Datacenter

Affärsmöjligheter för regionala företag?

Derek Webster

Oktober 2014

Datacenter’s

• Why Data Center's ?

• Why here ?

• Approach to Market ?

Is this your Market …

Treriksrøysa

Treriksröset

Kolmen valtakunnan rajapyykki

Location: Stable, Fast Fibre, Climate

Power: Green, Strong Grid, Competitive

Business: Market Reach, investments, Ease of ...

Meeting Point

If the Internet was a Country = top 5… and growing faster than

+ 500,000 Data Centers Globally (est.)

Colocation: 3,169 Global. USA 1,245 Europe 948 (Nordics 94) est.

Global: 2.4 Billion people connected (+3bn by 2016)

Internet = 2.9% of Global GDP ($1.7 Trillion)

The Internet – Macro Numbers ...

3.4% of GDP (13 larger economies) = 70% of global GDP

Internet 3.4% of GDP … so what ? Source: OECD 2009

Sector % Contribution of Total GDP

%

7.7% 9.7% ? X % (22% Oil & Gas)

Internet Economy: G-20 GDP = 4.1% Source: ECU,OECD, BCG 2011

A sharp acceleration from the 10% contribution over 15 years.

Most economic value created by the Internet falls outside of the technology sector. 75% of the benefits are captured by more traditional industries.

Internet : 21% GDP Growth in Developed Countries in Last 5 Years + Jobs

Jobs

France over the last 15 years 500,000 jobs lost to 1,200,000 created (2.4 gained for 1 lost).

Global view of SME’s is 2.6 gained for 1 lost.

European Commission (EC) predicts in 4 years:

– Will create + 2,000,000 jobs

– Contribute € 636 billion to GDP growth

Internet Maturity (broadband penetration) and GDP Growth

“ Internet penetration has a positive impact on economic growth”. (Myongji University South Korea after examining 207 countries)

“A clear path can be found from introducing broadband and its increased penetration to per capita GDP”. (University of Munich 2009)

Every 10% increase in broad band penetration adds 0.9 to 1.5% to per capita GDP growth. (World Bank)

Internet = Ave $500 increase per capita

GDP over the last 15 years.

The Industrial revolution took 50 years

You will need some of these … !

Where

the

Virtual

World

… Meets the Real World

more World Class Digital Meeting Points - Data Centers

100MW+ Data Center

59MW of Wind Power from

Sweden to Hamina in 2015

10 year Fixed

power $ (40%

less than UK)

Lighting UP

Teliasonera fibre speed map:

800 million people are within reach

@ 50ms from Sweden and Finland

1. Demand – Fibre & Speed 800m @ 50ms

Cloud + Top 5 visited sites

New in progress

or in planning

Artic Fibre

ROTACS

Emerald

Baltic Sea Cable

Teliasonera

1. Demand – Fibre @ 66° New Investments

Sector Demand – 2. Power What are they looking for ?

Competitive Pricing:

Be better than your neighbours

Long Term Pricing:

Incentivise Favourable Tariffs'

Green Energy * :

Hydro, Wind, Photo-Voltaic, geo-thermal, Nuclear

Security of Supply:

Control of generation, supply and ‘term’ commitment

Duel grid feels to site...(Strong grid if possible - Nordic Grid)

Green agenda:

Corporate Responsibility and Compliance

* Sustainable Power = towards Carbon Natural

The further North

the more the tax

incentive for industry

and power tariffs

o 12.5% corporate tax rate

o EU Grants

o EU HQ Location for ...

o 15% - 35% regional aid out side of the capital

o Zero Tax on servers (customs and excise)

o Data Centre tax changes due ...

EU Power prices

‘Data Centres’

#3 24.5% Total TAX

Sector Demand – 3. Location & Tax

Sector Demand 3. Location Tax & Costs

… away from a city location Service reaching marketa

Reduced operational costs

5th power costs against NYC rates

Hydro power from Niagara falls

20-year package of tax breaks to reach $30 million

Savings from a big city location : o $m’s p.a. property tax

o $10’s m saved price per acre

o $10’s m p.a. sales tax

o $10’s m p.a. lower energy

Sector Demand – 4. Speed to Market Assumed low Natural Hazards and high Political Stability

Ease of doing Business Index

Prospective Investors want to see:

o Willingness to negotiate ... $ ?

o Eco-System to deliver and operate a DC

o Access to officials

o Land Banks Green or Brown Field

o Permit Ready Include 5MW - 100MW (Process)

o Power to Land ‘Time to Site’ MW now + on grid

# 14

# 9

# 12

# 5

# 13

Nord

ic C

ross

Who are

these guys…

Luxembourg

Switzerland

Archive

Gambling

Outside the EU

Yet compiles‘ with many

EU Laws

Inside the EU

Yet compiles‘

with many

EU Laws

? Sector Demand – 5. Legal Framework

“The Internet : an interstate & international medium”

Prospective Investors want to see Clarity:

o Be clear what services are permitted in country and to the region

o What international compliance standards and affiliations’ ?

Innovate or be out of date

Innovation in business:

Simply means doing something

New

Different

Smarter

Better

…that will make a positive difference.

Lower Cost

Build. $5m / MW

More Efficient

< PUE 1.1

DC Building for Normal Challenged

Fast Build = Speed to Market

< 6 Months start to Service

+ Revenues

+ Competitive advantage

+ Reaction to Capacity

+ ROI

- CAPEX

+ Capacity

- CO2

- Energy $

- OPEX

Last 5 years

12 months

$10m MW

PUE 1.6

2010

Business Achieve What

Strategy

Profit % ROI

Risk - Level

Team / resource

Success / metrics

Management … Low High

Hig

h

Effort

Imp

act

Fill

Ins

Quick

Wins

Major

Projects

Where do you want to go …?

Hard

Slogs

Swedish wrench

Little Swede

Skiftnyckel

Swedish Key

Swedish Key

Challenging Normal … All Good

Whisky Brandy

“ Zipper ” 1900 - Patented 1913

Brand +added Value … being different isn’t enough

Aero X400 298kW Ethanol 2006

Brand +added Value … being different isn’t enough

1. Point of difference? Unique attributes - to attract clients

Attraction: Values & attributes that customers genuinely want or need.

“...only when they work with your business or buy your product...”

2. Which customers you serve the best?

Define the market segment you serve best.

3. Find your place in the competitive landscape

How your customers think your offering ranks.

How you think your offering ranks.

Know your business's market position

Data Center : What is Happening …?

Support Business Logic

Driven Automation

Cloud is growing up .

• Virtual infrastructure = resources.

• Service provisioning.

• Payment at time of use.

Software Defined Networking (SDN)

Intelligent controller and physical switches + Services and Apps.

Software Defined Data Centre (SDD)

Infrastructure virtualized & delivered as-a-service. Software Automation = HW configured & maintained by intelligent software

Points of Entry …

Approaches from FDI to:

are Meeting Points

Products & Services :

Contractors / Builder

Security

ICT

M+E

Maintenance

People …

Professional Services

To a Regional Government

Agency

Land …

Fibre - Access

Power - terms, up-time,CO2

Professional Services

ICT : In the Nordic DNA

Network Readiness

Index 2013: Top 10

Starting Points Amazing business cases to tell …

Treriksrøysa

Treriksröset

Kolmen valtakunnan rajapyykki

N

S

E W

Takk Tack Kiitos

Thank you …