Ireland – Special ReportA Highly Attractive Location for Hosting Digital AssetsA Highly Attractive Location for Hosting Digital Assets

Csilla Zsigri – Director of Consulting Services EMEA451 Advisors – The 451 Group

THE 451 GROUP – SYNDICATED RESEARCH, DATA, PROFESSIONAL SERVICES, EVENTS

• We provide consulting services to enterprises, service providers and IT vendors.

• We address the gap between traditional research and management consulting.

• We help our clients overcome strategic, planning and research challenges associated with digital infrastructure evolution.

SPECIAL REPORT ON IRELAND: TARGET AUDIENCE & METHODOLOGY

International digital-content and IP-centric businesses that are planning to expand their operations into the European market…

A Highly Attractive Location for Hosting Digital Assets

Economic & Political Stability

500+ million

Source: EurostatSource: GconnTec

GDP Growth

Tax & Financial BenefitsRATE

REGIME REPUTATION• R&D Tax Credit (up to 25%)• Accelerated Capital Allowances - incentives

for investing in energy-efficient equipment• Tax advantages for relocating key staff• 3-year corporate tax relief for startups

• Transparent corporate tax regime• 69 double-taxation treaties in place

The ability to offer a full package of tax benefits has already attracted many multinationals looking to launch into Europe.

Source: IDA Ireland

Energy & Electricity Mix

• Ireland has committed to securing 40% of its energy from renewable sources by 2020, while the overall EU target is 20%.

• Mainly wind, but also exploring how to harness wave power

• Exporting wind-generated power to the UK

• Dublin has become a favored location for free fresh-air cooling

• Fresh-air cooling drives down electricity costs and is good for low PUE

• Multinationals considering investing in on-site energy generation

• Business electricity prices for large consumption bands (20,000-70,000 MWh) were below EU-27 and EU-17 average in Ireland (2012 2H)

• Irish Government committed to significantly lower electricity costs

• Irish power grid currently accepts up to 50% wind energy; 75% by 2017

Legislative Environment• Ireland has a pro-business legislative environment that complies with EU

standards• Irish regulations are strict enough to be effective, but more pragmatic and flexible

than the local laws in some other EU countries• Most regulators in Ireland have experience dealing with US multinationals and are

open to listening to what they have to say, due to the significant presence of these companies in the country

e-commerceintellectual propertydata protection

Infrastructure Competitiveness - Connectivity• Companies have a broadening array of choices for

transatlantic connectivity; access to diverse cable routes to the UK and continental Europe

• Hibernia Atlantic, Project Express, Emerald Express• 11 subsea cables connecting Ireland to the UK • FastnetConnect (high-fiber-count cable system) will

link Ireland to France, connecting to multiple international cables

• Dublin T50, a 44km multi-duct fiber-optic cable system surrounding the city

• Broadband speeds of 150Mbps (cable) and 70Mbps (VDSL)

• A number of global carriers -AT&T, BT, Cogent, euNetworks, Geo, Level3, Verizon, Vodafone- offering multiple diverse routes on and off the island

Infrastructure Competitiveness – Datacenter Footprint• 15 multi-tenant datacenters in Dublin; total

net floor space of 60,000 m2• Providers include Dataplex, Digital Realty,

Eircom, Interxion, SunGard and TelecityGroup

• Dublin is a major world financial center and European base for many multinationals that contribute to datacenter demand in the city

• Cloud computing and hosting is driving market expansion

• Highest-growth vertical markets are those of digital media and content, online gaming and gambling

• About 90% of customers are international (US- and EU-based) companies

Source: Dataplex

Hosting & Cloud Computing (IaaS) Growth

15%UK

15% France

12%Nordics

& Iceland

14%Benelux

18% DACH

42%UK

42% France

22%Nordics

& Iceland

41%Benelux

47% DACH

Hosting (million USD)

Infrastructure-as-a-service(million USD)

Local Workforce• International, technology-savvy and multi-skilled

workforce• 48% of 25-34-year-olds hold a third-level qualification

(OECD average is 38%)• Irish education more focused on developing broader,

higher-value skills applicable to real-world business situations, than on specific technical proficiency

• Top universities engage in research collaboration with industry and government • Median age of population in Ireland is 35 years (lowest in Europe)• Hourly labor costs fell below the EU-17 average in 2011• Social contributions represent 5% of GDP (second lowest in the EU; EU-27

average is 12.7%)

Government SupportIreland has a welcoming, pro-business government culture. There are plenty of government agencies working on creatively attracting and supporting foreign companies doing business in Ireland.

Case Studies & Success Stories

local workforce

energy infrastructure, local workforce

IT infrastructure, local workforce

local workforce

IT infrastructure, local workforce, data protection, tax

local workforce

data protection

Thank you!