- What to learn from each other 26-10-2016 Agenda BFIH / DHPA - - PowerPoint PPT Presentation

Dutch and Danish hosting

• What to learn from each
• ther

26-10-2016

Agenda

26-10-2016

• BFIH / DHPA – background and status
• Dutch and Danish market
• BFIH’s certification process
• DHPA’s ethical programme
• DHPA work re. SLA
• BFIH’s work re. Competition cases
• Lessons learned from each other

Agenda

26-10-2016

• BFIH / DHPA – background and status
• Dutch and Danish market
• BFIH’s certification process
• DHPA’s ethical programme & SLA Framework
• BFIH’s work re. Competition cases
• Lessons learned from each other

BFIH – background and status

• Established in December 2011 by 24 Danish hosting

companies (of which 21 still being members)

• Established in response to increased lack of transparency

in the market

• Purpose
• To improve the quality and security level within

commercial sale of IT hosting services

• To improve transparency in relation of purchase of

IT hosting services.

26-10-2016

Today broader based activity base

26-10-2016

Hosting Certification Networking Industry spokesman Tools and knowledge

(Details later)

• 4 annual meetings
• Cyber crime

protection

• EU Data Protection

Regulation

• Member Surveys
• General IT

purchasing Surveys

• Competition cases
• Policy issues

Member status

• 31 hosting companies
• 5 Large (100+ employees)
• 17 Mid-sized (20-100 employees)
• 9 Small (less than 20 employees)

+

• 10 associated members

26-10-2016

DHPA – background and status

• Established in 2007 by 6 hosting companies
• Established to make a difference (quality,

professionalism, responsibility)

• Mission: To improve the online sectors’ image, to

promote professionalism, responsibility, transparancy and trust

26-10-2016

The DHPA (Dutch Hosting Provider Association) is the industry organization of professional hosting providers in the Netherlands

• Over 80 members and partners - Currently 30 member organisations

Mission:

• To improve the online sectors’ image
• To promote professionalism, responsibility, transparancy and trust

DHPA Programs:

• Promote

The significance of the third NL mainport

• Education

Contribute to supply of technical talent

• Trust

Reliability, cybersecurity, and battling cybercrime

• Connect

Key stakeholders in the NL Online ecosystem

Dutch Hosting Provider Association

www.dhpa.nl

Agenda

26-10-2016

• BFIH / DHPA – background and status
• Dutch and Danish market
• BFIH’s certification process
• DHPA’s ethical programme & SLA Framework
• BFIH’s work re. Competition cases
• Lessons learned from each other

• Business market spends an annual € 40 Billion on IT infrastructure,

applications and services.

• ca. 500 serious Hosting companies (More than 1000 actual

companies)

• Market is rapidly shifting towards centralised IT resourses (e.g.

Cloud). Compared to neighbouring countries adoption of Cloud ahead of the curve. Large majority of business customers is starting to move to the Cloud.

• Ams-IX largest Internet Exchange in the world
• Our digital economy is our third mainport next to our airport

(Amsterdam) and harbour (Rotterdam)

Dutch market

www.dhpa.nl

11

As As a a res esult NL L is is hos hosting the he top of

• f the world’s tec

echnolo logy an and Internet com

• mpanies as

as gateway to

• Eu

Europe and and the Internet

Twitter Online social networking service with more than 271 mln active users with $664 mln revenue and 3,300 employees globally Akamai One of world’s largest providers of content delivery networks with $1.5 bn revenue and 4,200 employees globally CDNetworks Full-service delivery network of Internet content and applications, accelerating more than 40,000 websites globally Netflix Provider of on-demand Internet streaming media, present in over 40 countries with $4.3 bn revenue and 2,000 employees globally Softlayer One of the world’s largest cloud infrastructure providers, owned by IBM with over 80,000 servers and 26,000 customers Amazon One of the largest commerce companies and major provider of cloud computing services with over $74 bn revenue and 132,600 employees globally Facebook The largest online social networking service with more than 1.3 bn active users, $7.9 bn revenue and 8,400 employees worldwide Go Daddy One largest domain registrars and web hosting companies in the world with over $1.1 bn revenue and 4,000 employees worldwide Google Corporation specialized in Internet-related services and products with around $60 bn revenue and over 55,000 employees Microsoft Corporation that develops, manufactures, licenses, supports and sells e.g. computer software, consumer electronics with over $86 bn revenue Source: AMS-IX Report

Portfolio of NL hosting companies

www.dhpa.nl

Dutch marketplace

• Market is fragmented
• No single dominant player on the market
• Regional players thrive and are also the important

‘route’ to market for public Cloud vendors

• The biggest trend is companies are almost all offering

and focussing on a Hybrid solution

• Players do not tend to get big. They go niche.
• Industry is still highly profitable

www.dhpa.nl

Danish marketplace

• Market is fragmented
• No single dominant player on the market
• Regional players thrive and are also the important

‘route’ to market for public Cloud vendors

• The biggest trend is Hybrid solutions
• Some players consolidate. Others go niche
• Industry is still reasonale profitable

Why have companies outsourced?

Danish market analysis

26-10-2016

28,4% 21,6% 18,6% 29,4% 40,2% 28,4% 33,3% 35,3% 4,9% 0,0% 5,0% 10,0% 15,0% 20,0% 25,0% 30,0% 35,0% 40,0% 45,0% Financial benefit - no need to invest Financial benefit - stable predictable cost Improved freedom to choose Improved scalability Higher safety Improved stability Access to solutions not reachable based on own size Reduced need for own IT skilled personnel Other

Experience with IT outsourcing

Danish market analysis

26-10-2016

13% 46% 23% 16% 1% 2%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Extremely happy Very happy Happy Neither-nor Not happy Don't know

80% happy or better with IT outsourcing experience

Agenda

26-10-2016

• BFIH / DHPA – background and status
• Dutch and Danish market
• BFIH’s certification process
• DHPA’s ethical programme & SLA Framework
• BFIH’s work re. Competition cases
• Lessons learned from each other

BFIH’s certification process

• Within first year of membership the member need to

qualify for the Hosting Certificate

• Annual auditing process
• Aim to assist IT purchasing managers in choosing

quality hosting

26-10-2016

Elements of the Hosting certification

• ISAE 3402 with reference to ISO 27002:2013/14. Including

requirement on management action plan in relation to open control issues

• Content and accessibility requirements re. service level

agreement(s) (SLA)

• Financial solvency requirements
• Insurance requirements (general insurance, professional

consultancy insurance)

• Transparency requirements

26-10-2016

26-10-2016

• Aug. 2013

Value of Hosting Certificate

Movies Online campaigns Banners ++ for web Launch kit Online campaigns Online campaigns

Building awareness of the Hosting Certificate…

Results so far

• ”Garage Hosters” less of a threat now compared to five years ago.
• Professionalized purchasing of hosting and other IT outsourcing

services.

• 23% of IT decision makers recognize the Hosting Certificate
• The Hosting Certificate has not yet become a “hygiene” factor of IT
• utsourcing, but is an integrated part of members market

communication

• Internal control processes have improved for most members

26-10-2016

Agenda

26-10-2016

• BFIH / DHPA – background and status
• Dutch and Danish market
• BFIH’s certification process
• DHPA’s ethical programme & SLA Framework
• BFIH’s work re. Competition cases
• Lessons learned from each other

Connect Trust Knowledge Quality Facilitate Support Navigate Insight

www.dhpa.nl

Refocus on activities

2016

Code of Conduct

Integrity Transparancy Up-to-date Knowledge & skills Customer focus Education and coöperation Responsible Unique SLA Continuïty

www.dhpa.nl

Incident management

For continuïty

Change management Problem management Reports

Providing operational insight

Security

Tasks & Responsibilities

Maintenance Garantueed availability Exit

Support

Response intervals Backup & recovery

www.dhpa.nl

DHPA SLA Framework

Where do we stand

• Evolving set of selection criteria for aspirant members
• New associations in our sector carry the DHPA blueprint
• The birth of a ‘sector wide’ digital infrastructure association that

encomprises all relevant organisations, associations and member

• rganisations (DINL)
• Perceived leadership in Service Level Agreements
• Evaluation of DHPA focus and mission (9 years have passed)

26-10-2016

Agenda

26-10-2016

• BFIH / DHPA – background and status
• Dutch and Danish market
• BFIH’s certification process
• DHPA’s ethical programme & SLA Framework
• BFIH’s work re. Competition cases
• Lessons learned from each other

BFIH’s work on competition cases

On behalf of members BFIH has worked on two competition cases vis- à-vis Microsoft: 1) Abuse of dominant position on Office by Microsoft (“margin squeeze”) 2) Abuse of dominant position on ERP by Microsoft (“bundling”)

26-10-2016

Case 1: Office Margin squeeze, 1H 2015

Argument Abuse of dominant position (“margin squeeze”) within a dominant area by

• ffering end-user prices on Office (Office365) at a lower price than Microsoft

distribution partners could buy Office on wholesale basis (hosted Microsoft Exchange based on SPLA-prices) What happened? High level of urgency received from corporate Microsoft Fast track to CSP tier 1 status; 23 BFIH members participated in Microsoft SCA pilot program (Shared Computer Activation ~ multitenant deployment of Office 365) No formal case files for Danish competition authorities

26-10-2016

Case 2: Bundling, 2H 2015

Argument Abuse of dominant position (“bundling”) by offering special low end- user prices on ERP subject to hosting on Azure. What happened? Complaint to Danish competition authorities on abuse of dominant position (ERP) to promote Azure. Competition authorities were not convinced that that the relevant market for ERP could be defined by national (Danish) boundaries and were concluding that it would not carry through the case.

26-10-2016

Agenda

26-10-2016

• BFIH / DHPA – background and status
• Dutch and Danish market
• BFIH’s certification process
• DHPA’s ethical programme & SLA Framework
• BFIH’s work re. Competition cases
• Lessons learned from each other

Lessons learned from each other

Your thoughts please!

26-10-2016

Thank You

26-10-2016