Brazil Datacenter Market An Overview

June 2013

This report is solely for the use of Talent Neuron clients and Talent Neuron Subscribers. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from Talent Neuron.

Talent Neuron Copyright and Disclaimer

Copyright
The material in this report is copyrighted. No part of this report prepared by Talent Neuron can be reproduced either on paper or electronic media without permission in writing from Talent Neuron. Request for permission to reproduce any part of the report may be sent to info@talentneuron.com. Customers are welcome to use an unlimited number of copies of the materials contained within this report. Furthermore, customers may copy any graphic herein for their own internal purpose. Talent Neuron requests only that members retain the source name/logo mark on all pages produced. Please contact our Talent Neuron account manager at +1-408-716-8432 for any help we may provide. The report herein is the property of Talent Neuron (A Zinnov LLC Company). Beyond the membership, no copyrighted materials of Talent Neuron may be reproduced without prior approval.

Disclaimer
All the information contained in this report is obtained through proprietary technology aggregation algorithms, human experts, network of domain experts, discussions with industry leaders, public and confidential information sources believed to be reliable. Talent Neuron makes no representations or warranties regarding the errors, omissions or completeness of any information contained herein and shall have no liability for the same. The report is provided solely for informational and marketing purposes and opinions must not be construed as advice, recommendations or endorsements. The reader of the report is advised to conduct an independent evaluation and form conclusions with respect to the information provided.

Summary
Brazil is one of the emerging locations for data centers. This is driven by the rapidly growing internet consumer base, better telecommunication infrastructure and availability of low cost skilled talent Sao Paulo is the 1st choice for MNCs to establish data centers in Brazil. Over 80% of the data centers in Brazil are based in Sao Paulo. MNCs with multiple data centers in Brazil have at least 1 data center in Sao Paulo. The city has over 24,000 sq.mt. of rack space and over 2,000 people with data center related skills Presence of IT Companies: HP, IBM and Terremark have data center operations in Brazil for over a decade. These companies have more than one data center in the country. Key services provided from data centers in Brazil include Mainframe and Open Source Technologies, Infrastructure Support, Disaster Recovery Management and Cloud Services Other MNCs present : Capgemini-EMC, Tivit, Dell, Amazon Presence of Online Companies: Top online companies such as Google, Yahoo, Facebook, Twitter and LinkedIn have not set up data centers in Brazil. Google is setting up its first Latin American data center in Chile. This is expected to be operational by the end of 2013

Amazon Web Services is the only online company to set-up a data center in So Paulo in 2011.
Key Challenges faced in Data Center Set-Up: High Energy Costs: Energy or Electrical cost in Brazil is about 60% higher than that the US. Inadequate Data Security Policies: Data security concerns are higher in Brazil due to the lack of interoperability, portability and data security policies and standards in the country. Brazilian legislation also lacks a Trans-Border convention given the absence of general and sector-specific rules. The introduction of Brazil Data Protection Draft, 2011 is expected to alleviate most of the data security concerns in the coming years High Tax Rates: Compared to other global locations the cost of setting up a data center in Brazil is higher; Taxes account for about 25% of the total set-up costs
3

Summary

No Direct Incentives for Data Center set-up: The government does not offer any specific incentives for setting-up data centers. However some indirect benefits exist such as reduction of import duties on networking equipment lower inspection operation tax Tier 2 cities such Belo Horizonte and Porto Alegre have reduced property tax by 30% -50% for companies For more information , Please contact us at setting up operations

This is a summary report.

info@talentneuron.com and tax and financial incentives for companies that are willing to set-up their development and service centers in Software and Technology Parks

Lack of Green Initiatives: Currently there is a lack of thrust from the government for Green data center initiatives Conclusion Compared to other global locations, Brazil ranks very low in terms of suitability for setting-up data centers. Countries such as China, India and Russia are ranked higher than Brazil High tax rates, increasing energy costs and lack of data security policies is a deterrent for companies to set-up data centers in Brazil However, reasons such as customer connect and availability of low cost skilled talent is expected to establish Brazil as a key hub for data center activities in Latin America

Key data center locations in Brazil

So Paulo has the highest number of data centers and talent in Brazil

BRAZIL

4500 Belo Horizonte 2

Rio de Janeiro

6000 4 24000 10

So Paulo

Curitiba

5250 2

Porto Alegre

4300 2

Estimated Rack space (Sq M) Number of Data Centers

Note: Only data centers with a minimum headcount of 50 resources is considered Source: Talent Neuron Analysis

MNCs with Data centers in Brazil and other Latin American countries
With growing consumer base, large companies are establishing data centers in Latin America

Data Center Locations in South America Company Name

Brazil

Argentina

Chile

Columbia

Costa Rica

Mexico

Peru

Amazon

This is a summary report. x x x For more information , Please contact us at info@talentneuron.com

; Source: Talent Neuron Analysis

Talent Neuron
Talent Neuron has two module Talent Intelligence and Talent Analytics. Our data spectrum covers 520+ cities, 9 Domains and 400+ skill sets

520+ Cities

~12,000 Unique Data Points Per City

9 Domains & 400+ Skills

~7,500 Companies & 22 Million Profiles

Module 1: Talent Intelligence

Module 2: Talent Analytics

Location Profiles Talent Pool (Installed and Fresh) Salary and Cost University Peer Companies Monitor Role Views Job Engine Top Brains Public People Profiles

HR Data Consolidation Peer Benchmarking Decision Support Analytics Workforce Planning Skill Circles Hypotheses Validation

Talent Neuron, gathers data from multiple sources

Data Mining from Connectors

Job Sites
Company Career Sites
Social Media/ Public Profiles

Universities Publication/ Journal Databases

Patent Databases Community Sites

Technology Contributor List

News Articles & Public Data Crawling Engine

Correlated data on Talent, Cost, Peer companies Data on City level suitability & Ecosystem Data from Local Recruitment Companies

Talent Neuron Primary Research & Interviews

Survey Data from Companies

Data from Govt./ Industry Bodies

10

Talent Neuron Platform

Talent Neuron Platform provides granular data for over 520+ cities in 83 countries. It tracks over 12,000 unique data parameters for a city that spans across location attributes, talent pool size (Domain, Function and Skills), Universities, Salary and Cost etc.
Global Location Profiles Job Engineer Global Talent Insights

Role View

Talent Neuron

Global Cost & Salary Insights

Monitor

University Outlook Peer Companies

For Detailed information on Location, Talent, Cost, Risks, University Information contact info@talentneuron.com
Source: Talent Neuron Website

11

4701 Patrick Henry Dr. Building 7 Santa Clara CA 95054 Phone: +1-408-716-8432 21, Waterway Ave, Suite 300 The Woodlands TX 77380 Phone: +1-281-362-2773 69 "Prathiba Complex", 4th 'A' Cross, Koramangala Ind. Layout 5th Block, Koramangala Bangalore 560095 Phone: +91-80-41127925/6 First Floor, Plot no. 131, Sector 44, Gurgaon-122002, Phone: +91 124 4420100

THANK YOU

Follow us