Rackspace-Marketing & Strategy for International Expansion

CONFIDENTIAL & PROPRIETARY MATERIAL!CONFIDENTIAL & PROPRIETARY MATERIAL!

MARKETING & STRATEGY FOR!INTERNATIONAL EXPANSION!

American Marketing Association - San Antonio!SEPTEMBER 22nd, 2012!

@rackspace / @SanAntonioAMA / @gerardodada

Gerardo A. Dada, Director, Global Product Marketing!@gerardodada!

CONFIDENTIAL & PROPRIETARY MATERIAL!

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CONFIDENTIAL & PROPRIETARY MATERIAL!AGENDA!

  Rackspace and the Cloud   Our Interna;onal Journey  Why Expand Interna;onally

 Where to Start

  Business Models

  Localiza;on   Top Mistakes to Avoid


CONFIDENTIAL & PROPRIETARY MATERIAL!CONFIDENTIAL & PROPRIETARY MATERIAL!RACKSPACE® HOSTING

190,000+ CUSTOMERS

84,000+ SERVERS 22,085+ VM

≅70 PB STORED

4,500+ RACKERS

8 WORLDWIDE DATA CENTERS

GLOBAL FOOTPRINT 120+ COUNTRIES

60% FORTUNE® 100

OF THE

WE SERVE

Annualized Revenue

OVER $1 BILLION $$$$

PORTFOLIO OF HOSTED SOLUTIONS

Dedicated - Cloud - Hybrid

A LEADER Gartner Magic Quadrant for Managed Hosting



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CONFIDENTIAL & PROPRIETARY MATERIAL!WHAT IS THE CLOUD?

Bo$om Line: The cloud provides business agility and allows you to focus on your business



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CONFIDENTIAL & PROPRIETARY MATERIAL!RACKSPACE’S GLOBAL JOURNEY

GLOBAL FOOTPRINT 120+ COUNTRIES

8 WORLDWIDE DATA CENTERS

2 SUPPORT CENTERS

The Rackspace strategy does not change We aim to be the service leader in every market we serve



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CONFIDENTIAL & PROPRIETARY MATERIAL!WHY EXPAND INTERNATIONALLY!



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CONFIDENTIAL & PROPRIETARY MATERIAL!WHERE TO START?!

•  Market Planning and Opportunity Analysis •  Market Sizing -‐ Addressable Opportunity

•  Legal Framework –  Taxes, Customs and regula;ons -‐ NOM, ISO, UL , PII

•  Demographics and business environment –  Business may be centralized in one of a few ci;es

–  Propensity to buy in retail: touch & feel the products –  Prac;cality of Ecommerce: credit card adop;on, shipping efficiency and trust



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CONFIDENTIAL & PROPRIETARY MATERIAL!BUSINESS MODELS!

•  Centralized versus localized model –  Think globally but act locally –  “Glocaliza=on”: finding the balance between the two

•  Selling interna;onally from one loca;on

•  Indirect models –  Distributor, agent, reseller, etc.

•  The core business strategy may not change (i.e RAX)

•  Global web presence – How to do it right



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CONFIDENTIAL & PROPRIETARY MATERIAL!RACKSPACE.COM/ES



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CONFIDENTIAL & PROPRIETARY MATERIAL!LOCAL HOSTING IS BETTER (IS IT?)!



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CONFIDENTIAL & PROPRIETARY MATERIAL!LOCALIZATION

•  More than transla;on •  Religion •  Language is different – UK vs US English •  Understanding history •  Culture impact on logos and colors

Examples: Orkut in Brasil and Baidu in China

TIP: balance local and corporate resources



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CONFIDENTIAL & PROPRIETARY MATERIAL!NISSAN IN LATIN AMERICA



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CONFIDENTIAL & PROPRIETARY MATERIAL!NIKE IN THE ARAB WORLD



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CONFIDENTIAL & PROPRIETARY MATERIAL!NIKE IN THE ARAB WORLD



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CONFIDENTIAL & PROPRIETARY MATERIAL!CULTURE!

•  History and a]tudes between cultures –  Good and bad (Malinchismo)

•  The importance of ;tles and hierarchy –  Business cards in Japan –  Judging by looks and formality

•  Importance of rela;onships and trust –  In many countries business in done in person

–  Use of Alcohol and importance of social events



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CONFIDENTIAL & PROPRIETARY MATERIAL!CULTURE!



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CONFIDENTIAL & PROPRIETARY MATERIAL!COMMON MISTAKES TO AVOID!

#1 – Insufficient commitment from management

#2 – No business or market plan & priori;es

#3 – Underes;ma;ng emo;ons and rela;onships

#4 – Not understanding culture #5 – Going a^er too many opportuni;es at once

#6 – Expec;ng quick results



RACKSPACE® HOSTING | WWW.RACKSPACE.COM

THANK YOU

Gerardo A. Dada @gerardodada

[email protected]

Rackspace-Marketing & Strategy for International Expansion

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