"We're waiting for the right moment to launch cloud-based services in Latin America"

Friday, November 18, 2011

US software firm LANDesk held its annual event Interchange in Las Vegas, Nevada, last week. During the event, the company announced updates to its solutions and also reviewed its strategy and outlook.

To find out more about the company's strategy for Latin America, BNamericas spoke to Marcelo Lava, LANDesk's director for the region.

BNamericas: How do you see the evolution of the company's business in Latin America? How much will the regional business expand this year?

Lava: We can say that this year we will record double-digit growth for our Latin American operation. We're also expecting double-digit growth once again in 2012. We've been executing our strategic plan for the region and are now seeing the positive results.

BNamericas: What's the real weight of Latin America for LANDesk in terms of revenue contribution?

Lava: Taking into account our overall Americas operation, the Latin American region accounts for over 10% of overall revenues. The regional contribution has been growing significantly over the last years. Three years ago, Latin America accounted for approximately 2-3% of the Americas' total revenues.

BNamericas: What are the main markets for LANDesk in Latin America? In which specific countries are you focusing your growth strategy?

Lava: Brazil is a key market for LANDesk in Latin America. This country currently represents approximately 60% of total revenues in Latin America. Mexico is our second largest market, with approximately 28-30% of our regional revenues. The rest of the revenues come from the rest of Latin America region (ROLA). Among the key markets for us in ROLA are Chile and Colombia.

BNamericas: In which specific vertical markets are you seeing increasing demand for LANDesk solutions in Brazil and Mexico?

Lava: We have a very solid presence in the government vertical in these two markets. We're involved in projects at both federal and regional levels. However, we're also focusing on other verticals in these markets. For example, banking and industry are two very strong verticals for us in Brazil. In Mexico, we also see activity in the industry vertical. In the ROLA region, we are more focused on private segments such as industry, retail and banking rather than the government segment.

BNamericas: How do you do business in the region?

Lava: 100% of our sales in the region are channeled through business partners; we don't have direct sales. We have global alliances such as Lenovo and local partners. We also have regional alliances with integrators than can operate in several countries in the region. We're developing and exploring this sort of alliance in Latin America.

In Brazil, we have six partners; in Mexico we have five partners. In the rest of the region we have approximately six partners. We prefer to have a reduced number of partners but very well focused on our offering. In Brazil, we have the main focus on the São Paulo region, where we're developing partners. However, we have a national partner, Itautec, through which we can cover the entire Brazilian geography.

We have local offices in some of the countries, with local teams providing support to our channels and clients. However we don't have direct sales teams in the region.

BNamericas: What's the company's strategy for the region for next year?

Lava: Our regional strategy is to continue focusing on the Brazilian market, which is our growth engine in the region. We're also working to expand our business in Mexico and in the ROLA region. We have countries in which we're starting to see very significant growth opportunities such as Argentina, Chile, Colombia and Peru. We see a lot of potential for these markets.

BNamericas: In which specific areas is the company investing in the region?

Lava: During 2011 we've been investing mainly to expand our local presence in Latin America. We've almost doubled our regional team and we've been opening local offices across the region. Now, Latin America represents one of the fastest growing markets for the company. This is why LANDesk sees this region as a key operation.

BNamericas: Do you expect to continue investing in the region during 2012? In which specific areas?

Lava: We will continue investing in the region next year. During 2012 we plan to invest to start offering local services in the countries where we have operations. We already provide local consulting and training services in the region.

We're planning to open two support centers in Latin America next year. One of the centers will be located in São Paulo and will provide support services exclusively to the Brazilian market. The other center will provide services to the rest of the region. We're in process of deciding on the location for the second support center, studying different factors such as costs and human resources.

BNamericas: Do you see opportunities for LANDesk's software as a service offering in Latin American markets?

Lava: We've already developed the licensing model for our software as a service [SaaS] offering. We are working on some business opportunities in certain countries with our SaaS model, and we're working to develop our cloud-based offering. We have cloud-based solutions for service desk, for remote gateway management.

Our cloud-offering is already developed and commercially available in the US and Europe. We're ready to offer these solutions in Latin American markets but we're still looking for the best moment to launch this portfolio in the region. The business model for cloud-based services in Latin America could be different than the business models developed for the other markets where the company operates. We will take the positive experiences of the other regions and develop an exclusive model for our region.

BNamericas: Are you expecting to launch this cloud-based offering next year?

Lava: Our idea is to launch cloud-based services in Latin America during the first half of next year.

About the company

LANDesk provides systems lifecycle management, endpoint security and IT service management solutions for desktops, servers and mobile devices across the enterprise segment.

The company is headquartered in Salt Lake City, Utah, with offices in the Americas, Europe and Asia-Pacific. It is owned by private equity firm Thoma Bravo.