A Special Report

A Highly Attractive Location for Hosting Digital Assets

Ireland

About 451 Research

A division of The 451 Group, 451 Research is a leading global analyst and data company.

Commissioned and Supported by

Over the past decade, Ireland has emerged as the favoured location for hosting digital assets.

Exploring attributes such as connectivity to Europe and America, renewable energy,

tax benefi ts and a talented workforce, the report explains why this tiny island is a powerhouse in the global hosting industry.

Download the full report HERE, or read on to fi nd out more

About this Report

451 analyzed and scored Ireland on factors that infl uence a company’s decision when choosing a European location for their digital assets.

Economy Financial Benefi ts Green Energy

Law Connectivity Hosting & The Cloud

Workforce Government Support Success Stories

Economy

Ireland is an island nation of 4.6 million, located in western Europe.

English speaking and using the Euro currency, Ireland’s proximity to Europe makes it a gateway to 500 million customers. Traditional ties to America, also, lead to the saying that ‘Ireland is closer to Boston than to Berlin’.

About Ireland

Ireland is home to the world’s top companies, including:

9/10 global ICT companies

9/10 global pharmaceutical companies

3/6 top games companies

12/15 top medical device companies

10/10 ‘born on the internet’ companies

…And many have lived there a long time

1970s 1980s 1990s 2000s 2010s

The easiest EU location in which to start a businessThe most business-friendly tax regime in Europe

6th best country in the world for business – The World Bank

2nd best in the EU – Forbes

Property and offi ce costs:2008 €673 per square meter | 2013 €307 per square meter.

Ease of Doing Business

A Mature Business Environment

EU member English -speaking

Politically neutral

Traditional links to US, ‘Closer to Boston than Berlin’

Access to European market of over 500 million people

Links Worldwide

Connectivity

Ireland’s Subsea Cables

Connected worldwide…

Dublin’s T50 broadband ring (MAN) connects Dublin’s business districts and parks:

the 44 km cable provides access to 27 international carriers

Renewable Energy

High temperature average 20°C (68°F)Low temperature average 6°C (42.8°F)

Naturally temperate climate

low energy usage

low Power Usage Eff ectiveness scores

savings of millions

Free Cooling

Renewable Energy

Ireland is aiming for 40% renewable energy by 2020

The Irish power grid currently accepts up to 50% wind energy

Case study: Vayu (natural gas and electricity)

off er 100% renewable energy and have a carbon footprint of ZERO

Financial Benefi ts

Ireland’s corporate tax strategy is based on:

Rate RegimeReputation

RateCorporate tax rates:

France

Ireland

Germany Netherlands UK

25%30%33% 23%

12.5%

Reputation

3The Irish Taxes

Consolidation Acts (TCA) of 1997 grant relief against

double taxation

1A commitment to

transparency : 69 double -taxation

treaties signed

2EU ParentSubsidiaries Directive and the EU

Interest and Royalties Directive grant relief

under EU law

RegimeTax benefi ts include:

Off set R&D credits against corporate tax

Write off 100% of purchase value of energy

effi cient equipment

10 Point Tax Reform Plan of 2013, including multiple

tax reliefs for startups

Hosting & The Cloud

Brands with Irish datacenters:

Irish Datacenters

Service providers hosting in Ireland include:

Hosting and Co-Location

Law

1Pro -industry rather than pro -regulation

Intellectual Property

2Access to Commercial Court for IP disputes

3Protected under Data Protection

(Amendment) Act of 2003

4International IP royalties can be collected

through Ireland, a low- tax jurisdiction

1Commercial websites are covered by the Electronic Commerce (EC Directive)

Regulations of 2002.

2Irish government passed fi rst e commerce bill in July 2000,

covering electronic signatures and domain name registration.

E -Commerce

Spam

Increased penalties and an indictable off ence since amendment of 2008

Workforce

48% of Irish 25 -34 year olds hold a third level qualification

Open Ireland and Succeed in Ireland attract skilled workers from abroad

The Springboard Program provides places for unemployed people in part- time courses.

An Educated Workforce

2012 IMD World Competitiveness Yearbook:

3rd for availability of

skilled labor

1st

for fl exibility and adaptability of workforce

World Rankings

Median age of population: 35 years (Lowest in Europe)

Social contributions in Ireland represent a 5% of GDP, compared with an EU-27 average of 12.7%

Youth

Government Support

Created the Cloud Computing Strategy

Invested €1 million in 2013 into Centre for Applied Data Analytics Research (CeADAR), working

with eBay, Accenture, Dell and Fidelity Investments

The Irish Government Loves the Cloud…

IBM and Dublin City University have created a master’s degree in next generation management skills

IBM’s Smart city concept, using Dublin as an experimental testing lab for big data and city planning

…and Big Data

Various Irish government agencies support companies in Ireland:

R&D and innovation grants and funding

Helping Irish enterprises achieve success abroad

Forging connections to create jobs in Ireland

A center birding the divide between research and industry

A launch pad for early-stage digital businesses

Other Support:

A program assisting enterprises with online services

Success Stories

• Launched Dublin based international

operations centre in December 2012• First move outside the US,

supported by IDA

• Opened its EMEA headquarters in 2003,

initially employing 100 people• Dublin operation is now largest outside

of the US, employing 2,500 staff • Announced plans in 2013 to open a €75m

datacenter at Profi le Park, Clondalkin

• Opened December 2012 in Dublin• Employ ten staff of seven

diff erent nationalities

• Launched international headquarters in Dublin in 2010

• Irish HQ is ‘center for international growth’

Success Stories

Success Stories

• Opened development center in 2013,

and additional datacenter in 2013 • Over 7,500 customers in Europe, including Just

Giving, GOV.UK, L’Oreal and Glasgow NHS

• Credit decision to locate in Ireland to a

competitively priced tech infrastructure, • high standard data protection laws

and a comprehensive tax regime

• World’s number one CRM platform • Employs 500 people in Sandyford, Dublin • In 2013 announced plans to fi ll

a further 100 roles

ConclusionIreland is the favoured location for data hosting:

This small island in Europe punches above its weight, fulfilling each one of 451’s research

criteria (tax benefits, connectivity, skill of workforce, access to EU and US, cost efficiency and economic risk).

With so many advantages, it’s little surprise that tech giants like Google, Amazon,

Microsoft and Facebook have been established in Ireland for years.

Like to Read More?Download the full Digital Ireland 360º here

Visit the website here

Report Compiled & Authored By:

Csilla ZsigriDirector of Consulting

Services EMEA, 451 Advisors, The 451 Group

Slide Presentation Produced By:

Roisin Kiberd@RoisinTheMirror

Eoin Beglineoinbeglin.com

Garry ConnollyFounding Partner

GconnTec@GconnTec

Illustrations Direction Words

Contributors • Hosting

Bernard GeogheganDigital Realty Trust

Garry ConnellyGconnTec

Maurice MortellTelecity

Colum TraynorGconnTec

Gary KeoghDigital Realty Trust

Pat KearneyGconnTec

Douglas LoweInterxion

Gary WatsonSunGard

Patrick LastennetInterxion

Eddie KilbaneDataplex

Ian Mc Vey

Rachel ClynesInterxion

Contributors • Hosting

Rob ThomsonSungard

Stuart EdwardsSungard

Robert BathDigital Realty Trust

Tanya DuncanMD, Interxion

Sarah Mc CluskeyTelecity

Willie NorseGConnTec

Simon WithersSungard

Omer WilsonDigital Realty Trust

Contributors • Connectivity

Barry RhodesInternet Neutral

Exchange Association

Martin Reilly Hibernia Atlantic

Colm PiercyDigiweb

Diane HodnettSea Fibre Networks

Fergus Innes Hibernia Networks

Alan MilletDigiweb

Contributors • Semi-State

Edel FlynnDigital Hub

Leo ClancyIDA

Gearoid MooneyEnterprise Ireland

Michael McLoughlin CEO Connect Ireland

David ScanlonEnterprise Ireland

John BoltonIDA

Contributors • Talent

Adie Mc GennisSigmar Recruitment

Barry RuddenSigmar Recruitment

John Breslin Deri Institute

Tony Mc EnroeDCU

Contributors • IP / Security

Neil LeydenIDSC

Fred LougeNew Morning IP

Mathieu GorgeVigi Trust

Other Contributors

Brian HarrisonAmerican Chamber

of Commerce

Cathal LeeOpen Ireland

Clare DillonMicrosoft Ireland

Joan MulvihillIrish Internet Assoc.

Pat O’Carroll IIBN

Contributors • Energy

Clare WallaceEirgrid

Investment Partners

Conor BarryChirisa Investments

David SmithTirna Partners

John QuinnChirisa Investments