We provide IT infrastructure, platform and workload solutions for enterprises and channel partners. Our latest generation cloud platform provides customers with a standardised set of modular managed IT services enabling them to build the solutions they need, without major capital expenditure, and with the flexibility to evolve the solution as their needs change. Our business is transforming towards this cloud platform from a historical focus on traditional hosting platforms. Our solutions can also be fully integrated with our network, data centre and voice services. Through our partnerships with leading technology vendors such as VMware, EMC, Solidfire, Symantec and Virtustream, we are positioning ourselves as a key facilitator of enterprise cloud. We provide integrated IT services that are efficient, flexible and secure.
We help our customers transition their IT from a more capex intensive, do-it-yourself approach to a flexible, opex-based outsourced model. We help customers integrate cloud with traditional hosting, and manage both older and emerging technologies within one seamless service. Customers benefit from our multiple locations across Europe and Asia. Our cloud platform resides in eight sites in six countries in Europe (UK, France, Germany, Spain, Italy and the Netherlands) making it one of the largest cloud footprints in Europe. We also have a cloud site in Asia (Hong Kong). Our multiple locations means customers can ensure their data is where it needs to be, totally secure and fully compliant with regulations. Our combined ownership of network, data centres and IT infrastructure facilitates fully integrated services that set us apart in this market. Everything we do can be delivered as a service, accessed when needed and paid for when used. The combination of our leading infrastructure and operational support ensure delivery of the high levels of performance, compliance and security our customers demand.
We have three key propositions on a mix of private, hybrid and multi-tenant cloud platforms:
- End users services (e.g. hosting large and complex customer virtual desktop solutions)
- Enterprise application hosting (e.g. optimised infrastructure for key application groups, such as ERP (e.g. SAP), infrastructure platforms and CRM systems)
- Business critical web hosting (e.g. Infrastructure-as-a-Service e-commerce platforms and other business critical applications)
Our customers vary from SMEs to large multinational enterprises, systems integrators and cloud service providers.
This year we completed the creation of our foundation cloud platform suite and have commenced the process of transitioning customers off legacy platforms. Our new cloud platform supports all our products and services and provides greater efficiency and scale as well as an improved end-to-end service experience for our customers. We also focused our product portfolio onto three key product areas where we see traction in the market and this helped us secure some significant customer wins. We were once again recognised as a "Leader" in Gartner's 2014 Magic Quadrant for Cloud-Enabled Managed Hosting, Europe1.
For 2014, IT Services posted a revenue decline of 2.4% associated mainly with proactive churn in the legacy hosting business. The EBITDA loss increased to €25.8m (2013: €19.6m) associated with the investments in cloud services and the costs of the transformation of the business initiated towards the end of the first half of 2014.
The strategy for IT Services is to maximise return on investment through:
- Focus on key enterprise IT service markets: Target mid-sized enterprises in Europe and Asia, which require modular IT solutions rather than specialised and tailored IT services or commodity solutions; focus our offering into standardised, repeatable and value-enhancing solutions in the three areas of end user services, enterprise application hosting and business critical web hosting.
- Focus on customer experience: Continue to drive standardisation and ease of implementation and use of our products.
- Focus on asset efficiency: Target improved cost efficiency and profitability by rationalising and reducing our platforms and portfolio of services to better serve our customers.
- Gartner, Magic Quadrant for Cloud-Enabled Managed Hosting, Europe, Tiny Haynes, Gianluca Tramacere, Lydia Leong, Gregor Petri, Douglas Toombs, Bob Gill; July 2014. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organisation and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.