Economic slowdown impact to be lighter in IT sector, says Terremark exec

Tuesday, September 6, 2011

The Brazilian branch of US network access point (NAP) operator Terremark believes the expected economic slowdown's impact will be lighter in the local IT sector than in other segments, Terremark Brazil general manager Hugo Zanon told BNamericas.

"With this slackening already detected, we believe the IT market in Brazil will continue to be hot, but with a reduced outlook. The impact on the sector will be less," the executive said.

In support of that analysis, Zanon said he had seen a slight change in Terremark 's local business patterns. Higher demand is coming from multinational firms looking to invest in Brazil, while demand from national companies is now "somewhat stagnant."

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According to Zanon, Terremark invested some 15mn reais (US$9.3mn) in the newly announced expansion of its São Paulo data center, the Network Access Point (NAP) do Brasil.

Some 15,000 square feet of raised floor space were added to its current operations.

Zanon explained that Terremark used to occupy only one-third of the building, sharing the remaining space with another major company. But after the two had reached an agreement, the latter company vacated the premises, and Terremark controls the entire 185,000-square-foot facility.

The expansion makes NAP do Brasil, which is capable of housing some 100,000 servers, one of the largest multitenant data centers in the region.

The facility was also recently received ISO/IEC 27001:2005 certification, providing third-party verification that its services conform to an information security management standard.


Concerning investments, Zanon believes the company is now heading toward "new dimensions" after Terremark Worldwide was purchased by US telecoms giant Verizon last February.

The acquisition "should drive new business deals for us, since Verizon had no datacenter in Latin America," Zanon added.

He stressed Terremark is looking to continue delivering advanced infrastructure and managed IT services through its network, "offering clients secure, well-placed solutions."

Headquartered in Miami, Terremark operates 13 data centers in Latin America and Europe. Verizon operates more than 220 data centers in 23 countries.