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Vincent in't Veld presentation from Cloud Expo East

Vincent - Cloud Expo East

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  • [Instrumental]
  • Host
    Good afternoon ladies and gentleman here in New York City at Eighth Cloud Expo and good morning, good afternoon, good evening if you’re watching this general session out there on the world wide web. We have one of the better title presentations ‘Who keeps the cloud in the air?’ What can they possibly mean by this? Two gentlemen all the way fresh from the Netherlands, Vincent in’t Veld and Jelle Frank van der Zwet. Now tell me how close I was to really saying their names. 
  • Jelle Frank van der Zwet
    Hi, very good.
  • Host
    Take it away.
  • Vincent in’t Veld, Director Marketing and Product Management, Interxion
    This far out.
  • Jelle Frank van der Zwet
    Well welcome New York we’re really proud to be here and be a gold sponsor at Cloud Expo but well we’re from the Netherlands we work for Interxion. So Vincent, maybe you can give a little introduction to Interxion.
  • Vincent in’t Veld
    It’s probably needed. It’s probably needed. I’ve heard people pronounce our names in 10 different ways for the past days, so we’re going to do it right this time and make sure we introduce ourselves as a company. It’s only two slides, but here we are. So our company’s called Interxion. We’re Europe’s leading service provider in colocation services; we’re a Data Centre provider. We’re actually spread in 11 European countries, we operate in 13 cities and we own 28 Data Centres with over 60,000 square meters of equipped space in Europe. So that’s our footprint if you like. Now one of the characteristics of all these Data Centres and the common denominator across our Data Centres is that they are built at the confluence of fibre networks, they house on average 40 plus networks, but yet ISP’s, tier 1 ISP’s, CDN’s, internet exchanges, so they’re very well connected Data Centres and that’s basically the common denominator across all these 28 Data Centres, so wherever you go with us, whatever city we operate, that’s how we do it.
    One of the next facts we’re actually very proud of is that we’re financial very stable company. Even in the economic down turns, in the last 18 months we’ve seen our revenue grow quarter on quarter and also our profit is still very healthy, and that says something,early this year, we had a very important moment in our company’s life cycle, we got listed on the New York’s Stock Exchange, which didn’t happen to a Dutch company for the past 5 years. So we’re out there. We beat many of our companies in the market why is that important to us? Well it allows us to basically continue to skill and expand our Data Centre capacity in Europe, make sure we serve the needs of our existing customers and be attractive to potential new customers in Europe. That’s it.
  • Jelle Frank van der Zwet
    Well, before we continue on sharing some of the insides on the European market with you, this morning we sent out a press release about transatlantic cloud computing data centre alliance we have formed with CoreSite, so it’s my pleasure to invite here on stage, David Dunn, Senior Vice President of CoreSite. David welcome.
  • David Dunn, Senior Vice President, CoreSite
    Thank you,
  • Jelle Frank van der Zwet
    Welcome, can you introduce CoreSite to us.
  • David Dunn
    Yeah, absolutely my names not nearly as exotic as Jelle Frank here but again David Dunn, SVP of Strategy and Marketing for CoreSite for those of you who, are not familiar with CoreSite, we’re a US Data Centre and colocation provider we’ve got about 2 million square feet under management in 7 US markets and what we think makes us special than maybe some other Data Centre provider you’re familiar with, we’re not only working doing larger storage and compute nodes but also focused on networks and building customer eco-systems, whether it’s cloud, media, financial exchange and carrier. 
  • Jelle Frank van der Zwet
    … So Vincent, what does this alliance mean for Interxion customers?
  • Vincent in’t Veld
    Well to me, the bottom line is that, if customers are looking to deploy infrastructure or looking to house applications or looking to distribute applications and content to eye balls or enterprises, then understanding the local market, understanding the local telecommunications infrastructure in that particular market is a key asset. We as Interxion, don’t have that knowledge in the US but we do get demand off our customers in Europe who are growing and using the opportunity in North America or in Asia, so we’re reliant on the knowledge and understanding of that market off partners and CoreSite obviously is one of the trusted and leading providers here in the US market with all the connectivity in-house. So we feel very confident with the eco business model of carrier neutrality that CoreSite is capable of serving our customers here in the US whenever demand comes up and we’d like to do the same thing vice-versa in Europe.
  • Jelle Frank van der Zwet
    So David, what are the benefits for CoreSite customers for this alliance?
  • David Dunn
    Yeah, I mean, similar to what Vincent said, I’ll second that our cloud segment we’re seeing increase globalisation as our customers look to scale globally and to do that, I think it’s important that as a US based company we can we can do certainly a warm hand-off not only to different partners around the world but specifically to companies that look at the business in a similar fashion. Both Interxion and CoreSite have a customer intimacy strategy about building community and focus on network and not just base power and cooling.
  • Jelle Frank van der Zwet
    Well now we have you on stage, I got one more question. Can you share with us some of the trends you see here in the American market?
  • David Dunn
    Yeah, you know we’re seeing two things that cloud companies and people in the cloud space probably should be focused on are people that are trying to tackle couple of things. One is revenue and the other is improved operations. On the revenue side it’s all about network, it’s about increasing reliability and decreasing latency and on the operation side it’s about improving your supply chain.  Not a lot of people are talking about that right now, but if you have a consumption based revenue model then you need to match you know you want to match your core expenses up in a increasing fashion, so you might think about scaling your hardware purchases but also you know Data Centre being in a increasing portion of share of a cloud based company’s expense increasing that as you grow your revenue base.
  • Vincent in’t Veld
    I completely adhere to that; I mean it’s the same we see in Europe. Some of the forecasting models of customers we work with all show the same trend right, that’s where we all want to be. But to find a provider and find the right space and environment and the right connectivity to allow you to make that growth without paying for it on day one, that’s where we try and build the partnership, relationship with those customers.
  • David Dunn 
    Yeah, and we’ve done that with a couple here in the US you know Survent we announce publicly and another company Layer Technology, the ability to scale, again as their revenue and customers grow and scale not only in one location but potentially geographically and now across continents. So that’s it.
  • Jelle Frank van der Zwet
    Thank you.
  • Jelle Frank van der Zwet & Vincent in’t Veld
    Thank you very much David
  • Vincent in’t Veld
    Thank you.
    So Jelle, at the start of this presentation you made a promise, right. You’re going to give and share some insight into the European market. Well, take it away.
  • Jelle Frank van der Zwet
    Let’s take it away. Well, over the past few months we’ve been doing a survey amongst not only our customers but amongst companies throughout Europe and our goal was to do a survey in all the countries that we are present and get a clear overview of the European market we will publish the results, somewhere in July so some of them are still preliminary but we would like to share some of these results with you today.
    So first of all, let’s take a look at what the cloud is today in Europe and we’ll start with some figures I think we’re missing a slide here well, let’s go on when looking at the market in Europe, there’s also the opportunity to look at the market in US and when we look at surveys around, you can find free on the internet, you can find a lot of information. So what we did was, we looked at Europe and we looked at United States. And taking a look at factors rise in cloud investments, the number ranking number one region is reducing cost of infrastructure. So it ranks number one in our survey in Europe by 78% and if we look at United States also ranked number 1 with a slightly lower percentage. But if you look at region like business continuity and disaster recovery, it only ranked number 4 in Europe with 29% and it was a number 2 rank in the United States. Well, one of the reasons for this is obviously that moving your stuff into the cloud keeps you thinking about business continuity and disaster recovery. I’m not saying that it’s not there today but Europe is in that way I think one and two years behind the United States.
    Another we looked at was obstacles to cloud implementation for companies. And obviously number one is lack of security but if you look at the percentage and at United States there is a much much higher percentage. And I think the most surprising thing is vendor lock-in, this is something in Europe that we see as a number two region and it was only ranked number 7 in the United States, so this is something that European companies are really trying to avoid. And for them it’s an opportunity in the cloud, not being dependant on a vendor lock-in.
    So that’s that’s about cloud today. More interesting is of course looking at tomorrow what are the trends?
    So I’ll take you through some numbers and then we’ll come to the analysis we made. Very simple question what type of cloud are you likely to deploy? And as you can see a very high percentage covers private and hybrid cloud. And we define hybrid cloud very simple as public and private cloud combined. So this about 79% and the second question we ask is when you’re considering a hardware refresh, and we all know this comes up average three or four years are you likely to choose a cloud hosting provider or would you choose to buy physical hardware again? And as you can see we have a pretty much high percentage of 90% that is likely to go to a cloud hosting provider. So let’s combine these two. Let’s take the private cloud part and we include the hybrid cloud which obviously covers the private cloud as well. And doing an analysis with the results of type of choosing a cloud hosting provider or physical hardware refresh. 89% of the market is likely to choose a cloud hoster in the next 24 months so what does this mean?
    Well, looking at the European market, and looking at the cloud, basically there are two players. There’s service provider and there’s system integrator. And looking at a cloud hosting offering that’s typically for service provider and the system integrators, they would like you to buy the hardware, they provide the services, they do the implementation, they do the whole virtualisation layer and today they’re making pretty decent money, making some marginal regional, re-selling hardware and software. And what this definitely shows is that, that market will change. So where is the opportunity in that? Well, we think there  should be  a collaboration between the system integrators and service providers. Because otherwise a lot of business will go away from the system integrators to the service providers. 
    But looking at all these opportunities, what can bring Interxion to the table?
  • Vincent in’t Veld
    Well, let’s try and explain that. Rightly so, at the end of the day, Interxion is a provider of power, space and ping as we say it. So we guarantee the uptime and availability of the platforms to our customers. So this is traditionally the market we’re in, but we go beyond these days, I mean Data Centres, if you lift the roof of a Data Centre today and it’s quite fascinating to see what’s happening inside the Data Centre. Everyone is connected to everyone almost and the flows of traffic, in terms of traffic exchange, traffic distribution, buy, supply, it all comes together in the Data Centre. So it’s really a community place, it’s a marketplace where people are doing business with each other and people are trying to move the value chain as close as possible to the end user of the applications and the consumers of content.
    So there’s layers to what we contribute. And the rock bottom of what we contribute is obviously the guarantee of that uptime. I mean, we’ve been building, designing and developing Data Centres since 1998. And we’re even famous for our modular  design approach, I think everyone does that today 2N configurations, full power back-up,  N+1  cooling systems, so all the bare bones which are needed to be guaranteed and to be secured that your platforms going to be up and running. That’s what we’re good at, that’s our bread and butter and that’s what 95 or over 95% of people day in day out of our company are involved in with 350 people across Europe.
    Now, so colocation and top of that the customer service when you do business in Europe and looking at the marketing Europe which is very fragmented market, I mean Europe is not one market. If you’re looking at Europe as an opportunity, see it as 15 different opportunities.  You will need to localise and adapt your offering to the European market depending on what kind of end customers you want to go to. In some markets you will have to work with the SI’s because they own the customer relationships, some markets are far more open to do online business and source direct infrastructure from an online website. But there will be those local differences. And also from a customer service perspective, we try to ensure that if you’re coming to Europe and you want to do business in multiple countries, at least from your bare bone infrastructure perspective, from your Data Centre perspective, that there’s one entity, there’s one layer, there’s one service desk who helps you 24/7 and has local engineers on-site to ensure your infrastructure remains up and running.
    So those are the bare backbones of what we do and how we operate. On top of that, in-house, we provide you access to the connectivity providers. We house over 350 carriers, unique carriers and ISP’s and 20 internet exchanges across the whole of Europe, which provides you the choice of flexibility.
    We’re the largest. You think that’s bold? 
  • Jelle Frank van der Zwet
    I think that’s bold yes
  • Vincent in’t Veld
    Well let me prove it, I mean without mentioning names here, I mean we have over twice as more carriers and ISP’s than our main US competitor. We have by far the most internet exchanges in Europe, inside our Data Centres, the core nodes of internet exchanges for private peering or public peering, offloading your traffic to the eye ball, to the end consumer of your application or content. So it may be bold but at end of the day facts don’t lie.
    Zooming in on that carrier density and zooming in that connectivity which is a pivotal part of what we propose. We don’t service connectivity, we don’t offer connectivity, we don’t touch it right, we don’t sell, we don’t re-sell it. It’s the business of the customers who are inside our Data Centres.
    But it’s important to understand that for all your connectivity needs, whether it’s for aggregation of content or for interconnecting your platforms on the global scale or interconnect enterprises on the global scale, you need wavelength services, Ethernet services, dark fibre services like big fat pipes to cross the Atlantic for example, transatlantic Europe US, so we got the global carriers in-house, we got the US carriers in-house, which you may be familiar with coming from US origin. We got the domestic ISP’s which are the access to the eye balls, they have the broadband access, be it cable, be it DSL. We got all of the mobile operators in-house which are more and more important if it comes to the distribution of apps and distribution of content.  And there’s the CDN’s who help accelerate the content performance of the applications when you do business. So via our mutual room, which we call the meet me room, if you deploy your IT infrastructure in an Interxion Data Centre with one cross-connect you have access to this variety and  width of carriers, we can provide you all the bandwidth and connectivity requirements you have.
  • Jelle Frank van der Zwet
    So this brings us to the opportunity first of all I want to talk to you about system integrators and in Europe they are the most far and most important channels towards a large and medium  enterprises and let’s say for example, a service like a virtual desk-top which can be serviced over the cloud. Well in those terms, coverage is very important and having a low latency network in place gives you the possibility to maintain a high customer satisfaction level. So coverage in that term is very important to make your business case, and keep customers satisfied. But secondly for example if you’re a service provider or  you’re offering services to the consumer market, you want to reach out to the eye balls. So it’s not like putting up a website and think oh everyone will come, with our Datacentres, with our connectivity, we can reach to over 90% of the broadband connection and that’s 30% more than most of our competitors in Europe. So think about when you build your business case for  Europe and how you’re going to reach your end users and end customers.
    So besides building a business case, how do we help? Just last week we announced a very interesting project we’re doing with Microsoft, HP and NLIX an internet exchange in the Netherlands, KPN they’re the incumbent telecoms provider in the Netherlands and what we build is a cloud test lab and this is probably the first of many to come and together with Microsoft we build an environment based on the windows azure in the dynamic Data Centre tool kit. And we target this at the mid-year hosters in Europe giving them the opportunity to upgrade their offering to their customers, because if you look at America and you look at the list of service providers providing infrastructure as a service you get a long list if you look at Europe we’re a little bit behind but there’s still a lot of web hosters and email and domain service providers and they all need to upgrade their services. And this is the ideal way, of we together with Microsoft, HP and all of our other partners and helping this market get along and move forward.
    So one of the things we hope is that we can build more of these cloud test labs in the future. We’re open for partnerships.
    So is your next stop Europe? How to address European market? Well we have some simple advice not only based on our research but also based on our experience in helping customers make their business in our Data Centres.
    So create a physical presence, develop local channels, whether it’s with service providers or system integrators. It’s about building partnerships, it’s about collaboration I mean I think we’ve explained the opportunity well enough. I think we’ve shown to you that our Data Centres are the best you can get in Europe.
    So where does this leave us today we’re here to help you we hope you can help us.
  • Vincent in’t Veld
    Yeah, and Jelle mentioned an invitation a couple of times, we’re here in the next couple of days in booth number 110 and we really would like to welcome people who are looking at the business opportunity in Europe looking to build infrastructure, want it  to be at the right place where you can interconnect with the right networks and reach your end customer and you know if you’re interested in talking to us we’re out there. The results of our cloud survey, which we gave some insights to will be fully available from July and if you leave your business card with us we’re freely happy to distribute those results to you, so please register at our booth and we’re welcome the  conversation.
    Thank you for your time and attention.
  • Jelle Frank van der Zwet
    Thank you New York
  • Host
    Thank you Vincent, thank you Jelle.