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White Paper
Doing Business in Brazil: How to reduce your
risks through IT infrastructure outsourcing
Discover the business
opportunities in the Brazilian
market and how to tap them taking
advantage of IT infrastructure
Outsourcing
© 2012 Frost & Sullivan. All rights reserved.
This document contains highly confidential information and is the sole property of Frost
& Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced
without the written approval from Frost & Sullivan.
White Paper | Agenda
Table of Contents
Executive Summary
03
Brazil is the country of the future and the future
is now
04
Investments in physical infrastructure to support
the country’s growth
05
What to expect in the coming years
06
Top IT Opportunities in Brazil
07
Challenges of Doing Business in Brazil
08
Reasons to outsource your company’s IT
infrastructure in Brazil
09
IT Infrastructure Outsourcing Market in Brazil
11
Major trends in the IT Infrastructure Outsourcing Market 12
Factors to Consider when choosing an IT Infrastructure
Outsourcing provider
13
Frost & Sullivan Strategic Recommendations
14
Appendix
15
Executive Summary
In recent years Brazil has strengthened its foreign relations, paid off
most of its international debts and stabilized its inflation rates,
providing an important base for its economic development.
The coming years present promising opportunities due to the World
Cup and Olympic Games. The discovery of large oil fields in the presalt layer is another factor that is prone to driving economic growth.
Moreover, Brazil is making billion dollar investments in hard
infrastructure and telecommunications in order to overcome the
existing gaps in these area.
Companies venturing into the Brazilian market may benefit from this
positive momentum and from its large market size to experience
great opportunities for fast growth. However they must deal with
some market particularities, such as the restrictive labor regulations,
very high taxes and government bureaucracy. These directly impact
the number of procedures and days required to start a business as
well as increasing the costs to run a business in the country.
In order to support their new or existing operations in Brazil, in most
cases companies must invest in IT infrastructure. Given the
inadequate telecommunication infrastructure in the country and the
bureaucratic procedures required to start a business, having a local
data center is crucial for companies looking for reduced network
latency and being able to promptly start their operations. These
companies are faced with two main options: build their own data
center or outsource the IT infrastructure to a third party provider.
When building in-house IT infrastructure, companies must deal with
very high tax rates, large capital expenditures in IT infrastructure,
and paying and retaining the most expensive IT workforce in the
region amongst other factors. Outsourcing the IT infrastructure can
mitigate most of these challenges and bring other benefits, such as
time savings, scalability and higher quality infrastructure.
This whitepaper provides an overview of the Brazilian economy and
major investments in the coming years as well as outlines the main
challenges of doing business in Brazil. It also analyzes the Brazilian
IT Infrastructure Outsourcing Market and compares the advantages
and disadvantages of having an in-house IT infrastructure vs
outsourcing IT to a third party provider.
03
03
Brazil is the country of the future and the future is now.
In recent years Brazil has discovered large oil reserves, consolidated itself as an
agricultural superpower, strengthened its foreign relations and paid off most of its
international debts. Most of the foundations are now set to justify Brazil being
called the country of the future.
.
Economic Overview, Latin America and the Caribbean, 2011
Latin America & the
Caribbean
GDP size: $4.9 Trillion
Representation in the World
(2011): 5.8%
Mexico
GDP size: $1.1 Trillion
Representation in the region
(2011): 20.6%
Colombia
GDP size: $328.4 Billion
Representation in the region
(2011): 4.9%
Chile
GDP size: $248.4 Billion
Representation in the region
(2011): 4.4%
Brazil
GDP size: $2.5 Trillion
Representation in the region
(2011): 44.4%
Argentina
GDP size: $447.6 Billion
Representation in the region
(2011): 8.0%
Brazil is the largest economy in the Latin American and Caribbean region, representing
more than 40% of the region’s GDP. As a result of its importance in the region in
regard to market size, economic power and stability, the country has been the major
center for Foreign Direct Investments (FDI). In 2011, it was responsible for 43% of the
FDI inflows in the region, growing 37% compared to 2010.
In 2012 Brazil was considered the fifth most important country for investments by
transnational corporations.
Moreover, the middle class effect is another positive factor that is stimulating internal
consumption and GDP growth. In 2012 this class represented about 53% of the
population.
Stable inflation, along with its low unemployment rate (approximately 6%) and
large economically active group (60% of the population is aged between 15 and 64)
are other factors that show Brazil’s unique position and also contribute to stimulating
investments in the local economy.
Source: Central Intelligence Agency, International Monetary Fund, ECLAC, IBGE, Frost & Sullivan
3
3 04
Investments in physical infrastructure to support
the country’s growth
Growth Acceleration Program II’s (PAC II) Investments in Hard Infrastructure, 2011-2014
Airports:
• Estimated investment: USD3.9 billion
• Large investment targeted to support 2014-16 Sporting Events
Roads and Rail roads:
• Estimated investment: USD28.3 and USD25.6 billion respectively
• Brazil has the 4th largest highway and the 10th largest railroad
infrastructure in world
High-speed Train:
• Estimated investment: USD20.9 billion
• High speed trains will connect São Paulo to Rio de Janeiro
Ports:
• Estimated investment: USD4.2 billion
Electric Power:
• Estimated investment in Electric Power generation: USD75.9 billion
• 47% of the energy matrix will be composed by renewable sources*
Despite Brazil’s promising opportunities for growth, the country still has to address several
challenges and one of the most important ones is its hard infrastructure. Brazil has inadequate
infrastructure, especially where transportation is concerned. In order to diminish this inefficiency
and create the required conditions to develop a strong local economy and strengthen production,
the country is making important investments in infrastructure.
The country will invest in airport infrastructure to support the increasing local demand as well as
the World Cup and Olympic Games. Large investments will also be made in the construction of a
high-speed train, which is expected to transport 6.4 million people per year and in the
improvement of public and private ports, which is designed to reduce export costs by about 30%.
Significant investments in electric power supply will also take place in the country, and a large part
will be assigned to renewable energies. Brazil is the most attractive country in its region for
investments in renewable energy and in 2011 the country accounted for 10% of all
greenfield power generation investment in the world. In 2011 wind power installed capacity
in Brazil had grown to 1,500 megawatts, with another 6,700 megawatts in the development stage.
The third largest hydro plant in the world, Belo Monte, is under construction.
*Including large hydro power plants
Source: Ministry of Planning, Budgeting and Management, ECLAC Frost & Sullivan
05
What to expect in the coming years
2014 World Cup
The total investment for the World Cup in Brazil is estimated at USD 14.1 billion, which
includes mobility, airports, accommodation and sports arenas. After airport and sports
arenas, mobility is the largest part of the expense for the event, corresponding to 41% of
the total. Mobility has been established as a main investment target due to the lack of
rail, roads and infrastructure in the country,
The World Cup will bring very positive results to the country in terms of infrastructure
investments and tourism. The event is expected to add USD 101.6 billion to the
country’s GDP to the end of 2019 and it will attract approximately 3.7 million tourists
generating USD 5.2 billion during the games.
2016 Olympic Games
The total investment for the Olympic Games in Brazil is estimated at USD 5.2 billion,
also represented by the segments of mobility, arenas and accommodation. Mobility is the
primary expense for the event, corresponding to 60% of total expenses.
Noteworthy, is that the World Cup and Olympic Games events will help to sustain Brazil's
economic growth by adding 120,000 jobs annually through 2016.
Oil Fields in the Pre-Salt Layer
The discovery of oil fields in the pre-salt layer is another very important aspect that will
positively impact the economy. Estimates point out that the oil fields discovered on the
Brazilian coast could place the country amongst the countries with the five largest oil
reserves in the world by 2020.
Petrobras – a company that holds 89% of the Brazilian Oil & Gas market – will invest
USD 236.5 billion from 2012 to 2016 with 60% of this value to be used in extraction
activities. The large investments in the sector highlights the promising opportunities and
positive growth in the Brazilian Oil & Gas market.
The Olympics, together with the discovery of oil in the pre-salt layer and the hosting of
the World Cup will boost Brazil’s global stature and add about 3% to 4% to its gross
domestic product in the next five years.
National Broadband Plan
The National Broadband Plan (PNBL) comprises the offering of standalone broadband with
no landline at accessible prices in all Brazilian municipalities by 2015. It relies on tax
exemptions and incentives to reduce the price of devices and equipment and will drive
the fixed broadband subscriber growth from 2012 to 2017, bringing Internet at a lower
cost for new adopters and previous dial-up users.
The National Broadband Project is expected to offer broadband to 90 million users,
reaching 50% of Brazilian households by 2014.
Source: Ministry of Communications, Ministry of Sports, Petrobras, Ministry of Planning, Budgeting and Management Frost & Sullivan
5 06
06
Top IT Opportunities in Brazil
Major IT Trends, Brazil, 2011-2015
Mobility
Mobile device penetration is increasing at high rates in Brazil. In 2020 46.6 million
smartphones and 14.6 million tablet units will be shipped, representing a compound
annual growth rate (CAGR) of 21.5% and 56.9% respectively from 2011 to 2020.
As a result of the increasing penetration of mobile devices, the access to content using
tablets and smartphones will grow in the coming years. It is important that carriers and
content providers have their data stored in a local data center in order to reduce latency
and improve customer experience when accessing the content.
Cloud Computing
The Cloud Computing concept is gaining awareness in the Brazilian market and is
expected to grow at an impressive rate in the coming years. This is due to the large
benefits achieved with the use of the Cloud, such as cost reduction, operational
elasticity and business continuity.
According to a Frost & Sullivan research, 66.0% of Brazilian CIOs interviewed planned
on investing in cloud computing adoption or expansion in 2012. From the cloud
services, Software as a Service (SaaS) has the highest penetration representing
87.9% of the total cloud services penetration rate, with Infrastructure as a Service
coming in a more distant second.
Big Data
With the increasing adoption of mobile devices, social networks, RFID tags, video
cameras and other technologies, the volume of information generated and available to
companies in order to better understand customer behavior, make more precise
forecasts and gain other competitive advantages is growing sharply.
Big Data refers to the analysis of a large volume of varied information at a high
speed. This technology creates value for the large pool of information available.
According to Frost & Sullivan, the Brazilian Big Data Market will grow at a CAGR of
32.6% between 2012 and 2016, by which time revenue will reach USD 578 million.
Security
Brazil is among the main targets of virtual threats such as malware and phishing.
With the increasing amount of confidential data available on companies’ systems, on
both personal and corporate devices, this scenario becomes even more concerning.
In the coming years it is expected that a large number of smartphones and social
network attacks, advanced malware and BYOD will threaten data protection. All of these
factors will increase the demand for Managed Security Services (MSS).
In 2011 the country accounted for 55.9% of the Latin American MSS market and is
expected to grow by 19.3% in 2012.
Source: Frost & Sullivan
07
Challenges of Doing Business in Brazil
Despite the positive macroeconomic situation and the large market potential,
there are several challenges that must be faced when doing business in
Brazil.
These
include
infrastructure
and
tax
regulations,
government
high
bureaucracy.
tax
rates,
Moreover
inadequate
the
country
presents highly restrictive labor regulations and an inadequately prepared
workforce.
Challenges of Doing Business in Brazil, 2012
Challenges
Availability of latest technologies
5.3
Intensity of local competition
5.1
Pay and productivity
3.8
Transparency of government
3.6
Intellectual property protection
3.5
Quality of overall infrastructure
3.4
Hiring and firing practices
3.3
Ease of access to loans
3.1
0
1
2
3
4
5
6
Score
Source: World Economic Forum
Score ranges from 1 to 7, being 7 the most desired outcome
Companies venturing into the Brazilian market must deal with restraints, such as
inefficiency and the high costs of hiring and firing practices in the country. In a ranking of
144 countries Brazil occupies the 114th position when it comes to this criteria,. Another
challenging aspect is the quality of overall infrastructure, especially when it comes to
quality of transportation and also the government’s non-transparent policy making. In
these two criteria the country occupies the 107th and 91st positions respectively .
Starting a business is also a challenging task in Brazil. The country has been showing
improvements in this area, however some aspects such as the number of procedures
and time required to start a business are a disadvantage when compared to other
countries. While in Brazil there are about 13 procedures to start a business, in the
Organization for Economic Co-Operation and Development (OECD) countries there are
only 5. When it comes to the number of days required to start a business, the OECD
average is 2 days while in Brazil it takes 119 days on average.
Another big issue in the country is the amount of taxes paid. Mandatory labor tax &
contributions and profit taxes represent almost 41% and 22% of business
commercial profits. Comparing these two types of taxes, in Brazil companies pay 29%
more than the Latin America average and 24% more than the OECD countries average.
Source: World Economic Forum, Doing Business, Frost & Sullivan
08
Reasons to outsource your company’s IT
infrastructure in Brazil
Having an internal IT infrastructure and efficiently managing this environment
was always challenging when striving for cost reduction. With the new and
more complex IT environments, the need for a specialized labor force and an
updated infrastructure capable of absorbing new technologies became
evident, resulting in higher IT costs and thus stimulating outsourcing.
Frost & Sullivan Latin America
In-House IT Infrastructure
IT Infrastructure
Outsourcing Services
Bureaucratic and time consuming
process to start a business.
The IT infrastructure is already
installed.
Very high taxes rates.
Part of the taxes are assigned to
the infrastructure outsourcing
providers.
Pay and productivity workforce
inefficiencies and high cost.
IT team hiring and management
are responsibilities of outsourcing
providers.
Large investments in IT
infrastructure to support
business.
Reduced capital expenditures.
IT issues deviate the company
from its main source of revenue.
Ability to focus on core business.
Outsourcing IT infrastructure can bring several benefits to companies, especially due to some
specific aspects of the market in terms of taxes and bureaucracies. One of the most important
benefits achieved by infrastructure outsourcing is turning capital expenditures into
operating expenses. As a result, companies eliminate idle capacity and also reduce
investment on IT infrastructure and staff in order to spend a smaller amount of money as
operational expenses.
The reduction of the IT team is another benefit enabled by IT infrastructure outsourcing;
expenditures on staffing work represent approximately 22% of the total monthly operational
expenditures in a data center. The cost of IT labor in Brazil is the highest in the region, due to
high salaries and local HR taxes. The country made few investments in developing IT
professionals in the past, creating a gap between supply and demand of these professionals
and pushing up salaries.
Moreover, companies that outsource their IT infrastructure are able to focus on their “core
business”, enabling the CIO to focus on more strategic decisions that maximize the
company’s competitive edge. Additionally, IT IO can promote time savings, provide
advanced network connections and create relationships with one single partner,
facilitating CIOs work.
Finally, companies that outsource their IT infrastructure can have their data and applications on
a more stable, reliable and often redundant environment.
Source: Frost & Sullivan
09
Reasons to outsource your company’s IT
infrastructure in Brazil Cont’d.
In order to build its own data center, companies need to invest a large amount of
money in electrical and cooling components, telecom infrastructure, hardware,
storage and security amongst others. Considering the overall costs of building a data
center, Brazil is an expensive country in terms of both component prices and taxes –
including import taxes. The cost of building a data center infrastructure in Brazil is
about 36% higher than in the United States.
Total cost of building a Tier III Data Center in different
countries compared to Brazil, 2012
100%
100%
90%
Taxes
79%
80%
78%
76%
70%
70%
64%
60%
50%
40%
30%
20%
10%
22%
7%
0%
Brazil
Chile
12%
14%
16%
Argentina
Mexico
Colombia
8%
United States
While in Brazil the amount spent with taxes when building a data center is about 22%, in
Chile and in the United States this number is reduced to 7% and 8% respectively.
The high taxes in Brazil also severely impact the cost of importing equipment and
servers, which account
for more than 40% of the total investments to build a
datacenter.
Despite the high costs of building a data center in Brazil, there are important benefits of
having a local data center, such as reduced latency and mitigation of data sovereignty
issues. Outsourcing the IT infrastructure can be an alternative in this scenario.
Source: Frost & Sullivan
10
IT Infrastructure Outsourcing Market in Brazil
The Infrastructure Outsourcing market is growing at a fast pace in Latin America.
While total IT expenditures in the region will grow at a compound annual growth
rate of 7.0% between 2011 and 2017, the Infrastructure Outsourcing market
will grow at 9.8%. The largest part of these market opportunities are placed in
Brazil.
In 2012 the
country
accounted
for
58.8% of
the Latin
American
Infrastructure Outsourcing Market revenue.
Infrastructure Outsourcing Market, Brazil, 2011-2017
3.0
Revenue (USD Bn)
2.5
2.0
1.5
2.56
CAGR: 10.1%
1.43
1.62
2.36
1.80
1.98
2.17
1.0
0.5
-
2011
2012
2013
2014
2015
2016
2017
Year
The Brazilian Infrastructure Outsourcing market is driven by several factors, such as the benefits
achieved with cost reduction and the ability to focus on the core business. Moreover, the
positive momentum in the market and the great opportunities for growth are attracting foreign
capital, stimulating M&A activities and the construction of local data centers which
directly impact competition and prices.
In 2011 the market revenue was USD 1.4 Billion and in 2017 it is expected to reach USD 2.6
Billion.
Dedicated Hosting is the most popular data center service in the country, accounting for
41.1% of the Brazilian Infrastructure Outsourcing Market revenue in 2011. It is followed by
Storage and Disaster Recovery, representing 26.6% and 23.1% of revenue respectively.
Colocation services accounted for 9.0% of the revenues, however this service is still growing
due to the significant growth of the economy which is increasing companies’ need to improve
their infrastructure. Between 2011 and 2017, colocation services are projected to grow at a
CAGR of 6.8%.
In the next few years, Storage services are supposed to experience the highest growth due to
data explosion. Dedicated Hosting and Disaster Recovery will also grow at a fast pace through to
2017.
Source: Frost & Sullivan
11
Major trends in the IT Infrastructure Outsourcing
Market
The Brazilian Data center market is growing at a high rate. Along with this
growth several trends are emerging, based primarily on two pillars:
sustainability and cost-efficiency.
Infrastructure Outsourcing Market Trends, Brazil
Modular
Technologies
Automation
Green IT
Efficient
Hardware
Modular Technologies. The modular data center concept refers to a data
center facility that can be easily scaled up or down according to the capacity
required. This technology brings benefits such as flexibility and lower costs.
Automation. Data center automation refers to the provision of codified
systems to execute established policies and activities that can automatically
provide resources as needed. Automation generates benefits such as
reduced time to manage critical applications and cost reduction.
Efficient Hardware. With advances in technology, data center hardware is
becoming more efficient in terms of cost and performance. Solutions such as
Blade servers and Unified Storage solutions can contribute to optimize the
space used and reduce costs.
Green IT. The growing trend of Green Tech is also pervading the data
center market. Several companies are striving to make their data center
more eco-efficient, reducing the usage of energy and water with more
efficient equipment and technologies such as liquid cooling.
Source: Frost & Sullivan
12
The
Ahead
for
DETRAN
Factors
to Road
Consider
when
choosing
an (RJ)
IT Infrastructure
Outsourcing provider
When analyzing the benefits of outsourcing IT infrastructure in the
Brazilian market, in most cases no doubt remains that it is the wisest
decision. However, some factors must be taken into consideration
when choosing an IT IO provider.
Frost & Sullivan
Latin America
Main factors considered when choosing an IT Infrastructure
Provider, Brazil, 2012
Security
Price
Market Referrals
Technological Infrastructure
Technological Partners
Service Portfolio
Strong Impact
Weak Impact
According to Frost & Sullivan end-user research, when choosing an infrastructure provider
CIOs consider security infrastructure as the most important factor, making security
almost a precondition to outsourcing. Choosing IT IO providers with robust security
infrastructure or selecting less invasive outsourcing services such as colocation can be the
best option.
Another main factor considered in the process is price. Its importance can be attributed to
the fact that cost savings is perceived by Brazilian companies as one of the main
drivers for outsourcing their IT infrastructure.
Brazilian CIOs also look for providers with good market referrals, which can be endorsed
with successful business cases, having large companies as clients and well-known
technological partners, amongst other aspects.
A robust technological infrastructure, as well as reliable technological partners and a broad
service portfolio are also important in the decision making process. Local presence and
market experience are less significant factors when choosing an IT infrastructure
provider.
Source: Frost & Sullivan
13
10
The Road Ahead for DETRAN (RJ)
Frost & Sullivan Strategic Recommendations
The Brazilian IT Infrastructure Outsourcing Market is in a great position. The country’s stable
macroeconomic scenario is contributing to its growth, stimulating foreign direct investment
and M&A activities in the IT IO market.
Moreover, the development of new technologies that integrate hardware and software
allow providers to offer higher cost-benefit solutions, therefore stimulating companies
to outsource their IT infrastructure.
These factors, along with the benefits achieved by outsourcing, such as a greater focus on
the company’s core business as well as continuity and cost reduction may drive the IT
IO market.
Despite the benefits and good opportunities, it is important that companies venturing into
the Infrastructure Outsourcing realm pay attention to certain factors when choosing an IT IO
provider.
IT Infrastructure Outsourcing is a Business Enabler
Focus on Business benefits of infrastructure outsourcing. Don’t forget IO
will have a positive effect on both the CFO and CIO’s business
objectives.
Choose Security Experts as partners
Security is King in outsourcing, so make sure there are Security experts
in place.
Select customized projects according to your needs
Companies with different needs must choose different data center
services.
Select Reliable Advisors
Be vendor agnostic and most importantly rely on consulting services
provided by trusted advisors.
Source: Frost & Sullivan
10
14
Appendix
A Frost & Sullivan Analysis of
Alog Data Centers
Partnering with Alog Data Centers
With its vast experience and robust infrastructure, Alog Data Centers
offer cutting edge colocation, hosting, Cloud Computing services as
well as Managed Services, security solutions, email and applications.
ALOG strengths and services that can
help companies overcome these
challenges
Challenges of doing
business in Brazil
4 data centers in Brazil (1 under construction). More than 90 data
centers worldwide.
Only provider in Brazil with two Tier III data centers (SP2 and RJ2).
Carrier Neutral platform of data centers.
Capacity for more than 100,000 servers.
Easy to scalability with multitier infrastructure.
•
Investment required to
build a brand new data
center
Business Continuity
requirements in an
unknown environment
•
•
•
•
•
•
Data and
Information Security
•
•
•
Managing the whole IT
Infrastructure
Import taxes double the
cost of bringing hardware
to Brazil
High costs and unprepared
workforce
•
•
Alog considers business continuity as one of the main concerns
companies have. As a result every service has a related SLA and Alog
creates specific project according to clients’ needs to provide the desired
SLA, if different from the standard offer.
Alog’s whole infrastructure is redundant and reliable, from energy supply
and cooling to IT infrastructure and connectivity.
Efficient physical security including physical access and fire prevention,
detection and extinguishing systems.
Robust services for backup, contingency, firewall, storage and load
balancing are ready to be adapted to your business requirements.
Connecting to only one partner enables you to have more time to focus
on core activities.
Alog’s solutions are highly cost-effective.
Global expertise in managing data centers. Certified by more than 10
different certification bodies.
•
With Alog’s data center, clients can have access to cutting-edge
infrastructure, updated with the newest technologies available in
the market and not have to pay the high hardware import taxes.
•
Count on ALOG to not only offer colocation, managed services and cloud
computing with 24x7 experts available for your requests but also to
manage your IT infrastructure proactively. Their experts will help align
your IT infrastructure to your business.
19
Alog Data Centers
Alog Data Centers is the leading carrier neutral IT Infrastructure
Outsourcing Provider in Brazil. In 2011 it was acquired by Equinix,
expanding its operations globally. In Brazil, Alog has 3 data centers
(plus 1 under construction) in addition to over 90 facilities
worldwide.
Services
Alog Data Centers Services Portfolio:






“Our commitment
to the quality of
services we provide
was decisive when
choosing and IT IO
provider. We aim
to bring the same
values and
differentials we
have abroad to the
Brazilian market.
That’s why we
chose Alog.”
Country
Manager Brazil
Interactive
Intelligence
Colocation
Hosting
Cloud Computing
Managed Environments
Email and Applications
Security and Availability
Colocation: Alog provides colocation services and technical services,
based on global standards and reliable infrastructure.
Hosting: The hosting offer includes dedicated servers and hardware
as well as technical support services for this equipment.
Cloud Computing: Alog also provides shared, private and hybrid
clouds in a fully customizable environment, according to the client’s
requirements. The cloud can integrate with the existing physical IT
infrastructure (hosting or colocation).
Managed Environments: Throughout partial outsourcing services,
Alog offers support, monitoring and configuration of customer
servers. Consolidation, managed colocation and hosting, as well as a
dedicated specialist for each environment are also part of the service.
Email and Applications: corporate e-mail platforms can be offered
as a dedicated solution for specific business requirements or as
managed services like Alog´s Hosted Microsoft Exchange 2010
platform or Alog´s corporate e-mail platform based on open source
software.
Security and Availability: Alog also offers specific solutions to
increase the security provided to clients. Among them are firewall,
backup, storage, contingency, load balance and Global Service Load
Balance (GSLB). All of them sized and implemented according to the
client´s business requirements.
16
Alog Infrastructure
If I were to build my own data center, I would have to get a
large IT team working 24x7x365 and also manage individual
contracts with different carriers, who would treat me as a
regular client. With Alog’s platform I can have all this
infrastructure and much more.
Chief Technology Officer - Plural
Infrastructure
“Due to Alog’s
colocation, storage
and dedicated link
services we are able to
offer our Software as a
Service solution to
clients in a safer and
hyper-connected
environment. Our
good relationship with
Alog and satisfaction
with its services are
taking us to a sixth
year of partnership.
IT Governance
Director - Bysoft
Physical Infrastructure. Alog’s infrastructure is composed of
three data centers, located in the cities of São Paulo, Rio de Janeiro
and Tamboré. There is also a fourth data center under construction in
Rio. These sites together will cover a total of 33,000 square meters
with capacity for more than 100,000 servers. With the Equinix
platform, Alog has a worldwide presence with more than 90 data
centers located in 38 strategic cities.
Connectivity. Alog’s connectivity infrastructure is highly reliable
and supported by Brazil’s major carriers and internet providers. All
data centers provide internet connections free from high latency or
bottlenecking. Additionally, Alog is one of the most carrier neutral IT
IO providers in Brazil. For clients this means that they can choose the
carrier or direct exchange point of their preference.
Fire Protection and Cooling. Alog’s data centers also rely on a
robust fire control and prevention infrastructure. The systems are
redundant, with very early smoke detector apparatus (VESDA) and
efficient firefighting systems. Moreover, Alog also invested in efficient
and redundant cooling systems in order to ensure the high
performance of its data centers.
Power generation. Each site is supplied with power generated
from different sources and the entire power system was designed to
regain full power automatically within 45 seconds of a power failure
from the supplier.
Management. Besides high level infrastructure, Alog has a very
skilled team to manage hosting, colocation and cloud computing
services.
Alog’s services are very flexible as their modulate infrastructure
enables a gradual migration from the client environment to Alog’s
data center. Moreover, the solutions can be customized to better
serve the client’s needs.
17
Global Expertise
We are now an important piece of the Equinix platform and
ecosystem in terms of infrastructure and solutions. This enables us
to provide services to clients from different industries looking for
an IT IO provider with high quality connections, redundancy,
security and internationally certified services.
Eduardo Carvalho, Managing Director - Alog
Experience
Alog has broad experience in providing infrastructure outsourcing
services. The company also relies on Equinix global expertise built over
more than 15 years. All of this know-how results in high quality IT IO
services, which can be proved both by certifications and client feedback.
“We chose Alog to be
our IT IO provider
due to its’ good
reputation, positive
cost -benefit of its
services as well as the
strategic location of its
data center.”
Chief Technology
Officer
Plural
Certifications:
Alog’s data centers are compliant with
the SSAE16 (Type II),
ISAE3402 (Type II) and SAS70 (Type II) certification standards. These
certifications attest that Alog’s data centers have been through an in-depth
analysis and are in line with the best practices of operating control,
including the IT activities.
Moreover, the data centers are certified by ISO9001:2008 which verify
the requirements of a qualified management system and directly impact
the customer’s value.
Finally, the Tamboré center complies with high standards of excellence. It
is certified by the Uptime Institute as a Tier III data center, ensuring
high availability, redundancy and reliability in terms of energy supply.
Clients:
Alog has about 1,400 clients in the Brazilian market, while Equinix has a
total of 4,000 clients world wide.
Alog and Equinix have managed to establish long term relationships with
their clients and increase their customer base throughout the years, due to
their reliable platform and expertise in delivering IT IO
services.
5 of the top 5 social network websites, 7 of the top 10 video
websites and 9 of the top 10 advertising networks use Alog’s and
Equinix’s IT IO services, leveraging their ability to deliver high quality
services.
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About Alog Data Centers
ALOG Data Centers do Brasil is one of the leading carrier neutral data centers in Brazil. It has about 1,400
corporate clients in its three data centers, in the cities of Rio de Janeiro, Sao Paulo and Tamboré. The
three ALOG data centers have a total area of 16,000 square meters. In 2013 will be inaugurated on the
fourth data center unit, the second in Rio de Janeiro. Together they will have a total area of 33,000
square meter and a capacity of more than 100,000 servers.
ALOG has qualified professionals to provide colocation, managed hosting and cloud computing of high
complex solutions. Customized solutions designed specifically for your company, provide flexibility in our
service packages.
Contact: Alog Data Centers
http://www.alog.com.br/contato
About Frost & Sullivan
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