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Irish Firms - €160k on Data Hosting

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DateFriday, September 25, 2015

Large Irish Firms Spending an Average of €160k per annum on Data Hosting

TelecityGroup Say Corporation Tax, Climate and European proximity are Top 3 Reasons to Locate Data Centres in Ireland


150925_IrishDev_TelecityGroup_Maurice_Mortell_and_Minister_Leo_Varadkar_TD.jpgIn light of all the major multinational data centre investments announced in Ireland in the past six months,  European data centre provider, TelecityGroup, recently commissioned a survey of data centres into the costs and motivations for hosting in Ireland, and yesterday announced that Irish-based businesses have spent an average of €160,000 on data hosting solutions in the past 12 months, with one in five (19%) upwards of half a million euro.



The survey was commissioned in August 2015 by TelecityGroup Ireland and carried out by TechPro among 131 senior IT decision makers in Irish-based businesses, which were typically larger enterprises.



Unsurprisingly, corporation tax (67%); climate, due to the low number of heating and cooling days required (61%); and Ireland's proximity to Europe (52%) were named as top three reasons to locate data centres in Ireland.

Other motives included ease of doing business in Ireland (29%) and local workforce talent (28%), while 22% said high speed connectivity to international markets.



According to Maurice Mortell, TelecityGroup's VP of emerging markets and Irish Country Manager, the findings show that increasingly, businesses are starting to view Ireland as a data centre hub. He said: "The results of this survey are extremely interesting and reflective of our experience with customers. Ireland's physical location and quality of transatlantic connectivity make it one of the fastest through-points for connecting to regions including the UK, US, and Europe."



Interestingly, almost half of respondents said it is the movements of some of the world's largest internet companies to set up data centre operations here, that have caused them to think of Ireland as a data centre hub.


Garry Connolly, President and Founder, Host in Ireland, said: "As substantiated by TelecityGroup Ireland's research and findings, Ireland's 5Ps - policies, people, pedigree, pipes and power - have sustained Ireland's continued growth as a destination of choice for hosting digital content. With MNCs such as Google, Amazon and Microsoft hosting in Dublin, it is no surprise that colocation and managed services continue to expand to facilitate private and hybrid hosting."



Dónal Travers, head of technology group, IDA Ireland, added: "The availability of state-of-the-art data centres is one of the main reasons why international technology companies of all sizes choose Ireland for strategic international activities. Ireland has one of the most advanced and competitive telecommunications infrastructures in Europe, providing access to high-speed, low latency networks to the US, UK and EU. The investment by Telecity will help to further advance Ireland's ability to attract the world's leading digital companies to the country."



Additional findings from the survey:
The main reasons given for choosing a particular data centre were guaranteed uptime (60%), increased security (48%) and the ability to expand when needed (46%). Respondents also cited a 24/7 data centre team, reliable connectivity and data protection as key drivers.


The largest proportion of respondents (39%) said their organisation uses an on-premise data hosting solution, rather than a data centre. More than 30% use a split on-premise and a hosted data centre solution, while 29% use a data centre as a data host. 26% said their organisation plans to move to a split hosted data centre and cloud solution within the next two years.


Respondents said disaster recovery and business continuity will most impact data centre hosting needs over the next 12 months, while 27% said the growth of data would have most impact.



The survey marks the official launch of TelecityGroup's own major new data centre in Blanchardstown which was opened by Minister Leo Varadkar TD. Mortell said Ireland's growing reputation for data centres worldwide is one of the reasons TelecityGroup has invested over €100m in new capacity in Ireland over the last four years.





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