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Interoute - Next-Generation Network

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  1. Interoute -Next-Generation Network TsvetanBorissov 28/04/2011

  2. Sandoz Family Foundation Who are we? Accounting Revenue Growth (€ in millions) • 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 PTT’s ’03-’10 CAGR: 51%

  3. Interoute’s competitive advantages begin with network ownership • Only 17% of Interoute’s 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

  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 Q3 2007 • 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: Europe’s largest fibre and duct reserve, and extensive Data Centre capacity • Leader in deployment of advanced network technology, including IPv6

  5. EBITDA (€ in millions) Interoute at a glance Accounting Revenue Growth (€ in millions) ’03-’10 CAGR: 51% Revenue Sector Split 2009 Headcount 2009 2004 49% 51% Wholesale Total: 929 Corporate Total: 920

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

  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, they’ll always be able to get the ideal balance of cost vs efficiency vs performance that’s right for their business.

  8. Interoute Product Family Tree

  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 Union’s duct and fibre network

  10. Interoutenetwork Invitel International Network

  11. Geneva 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 27001 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 Berlin Amsterdam London Stockholm Prague Munich Paris Madrid

  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 Bucharest Tier 4 (3) Tier 3 (6) Tier 1 (50) Source: Uptime Institute

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

  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. 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. Advanced NGN connectivity and voice portfolio Ethernet: Covering both managed and unmanaged services on our SDH and MPLS platforms, Interoute’s dual approach to ethernet provides maximum bandwidth and architecture options to our customers. SDH: Private line options from E1 to STM-64 across Interoute’s entire network footprint. Giving maximum availability and coverage from a single supplier. Wavelength: Our Wavelength network connects over 200 datacentres and IX’s 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, Europe’s 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 Interoute’s 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. Current 4 roadmap areas Roadmap LIVE is divided into 4 distinct platforms. Each platform takes responsibility for particular product areas as shown below. • UNIFIED Connectivity (UConn) • UNIFIED Communications (UComm) • UNIFIED Computing (UComp) • Transmission • Packet based network transport • Wavelength, SDH • Network Outsourcing • Wholesale bandwidth • Infrastructure • Colocation • Virtual and Dedicated Servers • Storage & Backup • Disaster Recovery & Global Load Balancing • Application Management & Professional Services • Network Security & Local Traffic Management • Internet Access • Fast Trade • Point to Point Ethernet • Ethernet VPN (VPLS) • IPVPN (MPLS) • Interoute ONE • Conferencing • VVN

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

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

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

  21. Howwe serve Customers: three case studies

  22. An operator lands in Europe and declares its independence from incumbent competitors, made possible by Interoute’s lit-fibre solution • 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. 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 Customer’s 1st line and Interoute FLM.

  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 Interoute’s 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. A European operator gets a major upgrade of capacity – fast and without additional headcount solution – with Interoute’s 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. • Interoute’s 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. Building our reputation April 12, 2010 The Forrester Wave™: European WAN Services, Q2 2010 Global Crossing, Interoute, and T-Systems are Strong Performers.Interoute differentiates its offerings by innovating; it also leads the entire pack with aggressive pricing. It’s 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