On October 4, 2018, at Interxion’s analyst day in Madrid, the company outlined its strategy for future revenue growth: foster business ecosystems to grow data centers into gravity hubs. Interxion’s initial ecosystem success was for the financial trading vertical. Interxion is now targeting cloud and video markets for future growth.
Interxion sets sights on 10 million unserved cloud customers
Building a gravity hub begins with identifying the opportunity, deploying the data center inventory, and attracting the initial anchor communications service provider (CSP) tenants. Cloud providers deploy in data centers with the most attractive access networks. With lead CSP and cloud providers in place, others now become attracted and the network effect takes hold.
Enterprises desire multicloud options and will favor data centers with their desired cloud partners. A data center with hundreds of CSPs also provides the most competition for connectivity requirements.
Interxion’s framework for growing its cloud ecosystem is to follow the GDP, identify the underserved markets, land the anchor CSPs and cloud providers, and attract early adopters to build the track record of wins and testimonials.
Interxion has identified a total addressable market of 10 million potential cloud clients within Europe. It will leverage the sales and IT experience of its systems integrator partners, differentiating on their locally deep data center inventory and European market knowledge.
Video delivery is rapidly evolving: Netflix is developing content, Facebook has rights to show La Liga games in India, and Amazon has purchased English Premier League rights. The new model is to deploy CDN capabilities close to the consumers to ensure high-quality performance. Video drives massive traffic.
Interxion employs a centered approach to finesse this complex set of interrelationships to continue to grow the cloud business. Interxion’s well-cultivated relationships with the cloud community put it in a strong position for rapid growth within the new video delivery model.
“Digital Realty Trust pursues the global cloud market, adds Brazil,” SPT003-000023 (September 2018)
“Comcast Business builds "gig-speed" Ethernet momentum,”SPT003-000024 (September 2018)
Market Share Spreadsheet: 2Q18 Data Center Interconnect (DCI), SPT002-000118 (August 2018)
Global Data Center Analyzer: 2018, SPT003-000018 (August 2018)
Ian Redpath, Practice Leader, Components, Transport and Routing