advertising revenue is annual growth of 42.5% between 2017 expected to account for 56% of total and 2020 internet advertising revenue by 2021 (Global) 2017 2020 2x increase in online gaming, from INR Growth drivers of digital advertising 30 Bn in 2017 to INR 68 Bn by 2020 include: • Increasing adoption of 3G / 4G • Online news consumption

Data Localization and Personal Data Protection Cloud as Enabler for M&E Industry

Data Localization Law: Mandates the storage and processing of consumers’ critical data within India, starting Key benefits of Cloud: Reduction in 1 data center 15 October 2018 70% • Content discovery for footprint Personal Data Protection Bill*: Companies multiple audience • Improvement in time will be required to store users’ data (or Minutes 2 to market live copy) on a server in India 15 provisional cycle • Scalability to handle for storage and Cloud storage market for M&E: The market is expected to spikes computing register a CAGR of 24.1% during 2017–2023, to reach INR 3 178.6 Bn by 2023 (Global) Major media firms that use cloud and related services include * In proposal stage Warner Bros (Pega), Netflix (AWS), and Hotstar (Akamai)

Emerging Use of latest technologies to provide advanced applications to customers is giving rise to the need for Technologies sophisticated and robust ICT infrastructure

Managed Hosting AR / VR IoT AI / ML / Analytics

Cloud-based technologies Creates immersive and interactive Enables the collection of data at Increases the speed of computing help companies adopt a scalable experiences and increases scale and leverage it to track users and on-demand cloud business model engagement time and offer customized content infrastructure • ALTBalaji uses AWS Cloud • ZEE Group is investing in AR • 90% M&E companies consider • Netflix leverages AI / ML to • Netflix is among the first / VR to build a 3D graphic IoT to be critical to some or all of assess the popularity of media players to migrate its studio (2018) their lines of business (PWC shows aired in India, by type data to AWS Cloud • Reliance Jio set up an AR / Survey) • Viacom’s data analytics • Hungama uses Netmagic’s VR lab in Mumbai to create • Warner Bros. is building an IoT capabilities have helped it to data center the first generation of platform to offer digitally develop use cases for cinematic VR filmmakers personalized experiences network data (2018) (2017) For Internal use onlyAll USD numbers converted to INR with conversion rate of $1 = INR 71 Sources: Public reports & whitepapers, company websites, primary interviews Media & Entertainment –DC and Cloud Battle Card

Industry Value The industry is undergoing constant transformation across the value chain, driven by ever-increasing Chain consumer demand for personalization, abundant data availability, and next-gen devices

M&E Industry Value Chain CONTENT CREATION MONETIZATION

Concept Pre-production Development Post-production Distribution Platforms Consumption

• Market Research • Storyboarding • Facilities • Testing • Content Rights • PC / Console • Unit Purchase • Idea Adoption • Licensing / Pre- Management • Editing Acquisition • Internet • Pay-per-view • Storyline Selling • Coding • Visual Effects • Distribution of IP • PDA / Mobile / • Subscription Development • Technical Design • Artwork • Processing / Content Handheld • Free • Scheduling • Production Support Formatting • Pay TV

Content Analytics Recording and DB Computer Testing and Route Optimization Content Hosting Mobility and Reporting Management Integrated Processing Software / CRM Platforms Production Automation D C C I C

Social Listening Designing and Real-time Data Live-to-Video on User Interface Analytics for Scheduling Digitized Collection Using IoT Demand Engagement Platforms Content Formats I C M

Immersive Royalty Payment Remote Content Dynamic Ad Scalable Rendering

Key Technologies andCases*Technologies UseKey Content Video Intelligence Storage Insertion A C B C C C

Key Influencing Technology D Big Data and Analytics B BlockchainM ML / AII IoTA AR / VRC Cloud and Storage *Many technologies / use cases are applicable for multiple instances

Conversation Consumer preference for on-demand access to personalized HD content and increase in use of VFX are Triggers giving rise to the need for a robust and secure ICT ecosystem with scalable bandwidth capabilities

Impact on Demand High Medium Low

Infrastructure Enablers Technology / Trend Conversation Triggers Data Protection Cloud Services Transformation DC Colo Migration

• Live streaming is expected to increase 15x by 2020; video will represent 80% of all internet traffic by 2021 Live Streaming • ALTBalaji has partnered with Tata Communications for high-capacity and Cloud cloud storage and bandwidth connectivity • India’s M&E IoT market is expected to be valued at INR 5.2 Bn by 2019 • The largest DDoS attack in 2017 reached 620Gbps; 25% of identified cyber attacks are expected to involve IoT by 2020 IoT (Global)

• VFX requires extensive data storage and processor-intensive capabilities, which can be achieved using cloud • Prana Studios has selected IBM Cloud to run new high-resolution VFX rendering jobs to produce good-quality visual effects (2016)

• Cloud storage capacity of the M&E sector is expected to grow ~13.3x between 2017 and 2023 Cloud • Amazon and Google have agreed to comply with India’s Data Storage Localization Law (Sep 2018)

• 56% of M&E companies expect to invest in AI / ML by 2020; Amazon ML services, Azure ML, Google Cloud AI, and IBM Watson are the four leading MLaaS services for the M&E sector ML / • Netflix has built its own content delivery network and has invested Analytics in AI and Big Data to enable real-time content distribution among server clusters (2017)

• 43% of Indian enterprises plan to adopt hybrid cloud by 2020; hybrid cloud workloads in India will triple from 13% in 2018, to Hybrid 43% by 2020 Cloud • Prime Focus, an M&E ERP provider, has partnered with Microsoft to strengthen its hybrid cloud-enabled media ERP suite (2018)

Service Comparison: Sify Vs. Competitors

Data Center Infrastructure

Sify Netmagic CtrlS Airtel ST Telemedia RCom

No. of DCs 9 11 6 10 (Nxtra Data) 16 9

100% since last 10 Uptime 99.990% 99.995% 99.982% 99.990% - years

Experience 18+ Years ~20 Years ~10 Years 12+ Years ~15 Years ~17 Years

ISO20000-1, ISO ISO9001, ISO27001, 27001, ISO 22301 ISO 9001 / 20001 / ISO20000, PCI, ISO27001, ISO9001, ISO 22301 / 27001 / ISO 27001 / 20000 / Certifications 27001 / 50001 / ISO HIPPA, TIA942, ISO20000, TIA942 20000-1 14000, TIA 942 (Mumbai DC is LEED 18001 PCI DSS certified)

Areas of Offense Areas of Defense

• STT GDC India does not have managed hosting or cloud • ST Telemedia and Airtel have more data centers than Sify services, but partners with Tata Communications to offer Technologies. Further, Airtel is planning to build 10 data managed hosting and cloud to end clients. centers across India • Netmagic’s Noida and Chennai data centers operate on • CtrlS claims that together, its three datacenters, support leased premises, which make customers vulnerable to power capacity of 58 MW. The company is planning to security threats launch two new DCs in Hyderabad (100 MW facility) and • RCom’s Bengaluru data center (in Peenya) has been another two in Mumbai (60 MW facility). facing accessibility and theft related problems • Netmagic leverages its parent company NTT • Sify operates a national MPLS network, connecting 47 Communications’ improved managed and professional data centers, including third-party data centers. Through services capabilities to win complex projects its interconnections with global carriers, Sify can also • CtrlS’ data centers have been rated by 4 by ANSI/TIA-942 support Indian MNCs with international hosting and cloud requirements

Cloud Portfolio Comparison

Sify TATA Comm. Netmagic

• Simplicloud (Public Cloud) • Goinfinit AWS (Public Cloud) • IZO Private Cloud (Enterprise Cloud) • Private Cloud (Dedicated Private Cloud, Cloud Services • Cloudinfinit • Managed Services for Azure and AWS Virtual Private Cloud, Integrated Hybrid Suite  Enterprise Cloud • Cloud Containers, Storage, and Analytics Cloud Env.)  VPE (Virtual Private Enterprise) under ‘As a Service’ Model • Migration as a Service, Managed Storage, Backup as a Service

• Minimum Capacity of 48 vCPUs and 265 GB • Hypervisor Support for VMware and of vRAM Per Node • Hypervisor Support for KVM, VMWare ESXi, HyperV Compute • Offers a choice between HyperV and and HyperV • OS Support – Windows, RHEL, Ubuntu, Environment VMware hypervisors • OS Support – Windows, Ubuntu, and RHEL SUSE, Debian • BYOL policy for OS and DB (Windows • Database – MySQL and MongoDB • Database – MySQL, Oracle Server, SQL Server, Red Hat, Oracle)

Freedom of Choice between Three Tiers  High-performance Tier • NetApp, EMC, and Cloudbyte Powered Storage  Standard Tier Info unavailable Storage services  Economy Tier Storage Type: NAS, Object, and All flash

• 99.50% per VPE Uptime (at infra Doesn’t explicitly mention uptime commitment. Doesn’t explicitly mention uptime • 99.90% for VPE – HA level) Claims to offer enterprise-level SLAs commitment. Claims to offer strong SLAs • 99.95% VPE – HA + DR

Connectivity through • IP Sec – VPN • Public Networks (Public IP) • SSL VPN Connectivity • Private Networks (IP Sec Tunnel, MPLS, Relies on NTT Communications to provide Connectivity • Upto 100 Mbps Throughput GDE) connectivity • Global Cloud Connect (Cloud Connect • IZO Private and Public Connect (Cloud Service) Connect Service)

Cloud Portfolio Comparison

Sify TATA Comm. Netmagic

• Integrated Security Services • Detection and Mitigation of Targeted • vFirewall • SIEM, ATP Attacks on Critical Applications • IPS Protection • Cloud WAF, UTM, DDoS (Arbor), IDP, • Application Layer Detection and Security • Network DDoS Firewall Audit & Optimization Mitigation (Powered by Arbor Networks) • Fortnox • IDaaS, CASB, 2FA • IPS / IDS • SIEM • GRC Consulting, Vulnerability Assessment • SIEM • vUTM

• Dashboards, Online Reports, Alerts, • Customer Portal that Enables Reporting and Watermarks, and Help Desk • Customized Reporting and Dashboards Configuration and Management of Cloud Analytics • Analytics for Infrastructure, Platform, and Environment Applications

Backup and • Cloudinfint Backup (Of Data to be Protected) • Secure Cloud Backup Service • Backup and Disaster Recovery Options Recover • DR on Geographically Distant Cloud Site

Integrated Managed IT Services (Single Managed Services Partner Managing Cloud, Infrastructure, and • Integrated Managed Services • End-to-end Managed Services Environment)

Areas of Offense Areas of Defense

• CtrlS has limited experience in supporting third-party • Netmagic, after its integration with NTT Communications, cloud services, such as AWS and Microsoft Azure provides a comprehensive range of managed services and connectivity to major cloud service providers • ST Telemedia and CtrlS don’t have their own network • Companies such as CtrlS, Netmagic, and Airtel claim to backbone, and largely depend on partners for offer uptime of 99.99% for their cloud services connectivity services; Sify has strong network presence in India • Airtel is one of the empaneled partners for India’s central government and several state governments’ cloud-based • Tata Communications has discontinued its public cloud projects; it poses serious competition to Sify, when it service (Instacompute), as it was not able to compete comes to government deals with hyperscale cloud providers • Reliance Jio is likely to adopt an aggressive pricing approach, similar to the one it adopted for its consumer services, for its enterprise IT / cloud services (Source : Primary Interview)

Competitors’ Strategic Focus Areas

Sify, CtrlS, and Airtel have announced plans to build new data centers in India. Netmagic, RCom, and other companies opened new facilities in 2018

• Netmagic opened new data centers, one each in Netmagic Sify CtrlS Airtel Mumbai and Bengaluru, in late 2018

Mumbai • Its Bengaluru data center spans across 250,000 sq. ft., while the Mumbai site spans across 300,000 sq. ft. The company plans to add 150 personnel to its Chennai current workforce of 1,270, as it looks to grow further

• RCom opened a hyperscale data center Bengaluru RCOM in Mumbai in mid-2018 • The company also plans to build connected data centers Pune in key hubs across India, including Bengaluru, Hyderabad, and Chennai Kolkata • CtrlS is investing ~INR 2 Bn on infrastructure CtrlS expansion, to target the BFSI sector

Hyderabad • The company is setting up Tier 4 facilities in Hyderabad (~100 MW), Mumbai (60MW), and Chennai; these will Planned for 2020 & beyond Planned for 2019 take its data center footprint to 5 million sq. ft. by 2020

Digitization and government initiatives are compelling data center service providers to invest heavily in building new data centers

Focus on Cloud Services Rise of Reliance Jio Airtel Bets BIG on Datacenters

Increasing demand in India has led After disrupting the consumer telecom space, Bharti Airtel is preparing to play a bigger role companies, such as Netmagic and CtrlS, to Reliance Jio is planning to step into the in the enterprise segment through a new amplify their focus on cloud services enterprise service segment, specially cloud, cloud and data center strategy, under which it IoT, and network services will undertake the following • Netmagic is planning to target customers who are looking to adopt a multi-cloud • Reliance Jio has started testing its public • Airtel’s wholly-owned data center environment. It plans to offer a one-stop and private cloud within Reliance group unit, Nxtra Data Ltd, is planning to set up solution for data migration to private, companies 10 new data centers, including four in public, and third-party cloud services such Pune, Chennai, Mumbai, and Kolkata as AWS, Google, and Microsoft • It plans to develop a state-of-the-art green field data center in an upcoming 100-acre • The company’s new data centers are • CtrlS is also investing heavily (~INR 2 Bn) IT hub in Kolkata, West Bengal being planned to tap the cloud in infrastructure to tap the growing cloud opportunities that have emerged following market in India the Indian government’s regulation on data localization

Sify Technologies’ Key USPs for Data Center Services

Build your own SLA Sify’s Golnfinit VPE allows customers to build their IT infrastructure with single or multiple nodes across one cloud site or distant cloud sites. This enables customers to build their private cloud for test / development with 99.50% SLA (single – site) alongside 99.90% SLA for production IT in HA architecture.

Managed Services Sify offers an integrated managed services portfolio that includes services for captives, AWS, Microsoft Azure, and SAP infra. It extends a wide range of services, including disaster recovery, managed security, database management, and middleware management, and leverages ServiceNow and CA UIM (industry best tool platforms) to offer best-in-class ITSM and automation

Flexible Consumption Model Sify’s Private cloud (VPE) offers a combination of pricing models, as under • Committed Model: Customers pay for a committed capacity for a minimum contract period, and scale up as their businesses require • Metered Consumption: Customers’ usage is metered on a monthly basis, and they are billed as per usage

Seamless Connect Sify can provide seamless connectivity to datacenters and hyperscale cloud service providers (through Cleanconnect service), as it operates a national MPLS network that connects 45+ datacenters, including third-party datacenters. Its collaboration with global carriers also allows Sify to support Indian MNCs with their international hosting and cloud requirements

Expertise in Managing Third-party Cloud Environment Sify has experience in supporting Microsoft environment and VMware; it is SAP-certified for hosting cloud, HANA, and application services, as well as SAP migration

Robust Data Center Infrastructure • Data Centers are running on 100% uptime since 2008 • 3 to 4 distinct fiber entry paths to the Data Center building provides resiliency on fiber routes • Truly Carrier Neutral: More than 90% of fiber links are from non Sify Telecom providers • Power densities from 3 KW to 15 KW per cabinet • Hyper scale Data centers from 12 to 36 MW in key cities providing ample expansion capabilities • Multiple Internet Exchange Ecosystem facilitating OTTs and ISPs interconnect in Sify Data Centers • Services include Prelaid bulk Fiber (as per specifications), single to 10+ cross connects on demand with minimum lead-time

For Internal use onlyAll USD numbers converted to INR with conversion rate of $1 = INR 71 Sources: Public reports & whitepapers, company websites, primary interviews Reach us now

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