Markets Offer Opportunity
But challenges await inexperienced providers, panel says
July 27, 2001 (SAN FRANCISCO) --Overseas markets offer
tremendous opportunities for Internet data center developers,
but place a premium on patience, diplomacy and good partnerships,
according to industry veterans with experience in these markets.
at the IMN Summer Conference on Financing and Developing Carrier
Hotels and Internet Data Centers said Asia, Latin America and
Eastern Europe figure to be the fastest-growing regions.
the most important decision about overseas expansion is timing,
according to Mark Lambourne, Executive Operating Officer at Global
Switch, who drew on a decision made by his London-based carrier
hotel development firm as an example.
two years ago we had a very aggressive plan," said Lambourne.
"But we decided not to enter the U.S. market. Every time
we looked at a site, the next day someone else was interested
and the price went up.
of the things you need is patience," said Lambourne. "You
can't always send the paratroopers in."
is also important after you decide to enter a market, according
to Cardi Prinzi, a vice president with Pihana Pacific, which builds
data centers in Asia.
always takes longer than you expect it to," said Prinzi.
"It stretches beyond what you know and what you're used to
cases, that's because the infrastructure in other countries can
be foreign - in more ways than one.
tends to look slightly different in different locations,"
said Prinzi. "And it's not like the U.S. or London, where
you have 12 fiber providers in the street. In Asia, there may
be only one or two fiber providers."
year you could not get power in Amsterdam for eight months,"
said Stephen Worn, director of strategic planning for Nortel Networks.
"Power access in Latin America is a tremendous problem."
obtain power, they must be sure they know exactly what they've
actually got, he added.
believe anything anyone ever tells you about the local grid,"
he joked. "I run from transformers when they start them up."
the most important business issues are not technical, but cultural,
the panel agreed.
sensitivities are becoming a major issue," said Worn. "It's
going to grow more and more important. The right people have to
be sent to the right country."
these issues factor into the facility design process.
Japan and Korea, it's not unusual for people to live and work
in a data center," said Charles Prawdzik of EYP Mission-Critical
Facilities, which specializes in power availability issues. "You
need to consider this."
crucial to learn how to navigate local bureaucratic red tape.
will get vastly different codes and implementation of codes in
different countries when you have a fire marshal examining a type
of facility he doesn't have much experience with," noted
to success in these markets, panelists to said, is "glocalism"
- thinking globally but focusing locally.
need to have global partners, regional partners and local relationships,"
said Worn. "You need local experts who know the regulatory
OTHER IMN CONFERENCE COVERAGE:
Through The Wreckage
Focus is on practical strategies for weathering the downturn
Hosting Models Can Work
But pricing, financing are major challenges, and the RBOCs are lurking
Servers, Larger Loads
Ultradense server blades can pack racks - but how to cool them?
Markets Offer Opportunity
But perils await unwary providers, and partnering is critical
Rooms Attracting Attention
Interconnection a major selling point for El Paso, other providers