IT Club : Lloyd s and London Insurance Market

Transcription

1 IT Club : Lloyd s and London Insurance Market IXEurope Datacentres Setting the Standard Guy Willner, Chief Executive Officer, IXEurope

2 In-house datacentre Significant and continued financial investment Expertise to build a datacentre to today s standards In-house Datacentre? Insurance Industry Challenge... Reducing datacentre TCO while increasing business agility Specialist resource to support and manage the datacentre environment for maximum availability Practicalities in building redundant and diverse infrastructure Managing the complexities and environmental issues of power and cooling Need to be the best in insurance not in running datacentres

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4 Outsourced Datacentre? > Benefits Speed up transactions Compete more efficiently Reduce IT management costs Reduce management overhead spent on DC issues Add to credibility Operate as a major player Access to markets without associated pain

5 Outsourced Datacentre? > Cost Benefits CAPEX, OPEX, resource and time Benefit from TCO savings of as much as 40% in first five years Ongoing management costs which can be anywhere between 50 75% of the TCO Overcome impact of low utilisation, corporate datacentre average occupancy is between 60 70% Sharing costly resources such as power, technical skills, support staff, security, monitoring and management tools

6 Outsourced Datacentre?

7 Capital Investment Economically and commercially out of the question Leasing the space Datacentre infrastructure Uninterruptible power supply Precision cooling systems Fire suppression facilities Security, biometric and surveillance systems Control, monitoring and management tools Can cost around 80% more than outsourcing Construction costs can easily run up to EUR 4,350 per m2 Compared to around EUR 400 per m2 to fit out a datacentre suite Not forgetting the need to show a return on investment

8 Impact of Occupancy Corporate datacentre average occupancy rate over the life time is 60 70% (sometimes as low as 15%) Facility over specified at design stage (approx 10%) Space required for access corridors, UPS and cooling plant requires additional 15% of space Datacentres filled over time, leading to empty space during first years of deployment Organisations that reach unplanned maximum capacity can experience significant operational problems and need for rapid investment

9 Other Cost Implications Surprising proportion of setting up costs: Time spent searching, negotiating, planning, designing, specifying and project managing the build Dealing with legal aspects Opportunity cost of taking key resource away from core business for 12 months to manage the project

10 Operational Expenditure Intangible and very costly to support 24/7/365 operations Building lease costs (or interest) Maintenance Insurance and Finance Security Round-the-clock support Power charges Connect fees Staff overheads Operation costs up to EUR 600 per m2 per month Save 33 60% by outsourcing the datacentre Pay-as-you-grow reduces cost of under utilised datacentre space

11 Sharing Datacentre Resources Sharing outsourcers costs with other companies Benefit from significant economies of scale Cost savings on power through group purchasing power and more efficient power infrastructure Competitive carrier connectivity can save up to 40% of network costs Technical skills employed on a round-the-clock basis Contracted service level agreements supported by people, processes and management tools which minimises the cost of downtime Maintenance of facilities to ensure that infrastructure does not become outdated

12 Outsourced Datacentre? > Quality of Service Strategic value of the quality of service Level of build significantly surpasses current corporate datacentres Able to provide the level of resilience required by the business Designed and upgraded to the highest specification 1,000 Watts/m2 to support high density computing N+1 as standard Uninterruptible power supply and environmental control systems Modular and modifiable design Rigorous application of service quality standards

13 Outsourced Datacentre? > Core Business Foundation of IT infrastructure First point of pain in the event of failure Direct impact on profitability and reputation But does not add strategic value to the business Align resource to with insurance business priorities Access higher levels of service, performance and resilience

14 Deutsche Boerse Group A Customer Case Study The Customer Deutsche Börse Systems (DBS) a 100% subsidiary of Deutsche Börse Group develops, builds and operates the trading, clearing and settlement systems. The Challenge Launch Proximity Services to the trading community in 2006 Particularly those using algorithmic and alternative trading strategies Highly dependent on execution speed DBS required colocation in close proximity to its infrastructure gateway Connectivity to the exchange back-end Solution Proximity Services jointly developed and launched in 2006 IXEurope offers co-location as part of IXFX, IXEurope s Financial Exchange Datacentre Solution Enables financial trading organisations to co-locate trading applications in close proximity to Deutsche Boerse within the IXDatacentre in Frankfurt.

15 Deutsche Boerse Group Results Proximity Services provide ultra low latency connection and beat propagation delay This is dependant on the physical distance and is a substantial time factor in networks Reduced execution speeds to an absolute minimum In less than four months over a dozen customers contracted the service. Ricardo Naon, CIO, Nico Trading: By moving our core Eurex trading system from Chicago to IXEurope s datacentre in Germany and using Proximity Service we are seeing a net reduction in latency from around 130 milliseconds to less than 20 milliseconds. Our automated trading systems benefit from, among other things, low message latency so this upgrade is making the difference between a successful and an unsuccessful trade, especially in high volume commodities markets. Michael Kuhn, CIO of Deutsche Börse Group and CEO of Deutsche Börse Systems: By offering Proximity Services, we are responding to the growing market demand for low latency access to our execution venues and our market data streams. This is a further example of the innovative customer solutions that Deutsche Börse Systems offers market participants.

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17 About IXEurope

18 Best Data Centre in Europe Best Disaster Recovery Services Provider

19 Over 450 customers Enterprise, Internet and Telecom / ISP Markets Telecom / ISP Internet Enterprise

20 Contact IXEurope Europe s Specialist Datacentre Services Company Guy Willner guy.willner@ixeurope.com Petrina Steele petrina.steele@ixeurope.com T: W: ixeurope.com Continuity-Solutions Specialist Agents for IXEurope working in the Lloyds Market Robin DunfordGreen RDunfordG@continuity-solutions.co.uk T: W: Continuity-Solutions.co.uk

21 Thank You Leading Datacentre Solutions Datacentre Services Hosting Infrastructure Business Continuity