Nov 13, 2020

Telecom Italia develops data centre spin off with Google

Data Centres
Cloud
Europe
covid-19
Harry Menear
2 min
After disappointing Q3 revenues, Telecom Italia is spinning off its data centre business into a new company developed in partnership with Google
After disappointing Q3 revenues, Telecom Italia is spinning off its data centre business into a new company developed in partnership with Google...

Telecom Italia announced this week that it will spin off its data centre business into a new entity that will launch in 2021. 

The company released its third quarter financial results this week which, according to a report by Telecompaper, revealed a 5% drop in the company’s total earnings year over year. While this is an improvement on the 10.1% decrease that Telecom Italia experienced in Q2, the firm is undoubtedly struggling. 

“Few of Europe's telecom giants look as dilapidated as Telecom Italia,” wote Iain Morris, international editor for Light Reading, in a recent article. “Every few months, another chunk of the edifice seems to be cordoned off or sold in a debt-reduction exercise.” 

Alongside the announcement of its financial results, Telecom Italia’s board of directors revealed that they have reached an agreement to spin off the company’s data centre business into an as yet unnamed operator set to launch in the first quarter of 2021. 

Telecom Italia currently owns and operates 22 data centres across Italy, as well as its own cloud service business.  

According to a statement from Telecom Italia, its data centre segment is expected to reach turnovers of around $590mn in 2020, and the new unit is expected to grow by over 20% per year going forward. 

“Thanks to the partnership with Google Cloud in the first nine months of the year major clients were won for the provision of joint services to business clients,” said the company in the press statement. 

Telecom Italia has been working on the spin off since November of 2019, when it announced plans to form a new data centre business in collaboration with Google, as a way to eliminate more than $26bn of debt. 

The original plan reportedly involved Telecom Italia raising around $1.1bn from investors in order to retain a majority stake in the new firm, but with the company’s debt rising still higher this year, that may not occur. 

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May 13, 2021

Equinix: Digital leaders expect changes to working patterns

covid-19
DigitalTransformation
DigitalInfrastructure
Interconnection
3 min
A report released by Equinix has revealed that digital leaders expect long-term changes to how and where people will work.

A global report released by Equinix has revealed that digital leaders expect long-term changes to the way people work. 

As part of the report, the data infrastructure company surveyed 2,600 IT decision-makers from several different businesses spanning 26 countries in the Americas, Asia-Pacific and EMEA regions. The study also highlighted the biggest technology trends affecting global businesses and how the COVID-19 pandemic has impacted digital infrastructure plans. 

Talking about companies’ expansion strategies, Claire Macland, Senior Vice President of Global Marketing at Equinix, said: “Many companies are now investing more in their digital infrastructure to enable them to embrace a hybrid working model and thrive in the new world of work we all find ourselves in. 

“Despite headwinds in many sectors, many organizations are continuing to expand physically and virtually into new markets and regions around the world”, she said. 

The findings

The report drew the following conclusions: 

 

  • 64% of the 2,600 digital leaders surveyed believed there will be “long-term changes to both how and where people will work in the future.
  • 57% of global companies intend to expand into new regions despite the effects of the pandemic 
  • 51% of businesses worldwide say they have rearchitected their IT infrastructure so that it can meet the demands of remote and hybrid working. Digital transformation has also been accelerated due to an increase in businesses’ technology budgets. 

 

How might digital transformation be affected post-pandemic? 

COVID-19 has demanded that companies make several changes to the way that they operate, including digital transformation. According to the study, 47% of those surveyed reported that they have accelerated their digital transformation plans because of the Coronavirus pandemic. A further 42% of organisations said their budgets have increased to keep up with the growth of digital transformation. 

Another change in adapting to the pandemic was to businesses’ IT strategies with six in 10 companies saying that it has been revised in response to the situation. 58% said they are looking to invest in technology to “improve agility’ post-COVID. 

When asked about their priorities for their digital strategy, 80% of respondents said that digitising their infrastructure was of utmost importance, while 57% viewed interconnection as a ‘key facilitator’ of digital transformation. 

"This increasing focus on digitization and expansion is one of the reasons why Equinix has continued to invest in its own growth. We completed 16 new expansions in 2020—our most active build year ever—and expect to continue to evolve Platform Equinix to support our customers as they continue on their digital transformation journey”, said Claire Macland. 

Potential concerns disperse over expansion plans being halted by COVID-19 

The study has also revealed that organisations’ previous concerns that the pandemic will negatively affect their business expansion plans have been lessened. 

57% of businesses have said that they “still have plans” to expand into new regions and of that percentage, nearly two-thirds (63%) plan to do so virtually instead of investing in physical IT infrastructure. 

The full Equinix report can be found here. 


 

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