Phillips Group: Outsourcing Trends Power the Growth in Colocation.

Business Editors

LONDON--(BUSINESS WIRE)--April 12, 2001

The forthcoming CWM Global / Colocation Europe convention in London's Docklands area from May 2nd - 4th will have a focus on how outsourcing, increasingly used by corporates, is becoming a new growth sector for the colocation

Corporate organisations have recognised the economies of scale, time and manpower that outsourcing of IT infrastructure requirements can deliver and the results in terms of bottom line savings on capital and operating expenditure.

Recent research has revealed that the need to outsource is becoming more pressing. E-business tools are an increasing necessity for companies as extranets and intranets are deployed. The related demand for server space, secure environments and skilled technicians has continued to grow. As a key theme, developments in collocation will be debated at the convention, hosted by the Phillips Group at the ExCeL Centre in London's Dockland area.

London has become a leader in Internet bandwidth with a capacity of 86.5 Gbps, and the city acts as a springboard for transatlantic capacity at rates of 26.7 Gbps to New York and 24.3 Gbps to Paris. Docklands area has the highest concentration of backhaul and local access fibre and carrier points of presence in London, as well as being the location for the London Internet Exchange (LINX).

According to Matthew Pullen of Insignia Richard Ellis, there is currently 1.2m ft2 of carrier neutral collocation space in London, and 58% of this is in London Docklands, where the vacancy rate is a mere 2%. The market size of carrier neutral collocation space in London is set to grow to 3m ft2 by the end of 2002, and 71% of that will be in East London.

"It is fitting that the CWM/COLO event is taking place in the Docklands area," commented Nigel Downton, Sales Director of Global Switch, and one of the events sponsors, which is currently completing its nearby 673,000 ft2 building, and Europe's largest carrier neutral collocation facility. Delegates at the event will be invited to special tours of the location.

The event will also address how increased bandwidth demand will support the future of collocation businesses. There are over 100 speakers and 120 telecom companies exhibiting on the trading floor.

To find further details of CWM/COLO 2001 please visit www.cwmexpo.com