Telehouse France - June 2022

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DIGITAL REPORT 2021

Telehouse France puts Marseille on the global comms hub map DIGITAL REPORT 2022

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TELEHOUSE FRANCE

MARSEILLE ON THE GLOBAL

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COMMS HUB MAP

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Sami Slim CEO of Telehouse France explains the business case behind the company's new strategic implementation as digital migration surges and prices increase

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he surge in digital migration across the globe in the aftermath of the pandemic comes at a price, as well as a benefit. Sami Slim, CEO of Telehouse France, explains the business case behind his company’s new data centre in Marseille and why close collaboration with its partner, Elco Systems, will mitigate its risks and exploit its benefits.

Data centres are blossoming across the globe; where you plant those blooms is vital.

It’s all about location, so you must get it right.

Here’s why: Let’s assume you are a software designer for a Munich-based German engineering company, and you need to send information to a client in Brazil about its mining operation in the middle of a remote quarry miles from anywhere. That information will travel across the internet hubs in - let's say - Frankfurt, then up to the U.S., down through Miami and then to Sao Paulo.

So far, so good. That little packet of data left home and arrived at its destination faster than your eye moved from one word to the next in this sentence. But… every little packet of data costs money. That round trip from Bavaria to Southwestern Brazil. It would probably have more than 250 milliseconds of latency. It arrived late.

That latency, according to Sami Slim, CEO of Telehouse France, makes the software those two companies are using “less useful and less powerful”. www.telehouse.fr

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TELEHOUSE FRANCE

“However,” says Sami, “By exploiting internet routes off the coast of France around Marseille, you can reduce this latency. Opening up this route means you can have a latency between Frankfurt and Sao Paulo, for example, of fewer than one hundred milliseconds — which is half the existing speed from the U.S.” The faster the speed of travelling data, the more cost savings to your bottom line.

Sami has another compelling example he uses to define the cost savings made when connectivity is sped up – even by mere milliseconds.

“Today, if you're an African enterprise placed, let's say, in Ghana or Nigeria and you need some cloud usage, you will go to those high-profile hubs serving Africa, such as London, Frankfurt or Paris. That comes at a cost.

“But if you bring that location closer – to Marseille – you will be saving 15% simply because you are localising your cloud traffic

Telehouse France puts Marseille on the global comms hub map

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SAMI SLIM TITLE: CEO INDUSTRY: TELECOMMUNICATIONS/ DATA CENTRES/HUBS

and bypassing that journey to those cities in Northern Europe.”

Sami stresses that all businesses know how expensive it is to move data across the cloud. He claims some companies could even have their data carriage costs once Marseille comes on stream.

According to Sami, the potential unlocked by those saved milliseconds changes the way we use the internet. More online trading, video, OTT streaming, gaming and real-time

EXECUTIVE BIO

LOCATION: FRANCE Engineer, graduate of Telecom SudParis and the University of Michigan, Sami joined Telehouse in 2010 as a technical sales engineer.

For 3 years, he was at the heart of Telehouse's data centre and connectivity growth in France, before joining the Telehouse Europe Strategy Department in 2013. In 2014, he became head of the sales department in France before being appointed CEO in 2022. In this role, his mission is to accelerate Telehouse's growth, helping the Group's customers and prospects to improve their interconnection capabilities. Sami Slim brings to Telehouse a passion for a free, neutral and open Internet.

His deep knowledge of the IT market and his proximity to the Internet players contribute to consolidate Telehouse's results, and to earn him the renewal of the Group's confidence.

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Data Center Monitoring redefined by Elco and Telehouse Small is beautiful and far more effective. This philosophy from Telehouse France is driving its partnership programme. Elco Solutions is one of its most favoured collaborators.

Telehouse France and the German based Elco Solutions have joined forces to design and develop a new data centre hub in Paris, France. Both companies say this will be a ‘game changer’ in terms of global connectivity.

The ‘Leon Frot’ Data Centre in the capital is the latest collaboration between Telehouse France and Elco. Elco Solutions is an innovator in the Data Centre Vendor and Integration space.

Elco is also in the process of upgrading the existing Telehouse France infrastructure at its hubs. This partnership will allow Elco Solutions to provide its specially adapted power and environmental monitoring solution for Telehouse France.

“Our focus alongside Telehouse France is all about data centre co-location and data centre management,’ says Wajdi Darmoul, Founder and Managing Director of Elco Solutions.

“This collaboration helped us tremendously to improve the way we work together, the way we develop high quality software – especially customer specific software for monitoring all aspects of a data centre.

We developed a system that will help the data centre managers to monitor their infrastructure in real time. With this software we can instantly aggregate data across

several dimensions in the data centre.

This provides real time insights into power monitoring systems, power efficiency, temperature, and humidity and so on.

“This allows us to quickly access the status of the data centre. This is vital as it allows all the stakeholders to see that the data centre is moving towards its optimum operational efficiency.

According to Sami Slim, Director at Telehouse France the two companies have been working closely together since 2020 and the arrangement is at the ‘sharp end’ of Tele House France’s declared intention to work with smaller, nimbler technology partners in its expansion programme.

“Elco fits the requirement perfectly,” says Slim.

“With its focus on high-quality measurement equipment, compact branch circuits monitoring systems and intuitive customer specific user interface, Elco Solutions is a reliable partner to meet the challenges in a rapidly changing and dynamic data centre market,” says Darmoul.

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data transfer, VR, AI — all become more plausible to a greater number of people and businesses.

“When you bridge that gap, reduce that distance, you unlock new visitors that are creating value, creating jobs and creating companies,” says Sami.

This is why Telehouse France is building its latest data centre in collaboration 10

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with partners such as Elco Systems in Marseille. Sami says that Telehouse France, which already has a significant presence in Marseille, sees the city as one of the most important data hubs in Europe, in terms of location and its business infrastructure. This, the company predicts, will grow in importance over the next five-to-ten years.

TELEHOUSE FRANCE

“ BY EXPLOITING INTERNET ROUTES OFF THE COAST OF FRANCE AROUND MARSEILLE YOU CAN REDUCE THIS LATENCY” SAMI SLIM

CEO, TELEHOUSE FRANCE

Why the South of France?

So, why is Marseille so well placed as a data hub to spread out North, East, South and West?

“Marseille is one of the fastest-growing cities. Our mission is to build a new platform that will open up access between countries in Africa and the Middle East, and between Asia and Europe.

“We see Marseille as being uniquely positioned in Europe to attract traffic between Europe and a huge area of the rest of the world.”

Telehouse France deemed Marseille as the best-placed location to complement the data traffic already running through cities such as Frankfurt, London, Paris and Amsterdam.

Sami explains it in very simple and logical terms: “The position of Marseille offers it direct access to some key undersea systems coming not only from Asia and Africa, but also from Latin America,” he says, referring to these underwater ‘pipes’ as “submarine systems”.

"The most important thing is that this location is opening up channels between Europe and the rest of the world, offering the region new routes that didn't previously exist," he says."And, of course, the benefits of these new channels of communications are two-way.”

“These routes are now the backbone of the internet for billions of people because of Marseille. 4.5 billion people connected with faster and more reliable internet through Marseille via fifteen submarine cables.”

Sami is very keen to make sure we all understand that, when we speak of the cloud and data storage, what we really mean www.telehouse.fr

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“ WHEN YOU BRIDGE THAT GAP, REDUCE THAT DISTANCE, YOU UNLOCK NEW VISITORS THAT ARE CREATING VALUE, CREATING JOBS AND CREATING COMPANIES” SAMI SLIM

CEO, TELEHOUSE FRANCE

is physical buildings and cables — which are very definitely earthbound.

“What most of us are missing is that 99% of the Internet today is not in the cloud. It is under the sea. This is what we call the submarine system that is powering the Internet today.

“Our traffic is in there, and most of the Internet routes are deep in the ocean. This is where cities such as Marseille have a great geographic advantage in attracting that traffic, with ‘breeding’ hubs to bring content and users closer to each other.”

Put even more simply, this was an opportunity Telehouse France could not let slip through its fingers.

Monetising with a difference Sami is keen to stress that the opportunities for Telehouse France in this venture are in no small part down to the way his company is monetising its data centres in Marseille.

Although location is a huge factor in Telehouse France’s strategy, property acquisition is not.

“The difference between Telehouse France and the rest of the big players in this industry is our approach. We are not monetising our data centre based on the number of square metres.

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“We are monetising our business based on the value we create for our customers within their traffic strategy, and ensuring they get close to their users and to their customers with our technology. That's a fundamental difference, we are not a real-estate player, we are a connectivity player.”

And this, says Sami, is the blueprint for the future when it comes to data centre development.

Telehouse France was already reshaping the data centre and connectivity business back in the 1990s. It established large data hubs in Paris and in London’s famous Docklands.

“This created data hubs that attracted the most traffic, the largest number of cables and the widest variety of ecosystems,’ Sami says.

This is what he calls the company’s ‘Connectivity Strategy’: “It is making those data centres really prominent on the map of the internet today.”

“Today, London Docklands is the most connected data centre in the world, and Paris Voltaire is the fourth most connected hub on the planet, routing more than 50% of all the internet traffic in the country.

“This is our connectivity strategy – to make our centres the heart of the telecoms world.”

Sami says his company is fundamentally convinced that Europe will be the backbone of the global Internet.

“Europe is in a perfect position,” he says. “Geographically, for hosting both the Southern hemisphere and the northern hemisphere junction in terms of data. Europe can connect the Nordic countries, the US, Russia, China in the north, Africa, the Middle East, and the countries of Latin America from the south.

“That value can happen with a ‘backbone’ coming from Marseille, going up to Paris and then diverting with two branches, East and www.telehouse.fr

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“ THE DIFFERENCE BETWEEN TELEHOUSE FRANCE AND THE REST OF THE BIG PLAYERS IN THIS INDUSTRY IS OUR APPROACH. WE ARE NOT A REAL-ESTATE PLAYER. WE ARE NOT MONETISING OUR DATA CENTRE BASED ON THE NUMBER OF SQUARE METRES” SAMI SLIM

CEO, TELEHOUSE FRANCE

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West: one to London and the other one to Frankfurt.

“That is the map of the future of the Internet, and that’s why we think Europe will be fundamental for the future of the Internet, and that is also why we're investing heavily.”

Data Centres are a hot topic However, things have been moving fast since Telehouse France first built its data centres in the 1990s. Data traffic grows exponentially day-by-day and, with that explosion in usage,

comes potential risks and consequences that need to be monitored and managed.

This is where Telehouse France’s strong partnership with the German-based Elco Systems comes in.

Sami says he is committed to working with smaller, nimbler, and highlyresponsive partners; Elco more than met those requirements.

“We are determined to remove our dependency on large vendors in our strategy.

Using a range of smaller vendors means we www.telehouse.fr

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have far greater control over the end-user or customer experience. This is important to us.

Elco is a perfect example of this,” says Sami.

“Elco is exactly the kind of vendor we like to have around us when we build our data centres. In designing our European business, we wanted European players around us.

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Why? Because that gives our company and our customers a sense of security that we will deliver.

“Elco hardware and software business.

This allows us to be far more modular in terms of choice and that gives us the control over the customer experience.”

TELEHOUSE FRANCE

“Elco is an innovative solution that enables our data centre managers to monitor the health and energy of each branch circuit, gaining gain real-time insights about our data centre environment conditions,” says Sami.

Elco monitors the way Telehouse France’s data centres are running. In these worrying

times, when cyber-attack is a greater threat than ever, anticipating unusual activity is vital. There is, however, another byproduct of powerful data centres that Elco monitors for Telehouse France, which also explains why the Telehouse team is so keen on working with Elco.

“Data storage, data traffic, data transfer … all these processes equal heat.”

Sami explains: “So, usually, when you choose an electrical or cooling component of a data centre, it comes with its own measurement and efficiency control through hardware and software. The downside is that it locks you in with that particular vendor, preventing you from developing your own customer experience in terms of portal or usage.

“The great gain, when we chose Elco, is that we got the liberty of having our own software for a customer experience on the one side, but also we could choose any type of hardware on the downside of the chain. Elco sits neatly into the more open option for us,” Sami says choosing Elco was not just about its technology.

It also needed to be a cultural fit.

“We are in the business of ‘speed to market’,” says Sami.

“So, the faster you can get the data centre up and running, the better off you are. To do that, you need to build a team with your vendor. So the spirit, the culture, the way they work with your own team is a key component in which vendor you choose.

“Elco has been excellent with us in our teams. They have joined forces with us and have understood all of our constraints country by country. This is so valuable.”

www.telehouse.fr

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137 Boulevard Voltaire, Paris 75011. France T +33 156064030 telehouse.fr

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