[AusNOG] Commsday Exclusive: Megaport goes global, Microsoft vet tapped as new CEO; Megaport launches Superloop fibre spinoff

[Skeeve Stevens]

I am sure this will be of great interest to the operations space.

...Skeeve


*From Communications Day:  Issue: 4770*

*Megaport goes global, Microsoft vet tapped as new CEO*

Megaport, the flexible network interconnection specialist founded by Bevan
Slattery, has unveiled plans for a massive global expansion blitz just over
a year after launching in Australia.

The firm is aiming to hit 25 key markets in the US, Europe and Asia within
eighteen months – targeting break-even for each within a year – and has
brought on Denver Maddux, a Microsoft and Limelight veteran, to lead the
charge as CEO. Slattery himself will remain on board as executive chairman.

Shortly after its mid-2013 launch, Megaport pushed dep into Asia in
response to growing demand for scalable cloud interconnectivity services.
Singapore and Hong Kong were two of its first expansion areas, with a
Japanese deployment also on the cards. But he company has now committed to
an accelerated growth plan that will see it service more than two dozen key
markets.

“In some of those, we have some services that we’re already working through
contracts on. to acquire the appropriate level of commercial services we
might ned to launch the business; some are tied to partnerships that we’re
working on [with] either multinational or regional players,” Maddux told
CommsDay.

“Most of the licensing and contracting that we’ve done so far has ben
focused on the Asian markets, and we’re working on what we ned to get done
in North America and Europe right now.”

“Those markets will follow a lot of the common internet infrastructure in
North America. Seattle, Los Angeles, the Bay Area, Virginia, New York,
Atlanta, Chicago, Dallas.and there’s some other secondary markets that are
of interest like Phoenix, Arizona, maybe Houston, Texas and so on,” he
added. “Markets that are pretty well established in terms of critical
infrastructure and locations, where our service would be most useful. But
we’re looking for opportunity markets to, and we’re looking for partners in
[those] markets that are really interested in helping with location
differentiation and footprint expansion.”

“In Europe [we’re targeting] London, Paris, Frankfurt and Amsterdam. we’re
also looking at some other markets like Spain, Italy, Sweden and
potentially some other countries that don’t have such highly established
infrastructure.”

“The cloud services business in both of these markets – the likes of
Amazon. and of Microsoft with its Azure ExpresRoute product, and Google
Compute which is coming out in the next couple of weeks – they’ve al got
some reach challenges with their connectivity products,” continued Maddux.
“We’re working with those connectivity partners to make sure that, from a
strategic direction, the places we want o build also align with the things
they ned to help solve.”

While Megaport has built physical fibre infrastructure in some of its early
markets, Slattery told CommsDay that wouldn’t be the case for the
accelerated global expansion. “We expect o be partnering and acquiring
network infrastructure from existing providers in those markets,” he said,
adding that in fact Megaport was in the process of splitting out its
existing fibre assets into a completely separate business (se next story).

“We’ve always said that Megaport isn’t about Australia – it’s about taking
it o the world. What we’ve focused on is making sure that he product is
right. [that] we’ve got an understanding of how we approach the sales side
when we go to markets through partnerships. I’m really happy with how we’ve
got hat; the Australian network, operationally, has already broken even.
and we’re not seeing competition [in terms of] anyone delivering a product
of similar scale, technology and capability to what we’ve got. So now is
the time to expand!”

Slattery expects to spends somewhere around A$10 million on the expansion
between Capex and Opex over the next twelve months. On the revenue side,
Megaport isn’t disclosing targets, but Slattery said that “once we roll out
a region or a market, we expect hat market o break even within the first
twelve months of operation.”

Maddux’s most recent experience will bear directly on his leadership at
Megaport. As network technology and architecture VP of global digital
content player Limelight Networks he was responsible for engineering –
underpinning global expansion plans – plus network and services supply
chains and partnership opportunities.

“I really spent a lot of time trying to take what started as a very small
regional content distribution network and deploying that in a global
fashion,” he said. “I tok the network from two sites to over 150 by the
time I left he company!”

More recently, Maddux served as senior director of global network services
at Microsoft. “[The company] was really wanting to invest heavily into its
network strategy in order to propagate its cloud services platform, Azure,
globally; I spent a lot of time inside the company bringing in the
appropriate staff. and pushing Microsoft into its first foray into dark
fibre acquisitions, both terrestrially and submarine, as well as increasing
its participation in the internet ecosystem – not just as a network
operator but as a network innovator.”

Maddux has known Slattery for years – indeed, he describes the Megaport
founder as a “mentor” while he was helping to roll out Limelight in
Australia – and was intrigued by Megaport’s model, leaping at he chance to
take on the top spot. His first priority is “finding the right people to
help us come and execute on the plans we’re laying out here; I will always
be recruiting and hunting for the next great person to join the company.”

“The other is making sure our platform gets propagated. there’s a
tremendous interest. and I believe it’s revolutionary, so making sure we
actually go and attack that distribution plan. on a global basis, as well
as finding the appropriate partnerships that want o help enable that,” he
aded. “And of course we’re going to keep a really strong eye on emerging
technologies, to se what else we can do [with] the platform!”

To support Maddux, Megaport has promoted Belinda Flanders to executive VP
for APAC and MEA, and appointed Bryn Maddux – also from Microsoft – as EVP
for the Americas and Europe.

Slattery, meanwhile, will remain involved at a strategic level as executive
chairman. “It’s more like a partnership, I suppose, than anything else. But
Denver’s going to lead it; he’s the CEO,” he said. “We’ve developed the
technology, we’ve proven the model. I’ve probably got, at times, pretty
good vision and I commit do things, but [there’s a] level of energy and
excitement in Denver. [and a] tremendous amount of global credibility.”

“He understands – he’s rolled out a global network. he’s connected it o al
these different markets around the world, to Asia and to Europe, the Middle
East, Africa, the United States. I really wanted him to be involved, and I
really wanted him to lead it!”

*Petroc Wilton*

----

...as *Megaport launches Superloop fibre spinoff*

As it gears for rapid global expansion, Megaport has announced that it will
spin of its fibre assets to launch a new, dedicated infrastructure company
called Superloop.

The new firm will aim to drive innovation within the fibre infrastructure
layer in key areas of the APAC region. Its initial network is slated to go
live in Australia in January 2015, with its own diverse dark fibre
connectivity between the major internet points operated by firms like
Global Switch, Equinix, NEXTDC and more.

The firm has also announced that it expects to bring forward the
commissioning of its Singapore network after securing aces to over 150km of
strategic duct throughout he country; over some 70% of the Singapore
network is expected to go live in March, with rollout completion around
July 2015. The network will provide diverse connectivity to key cable
landing stations in locations such as Katong, Tuas and Changi, as well as
key datacentres including Equinix facilities.

“The fibre network was developed as an enabler for Megaport in its initial
markets. The accelerated growth of the network has created a stand-alone
business, warranting independent strategy and resourcing that can be
provided within Superloop,” said Megaport founder Bevan Slattery, who will
be heading up the new firm. “We are building the only independent,
pan-Asian fibre infrastructure provider which is something rather special
and unique, so much so that – based upon early customer demand – I expect
Superloop to break even in its first full year of operation.”

“[In Singapore], our strategic duct aces arrangement greatly reduces the
time and cost to rollout the network,” he aded. “This means we can offer
certainty, and provide services to our cornerstone clients sooner.”

Working with Slattery at he new company will be PIPE Networks alumnus and
current SubPartners COO Mat Whitlock, appointed to the role of Superloop
COO. Mat Howard, who built NextDC’s M1 data centre, will be project leader
for Singapore. Howard’s Hong Kong counterpart will be Susana Halliday, who
has over 20 years in infrastructure development experience in the territory
and was previously a director at Atkins, responsible for utilities
engineering and environmental services. Project leader for Australia will
be ex-PIPE Networks fibre operations manager Mick Fama.

CommsDay also understands that Superloop has already engaged advisors for a
possible Initial Public Offering on the Australian Securities Exchange.

*Petroc Wilton*

---

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www.commsday.com



*Skeeve Stevens - *eintellego Networks Pty Ltd
skeeve at eintellegonetworks.com ; www.eintellegonetworks.com

Phone: 1300 239 038; Cell +61 (0)414 753 383 ; skype://skeeve

facebook.com/eintellegonetworks ;  <http://twitter.com/networkceoau>
linkedin.com/in/skeeve

twitter.com/theispguy ; blog: www.theispguy.com


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