Interxion: Company Strategy and Prospects
Interxion (pronounced "interaction") provides cloud and carrier neutral colocation data center services in Europe. It operates 37 data centers in 13 cities in 11 countries, houses over 500 carriers, ISPs and content delivery networks (CDNs), hosts 20 Internet exchanges, and provides services to some 1,400 customers. In 2013 it added around 200 new customers.
Interxion has a strategic focus on cloud, financial services connectivity and digital media markets. It has developed what it calls "communities of interest" in these markets, which bring together businesses, suppliers and customers. As with its connectivity partners, the presence of communities enables Interxion customers to locate their infrastructure close to their partners in order to improve performance and drive down costs.
Demand for colocation services is being driven by the growth in IP traffic, business growth and the migration to cloud services. The former has been the primary driver for Interxion in recent years, while the improving economic climate is leading to stronger business confidence. This, coupled with a growing acceptance of cloud-based services as a valid, cost-effective and secure alternative to traditional offerings, is expected to drive momentum in the company's cloud business. Beginning in Q413 Interxion saw significant growth in deals and interest from cloudbased service providers.
This case study describes and analyses Interxion's business model, covering its communities of interest strategy and the capital investment programme that will back up that strategy. It looks at the competitive environment in which Interxion operates and analyses the company's recent financial performance and debt.