Case Study

A Company Profiling

Interoute Communications Limited

By: Kartik Karan

Case Study Presentation - Overview

o Company Profile o History o Company Overviewo Organizational Structureo Management teamo Infrastructure Capabilityo Portfolioo Strategic focuso SWOT Analysis o References

Company Profile• INTEROUTE (Interoute Communication Limited)Company Name

• Information Technology & TelecommunicationsCompany Type

• London - 31st Floor 25 Canada Square, Canary Wharf London, E14 5LQ, United KingdomHeadquarter

• Privately held by Sandoz Family Foundation and Emirates International Telecommunications Public/Private

• EUR(€) 425 million, adjusted EBITDA of EUR 92.5 million (end of fiscal year 2014)Revenue

• Pan-EuropeanPrimary Market

• 1001-5000 EmployeesEmployee

• MNCs, Large Entreprises, SMEs, Public SectorTarget Customer

• European Space Agency, Airbus, DHL, LG, W E, Royal Talens, BrabantiaKey Customer

• Fixed connectivity, VPN services, managed hosting, unified communications & IP telephonyService Line

History• Interoute, a privately held company by the Sandoz Family Foundation• It was formed in mid-2002 with a vision to connect the business hubs of

Europe with Europe's largest, fastest and most advanced fiber optic network. • Completed in 2002, today this network forms a massive platform connecting

nearly 250 data centers and colocation facilities across Europe, and interconnecting America, Africa and Asia.

• Physical infrastructure was supplemented through a series of acquisitions- – July, 2002 Interoute acquired the Ebone portion of the KPNQwest NV network,

gained eight high-capacity Metropolitan Area Networks (MANs)– Between years 2003 and 2007, It acquired Virtue Broadcasting’s Media Services

Division, Central European Communications Holdings BV (CECOM) and its operating subsidiaries in different locations

– Oct, 2014 they acquired Vtesse Group to expand cloud services portfolio – Sept, 2015 Interoute reaches agreement to acquire Easynet.

Company Overview• Interoute Communications Limited, an international telecommunications

service provider, owns and operates a cloud service platform.• It is one of the Europe's largest networks which encompasses 12 data

centers, 14 virtual data centers and 31 colocation centers, with connections to 195 additional third-party data centers across Europe.

• Interoute’s full-service Unified ICT platform serves international enterprises and many of the world’s leading service providers, as well as governments and universities.

• Interoute’s Unified ICT strategy provides solutions for enterprises seeking connectivity and a scalable, secure advanced platform on which they can build their voice, video, computing and data services, as well as service providers in need of high capacity international data transit and infrastructure.

• With established operations throughout Europe and USA, Interoute also owns and operates 24 connected city networks within Europe's major business centers.

Organizational StructureBoard of Directors

Gabriel Prêtre (Non-Executive Chairman)Robert McNeal(Vice Chairman)Brian Cassidy(Crestview Partners)Hugues Lepic(Aleph Capital Partners)

Gareth Williams(Chief Executive Officer)

Chief Executive Officer Chief Technology Officer

Chief Financial Officer

Group General Counsel

EVP, Corporate Development

VP, Human Resources

EVP, Group Solutions and Security

EVP, Enterprise Solutions

EVP, Service Provider

EVP, Communications & Connectivity

EVP, Customer Operations

EVP, Platform Engineering & Operations

EVP, UK Sales

Management

Infrastructure Capability• Interoute is the owner-operator of one of

Europe's largest networks

• It is a global cloud services platform which encompasses - 12 Data Centers 14 Virtual Data Centers 31 Colocation Centers 10 Subsea Landing Station 195 Connected Partner Data Centers. 70,000 Routes kilometers of Fibre

• Its full-service Unified ICT platform serves international enterprises and many of the world’s leading service providers, as well as governments and universities.

Portfolio

Computing services

Cloud Services

Managed Hosting

Data Centre Services

Colocation

Strategic Focus• Interoute’s strategic focus is on ISO 27001 and ITIL service management• Extensive infrastructure ownership• Assurance of security and quality • Exploiting its own pan-European fiber network within its enterprise

segment(creates a key competitive advantage)• Facilitating a single platform for –

Unified Connectivity Unified Communication Unified Computing

• Empowering enterprises to meet the challenges for their business technology within interoute’s data centers.

SWOT Analysis• Best Cloud Service Provider • Offer high bandwidth at very

low cost• Significant experience with

enterprise video delivery including multi vendor support for Cisco, Skype, Lifesize and Polycorn

• Leader in Gartner’s Cloud Enabled Managed Hosting, Magic Quadrant Europe - 2015

• Enterprise mobility is a weakness for Interoute when compared with other.

• Not a significant network infrastructure in Asia or North America

• Business is skewed towards Europe and Interoute account base, personnel and brand recognition are Europe centric

• Consistent pricing pressure due to highly competitive network segment

• Significantly smaller (in term of revenue & manpower) than many European CSPs – BT, Orange, T-systems, etc.

• Increase in global labor costs

• Global market• Rapidly raising funds from its

shareholders since mid-2015• New private equity investors

(Aleph Capital Partners and Crestview Partners)

• Move Interoute to a services-based company.

Strength Weakness

ThreatOpportunities

References• www.interoute.com• www.wikipedia.org• www.bloomberg.com• www.hoovers.com• www.crunchbase.com• www.datafox.com• www.gartner.com• www.linkedin.com• www.mynewsdesk.com• www.google.com/images

Thank You