- Set expectations based on the specifics the individual country, LatAm is not homogeneous. For example, Chile is strict on paperwork, Guatemala is more relaxed.
- Clarify delivery terms. Delivery Duty Paid (DDP) needs to clearly define the shipment hand-off. The difference between the “construction site” and the “staging/off site receiving area” can be weeks—and kilometers—apart.
- Value Added Tax (VAT) is complex, get professional help. In some cases it can be recovered, in most cases it needs to be paid in advance.
- Business practices vary by country, there’s a large gray area of local expeditors, prepaid contractor fees, etc. Know that going in, do the necessary research.
- Duties vary widely with Brazil having the steepest ones. Plan for these in your project costing and make sure duty codes for your products are correct.
Containment has been around for years, but the mainstream adoption of containment is just now happening. In terms of the Technology Adoption Curve, the market has clearly moved beyond the initial “Innovator” phase and is well into the “Early Adopter” phase, perhaps even now bordering on the “Early Majority” phase.
We have seen innovators and technology enthusiasts like NetApp, Facebook, Cadence Design Systems, and Pixar Animation deploy containment well over six years ago. Then, we have seen that second phase of visionaries looking to get ahead of their competition. This group would include Verizon, Barclays, Equinix, Digital Realty and Kaiser Permanente who all have adopted containment to some degree over the past several years.
Today, we are seeing more and more architects and engineering firms design containment into their data centers, and we are seeing more pragmatic companies start to consider containment. This is in parallel with continued pressures of rising density and power costs, the original catalysts for containment. What we can conclude is that the bulk of the containment market is still untapped and that the volume of containment work will continue to increase over the next few years as the Early and late Majorities go through their adoption.