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April 27, 2021

Nexion’s Hybrid Cloud Goes to New Zealand – By Stockhead

The launch of a new network in Auckland is a joint project with NEXION’s global partner, US multinational Aryaka Networks Inc.

Hybrid cloud provider NEXION Group (ASX:NNG) is on the fast-track for global growth, after announcing the launch of a new network in New Zealand this morning.

The project will see NNG subsidiary NEXION Networks partner with US giant Aryaka to build a new SD-WAN (software-defined wide area networking) platform in Auckland.

The new Aryaka node is evidence of NEXION’s ability to execute on its global scale-up plans, having already established successful hybrid cloud solutions in Perth and Sydney.

Commenting on the expansion, NEXION CEO Paul Glass said a regional expansion strategy was the natural next step now that the company has built a strong footprint in the Australian marketplace.

“Aryaka is a key partner of ours, and the combination of NEXION’s Hybrid Cloud hosting and Aryaka’s SD-WAN global data connectivity provides a turnkey solution for companies of all sizes. We look forward to expanding our operations into New Zealand,” Glass said.

Global cloud infrastructure is a $US130 billion market, and has become a central data management component for almost every business.

But access to public cloud systems such as Amazon Web Services can sometimes be a costly and time-consuming process.

As a result, NEXION’s hybrid cloud solution provides critical value-add infrastructure, allowing clients to quickly and securely connect without diverting resources away from their core operations.

“The Hybrid Cloud segment is one of the fastest growing segments of the IT industry today as corporations accelerate their migration from traditional owner-operated compute resources to pay-as-you-go platforms,” the company said.

“NEXION’s core business is in the sweet spot of this irreversible trend.”

The company listed in February after raising $8m in an over-subscribed IPO, and today’s announcement marks quick execution on the global scale-up plans NEXION flagged when it joined the ASX boards.

Following news of its New Zealand expansion, shares in NEXION rose by around 5 per cent in morning trade to 26c.

Arkyaka’s regional managing director, Paul Thompson, said NEXION is a crucial partner that allows the company to offer an expanded choice of connectivity to clients, as part of its Australia/New Zealand growth strategy.

“Partnering with NEXION is very valuable to us,” Thompson said.

“It’s all about how we can work with NEXION to provide our mutual customers the best Private Cloud, WAN solutions, a dynamic Content Delivery Network, Secure Remote Access and a private core network or internet connectivity for QoS (quality of service).”

Under the terms of the deal, the two sides will start project planning immediately to build an SD-WAN network point of presence (PoP in Auckland).

NEXION already has a strong track record in the space, having built out an Aryaka PoP in Perth, to complement the existing one in Sydney.

The new network in Auckland will give NEXION clients “immediate access to high speed, guaranteed low-latency international bandwidth to 40+ global locations already on the Aryaka network, freeing them from reliance on expensive, slow-to-deploy, cumbersome, traditional telco solutions,” the company said.

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