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1 Interoute - Next-Generation Network Tsvetan Borissov 28/04/2011.

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Presentation on theme: "1 Interoute - Next-Generation Network Tsvetan Borissov 28/04/2011."— Presentation transcript:

1 1 Interoute - Next-Generation Network Tsvetan Borissov 28/04/2011

2 2 Who are we? Operates in 29 European countries Serves more than 3000 European and USA customers Owns and operates one of the largest and most advanced voice and data networks in Europe EBITDA positive 2009 & cash flow positive 2010 Key supplier of services to all European PTTs Sandoz Family Foundation Accounting Revenue Growth ( in millions) CAGR: 51%

3 3 Only 17% of Interoutes 48 fibre pairs are currently being used, allowing for rapid, cost-effective deployment of new bandwidth Future proof network: new fibres can be deployed in spare duct as new fibre technologies emerge Total build cost: 2.7 billion Interoutes competitive advantages begin with network ownership

4 4 Company highlights Fully-Owned Pan-European Network Asset Centrally managed, locally operated, offering service/support in 15 European languages Strong EBITDA growth (67% year-on-year, to 40m 2009); EBITDA+ since Q Operational Cashflow Positive, self-funded business Continued growth through recession Exceptional Operational Gearing and high Gross Margins (70%+) Established presence in two markets: wholesale and corporate Bridge between East and West, North and South Scalable Next Generation Network Future-proofed: Europes largest fibre and duct reserve, and extensive Data Centre capacity Leader in deployment of advanced network technology, including IPv6

5 CAGR: 51% Interoute at a glance EBITDA ( in millions) Accounting Revenue Growth ( in millions) Revenue Sector Split 2009 Headcount Total: % 51% Wholesale Corporate Total: 920

6 6 Our customers Retailers Financial Services Service Industry Government & Government Channels Network Operators Industrials

7 7 Value - From the Ground to the Cloud We offer a broad portfolio, ranging from physical network based products (the Ground) to virtual network-based services (the Cloud). Our virtual network-based services perform better because we own and manage the underlying physical network. Customers can choose how much of their ICT infrastructure they want to build and manage for themselves, and how much they want us to manage for them. And because customers can change the ratio of what they manage vs what Interoute manages as their business needs change, theyll always be able to get the ideal balance of cost vs efficiency vs performance thats right for their business.

8 Interoute Product Family Tree

9 9 55,000 km lit fibre 28 countries connected 99 cities connected 21 city networks 59 data centres 8 landing stations Interoute serves as the European Unions duct and fibre network

10 Invitel International Network Interoute network

11 11 Including 8 core networked data centres with managed services All networked and integrated on backbone to support geographic fallback via virtual server and the full product range Provides a pan-European platform for the delivery of network-centric ICT services ISO equivalent certified: Amsterdam, Berlin, Geneva and Munich Well suited to serve the growing demands of virtualization 24/7 hands-and-eyes service offered at the nine facilities illustrated on this page Prague Data Centre in blue is an internal DC for the Interoute NOC Amsterdam Geneva London Berlin Madrid Munich Paris Stockholm Prague

12 12 Plus 50 additional fibre-connected data centres 59 Datacentres 3 Tier 4 6 Tier 3 50 Tier 1 32 of the Tier 1 centres can be upgraded to Tier 2 with the addition of a UPS Current plans to build virtual service centres in Rotterdam, Dusseldorf and Brussels Fully redundant service centres using virtualisation to minimise building upgrade cost 3 Source: Uptime Institute Bucharest Tier 4 (3) Tier 3 (6) Tier 1 (50)

13 13 What Interoute brings Imagine the potential Your passport to flexibility

14 14 What Interoute brings: Imagine the potential Your need for flexibility Easy changes when you need them – not when contract allows Single platform – Interoute does not have the silo based product mentality that other large carriers do and we work for the customer, not against them Network outsourcing services Add new services in software – temporary, permanent, short-term, long-term Move applications into the cloud at your own pace An end to forklift upgrades – less disruption and a more transparent service cost Unique Advanced NGN connectivity services Delivering all services over a single network platform Making VPLS available in over 25 countries Bringing commercial innovation to make it contractually painless to change services

15 15 Interoute: Your passport to flexibility Future-proofed Whatever service you buy today, make sure that your network can provide the services that you need for the coming years Services delivered as software, making provisioning quick and simple The Interoute Response Common contract & SLA structure Services with the same cost base, same price (no technology premium) Change logical services without changing your contract term Software services can be purchased for as little as 1 month

16 16 Advanced NGN connectivity and voice portfolio Ethernet: Covering both managed and unmanaged services on our SDH and MPLS platforms, Interoutes dual approach to ethernet provides maximum bandwidth and architecture options to our customers. SDH: Private line options from E1 to STM-64 across Interoutes entire network footprint. Giving maximum availability and coverage from a single supplier. Wavelength: Our Wavelength network connects over 200 datacentres and IXs in 72 cities across 19 countries with a 10 day delivery option. Allowing you to get the capacity you want, where and when you need it. Dark Fibre: Backed by fully owned colocation centres, Europes most future-proof, homogenous fibre network provides the efficient, long term flexibility and assurances you need to build your next generation networks. Duct: >18,000Km of Duct network owned and operated by Interoutes extensive O&M program. IP Services: Interoute offers two IP Transit services: Global Transit advertising routes to all Internet destinations, and Euro Transit advertising a partial routing table of Interoute's direct customers and peers. The choice gives you better control over your IP cost base. Channel VPN: The Interoute Channel IP Virtual Private Network (IPVPN) service provides Partners with an efficient, scalable, and flexible way of connecting sites in multiple locations and countries in order to provide their end customers a single wide area network capability.

17 17 Current 4 roadmap areas Transmission UNIFIED Connectivity (UConn) Colocation Virtual and Dedicated Servers Storage & Backup Disaster Recovery & Global Load Balancing Application Management & Professional Services Network Security & Local Traffic Management Interoute ONE Conferencing VVN Internet Access Fast Trade Point to Point Ethernet Ethernet VPN (VPLS) IPVPN (MPLS) UNIFIED Computing (UComp) UNIFIED Communications (UComm) Packet based network transport Wavelength, SDH Network Outsourcing Wholesale bandwidth Infrastructure Roadmap LIVE is divided into 4 distinct platforms. Each platform takes responsibility for particular product areas as shown below.

18 Unified Transport Network IP / MPLS UC UT Site A Site B UC UT Site D VLAN2 LSP VLAN2 VLAN1 VLAN2 Svc 1 Svc 2 Site C LSP VLAN3 Svc 3 EVC4 Svc4 EVC1 VLAN1 EVC2 VLAN2 EVC3 VLAN3 EVC4 Svc 4 EVC1 VLAN1 EVC4 Svc4 EVC2 VLAN2 EVC1 VLAN1 UT Switch PER UT Switch Site X Site Y Unified Transport Network: UT Packet Solution Svc 1 Svc 2 Service 1 is Point-2-Point Ethernet Svc 3 Svc 4 Service 4 is Fast Trade Service 2 is Layer 2 (VPWS) VPN Service 3 is Internet Access Svc 1Svc 2 Svc 3 VLAN1 VLAN2 VLAN3 Svc 4 EVCx VLANx Svc x Svc 4

19 19 What Interoute can do Local DSL Provider The IP Network Customer Firewall TDM PBX Voice gateway Ethernet Backup Internet Central Media Livestream Regional Main Office E1 Primary DSL Backup Ethernet Primary IP/Soft Phone Customer HQ Internet PSTN Interoute One Softswitch Remote Site/ Remote Client Branch Office(s) DSL Primary 3G Backup IP PBX DDoS Protection & Network Security Data Centre Internet Local Breakout Virtual Hosting Colocation Complex Dedicated Hosting Partner MPLS Network Off-net Office(s) Point to Point Ethernet Customer Server Microsoft OCS Mobile Network Operator

20 Customer Web Portal Billing Information Invoice history SLA Reporting All network related SLA parameters (RTD, Packet Delivery, Site Availability Performance Monitoring Utilisation Real Time (to 5 minutes) Service Management Order Progress Trouble Ticket information View status Raise a ticket Gives in depth information to IT managers about their network and service performance

21 21 How we serve Customers: three case studies

22 22 An operator lands in Europe and declares its independence from incumbent competitors, made possible by Interoutes lit-fibre solution Initial build: Interoute acquired and integrated: Fibre, Colocation & Equipment Ongoing Support: Interoute provide FLM, 2nd and 3rd Line support; Customer NOC covers 1st line support; Both NOCs monitor the network; Interoute provide a spares warehousing and management service; New services are provisioned using Customers 1st line and Interoute FLM. Customer need: Customer had a strong domestic skill set but did not want to deploy in-house staff across a large European footprint. Interoute solution: The route consisted of four sections: Timisoara – Vienna (x2); Vienna - Frankfurt (x2) Network deployment of 3700Km 70% of the fibre route was off-net. Project Timescales: Negotiation & Design 2 Months Delivery & Integration 3 Months Customer accelerated their time to market by 12 months and met their own high-capacity demands.

23 23 A non-telecoms operator sought a pan-European solution for the construction and deployment of a secure network, which Interoute built and now helps to manage Customer need: Customer had a strong skill base at a different technology layer and needed Interoute to provide a layer 1 skill set, and to guarantee security. Interoute solution: A 9,000 km, Pan-European fibre network was provisioned – including acquisition of equipment sourced. The subsequent network is managed by Interoute. How was it built? About 75% of the network was on Interoutes backbone; Interoute dug another 2% of the required route; Interoute acquired 3rd party fibre for the remaining 23%. The project, from start to finish, was 6 months. Initial customer equipment was integrated into a service package providing integrated Fibre, Colocation and equipment support. Ongoing Support: New Equipment acquisition and provisioning; DCN network Hands and Eyes; Ongoing Spares management ; Equipment Hands and Eyes Service; Customer retains NOC control of the network.

24 24 A European operator gets a major upgrade of capacity – fast and without additional headcount solution – with Interoutes Optical Private Network (OPN) Customer need: An operator was facing rapidly expanding DSL penetration, and thus surging backhaul capacity demand. But they did not want to deploy in-house staff across a large European footprint. And they needed a solution fast. Customer required a solution that would quadruple their pan-European capacity while providing network resiliency. Interoutes solution: a diverse 800Gb Optical Private Network covering Bari, London and Frankfurt. With option for intermediate drops at 8 other cities. The solution went from initial enquiry, through design, price negotiations, contracting, delivery and commissioning and handover within 5 months.

25 25 Unified Connectivity: A revolution in access 25 The Access Options: DSL Leased Line Ethernet The Services: Internet Access Point-to-Point Ethernet Layer 2 (VPLS) VPN Layer 3 (MPLS) VPN Access to Voice Access to Private/Public Clouds Unified Connectivity Service Gateway Customer Network Simplicity: 1. Choose Location 2. Choose access line - Cost - Bandwidth - Number of users - Performance/SLA - Resilience requirements 3. Choose service(s) - 1 or more services - Short or long term

26 26 Interoute Unified Connectivity: Provides a single, scalable platform Robust SLAs; single contract Hybrid solutions and services that change on demand Services independent of access circuit Flexible. Scalable. Simple. How is UConn different? - Flexibility and Scalability IPVPN VPLS Internet Voice Hosting Ethernet Leased Line xDSL* Ethernet Unified Connectivity Service Gateway Unified Connectivity Service Gateway Unified Connectivity Service Gateway

27 27 Building our reputation April 12, 2010 The Forrester Wave: European WAN Services, Q Global Crossing, Interoute, and T-Systems are Strong Performers. Interoute differentiates its offerings by innovating; it also leads the entire pack with aggressive pricing. Its converged access service (Unified Connectivity) is innovative it can offer multiple services including VPLS over xDSL access circuits. Its IP VPN service offers particularly aggressive pricing and strong SLAs; flat rate, simple pricing; and end-to-end SLAs as standard for the last four years, and is now moving to application performance SLAs. It offers self-provisioning of any soft order. MNCs should consider using Interoute as part of a multisourcing strategy

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