IXEurope survives the dotcom bust

Source: Technology Digital

Date :04/12/2007 10:28:07

Launched at the height of the dotcom boom and a survivor of the dotcom bust – IXEurope has emerged as one of the fastest growing datacentre services companies in Europe

Specialist datacentre company IXEurope scooped two honours at this year’s Data Centre Europe Awards – it was named Best Datacentre in Europe and Best Disaster Recovery Service Provider. The awards were real recognition of just how far IXEurope has come since the dark days when the dotcom bubble burst and the fledgling company fought – and won – the battle for survival.

Written by Felicity Landon & Produced by Kiron Chavda

Today, operating 14 datacentres in four countries across Europe, IXEurope is poised for rapid growth. Last year (2006) the company increased its turnover by 66 percent to £37 million, and in February 2007 placed £5 million of shares on the AIM in order to release capital for further expansion.

Classic outsourcing

This year analysts are predicting IXEurope’s turnover could hit £50 million, and the company is investing £21 million in building its new “London 4” facility. Due to be operational in the summer (2007), it is the first greenfield datacentre to be built in the capital for seven years. To be built in two phases, once it is complete it will offer a staggering 10,000 square metres of net space for servers.

It is part of a major investment by the company that has added four new facilities to its network; to put its size into perspective, the next largest centre in the IXEurope network offers 6,400 square metres but could be expanded to as much as 25,000 square metres.

IXEurope’s business is, essentially, to provide the box within which its customers from the enterprise, internet and networking markets can safely and securely operate their IT equipment. “We provide the building and everything that goes with it – power, temperature, connectivity, pipes, coolers, security,” says Chief Financial Officer Karen Bach.

“Just under 50 percent of our customers are corporates which need to outsource their IT and server storage, or IT outsourcers who sell on to corporates. For example, one company has 100,000 servers with us.

“It is classic outsourcing. This is our specialism. The CIO of a large corporate is far more interested in SAP or other matters and doesn’t really want to worry about the generator or whether it has been properly tested or oiled.”

IXEurope focuses on very high-spec facilities and a service level which offers power guarantees, a choice of connectivities, and round-the-clock security and support staff on site.

“Rather than having to spend £20 million on building their own datacentre, and then have it on average only 50 percent full, customers can use our facilities; they don’t have to put in the capital cost and they can vary how much space they have according to need,” says Ms Bach. “We tailor packages for them and adapt them as required.”

Independent advantages

Ultimately, IXEurope’s business model is very simple, she says…

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