bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Tuesday 17.10.2017 | Name days: Karīna, Gaits
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

Estonian ministry to collect 270 000 euros from IT company over failure to build information system

Tieto Estonia, the Estonian branch of Finnish IT firm group Tieto will compensate the Estonian Ministry of Social Affairs 270,000 euros for the failure of the SKAIS2 project, the aim of which was the development of a new information system for the Estonian social insurance authority, but was deemed a failure in August.

Latvia invites Iran to act constructively to ensure security

Latvian Foreign Affairs Minister Edgars Rinkēvičs participated in a meeting of the EU Foreign Affairs Council in Luxembourg, where he discussed about the role of Iran in the region and the Joint Comprehensive Plan of Action in light of the upcoming report from US President Donald Trump to the Congress on Iran’s progress realizing the plan.

Vigil held in Malta over killing of investigative journalist

Several thousand people in Malta have taken part in a vigil held after news broke of the killing of an investigative journalist, who blamed Maltese government for corruption.

American exchange indexes reach record-high values; oil prices on the rise

In response to price rise of bank stocks, three leading indexes of US exchanges reached new record heights on Monday, 16 October. In addition, US Federal Reserve System manager Janet Yellen’s prediction regarding a soon inflation rise has increased confidence that base interest rate will increase in December.

54.14% more alcohol exported from Latvia; most of it to Russia

In the first eight months of 2017, a total of 102.259 million litres of alcoholic drinks was exported from Latvia, which is 54.14% more when compared with the same period of last year.

In pictures: Ireland hit by worst storm in 50 years

Three people have been killed in Ireland in the storm Ophelia, which cut off electricity networks to 120 000 homes and businesses in the country. Gusts of wind in Ireland on Monday, October 16, had reached the speed of 44 metres per second.

Tragic wildfires in Portugal and Spain

No less than 30 people have died in wildfires in Portugal and Spain.

Ašeradens to leave Latvian government at the end of November

Latvian Economy Minister Arvils Ašeradens intends to leave the government after approval of the 2018 budget in the Saeima, which is scheduled for the end of November, as confirmed by Prime Minister Māris Kučinskis.

Islamic extremists blamed for tragic terrorist attack in Somalia

The death-toll in a tragic terror attack in the eastern African state of Somalia has reached 320 people and local authorities have stated that a key member of the cell that allegedly launched the attack on Mogadishu has told them that al-Shabaab was responsible for the crime.

Rīgas namu pārvaldnieks gets new management

From now on Rīgas namu pārvaldnieks will have a new chairman: once the head of Latio Namsaimnieks has been appointed as the new head of the company. The other vacant post has been given to Ardis Pāvilsons.

Catalonia misses ultimatum deadline, Spanish government vows to act after Thursday

The separatist Spainish region of Catalonia has missed the deadline to clarify, if it has declared independence and Madrid has received a letter from the President of the autonomous region, which still needs analysis.

What will be the consequences for companies that cheated with electricity production permits

Businesses that were caught using fake permits for electricity production in mandatory procurements will not have their permits extended, says Latvian Economy Minister Arvils Ašeradens.

Latvian tourist accommodation facilities experience increase of overnight guests

The number of nights tourists and other guests spent in Latvian hotels and other tourist accommodation facilities in the first eight months of 2018 has grown 12.2% in comparison with the same period of last year, reaching 3.524 million.

Antāne: transit industry has been on thin ice lately

«The transit industry has been on thin ice lately. Russia’s decision to divert all cargoes to its ports will only smash the ice. The government and state policy-makers have two choices – wait for the ice to break completely and watch the industry drown until finally stepping in, or act now to at least reduce the crisis for the country’s national economy, workers and their families,» says President of Baltic Association – Transit and Logistics Inga Antāne.

Kučinskis evasive in evaluation of Unity’s Economy Minister candidates

Latvian Prime Minister Māris Kučinskis remains evasive when it comes to assessing Unity’s Economy Minister candidates.

Amid alleged harassment scandal, Rõivas leaves post in Riigikogu

The former head of Estonian government Taavi Rõivas, who has been pointed to as allegedly having groped a woman during a visit to Singapore, has denied the claims, but has nevertheless decided to leave the of the second deputy speaker of the Estonian parliament.

De Facto: only one person was convicted of corruption in politics by KNAB in 15 years

In the past fifteen years, Corruption Prevention and Combating Bureau completed only one political corruption case, as concluded by De Facto programme of LTV.

Centre party victorious in Estonian local government elections

In the Estonian municipal election, held on October 15, the largest overall support has been won by Centre Party that is also the ruling party in Estonian central government.

Week to kick off warm in Latvia; weather to become colder down the line

At the beginning of the week, several cyclones will pass over Scandinavia. Cyclones will also dictate weather in Latvia. Atmospheric fronts will pass over the country multiple times throughout the week. Nevertheless, the sun will appear every now and then, as reported by State Environment, Geology and Meteorology Centre.

CEO of Samsung Electronics resigns, citing unprecedented difficulties

At the world's second largest electronics firm Samsung Electronics, its co-chief executive officer Kwon Oh-hyun has stepped down, pointing to management problems in the massive South Korean company.

Accreditation fees for sign language interpreter programmes may be reduced in Latvia

Latvian Welfare Ministry intends to work with Education and Science Ministry to find a solution for the situation with accreditation fees in the existing sign language interpreter programme, as reported by Welfare Ministry’s representative Aiga Ozoliņa.

Austrian government expected to be headed by 31-year old Kurz

In the Austrian parliamentary election, held on Sunday, October 15, victory is projected to the right-wing Austrian People's Party and its leader Sebastian Kurz could be become Europe's youngest head of government.

Week in Lithuania. Lithuania buying Norwegian air defence systems

Lithuanian defence officials have announced intention to buy Norwegian medium-range air-defence systems NASAMS in hopes of patching one of the biggest defence gaps.

Dryer and warmer weather expected

This weekend and next week, dryer and warmer weather is expected in Latvia, according to forecasts by the Latvian Environment, Geology and Meteorology Centre.

Orkla Foods Latvija invests 122 000 euros in new production line and design

Juice and sauce producer Orkla Foods Latvija owned by the Norwegian conglomerate Orkla Group is investing 122 000 euros in a new production line and in the development of new product packaging design.

Newest comments