International Business Expansion

CONFIDENTIAL & PROPRIETARY MATERIALCONFIDENTIAL & PROPRIETARY MATERIAL

MARKETING & STRATEGY FORINTERNATIONAL EXPANSION

American Marketing Association - San AntonioSEPTEMBER 22nd, 2012

@rackspace / @SanAntonioAMA / @gerardodada

Gerardo A. Dada, Head of Global Product Marketing@gerardodada

CONFIDENTIAL & PROPRIETARY MATERIAL

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CONFIDENTIAL & PROPRIETARY MATERIALAGENDA

Rackspace and the Cloud Our International Journey Why Expand Internationally Where to Start Business Models Localization Top Mistakes to Avoid


CONFIDENTIAL & PROPRIETARY MATERIALCONFIDENTIAL & PROPRIETARY MATERIAL

RACKSPACE® HOSTING

190,000+CUSTOMER

S84,000+ SERVERS

22,085+ VM≅70 PB STORED

4,500+ RACKERS

8 WORLDWIDE DATA CENTERS

GLOBAL FOOTPRIN

T120+ COUNTRIES

60%FORTUNE® 100

OFTHE

WE SERVE

Annualized Revenue

OVER $1BILLION $$$$

PORTFOLIO OF HOSTED SOLUTIONS

Dedicated - Cloud - Hybrid

A LEADERGartner Magic Quadrant for Managed Hosting



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CONFIDENTIAL & PROPRIETARY MATERIALWHAT IS THE CLOUD?

• Utility - Pay only for what you use

• Instant on

• Shared – investment is distributed

• Transparent

• No Upfront Investment - OpEx vs CapEx

Bottom Line: The cloud provides business agility and allows you to focus on your business



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CONFIDENTIAL & PROPRIETARY MATERIALRACKSPACE’S GLOBAL JOURNEY

GLOBAL FOOTPRIN

T120+ COUNTRIES

8 WORLDWIDE DATA CENTERS

2 SUPPORTCENTERS

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



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CONFIDENTIAL & PROPRIETARY MATERIALWHY EXPAND INTERNATIONALLY

• Have you exhausted the local market?• Good Reasons: growth, opportunity• Are you committed?

– Management Buy-in– Investment and resources– Patience



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CONFIDENTIAL & PROPRIETARY MATERIALWHERE TO START?

• Market Planning and Opportunity Analysis• Market Sizing - Addressable Opportunity• Legal Framework

– Taxes, Customs and regulations - NOM, ISO, UL , PII

• Demographics and business environment– Business may be centralized in one of a few cities– Propensity to buy in retail: touch & feel the products – Practicality of Ecommerce: credit card adoption, shipping

efficiency and trust



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CONFIDENTIAL & PROPRIETARY MATERIALBUSINESS MODELS

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

• Selling internationally from one location• 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 MATERIALRACKSPACE.COM/ES



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CONFIDENTIAL & PROPRIETARY MATERIALLOCAL HOSTING IS BETTER (IS IT?)



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CONFIDENTIAL & PROPRIETARY MATERIALLOCALIZATION

• More than translation

• 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 MATERIALNISSAN IN LATIN AMERICA


Nissan missed the fact that ‘moco’ means booger in Spanish…


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CONFIDENTIAL & PROPRIETARY MATERIALNIKE IN THE ARAB WORLD


Nike learned the hard way the fire design on their sneakers looks very similar to the Arabic word for Allah


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CONFIDENTIAL & PROPRIETARY MATERIALCULTURE

• History and attitudes between cultures– Good and bad (Malinchismo)

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

• Importance of relationships and trust– In many countries business in done in person – Use of Alcohol and importance of social events



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CONFIDENTIAL & PROPRIETARY MATERIALCULTURE



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CONFIDENTIAL & PROPRIETARY MATERIALCOMMON MISTAKES TO AVOID

#1 – Insufficient commitment from management

#2 – No business or market plan & priorities

#3 – Underestimating emotions and relationships

#4 – Not understanding culture#5 – Going after too many

opportunities at once#6 – Expecting quick results



RACKSPACE® HOSTING | WWW.RACKSPACE.COM

THANK YOU

Gerardo A. Dada

@gerardodadawww.TheAdaptiveMarketer.com

International Business Expansion

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