Dieter Will was in Copenhagen for Datacenter Forum 2016 outlining how off-shore Nordic data centers have several key advantages when it comes to winning big business.

1. Drawing Customers North …
Discover How Off-Shore Nordic Data Centers
Can Bring Big Business to Scandinavia
Datacenter Forum, Copenhagen, 2016
ADVA Optical Network SE

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The Beauty of the North
• Video ADM card
• IRT test report
• Close cooperation with customer
• Strong market presence
• Dedicated GBD support
Analyses Mason, Boston Consulting Group.
Investments
5.6
2.6
1.9 1.5
2.0 2.2 2.0 1.9 1.4 1.0 1.2
3.3
-
1.0
2.0
3.0
4.0
5.0
6.0 Electricity Price Factor
Cost of Electricity
http://appsso.eurostat.ec.europa.eu/nui/submitViewTableAction.do
Denmark has the
highest electricity
costs due to high
tax / levies
Sweden and
Norway will draw
customers north
Europe holds the
largest share of
investments
$10.4 billion / 31%

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Where Big Is Located
Public Data Centers Scandinavia
€3.3 billion investment in the Nordics
Source: Telegeography

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Size Isn’t Everything
• Poland, Germany, Switzerland
• 118 main nodes
• 46 ILAs
• 10G / 100G / 400G services
• native video transport services
Public Cloud Usage
Four Trends in the Data Center Market
Outsourcing including customization will be 2nd largest
part of the data center market by 2020

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Why Bigger Isn’t Always Better
• Customized hosting, colocation, hybrid and out-sourcing offerings
• Support of legacy IT workflows (synchronous data mirroring, MF / server cluster)
• Twin data center architecture (less than 200km apart)
• Preference to use customer-specific technology
• Tendency to implement encryption with in-house key management
• Flexibility to implement customer-specific policies and governmental regulations
• Secure data center access
• Support of secure connectivity to customer HQ and main sites
• Support of secure connectivity to customer branch offices
Carriers may offer Encryption as a Service as part of their service portfolio

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Connecting Customers to the North

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Data Center Connectivity Architecture
Hosting Provider
Cloud Service Provider
Internet
Branch Office
Main Data Center
Customer DCI
1
1
2
3
DC Interconnect
Public Cloud Interconnect
Branch Office Connectivity
Encrypted Connectivity
Host/CSP DCI
1
Customer DC
connected to
Host/CSP DC
2
Access to
Host/CSP DC
3
Customer
Branch Office

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Connecting Customers North
• Benefits of the Nordics
 Lowest cost of electricity
 Most economical hosting including connectivity
 Highly skilled employees (IT and data center)
 Political stability and international trust
 Green IT fueled by renewable and reuse of energy
 Competitive telecom network infrastructure
• Data center architecture
 Tier 3+ data center type
 Twin data center architecture
 Meet-me rooms
• Legacy IT
 Disaster recovery (twin data centers <200km)
 Business continuity (twin data centers <100km)
• Differentiators
 Legacy IT support
 Secure and scalable connectivity
 Free “shuttle bus” to off-shore data centers
Helsinki
Amsterdam
Frankfurt
CLine
Baltic Highway
Others
Copenhagen
Östersund
Oslo Stockholm
Hosting DC
Meet-Me Room

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7 221
928
1,875
3,742
7,552
14,213
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
2010 2011 2012 2013 2014 2015 2016
total
Secure Connectivity at a Glance
Encrypted 10G links in operation
Data center interconnect is the main application
Secure WAN connectivity becomes relevant for large enterprise customers
100G link = 10 x 10G links
Status 06.09.2016
53.6%
18.6%
10.0%
6.2% 4.5% 4.5%
1.3% 0.9% 0.3% 0.1%
-5.0%
5.0%
15.0%
25.0%
35.0%
45.0%
55.0%
-
1,000
2,000
3,000
4,000
5,000
6,000
FSS MSP Cloud HC F500 GOV Utility T&L R&E M&E

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Motivation - Critical Infrastructure in Europe
Situation
• 90% of all large enterprises are victims of cyber attacks
• 38% increase in outside attacks including penetration of networks
• Cyber espionage affects mainly manufacturing and public institutions
Politics
• IT Security Act for Critical Infrastructure Protection
• Mandatory notification of security incidents
• Appointment of corporate internal IT security officer
• Fulfillment of minimum requirements for IT security and periodic certification
• EU - directive on network and information security (planned)

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Markets, Revenue, Customers
• Early adopters of BSI
cards
 Government
 Healthcare
 Utilities
 Critical infrastructure
Markets
2019 > 5.000 x 10G links
Market Acceptance
> 100
> 200
> 100
> 300
Potential
Customers
BSI approved connectivity will motivate customers to move north

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Summary

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Summary
• Service portfolio
• Architecture
• Data center type
• Latency
• Security
• Bandwidth
• Meet-me rooms
• Service bundling as the key differentiator

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ADVA Optical Networking’s Solution
• Scalable bandwidth
• Secure connectivity
• Real-time
programmability
ADVA Optical Networking’s Fiber Service Platform:
secure, scalable and programmable connectivity for all users

15. Thank You
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