Margin pinch sees Data Centre Technologies enter liquidation
- 19 October, 2017 05:00
The uptake of cloud-based solutions among local businesses and increased market competition are two factors that have played a part in seeing Queensland’s Data Centre Technologies enter voluntary liquidation.
Joint liquidators, David Hambleton and James Imray of Rodgers Reidy, were appointed on 14 October; more than two decades after the Data Centre Technologies began operating, albeit under a number of trading names.
Based in Brisbane, Data Centre Technologies had made a name for itself thanks to its data centre consulting work designing, building, maintaining and improving mission critical data centre facilities for enterprises of all sizes.
Among the services the company offered was data centre project management, including relocations, which was a big focus for the organisation, along with data centre management, operational support, and structured cabling design and implementations.
It is understood that the company acquired Access Floors Queensland, a provider and installer of raised floor systems, as recently as February this year.
With Access Floors Queensland on board, the company's services expanded to include the installation of the raised floors, structural ceilings, server racks, containment systems and structured cabling for many of the jobs undertaken by Data Centre Technologies.
According to the liquidators, the decision of the company’s sole director to go into voluntary liquidation came after the margins in much of the work carried out by Data Centre Technologies had become squeezed by various market pressures.
“We understand from [the director] that…in general the work’s dried up,” Hambleton told ARN. “It’s either become easier for people to do it, and therefore they don’t need a third [party], because it’s all in the cloud these days, or alternatively, he’s just getting priced out of the market.”
While the liquidators are yet to properly launch into their investigation of the company’s finances and affairs, it is understood that the only creditors outstanding are the sole director himself and the Australian Taxation Office (ATO).
ARN understands that all outstanding employee entitlements were paid out prior to the liquidation, along with Data Centre Technologies’ suppliers.
However, Hambleton noted that the liquidation process is yet to run its course. Regardless, he indicated that the liquidation is unlikely to be “uncontroversial”.