Infrastructure Hosting in the Credit Crisis

Anthony FoyGroup Managing Director Interxion

www.interxion.com

Outsourcing versus in house data centre?

With the current climate as it is who is thinking of building a new data centre or expanding their existing facilities this year?

Who is thinking of outsourcing all or part of their data centre infrastructure requirements?

And who’s going to scale down?

Anthony Foy Group Managing Director Data Centre Expo March 23-24 09

www.interxion.com Source: The 451 Group and Tier1 Research (2008)

What is the rest of the market thinking?

2009 2010 2011 2012

13%

15%16%

17%

Demand for Data Centre Space is increaceing

www.interxion.com Source: Gartner (January 2009)

Why is demand for data centre space growing?

33%Enough

space for the next

36 months

24%Out of capacity

now

17%Out of

capacity within 12 months

20%Out of

capacity within 24 months

6%Out of capacity

within 36 months

More the 40 percent of companies runs out of space in next 12 months percent of

www.interxion.com Source: Gartner (January 2009)

Why is more capacity required?

General shortage of space in large cities such as London, Paris and Frankfurt

Server and Data Centre Consolidation

New Projects

Changing power and cooling requirements

Growth of:

Cloud computing including software-as-a-service

Managed hosting services

Online gaming

Social networking...

www.interxion.com Source: Gartner (January 2009)

What type of data centre can be served?

Co-location

10%Long-term

lease

6%

In house

84%

www.interxion.com Source: The 451 Group and Tier1 Research (2008)

How much do data centres cost to build?

A data centre shell and associated land costs an average of Euro 59 per square meter

A completed data centre costs on average Euro 10,900 per square meter to build - average density NOT high density

Pricing variables depend on power and cooling system density and levels of equipment redundancy

www.interxion.com Source: Gartner (January 2009)

Average data centre footprint ?

15% More than 5000 sq.

mt17%

Less than 300 sq. mt

44%300 to 1000 sq. mt

24%1000 to 5000

sq. mt

www.interxion.com Source: Gartner (January 2009)

How much Colocation space will you use in the next 24 months?

12%More than 1000 sq. mt

34%Less than 100

sq. mt

36%Between 1,000 and 300 sq. mt

18%Between 300

and 1000 sq. mt

www.interxion.com

What is Colocation?

Colocation facilities could be described as ‘internet’ data centres and are shared facilities managed by service providers

Data centre space is sold by individual rack/cabinet or cage (average: 5 - 50 cabinets)

Typical customers include hosting providers, ISPs, telcos, internet content, entertainment and social networking suppliers and mid market enterprise across vertical sectors

Most contracts are 3-5 years in length

www.interxion.com Source: IDC (2007)

Why outsourced Colocation?

Compa

ny P

olicy

Compli

ance

Acces

s to

Con

nect

ivity

Bette

r Skil

ls

Mor

e Sec

ure

Right L

ocat

ion

Flexibi

lity

Resilie

nce

Mor

e Cos

t-Effe

ctive

13%17% 20% 20% 22% 24% 27%

36%43%

Reasons for Using Colocation

www.interxion.com

Colocation – More cost-effective

Expenditure moves from CapEx to OpEx budgets – important during a credit crunch due to lack of available capital

Investment moves from high costs upfront to predictable, fixed term subscription payments

Improved total cost of ownership, leading to enhanced return on investment, especially in complex environments where power intensive equipment is deployed e.g. enhanced security, reduced utility bills etc

www.interxion.com

Colocation – Increased resilience

Guaranteed levels of uptime under stringent Service Level Agreements – of growing importance due to increasing regulations around business continuity

Partnerships with multiple network carriers to ensure failover for time-critical, high latency applications

Source: IDC (2007)

www.interxion.com

Colocation – Enhanced flexibility

Customers can be up-and-running quickly – building their own facilities takes between 12-24 months

Modular infrastructure/services, which can be provisioned and de-provisioned swiftly as required

Organisations can chose to selectively outsource elements of their IT infrastructure to handle short-term requirements for overflow capacity

Contracts generally last from between 1-3 years on average

www.interxion.com Source: Gartner (January 2009)

What do customers want their Colocation providers to look like?

16%Same

carrier as for tele-commu-nications services

35%Carrier-neutral

data cen-tre com-

pany

8%Same provider as for other

outsourced IT services

41%Best of breed

www.interxion.com Source: Gartner (January 2009)

Where do Customers want their Colocation data centres to be?

5%Anywhere in the world

59%Within easy driv-ing distance of IT operations staff

25%Within a days

drive or non-stop plane flight

11%Anywhere in the country

www.interxion.com

What Interxion provides – customer service

Largest reach of any European provider – 24 operational data centres located in 13 cities across 11 countries

Only operator with a centralised, multi-lingual European customer support centre providing:

24x7 coverage without additional costs

A single point of contact to optimise efficiency

Customer ability to use multiple sites if required

www.interxion.com

What Interxion provides – quality infrastructure and partnerships

Modular Infrastructure to support current and future customer requirements and ensure optimum energy efficiency

Carrier-neutral network services so customers can make the most cost-effective choices for themselves

Proactively managed partner community to ensure integrated, seamless service provision (500, including systems integrators, carriers ISPs and content providers)

www.interxion.com

19www.interxion.com

Interxion Market Position

11 Countries

13 Cities

24 Operational Data Centers

15 Internet / Peering Exchanges

1,100 + customers

500 + carriers

220 staff

Over 40,000 m² facilitated Space

Interxion is uniquely positioned to leverage its assets, customers, people and expertise to deliver

Premium Data Centre Services across Europe