bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Wednesday 25.04.2018 | Name days: Līksma, Bārbala
LatviaLatvia

DEAC: a fight for survival currently takes place in Russia’s business environment

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe Russian-Ukrainian crisis has decreased the number of potential clients in this region. With declining demand, representatives of the Russian region have to think about optimization. A fight for survival is seen there at the moment, especially in Russia’s medium and small business environment, said CEO of Digital Economic Development Centre Andris Gailitis in his interview to BNN.

DEAC has been active for more than 15 years, servicing nearly 2,500 clients in more than 40 countries of the world. This company owns the largest and most modern data centre in Baltic States – ‘Riga’ – and the only underground data centre in Eastern Europe – ‘Grīziņkalns’. DEAC offers its clients data storage and processing services, IT resource management, equipment rent and installation and management services.

What are some of the most notable recent events in your sector?

We advance alongside technological development. We are happy technologies continue developing and resources are becoming cheaper and more accessible. We are also happy to receive state support in the form of EU funds. It allows us to do more and explore export regions more actively.

Can you say economic conditions are improving and there is a lot of potential for economic growth in the market?

Russian-Ukrainian crisis definitely affects many businessmen. What we see now is a decline in the number of potential clients in the region. Our clients in Russia are looking for optimization options. Basically what we see now is a fight for survival, especially within Russia’s medium and small businesses.

How would you describe the government’s economy policy aimed at improving the economic situation in the country?

Can we really describe fractured and unpredictable behaviour as policy? Businessmen are forced to adapt to the government’s unpredictable tax policy. It’s not the background we usually use for business development. We see a lack in stability. In Latvia, politicians think with today in mind. Problems are resolved only after they become impossible to ignore; there is no vision for the future. If the budget is not 100% complete, it is mended with new taxes. This is unacceptable. Businessmen are regularly forced to adapt to new conditions. This only serves to hinder their development, limit strategic planning and create an unhealthy micro-climate.

How would you describe the industry’s position in the Baltics? What about competition with Estonia and Lithuania?

I believe all three Baltic States are more or less on the same level. None of them are particularly unique. Estonia’s IT industry has nothing major or ultra-modern to feel proud of. Each country has its own story of success and more well-known start-up projects. Estonia had Skype – they sold it. Latvia had ask.fm – they sold it.

What can you can call your ‘trump card’? What is your ‘Achilles’ heel’?

IT industry has a high added value. This means we can earn rather well using certain resources.

Our ‘Achilles’ heel’ is definitely the lack of people in the industry. Not just in IT, but in the industry in general. It is particularly hardtop find personnel to work on large projects. There is a lack of experienced professionals.

Do you feel there is a lack of skilled workers?

The lack of qualified workers for data centre niche is not the largest problem. Profession in which this problem is sensitive is programmers, including in regard to maintenance of specific software.

What do you predict for the next five years? Will the situation in the industry improve, worsen or remain the same?

We are currently reorienting our activities for other markets, both because of the Russian-Ukrainian crisis and diversification of risks. We expect this year to be stagnant. It is possible that next year will be easier.

Ref: 102.109.109.6023


Leave a reply

Saeima speaker in Tallinn: EU and NATO cooperation in defence should be enhanced

Close cooperation between European Union and NATO in defence is now more important than ever. This is especially true for cyber security and hybrid-thread prevention, said Latvian Saeima’s speaker Ināra Mūrniece during a meeting of EU member states parliaments in Tallinn on Tuesday, 24 April.

Ministry avoids going against supporting parties; Ventspils City Council’s violations reported to court

Environment Protection and Regional Development Ministry has no influence at all, and sometimes it seems it has no desire to exercise its rights and perform its duties. This situation most likely appeared because the institution is led by a minister who represents a specific political party.

Warfare in Ukraine escalates, soldiers wounded

In the Donbas War that continues for the fifth year in the Ukrainian regions of Luhansk and Donetsk, Russian hybrid forces have this week conducted a total of 44 attacks, wounding five soldiers, the Ukrainian military reports.

Demand for mortgage loans grew 53% in March

Increased demand for mortgage loans with state guarantees was observed in Latvia in March. Nearly every other loan application filed last month was intended for housing purchase using Altum guarantee. The largest amount of interest came from families with children, as reported by Citadele Bank.

Most businesses in Latvia still not ready for data protection regulation

The majority of businesses in Latvia are still not ready for EU General Data Protection Regulation, which is due to come to force on 25 May, says KPMG lawyer and certified data protection specialist Sanita Pētersone.

Finnish prisoners found radicalising towards Islamic and far-right extremism

In prisons in Southern Finland, a study of radicalisation of inmates has been conducted and has identified dozens of inmates, who are moving into either radical Islam or into far-right violent extremism.

Ušakovs invites colleagues from Russia to attend centenary festivities in Riga

Mayor of Riga Nils Ušakovs has invited mayors from 56 cities to attend festivities organized for Latvia’s centenary. This includes mayors of Moscow and St. Petersburg, as confirmed by Ušakovs’ press-secretary Laila Ivāna.

Estonian President sees no return from e-governance

Estonian President Kersti Kaljulaid has discussed with Christine Lagarde, the Managing Director of the International Monetary Fund, the Baltic country's experience in providing public e-services to the population.

Norway interested in developing cooperation with Latvia in tourism industry

«Latvia welcomes successful regional and economic cooperation with Norway. Our countries have common values and goals – developing Baltic and Nordic countries as a wealthy and secure European region,» said Latvia’s Economy Minister Arvils Ašeradens during his meeting with Norwegian State Secretary for Trade, Industry and Fisheries Roy Angelvik.

Finland not to continue its basic income scheme

The basic income scheme in Finland that has been tested in the Nordic country since 2017, will not be continued as the Finnish government has decided to look into other schemes for reforming the Finnish social security system

MEP: New Unity may be in the government with other parties that have similar goals

After Saeima elections, New Unity will cooperate with parties prepared to work with the association to accomplish specific goals, says leader of New Unity and member of the European Parliament Krišjānis Kariņš.

Canada experiences tragic attack on pedestrians in Toronto

In the Canadian city of Toronto, a driver has been driving onto pedestrians taking the lives of 10 people and injuring 15 more.

Latvian residents spend an average of EUR 81 on cosmetics every year

Latvian residents spend an average of EUR 81 on cosmetics every year, which is one of the lowest indexes in Europe. Compared to other Baltic States, Latvian residents spend less money on cosmetics, according to data compiled by Latvian Cosmetic Manufacturers Association.

Armenian Prime Minister Sargsyan resigns unexpectedly

The Prime Minister of Armenia, Serzh Sargsyan, has unexpectedly stepped down from office after ten days of protests in the Armenian capital Yerevan.

Baltic Express: Europe has already invented the bicycle; we just have to adopt it

13 March marked a historic event for Ventspils railway hub – for the first time in the history of Latvia’s railway a private cargo carrier – Baltic Express – delivered wagons to Ventspils 1st station and private infrastructure’s railway terminal. Why is this event so important and what is the future for Latvia’s cargo railway system? – Baltic Express chairman Māris Bremze told ventspilnieks.lv.

Reduction of employees in state administration went the smoothest in finance sector

Measures to reduce the number of employees in state administration last year went the smoothest for the State Revenue Service and the entire finance sector, said Latvia’s State Chancellery’s Director Jānis Citskovskis.

Alleged Paris terrorist Abdeslam convicted of attempted murder

The lone Paris attacks' suspect Salah Abdeslam has been found guilty of attempted terrorist murder of police, when taking part in a shootout with police in the Belgian capital Brussels in March 2016.

Rail Baltica’s infrastructure management model to be studied by British company

On 8 November 2017, RB RAIL joint Baltic company announced the winner in the tender for the study of Rail Balica’s infrastructure management model. The winner was British design, engineering and project management consulting company: Atkins and SNC-Lavalin Group.

Harmony and UGF have their sponsors, whereas Sudraba’s party relies on donations

Since the beginning of the week, Latvia’s political parties have received more than half a million euros in donations and membership fees. According to the database of the Corruption Prevention and Combating Bureau, pockets fill up the fastest for political parties in power in the country and Riga.

Chemical weapons investigators have taken samples in Doma, Syria

In Syria, the scene, where according to the UK, U.S. and France, an attack with chemical weapons was conducted earlier in April, has after delays been visited by inspectors from the Organisation for the Prohibition of Chemical Weapons, who have managed to collect samples.

Estonia and Finland to share patient data over innovative «secure» data highway

The Estonian-developed international data exchange technology X-road, said to be hacker-proof is to be the basis for a new Estonia-Finland system of linked doctor prescription registers that would make prescriptions issued in one country available in pharmacies in the other.

Prime minister: Linužs’ dealings with offshore business warrants an investigation

Latvia’s Transport Minister Uldis Augulis refused to comment on information reported by De Facto programme one week ago – that Rail Baltica organized Andris Linužs had signed a deal with an offshore company based in Seychelles and used by influential businessmen from St. Petersburg. Prime Minister Māris Kučinskis, on the other hand, told the programme that «deals associated with state security had been recorded in the past and represent a matter that warrants an investigation».

Afghanistan hit by tragic terror attack

In Kabul, Afghanistan, a suicide bomber has killed not less than 57 people and injured 119 more as the attack with explosives targeted a queue of people outside a voter registration centre, Afghan officials have stated.

Armenia mass protests continue as opposition leader Pashinyan detained

In Armenia, mass protests against ex-President Serzh Sargsyan being elected as Prime Minister, have continued over the weekend marking over a week of protests in the capital Yerevan.

Weather in Latvia to be cold; air temperature to rise at week’s end

This week will be slightly colder for Latvia. Rain is expected in almost all regions every day. It will start getting warmer on Saturday and Sunday, when daytime air temperature is expected to rise again, as reported by State Environment, Geology and Meteorology Centre.