Manchester expansion founded on low churn rate

DCS talks to Rob Garbutt, CEO of LDeX Group, about the company’s positive progress during the past year, with the announcement of a new data centre in Manchester, the acquisition of Ping Networks and a high level of customer satisfaction being the highlights.

  • 9 years ago Posted in

Q Can you provide a brief update on the

company’s progress to date –
especially since we last talked in mid-
2013?
A In 2014, we enjoyed a very good trading period with group revenues having grown by 81% due to new customer acquisitions. As we have developed our media and streaming platform, we have always been very focused on profitability and cash generation. In this period, our overall group adjusted EBITDA percentage margin has grown to 42%.
We have been busy finalising arrangements to fit out our second data centre in Manchester. With this in mind, there will be lots of exciting announcements leading up to the launch of LDeX2 in Q2.
Q Are the key personnel still in place,
or have there been any significant staff
changes?
A Following on from the acquisition of Ping Networks Ltd, Simon Chamberlain joined the board of directors as Group Chief Technical Officer.
In early 2014, we employed Anne-Marie Lavelle, our group marketing manager, who has since enabled us to position ourselves as a national datacentre operator in the UK through a series of well thought integrated marketing, PR and social media campaigns, initiatives, press releases and thought leadership opinion pieces.
Most recently, we employed Lizzi Long as our group sales manager, bringing with her a vast array of contacts and knowledge in the colocation space.
Q You announced the formation of the
LDEX Group, following the acquisition
of Ping Networks. What was the
overall thinking behind the acquisition
and subsequent restructuring?
A In order to enhance the connectivity arm of our business, we acquired Ping Networks and rebranded it as LDeX Connect.
Shortly after we made the announcement, the group was formed and both LDeX and LDeX Connect became subsidiaries of LDeX Group. Since then, we have attracted an array of tier 1 and tier 2 carriers and ISPs to the LDeX1 data centre based in Staples Corner.
Q What has this change entailed for LDEX
data centres?
We acquired Ping Networks in order to enhance the group’s position as a colocation and network connectivity operator. Since then, the company has been able to leverage the expertise of staff qualified to CCIE level in managing and monitoring all network activity.
Q What about the impact on the company
that was Ping Networks?
A LDeX Connect (formally known as Ping Networks Ltd) benefits from being able to sell its’ services to our data centre customers and increase its revenue while doing so.
Q The colo market continues to be very
busy. How does LDEX seek to
differentiate itself in this market right
now?
A Inexpensive, scalable and agile bespoke solutions to suit the customer
At LDeX Group, our customers let us know how they would like to see their business going forward enabling us as a dedicated colocation provider to scale their requirements as appropriate.
We believe in offering customers a superior level of client service across the business and this is reflected in our ethos of offering flexible bespoke colocation solutions to our customers which suit their requirements ranging from quarter racks to dedicated cages and data halls.
Clients are given flexibility with regards to their network requirements with a wide array of tier1 and tier 2 carriers and internet exchange points to choose from throughout the data centre portfolio ensuring ultra-fast low latency connectivity over diverse dark fibre.
We listen to our customers in terms of what they need and work around them to ensure that they receive the best service for the right price.
Strong reputation for business uptime
LDeX Group has a strong reputation in upholding and delivering on its 100% uptime SLA. At LDeX Group, we have invested in the most resilient equipment in order to ensure that your business does not experience a moment of downtime. At each of our data centres, racks are provided with truly diverse A+B power feeds as standard. With N+N UPS protection, rack power is reserved on 2 x diverse UPS banks for complete fail over capabilities which are far more resilient than N+1 alternatives. Diesel generator power is always on standby with a minimum of 1 weeks fuel supply on site and 24x7 refuelling contracts in place to each data centre ensuring that your business is never offline and protected at all times

Environmentally friendly
LDeX Group is 100% carbon neutral and upholds an impressive P.U.E of <1.35, giving you, as a business, piece of mind that energy consumption levels adhere to industry standards and enable us to benefit from being ISO50001 accredited and members of the EU Code of Conduct for data centres.
Security conscious
At LDeX Group, the team have a multi-tiered physical approach to security in order to protect your mission critical infrastructure. In place, all sites have a 2.5 metre fence for perimeter control providing an effective barrier and a controlled access point to the building.

As well as this, there are multiple CCTV cameras, a virtual trip wire, a two factor access control system and a man trap portal. With stringent access procedures, this ensures that your data will not be compromised and gives you piece of mind that your racks are housed in the most robust, resilient and secure offsite environment possible.
Responsive operations team to cater to your requirements
Our experienced data centre technicians are fully trained in all aspects of managing the day to day operations of the colocation facilities. The experienced network engineering team at LDeX Connect, with qualifications ranging from CCNA to CCIE level, monitor and manage the network to ensure continuity of business operations
and mitigate against any attacks to the network.
As a business, we want to hear where you want to be and offer solutions which enable your business to get there. From the outset, the experienced management team will put together a plan to enable your migration process to run as smoothly as possible. The management and operations team will be there to guide you through the whole process and manage the secure direct delivery of your equipment on site.
Complimentary services from the team at LDeX Group
The management and operations team offer extensive remote hands and consultation services including tape scheduled services. The team offer free secure onsite parking to all visitors and customers to the site. Customers are offered complimentary Wi-Fi in all sites, build and storage areas, hot desks, meeting rooms and full access to the front line data centre and network connectivity teams which are available 24x7 to answer any questions.
Client portal
We offer real time updates on a 24x7x365 basis on rack power and bandwidth activity levels enabling you, as a customer, to monitor your racks remotely. This is done through a secure client portal which gives you piece of mind in knowing that your servers, systems and infrastructure are in the most secure, robust and resilient hosting environment possible.
Onsite satellite farms
Throughout our data centre portfolio, we have onsite satellite farms and provide connections to content delivery networks, OTT players and cloud platforms, enabling customers to broadcast large scale events and stream content over multiple hosted platforms
Q Can we expect any more acquisitions/
major structure developments in the
coming year or so?
A Our key focus this year will be the launch of our second data centre in Manchester in Q2 where we will look to offer customers best in class colocation and network connectivity services in the Manchester region, strengthening our position as a national data centre operator.
We will also be looking to complete the build out of our London data centre in Q4 2015/ Q1 2016.
Q Is London still very much the focus of
LDEX’s colo offering?
A As the digital and financial hub of Europe, London is still a key market for us with demand for data centre services stronger than ever and we intend to further extend our reach in London over the coming years. However, as a growing technological hub, Manchester is a great strategic fit in expanding our customer orientated data centre portfolio. We look forward to investing in the economy there and providing employment and IT services to the local market.
Q Specifically, you have announced plans
for an LDEX colo facility in Manchester?
A In 2015, LDeX Group will be expanding its operations with a view to investing in the digital skills gap in Manchester and attracting global customers and carriers to the local region.
Q Can you tell us a bit about this project?
A The new data centre ‘LDeX2’ will feature best in class colocation facilities with a capacity of 4MVA, network carriers and global Internet Exchange Points (IXPs) as well as offering 24x7x365 customer support.
Similar to LDeX1, the new 20,000 sq. ft. facility in Trafford Park will have an onsite satellite farm and will provide connections to content delivery networks, OTT players and cloud platforms, enabling customers to broadcast large scale events and stream content over multiple hosted platforms. Customers can also look to expect energy efficient facilities which will have a 100% uptime SLA and offer 24x7x365 disaster recovery and remote hands support services.
LDeX will be looking to invest in the local economy and train staff in the region in order to help them upskill in the areas of IT, sales and engineering.
Q You were expanding the London facility
last time we spoke. How has this project
gone?
A Due to the increase in demand for colocation services, we managed to fill our second hall DC2A. As well as this, we also built our third data hall DC2B to give existing and new clients the flexibility needed to scale operations according to their requirements.
Q LDEX has been featured in a couple of
Deloitte ‘fastest growing company’
listings – is this ‘fast growth’ something
you’ve been actively focused on, or just
a ‘side effect’ of your corporate
planning?!
A We are very proud to be recognised as the 31st fastest growing technology company in the UK. As an expanding data centre operator, our growth has come as a result of our acute focus on providing best in class customer service as well as the team’s commitment to operational excellence. We believe that this award showcases to the industry how customer service is paramount to successful commercial growth in an otherwise difficult and competitive trading environment.
We have always focused on providing best in class data centre services and this has enabled us to offer our customers flexible, scalable colocation packages tailored to their requirements.
Q You’ve also achieved the Investors in
People accolade. What was the
thinking behind this and what has been
the impact both for your own staff and
for your customers?
A As we run a client facing business, it is integral to us that staff are informed about developments in the company and that they are happy in their roles in order to deliver on the company’s strong ethos of customer service and operational excellence. Actively promote two way communication
Having grown by 897% over the last five years in the face of recession (UK Deloitte Technology Fast 50 winner 2014 - ranked 31st), we decided to embark on our Investors in People journey in order to promote two way communication in the company and align our growth and development to a trusted framework and be able to benchmark our practices.
To ensure that staff learning and development needs are met
A major part of this is ensuring that the learning and development needs of staff are brought to the attention of senior managers. It is also so that training is put in place to ensure that each member of staff can reach their objectives and develop within the organisation.
Engage employees and foster a culture where everyone looks out for each other
As an expanding organisation, we want to make sure that each and everyone in the organisation feels valued and that the company continues to maintain the same ‘family feel’ culture that it has always had where staff look out for each other.
It is imperative for us that staffs are encouraged to show initiative in proving themselves, given training and feel happy to contribute their ideas and understand how this can help achieve the corporate business goals. We needed to come up with a
solution to make sure that all staff were regularly able to relay feedback to the senior managers
Q TeleData UK was a recent customer
win – can you tell us a little bit about this
contract, and any other ones?
A We have had a number of key customer wins over the last few months including TeleData. The company will benefit from faster and scalable IP transit and network services over diverse dark fibre between LDeX1 in London and the Manchester based facility ensuring ultra-low latency connectivity for its customers in both cities.
Q Your were targeting the content/media
industry last time we spoke, is this still
the case, or are there other markets you
are focusing on as well/instead?
A The media sector is a key sector for us with more and more Over the Top and IPTV players looking to us to host and stream their services from the confines of our datacentres. We also have done particularly well in the managed services and enterprise markets giving us a diverse revenue portfolio.
Q What has been the impact on your
colo business of the whole Cloud/
Managed Services explosion?
A We have definitely benefited from it
with a number of large cloud and managed services providers at LDeX Group.
Q Do you see LDEX as ‘just’ an Cloud/
services enabler, or are you/will you
provide some of these services to end
users yourself?
A At LDeX, we have always been a data centre operator enabling cloud, managed service; enterprise and media customers host their services from our facilities and let them focus on what they do best while we look after back end operations. As we don’t compete with our customers, we don’t provide these services to end users.
Q What is the impact on LDEX of other IT
trends such as Big Data and the Internet
of Things – right now?
A Network provisioning
LDeX currently offers customers IPV6 which provisions them with the necessary volume of IP addressing to cope with the vast quantities of devices and data which need to be processed.
Centralised portal to monitor rack and bandwidth levels
We also have a centralised DCIM portal where customers are able to monitor their rack activity and bandwidth levels. They are able to make requests and change configurations with ease. As time goes on, the portal will be updated with features further in line with IoT requirements.
Q And the likely impact in the future?
A With the number of devices connected to the internet expected to increase to 40 billion in 2025, IT departments need to ensure that they will have accurately forecasted the capacity and bandwidth requirements for hosting the growing number of applications in their data centres. With the increased number of people working remotely, software, applications and resources will need to be accessed from a variety of devices.
Data centre operators will also need to deploy more platforms such as DCIM to align IT and operational technology standards and communications protocols to be able to proactively provide the production facility to process the IoT data points based on the priorities and the business needs.
Q What are the key factors end users
should consider when they are
choosing a data centre provider?
A Before choosing a colocation provider, end users must look at whether the DC is “Tier 3″, well connected, secure, has reliable and sufficient power, and is situated in a suitable location. All are important considerations; however, the most usual reason for choosing a DC comes down to price. As long as the usual boxes are ticked, everything comes down to which provider can provide the most cost effective solution – which is of course is perfectly reasonable.
What really differentiates them is service. Some data centres do not match up to expectations once the all-important contract is signed. When it comes to getting problems resolved or connectivity provisioned they just don’t want to know or will charge you through the nose.
There are several scenarios where service becomes absolutely critical. Imagine you have a colocated server that suddenly goes offline. In no uncertain terms, this is clearly a panic stricken situation. Customers start calling, and there is severe time pressure to get to the bottom of what is going on. You might have invested in several layers of resilience and probably promised 100% uptime to your customers, but if you get hit by a DDoS attack or hacked by a disgruntled employee, then you’re a dead duck.

At these critical times you need help and quickly. This is when the DC service centre really makes a difference. Can your DC really get someone in front of your cab in five minutes with a laptop and a remote login? Do they have a 24/7 NOC that can troubleshoot any connectivity issues at any complexity quickly and efficiently? Or is it going to be quicker for you to drive to the DC and try and figure out things for yourself? You may be thinking that critical situations are (thankfully) rare and your business can survive the odd outage. Service isn’t just about critical situations though – it’s about the day to day running of your colocation. It’s about upgrading kit, getting patch leads installed, IP transit installed. Can you send hardware to your data centre that is securely stored and then installed by a trained technician? Is there a technician who is constantly keeping you in the loop at all times? Can you get a cross-connect installed within an hour of requesting it? Does your DC provide connectivity solutions where the NOC will contact you if there is a problem, before you know one exists?
Does such a data centre even exist? Well yes it does, and it’s called LDeX. Having conducted a recent customer satisfaction survey, it revealed that our average score for service is 9/10, and this is the biggest reason we have such a low churn rate. It’s part of our ethos and why we are successful in a competitive market. That’s all very well and good I hear you say, but surely most data centres have all that covered. Well unfortunately they don’t. Typically cross connects in our competitor data centres take between five and ten days to deliver. Some DCs don’t even provide remote hands, or if they do, the skill level is often questionable. Some are bogged down in process and red tape.

Getting permission to do anything can take days or even weeks to sort out. This is why is it crucial to work with a data centre that provides efficient and impeccable services levels at any time of day. The really great news is LDeX also ticks all the regular boxes and is one of the best priced colo providers on the market supplemented with superior connectivity from top tier connectivity providers backed up by an onsite 24/7 NOC.
Q In conclusion, what can we expect from
LDEX during 2015?
A This year, there will be announcements regarding new carriers, awards, new customer acquisitions and of course the strengthening of the business.
Q Any other comments?
A Watch out for the launch!