Why Teraco? - a Q&A with Guy WillnerAbout us

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In July, Guy Willner invested in Teraco and is a non-exec on the Board. Guy co-founded IXEurope, a neutral data centre operator, in London in 1998. IXEurope grew to become the largest European neutral data centre business with 14 data centres in 6 countries, in total around 66,000 square metres. In 2008, the business was acquired by Equinix for $482m.

Guy, why is now the time for a neutral colocation company in South Africa?Background

"Everyone uses the internet now and mobile is just accelerating the phenomenon. For the internet to really work, countries with more advanced Internet infrastructure have realised that neutral data centres, telecoms liberalisation and network build are the three main success factors. Last year saw the opening of the South African market, followed now by over 20 companies already building network. So the time is ideal for Teraco to provide the remaining ingredient for success.

Content providers need to be able to deliver to all their customers 24/7 over whatever is the fastest network at the time. Neutral data centres are the "Content Marketplace" for the Internet. You wouldn't see Woolworths stocking its shelves from a Pick n Pay warehouse - the market has to remain fair and neutral."

Why did you invest in Teraco?Why did you invest in Teraco?

"Management is the most important factor for the success of a business. If the idea is great but management weak then weakness wins. The Teraco team is hugely experienced, keen to learn from other peers and very motivated. Their enthusiasm comes in part from the fact that they are building something special in South Africa - it's like building a new railway network."

How involved are you in the business?How involved are you in the business?

"As I'm passionate about data centres, more time than I should I guess! Plus it's a fantastic country with lots of potential in the internet space. Based in London, I can liaise with my contacts in Europe looking at rolling out network in South Africa. Strategically, I am working with them to ensure Teraco makes the right decisions now to provide the best solution in the future for customers."

What future do you see for Teraco?What future do you see for Teraco?

"The neutral data centre for Africa, and a hoster of the only pan-African Internet Exchange. The business will grow fast and I'm no stranger to that, given what we saw in IXEurope over the last ten years."

You've been in the game for over ten years. Isn't that enough?!You've been in the game for over ten years. Isn't that enough?!

"You'd have thought so, but this game is great fun! As a neutral colo company you are an enabler. All we do is get companies together so that they can better do their business - we are a catalyst for our customers' innovation. So neutral data centres are at the centre of all the exciting trends: Cloud Computing, VOIP exchange and peering, application hosting and multimedia content delivery etc."

Are you still involved in Equinix Europe?Are you still involved in Equinix Europe?

"No. I served as President for a year after selling our business but now I am a free agent. I retain a great relationship there with the management, many of whom I have worked with for years."

What else are you looking at?What else are you looking at?

"I have made other investments in companies which I am interested in around the world. Specifically, I am looking at a couple of other neutral colocation providers in Eastern Europe."

A bit about GuyA bit about Guy

Guy lives in London with his French wife and 5 (yes,5) children. Loves the outdoor life and sailing particularly. He is beginning to rather like the Teraco board meetings in Cape Town too... Guy is next in Cape Town on 5th February 2010. Let us know if you'd like to meet him.

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