EUROPEAN MANAGED HOSTING MARKET OVERVIEW

:
SUMMER 2010

HOSTING
REPORT BY

PHILBERT SHIH

AUGUST 2010
©2010 TIER1 RESEARCH & THE 451 GROUP

HOSTING

Tier1Research Better perspective from the top in independent tech research REPORT SNAPSHOT TITLE ANALYST RELEASE DATE LENGTH European Managed Hosting Market Overview: Summer 2010 Philbert Shih. This report provides an overview of the sector and identifies its leading players. which is supplemented with a look at the individual national markets within Europe. along with a special section comparing market dynamics between the North American and European markets. LLC. Senior Analyst. AND/OR ITS AFFILIATES. Some key themes discussed in this report include: • Gravitation to managed services from telcos. There is also an in-depth analysis of major events and trends. where pure-play managed hosters. this report focuses exclusively on the European market. LLC. network service providers and IT outsourcers • How cloud infrastructure and hosting is the backbone of a developing shift from telecom to IT services • The impact of complex regulatory and compliance regimes • US hosters moving to Europe • Mergers and acquisitions • The transition from in-house hosting to third-party outsourced hosting The report also answers some of the most probing questions asked about the European managed hosting sector: • What is the size of the global and European managed hosting markets? • How fast is the global and European managed hosting market expected to grow? • What trends are driving progress and change in the European managed hosting market? TIER1 RESEARCH: HOSTING © 2010 THE 451 GROUP. Hosting August 2010 50 pages ABOUT THIS REPORT As a follow-up to the Managed Hosting Report for North America. telecoms and network service providers compete in an extremely fragmented and diverse marketplace. and Tier1 Research attempts to size the overall market and project its growth trajectory. Revenue estimates for leading companies are provided. TIER1 RESEARCH. 1 . ALL RIGHTS RESERVED.

. TIER1 RESEARCH. LLC.net.uk Donhost Easynet Global Services Ecritel ElasticHosts eLINIA Fiat Group Flexiant France Telecom Fujitsu Gandi Google Group NBT Haarlem Publishing Company Hertz Hewlett-Packard Host Europe Hosting365 Hostpoint IBM Intergenia InterHost Internap Network Services Interoute Communications iomart Group IronScale iTricity Jet Multimedia KPN LeaseWeb Linkbynet Lloyds Banking Group Logica Magyar Telekom Microsoft NaviSite Net-a-Porter NetSuite 2 EUROPEAN MANAGED HOSTING MARKET OVERVIEW: SUMMER 2010 © 2010 THE 451 GROUP. LLC. AND/OR ITS AFFILIATES.COMPANIES INCLUDED IN THIS REPORT 2e2 7global Abiquo Acens Accenture Amazon Amnesty International Arsys AT&T Atex Atos Origin Attenda BEA Systems Belgacom Bluehalo Bluefin Solutions British Telecom BSkyB CA Technologies Cable&Wireless Capgemini Carpathia Hosting Cedacri CentriNet CipherTec Claranet CloudSigma Cobweb Colt Technology Services Group ControlCircle Convergys Computer Sciences Corporation (CSC) Daisy Communications DediPower Deutsche Telekom Digital Parks Doctors. ALL RIGHTS RESERVED.

LLC. LLC. AND/OR ITS AFFILIATES. 3 .se PINS Portugal Telecom Prosodie Rackspace RealDomen Sachsen salesforce. ALL RIGHTS RESERVED.Tier1Research Better perspective from the top in independent tech research COMPANIES INCLUDED IN THIS REPORT Nokia Northumbrian Water NTT NTT Europe Online Oakley Capital Open-Xchange OpSource Orange Business OVH PEER 1 Hosting Pipex Communications Pi. TIER1 RESEARCH.com Savvis Servecentric Sharp Electronics (Sharp) SoftLayer Star SugarCRM SunGard Supanames SymetriQ Swisscom T-Mobile Tele Danmark Telefónica Telenor TeliaSonera Telstra Terremark ThinkGrid Thomas Cook Verizon Business VMware Vialtus Vodafone Voxel UKFast Zimory TIER1 RESEARCH: HOSTING © 2010 THE 451 GROUP.

. . AND/OR ITS AFFILIATES. . . . . . . . . .TABLE OF CONTENTS KEY COMPANIES . . . . . . . SECTORS . . . . . . . . . . . . . . . . AUTHORS . . . . . TIER1 RESEARCH. . . . . . . . . . . . . . . . ALL RIGHTS RESERVED. . . . . LLC. . FIGURE 1: Level of Confidence in Estimates by Provider EUROPEAN MANAGED HOSTING LEADERBOARD FIGURE 2 European Managed Hosting Top 20 Leaderboard (2009-2013) GLOBAL AND EUROPEAN MANAGED HOSTING MARKET SHARE FIGURE 3 Global Managed Hosting Growth Rates (2009-2013) FIGURE 4 Global Managed Hosting Market Summary (2009-2013) FIGURE 5 Global Managed Hosting Segment Revenue and Growth Rates (2009-2013) FIGURE 6 European Managed Segment Revenue Illustrated (2009-2013) FIGURE 7 European Managed Hosting Market Summary (2009-2013) FIGURE 8 European Managed Hosting Segment Revenue Illustrated (2009-2013) MANAGED HOSTING EUROPE: COMPANY SNAPSHOTS. . . . . . . . . . . . . . . . . . . . . . . . UPDATES MANAGED HOSTING EUROPE: COUNTRY SNAPSHOTS EVENT ANALYSIS 4 EUROPEAN MANAGED HOSTING MARKET OVERVIEW: SUMMER 2010 © 2010 THE 451 GROUP. . . . . . . . . . . . . . . . STATE OF THE UNION . . . . . . . . . . . . . . . . . . . . . . . . LLC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ANALYSIS . . . . . . . . . . . . . . . . . . MARKET SHARE ANALYSIS . . . . 1 1 2 2 2 2 3 3 4 6 6 6 6 7 7 9 9 10 10 11 12 12 13 21 24 EXECUTIVE SUMMARY MANAGED HOSTING EUROPE . . . . . . . . . . . TEMPERATURE CHECK . . . . . . . . . . MARKET SHARE METHODOLOGY AND STRUCTURE METHODOLOGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . MARKET SHARE COVERAGE AND CONFIDENCE LEVELS . . . .

. . . . . . . . 31 OPSOURCE WHITE LABELS PUBLIC CLOUD. . . . . . EXPECTATIONS AND HIGHLIGHTS PROFILES 37 38 40 44 HOST EUROPE . . . . . . . 44 STAR . . . . . . . . . . . . . LLC. . . . . . . . . . . . . TIER1 RESEARCH. . . . . . . . . . . . . . . . . . . . . 45 BRITISH TELECOM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 THE EUROPEAN CLOUDSCAPE FIGURE 9: Aggregate IaaS. . . . . . . . AND/OR ITS AFFILIATES. . . . . . . . . . 36 FIGURE 12: European Cloudscape Cross-section MANAGED HOSTING MARKET DYNAMICS: EUROPE VERSUS NORTH AMERICA RECOMMENDATIONS. . . . . . . . . . . . . . . ALL RIGHTS RESERVED. PaaS and Cloud-Enabling Technology Revenue FIGURE 10: IaaS Vendor Breakdown (42 Vendors) FIGURE 11: IaaS Revenue Breakdown by Region 33 33 34 34 MARKET SIZE . . 34 BIG MSP OPPORTUNITY ON THE BACK OF CLOUD . 5 . . . . . . . . . . . 31 FUJITSU OPENS CLOUDS IN EUROPE . . . . . . . 33 EUROPEAN CLOUD VENDORS . . . . . . . . . NTT EXPANDS CLOUD . . . . . . . . . . . .Tier1Research Better perspective from the top in independent tech research PRODUCTS AND SERVICES COLT CLOUD EXTENDS MANAGED HOSTING PORTFOLIO 31 . . . . . . . . . . 47 TIER1 RESEARCH: HOSTING © 2010 THE 451 GROUP. 35 THE 451 TAKE ON CLOUD IN EUROPE . . LLC. . . . . . . . .

The opinions expressed herein are subject to change without notice. AND/OR ITS AFFILIATES. LLC. All Rights Reserved. Analyzing the Business of Enterprise IT Innovation 6 EUROPEAN MANAGED HOSTING MARKET OVERVIEW: SUMMER 2010 © 2010 THE 451 GROUP. omissions or inadequacies in the information contained herein or for interpretations thereof. particularly hosting. Tier1 Research and/or its Affiliates. The 451 Group and Tier1 Research shall have no liability for errors. shall be governed by the terms laid out in your Service Agreement with The 451 Group. both internally and externally. We publish market analysis focused on innovation in enterprise IT. how they are delivered and where they are going. Clients of the company — at vendor. enterprise and carrier IT services. The reader assumes sole responsibility for the selection of these materials to achieve its intended results. The 451 Group and Tier1 Research disclaim all warranties as to the accuracy. colocation. Internet services. The 451 Group and Tier1 Research do not provide legal advice or services and their research should not be construed or used as such. LLC.ABOUT TIER1 RESEARCH Tier1 Research covers consumer. software-as-a-service and enterprise services. investor. in any form without prior written permission is forbidden. Reproduction and distribution of this publication. service-provider and end-user organizations — rely on 451 insights to do business better. Although The 451 Group and Tier1 Research may discuss legal issues related to the information technology business. . Tier1 Research and/or its Affiliates. ABOUT THE 451 GROUP The 451 Group is a technology analyst company. The terms of use regarding distribution. © 2010 The 451 Group. Tier1’s focus is on the movement of services to the Internet — what they are. The information contained herein has been obtained from sources believed to be reliable. ALL RIGHTS RESERVED. content delivery. and support our clients through a range of syndicated research and advisory services. completeness or adequacy of such information. in whole or in part. TIER1 RESEARCH.