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A mass of data centres was expected to sprout up in Dublin following the Government's signing of an international bandwidth deal with Global Crossing. However, as a result of the downturn in the technology sector the number of data centres opening here is expected to reduce and already several have shut down or failed to open. Andrew McLindon talks to John Proctor, Country Manager, TeleCity Ireland, which has one of the longest established data centres in Ireland.
Scottish-born John Proctor has more than 15 years experience in the telecoms and technology industries, and is a former director of Internet Ireland and Connect Intelligence. TeleCity Ireland's 40,000 sq ft facility in CityWest, Dublin, opened 18 months ago and has 50Gbs of bandwidth. It also acts as the national telehotel on behalf of the Department of Public Enterprise.
ENN: Why should a company use a facility such as yours?
Proctor: Data centres aren't just about being homes to rows of servers. Using a data centre and its managed services frees a business' IT department to concentrate on what they do best. Outsourcing in this way can reduce costs by up to 60 or 70 percent. And although it is often said that outsourcing is just a way to cut employee numbers, I think it is a way to complement a company's current skill base.
ENN: Given the current business climate, are there too many data centres in Ireland?
Proctor: I couldn't believe it when I heard that were plans for over 20 data centres in Ireland, but there is demand for high-end managed services among corporates for such centres. At the end of the day, the market will decide how many data centres are needed here. All I can say is that we are happy with the level of business we have done so far and that our business model has worked for us.
ENN: Has the technology downturn affected your business?
Proctor: We have seven clients in the telecoms area and several in the financial sector, and I would expect those numbers to increase by the end of the year. So, no, it hasn't had a major impact.
But the IT industry here needs to stop talking itself down so much. Ireland is not in recession and has good bandwidth and good infrastructure. Technology companies should be looking to increase confidence rather than being so pessimistic.
ENN: What is TeleCity Ireland doing to increase confidence in the sector here?
Proctor: We have signed a deal with a leading IT consultancy, which will see both companies target markets across Europe with offers to host businesses high-end managed services in our Dublin facility. This strategic alliance will boost the reputation of Ireland as a leading technology centre.
ENN: Can Ireland really become the e-commerce hub of Europe?
Proctor: I think it can and it will. This is for a variety of reasons. The first is that there is a lot of bandwidth available here. Secondly, unlike their counterparts abroad the Government and the State agencies actually listen to businesses like ours and are always available to help and guide us. And thirdly, the skill set here is very high. Ireland is certainly respected internationally for that.
ENN: But what is needed to get us to the stage where we are a European leader?
Proctor: There has been a certain reticence among consumers and businesses to engage in e-commerce, and although the Government has made good in-roads in that area and Internet usage numbers are continually growing, more still needs to be done to encourage people to buy on-line and to get companies to sell over the Internet. Even if you could get more people to use a service such as on-line banking it would do a lot to demonstrate the advantages of using the Internet.
Also, the local loop needs to be unbundled with a high degree of vigour. If people had high-speed connections it would change their lives and their perceptions of the Internet.
Generally, all that is needed is small steps, but they are vital ones.
ENN: Finally, what kind of future does the Irish IT and Internet industry have?
Proctor: A healthy one. The general technology markets are due to recover in early to mid 2002 and this will, of course, benefit Ireland. Beyond that though Ireland is well positioned. It has a highly skilled workforce, a good communications infrastructure and there is a "can do" mentally here. These factors should ensure that Ireland remains a technology player.
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