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City Network to launch Enterprise Unit

February 23, 2015
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City Network, a provider of infrastructure as a service (IaaS), announced today its launch of a new business unit focusing on the enterprise market. The new business unit, Enterprise Services, will focus on selling the company’s City Cloud service to large corporations. The initiative includes the creation of a new business team to support and guide companies that are interested in cloud services.

– In Sweden, demand for infrastructure services is rapidly increasing, says Johan Christenson, CEO of City Network. Among the main drivers for companies and organizations to outsource are greater flexibility, better availability and capacity for innovation as well as improved cost control. Now we develop the concept further by setting up a new team that solely focuses on large enterprises and their needs. The aim is to consolidate our position as the leading IaaS provider in Sweden and, eventually, to become the leader also in Europe.

The demand for infrastructure services is growing steadily. New figures from the research firm IDC points to a yearly growth rate of 36% in Sweden during both 2015 and 2016 (IDC, Nordic Public Cloud Forecast, 2010-2018, October 2014).

– The rapid and increasing digitalization of corporate and governmental services is making the need for computing power more unpredictable. At the same time digitalization requires high availability of various services. Combined, these factors drive the market for infrastructure services, says Anders Elbak, analyst at IDC Nordic.

As head of the new business unit, Enterprise Services, City Network has recruited Daniel Gustafsson. With nearly 20 years in the IT industry, at companies such as CGI and Tieto, Daniel has extensive experience in working with large companies.

City Cloud is a service currently offered in all of City Network’s data centers in Sweden and Europe. City Network has customers in all types of industries and is currently working with clients such as Akzo Nobel, the Swedish Radiation Safety Authority and Kaspersky Lab.

– The whole idea of outsourcing is undergoing a fundamental change. We now see large companies who choose to outsource parts of their business in the cloud, while retaining some elements in house. It is often hard to predict the infrastructure need in capacity-intensive processes, which is why cloud solutions creates considerable value both in terms of money and flexibility, Johan Christenson concludes.