Blue Coat preparing local data centers to support SaaS offer

Friday, July 15, 2011

US web accelerator and security company Blue Coat Systems (Nasdaq: BCSI) is preparing to launch local data centers in Brazil in order to support its software as a service (SaaS) offer, tech magazine Computer World reported.

"Our data center will be local, but we will offer outsourcing services," Blue Coat marketing director for Latin America, José Porto, was quoted as saying. "We'll make the official announcement in about three months."

The initiative seeks to increase the contribution of services to Blue Coat's revenues.

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According to Blue Coat's CEO Mike Borman, the company is well positioned in two big markets - WAN optimization and security. The former helped boost the company's revenues on a year-on-year basis with its Mach5 products, something Blue Coat expects to replicate in Brazil.

That is why the company presented a solution that accelerates the use of internet and web applications both in a WAN environment and in cloud computing.

This technology helps increase the performance of cloud-based applications and reduce bandwidth costs in companies. Blue Coat's business development director for Latin America, Francisco Abarca, was quoted as saying that the solution could be used, for example, in companies that provide video content on demand, such as US provider Netflix, which announced it would expand to Latin America later this year.

Blue Coat has a market share of 29.4% in Latin America, nearly double its nearest competitor. The company has held this leading position every year since 2006.