drawing customers north - september, 2016

Drawing Customers North … Discover How Off-Shore Nordic Data Centers Can Bring Big Business to Scandinavia

Datacenter Forum, Copenhagen, 2016ADVA Optical Network SE

© 2016 ADVA Optical Networking. All rights reserved. Confidential.2

The Beauty of the North

• Video ADM card • IRT test report • Close cooperation with customer • Strong market presence• Dedicated GBD support

Analyses Mason, Boston Consulting Group.

Investments

-

2.0

4.0

6.0 5.6

2.6 1.9 1.5 2.0 2.2 2.0 1.9 1.4 1.0 1.2

3.3 Electricity Price Factor

Cost of Electricity

http://appsso.eurostat.ec.europa.eu/nui/submitViewTableAction.do

Denmark has the highest electricity costs due to high

tax / levies Sweden and

Norway will draw customers north

Europe holds the largest share of

investments

$10.4 billion / 31%


Where Big Is Located Public Data Centers Scandinavia

€3.3 billion investment in the NordicsSource: Telegeography


Size Isn’t Everything

• Poland, Germany, Switzerland • 118 main nodes • 46 ILAs • 10G / 100G / 400G services• native video transport services

Public Cloud Usage

Four Trends in the Data Center Market

Outsourcing including customization will be 2nd largest part of the data center market by 2020


Why Bigger Isn’t Always Better• Customized hosting, colocation, hybrid and out-sourcing offerings

• Support of legacy IT workflows (synchronous data mirroring, MF / server cluster) • Twin data center architecture (less than 200km apart) • Preference to use customer-specific technology• Tendency to implement encryption with in-house key management• Flexibility to implement customer-specific policies and governmental regulations

• Secure data center access

• Support of secure connectivity to customer HQ and main sites • Support of secure connectivity to customer branch offices

Carriers may offer Encryption as a Service as part of their service portfolio


Connecting Customers to the North


Data Center Connectivity Architecture

Hosting Provider

Cloud Service Provider

Internet

Branch Office

Main Data Center

Customer DCI1

123

DC InterconnectPublic Cloud InterconnectBranch Office ConnectivityEncrypted Connectivity

Host/CSP DCI1

Customer DCconnected toHost/CSP DC

2

Access to Host/CSP DC

3

Customer Branch Office


Connecting Customers North

• Benefits of the Nordics Lowest cost of electricity Most economical hosting including connectivity Highly skilled employees (IT and data center) Political stability and international trust Green IT fueled by renewable and reuse of energy Competitive telecom network infrastructure

• Data center architecture Tier 3+ data center type Twin data center architecture Meet-me rooms

• Legacy IT Disaster recovery (twin data centers <200km) Business continuity (twin data centers <100km)

• Differentiators Legacy IT support Secure and scalable connectivity Free “shuttle bus” to off-shore data centers

Helsinki

Amsterdam

Frankfurt

CLine

Baltic Highway

Others

Copenhagen

Östersund

Oslo Stockholm

Hosting DCMeet-Me Room


2010 2011 2012 2013 2014 2015 2016 total -

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

7 221 928

1,875

3,742

7,552

14,213

Secure Connectivity at a Glance Encrypted 10G links in operation

Data center interconnect is the main applicationSecure WAN connectivity becomes relevant for large enterprise customers

100G link = 10 x 10G links

Status 06.09.2016 FSS MSP Cloud HC F500 GOV Utility T&L R&E M&E -

1,000

2,000

3,000

4,000

5,000

6,000

-5.0%

5.0%

15.0%

25.0%

35.0%

45.0%

55.0%53.6%

18.6%

10.0%6.2% 4.5% 4.5%

1.3% 0.9% 0.3% 0.1%


Motivation - Critical Infrastructure in EuropeSituation • 90% of all large enterprises are victims of cyber attacks

• 38% increase in outside attacks including penetration of networks

• Cyber espionage affects mainly manufacturing and public institutions

Politics • IT Security Act for Critical Infrastructure Protection

• Mandatory notification of security incidents• Appointment of corporate internal IT security officer• Fulfillment of minimum requirements for IT security and periodic certification

• EU - directive on network and information security (planned)


Markets, Revenue, Customers

• Early adopters of BSI cards

Government

Healthcare

Utilities

Critical infrastructure

Markets

2019 > 5.000 x 10G links

Market Acceptance

> 100

> 200

> 100

> 300

PotentialCustomers

BSI approved connectivity will motivate customers to move north


Summary


Summary• Service portfolio• Architecture • Data center type• Latency• Security• Bandwidth• Meet-me rooms • Service bundling as the key differentiator


ADVA Optical Networking’s Solution

• Scalable bandwidth

• Secure connectivity

• Real-time programmability

ADVA Optical Networking’s Fiber Service Platform:secure, scalable and programmable connectivity for all users

Thank You

IMPORTANT NOTICEThe content of this presentation is strictly confidential. ADVA Optical Networking is the exclusive owner or licensee of the content, material, and information in this presentation. Any reproduction, publication or reprint, in whole or in part, is strictly prohibited.

The information in this presentation may not be accurate, complete or up to date, and is provided without warranties or representations of any kind, either express or implied. ADVA Optical Networking shall not be responsible for and disclaims any liability for any loss or damages, including without limitation, direct, indirect, incidental, consequential and special damages, alleged to have been caused by or in connection with using and/or relying on the information contained in this presentation.

Copyright © for the entire content of this presentation: ADVA Optical Networking.

http://www.linkedin.com/company/adva-optical-networking

http://twitter.com/ADVAOpticalNews

http://www.facebook.com/pages/ADVA-Optical-Networking/37630238931?ref=ts#!/pages/ADVA-Optical-Networking/37630238931?v=wall

http://www.youtube.com/user/ADVAOptical

http://advaopticalnews.tumblr.com/

http://www.slideshare.net/ADVAOpticalNetworking

drawing customers north - september, 2016

Technology