11 April 2018
| Natalie Bannerman, Editorial
Dmitry Fokin talks to Capacity about the Russian data centre market and the main drivers of growth in this industry
Tell us about IXcellerate – what do you do?
How old is the company?
IXcellerate is a Moscow’s leading Level3/Tier3
commercial datacenter with a guaranteed SLA 99,999% and no
downtime since its opening in 2013.
Being pure-play co-location provider IXcellerate meets the
standards of financial institutions, multinational
corporations, international carriers and major content
operators. Among customers who trust us are Agricultural Bank
of China, Orange Business Services, NTT Communications, Nestle,
DATAPIPE, Thomson Reuters, Telia, Sprint, China Unicom and
other firms that process big data.
The company’s CEO is Guy Willner, British
entrepreneur and widely recognized industry expert in Data
centers, Clouds and Big data (regularly listed among
TOP-50 EMEA Influencers).
Since Goldman Sachs arrival as strategic investor in 2017,
IXcellerate kicked-off the "Phase 3" project to build the
largest data hall in Russia to expand the current facility with
735 already installed and operated racks.
How developed is the data centre market in Russia?
Is it growing?
The data centre market in Russia is growing fast (over 10%
YoY) with top-10 players owning 70% of the market. These are
campuses of great variety, locations, capacity and SLAs. 2017
market size is forecasted to be 38 000 racks with value of 300M
USD by iKS-consulting.
I strongly believe that there is a great potential to grow
and mature even further. In 2017 we have doubled IXcellerate
installation in size, grew revenues by more that 100% and
reached financial breakeven.
We see demand from East and West coming to Russia and
looking for the exceptional uptime parameters and colocation
service, which can be easily addressed by IXcellerae and some
other premium providers. At the same time less demanding
clients can find a simpler and less cost solution too.
What are the main drivers of growth in
It’s important to remember that Russia is a
huge market – the 6th global GDP by the
purchasing power parity and the country with the largest number
of internet users in Europe, which also makes it #7 globally.
Moscow is a huge technological and telecommunications hub,
located on the digital "silk road", connecting East and
Data centre infrastructure barely serves the current need,
but the demand is growing and evolving. Customers inevitably
develop the taste for the highest service levels - they are
realizing, how damaging is the downtime for their business.
Providing availability with 99,982% SLA or higher is not a
common practice yet. We see the market is not mature yet, so it
has high potential to expand further.
CEO Guy Willner has a lot of experience in this
field – what were his main reasons for founding the
Guy strongly believes in strong growth potential of the
Russian data centre market. Therefore, IXcellerate is here for
the long run. We invest heavily into our team, infrastructure
and service quality. We’re opening the largest
data hall in the country, and have invested in the best
technology and connectivity. Our partner ecosystem is rapidly
expanding. The staff runs regular trainings and professional
Are your customers primarily cloud service
providers, carriers or other service providers? How is that
IXcellerate is cloud and carrier neutral data centre
providing pure play colocation services. We focus on our
partner ecosystem to offer customers the best choice of added
value services here onsite, which means that we do not compete
with cloud and other service providers. Currently we have
nearly 50 carriers and well over 10 cloud providers and system
integrators. The rest are direct end-users (enterprises). The
share of cloud and other service providers grows faster
following the hypercloud and converged infrastructure market
What are the biggest challenges to the Russian
market? What needs to be done to overcome them?
I strongly believe that every challenge is an opportunity
that could be used to further grow your business. At the moment
a typical customer in Russia is challenged to prioritize
quality over price, but we see this changing rapidly. Some of
the market players are focused on extracting short-term gains,
rather than playing the long-term game. But this gives such
"marathon" runners as IXcellerate strong advantage in the
future – we will have resources, standards,
partnerships, reputation ready to meet the upcoming needs of
You are attending Capacity Russia and CIS –
what are you hoping to get out of the event?
IXcellerate takes part in Capacity Russia and CIS to share
our market expertise and showcase our business to the audience
of this great event. We hope to meet new partners, clients,
exchange opinions with industry experts and convince those
still uncertain, that Russia is a great country to locate a
corporate data hub. We will proudly announce Eurasia Peering
capabilities for all IXcellerate’s residents and
potential peers from Russia and abroad. Another important
discussion to be opened is localisation of personal data, which
consistently now being addressed by majority of global players