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awards2009IT hosting and outsourcingPCCW SolutionsPCCW sits atop data center chartsPressure on costs drives further demand for consolidation and optimizationof data center facilities By Chee Sing ChanPCCW Solutions has riddenthe surging demand indata center services to scoopthis year’s award in the ITHosting & Outsourcing category.The Hong Kong market hasseen a number of new playersand existing players open upnew or expand existing facilities to addressthe rising need for data center space andservices. PCCW Solutions has been ableto consolidate its position at the top of thedata center services sector by attractingnew business, particularly from multinationals.According to Martin Chan, senior vicepresident of PCCW Solutions, growth inthis space has been very strong in HongKong with many multinational firms eitherentering Hong Kong and putting in new facilitiesor existing organizations seeking toconsolidate IT operations.Hong Kong hubChan noted that many firms have beenaggressively rationalizing their IT and centralizingmuch of their systems into fewersites. “Hong Kong being a very financiallyand politically sound location makes it anattractive data center hub in this region,”he said.While the financial crisis has had someimpact on overall demand, the emphasis oncost cutting has also pushed organizationsfor better ways to manage existing IT assetswhich leads to interest in outsourcingand managed services.“China has had a significant impact onthe market with multinationals attractedto Hong Kong as a base, but also Chinesefirms see Hong Kong as a launch pad tooverseas markets,” said Chan.He added that Hong Kong is seen as avery stable and mature location in terms ofits ability to meet business continuity requirements.Chan from PCCW Solutions: Overall IT outsourcingand hosting demand has not fallen in the face of theeconomic crisis, but selling cycles are longerResistance to slowdownChan expects there to be continued interestin managed services and software as aservice offerings as companies seek waysto leverage IT with lower upfront investment.Such services also alleviate the managementoverhead meaning internal resourcesare free to focus on more core activities.“Overall IT outsourcing and hosting demandhas not fallen in the face of the economiccrisis, but selling cycles are longer,”said Chan. He noted that deals have beeneither reviewed and slowed down or areless aggressive in scope. “Overall the neteffect is still upwards but growth is maybenot as the same pace [as the year before].”While mutinationals have driven mostof the demand, Chan observed much lessactivity from domestic SMEs. “In this marketit is the large firms that are driving theactivity.”PCCW Solutions has recently signed amajor data center deal with a global Internetplayer with a 4000 sq m facility in theNew Territories.Leading US data center operator Rackspacehas occupied a large space at PCCWSolutions’ Fo Tan facility and the HKSARgovernment also awarded its seven yearcontract to PCCW Solutions to manage itsdata centers.A software-as-a-service deal was also recentlysigned by a cosmetics company inShanghai for point-of-sale services.PCCW Solutions hasrecently signed a majordata center deal with aglobal Internet playerChan noted that PCCW Solutions willcontinue to expand capabilities and serviceofferings with additional space to come atits Fo Tan operation and a new data centerdue to open later this year in Fan Ling.Expectations are that growth will continuein this space while companies lookfor further ways to leverage IT with fewerresources. “Companies will be looking formore opportunities to consolidate wherepossible and reduce the demands on internalresources,” said Chan. 36 Computerworld Hong Kong June 2009 www.cw.com.hk