LANDesk set for growth under new model: Global technology with local approach

- Friday, June 3, 2011

LANDesk set for growth under new model: Global technology with local approach

Latin America will represent about 5% of US software company LANDesk's global revenues by the end of this year based on its business model for the region, which was redefined last year, LANDesk's Latin American director, Marcelo Lava, told BNamericas.

The company's regional business is 100% based on partnerships and alliances, and it currently has no plans to establish a direct presence. Under the new model, LANDesk defines Latin America as a distinct region in the Americas division - no longer a subregion - to "have the ability to create your own implementation plan," he said.

The company has two models of business partner - partnerships, where the most important globally is Lenovo, and local channel partners for resale.

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"In Latin America, independent of these partnerships, we have created a middle segment, which is local partnerships - companies which may have a distribution and reach that is not associated with a single country, but are specific to Latin America," Lava said. "The goal is to be closer to customers."

Figures support this new approach, he added, since Latin America generally represents 3-4% of revenues in the technology market, "and we will close this year with 5%."

GLOBAL TECHNOLOGY WITH A LOCAL APPROACH

The Chilean market, where LANDesk has an alliance with local business service management provider Extension, is still very attractive for the company due to its maturity and economic stability, Lava said.

"LANDesk solutions are now enabling us to enter new markets, such as mining. We have already closed business with mining companies, and we're working with other sizeable prospects" in areas such as manufacturing, Extension's country manager, Vladimir Alonso, told BNamericas.

Extension is headquartered in Chile, with presence mainly in the financial, retail, and telecommunications sectors, especially with data centers.

Extension is focusing on regional expansion, with the recent launch of operations in Argentina. The company has been growing at 10-12% a year, and expects a 15-20% spurt this year.

The target market for LANDesk's regional partner includes companies with many positions and numerous branches - ideal for the services and solutions the company is offering.

Latin America today is divided into three main regions for LANDesk - Brazil, Mexico and the rest of Latin America. The latter unit has been further subdivided into two areas - the Southern Cone (Argentina, Chile, Bolivia, Paraguay, and Uruguay) and the Andean region (Peru, Colombia, Venezuela, and Ecuador).

"Within the wide area of the rest of Latin America, we see Extension as an important partner for us, giving us the capillarity to reach the entire region with a global presence," Lava said.

And Brazil alone takes up almost 60% of LANDesk's Latin American business. The country "is a special case that needs to be treated differently. It's a very important focus for LANDesk," he added.

Last year, private equity firm Thoma Bravo acquired LANDesk from Emerson, "something that has allowed us in this short period to maintain 100% independence in the line of business, a positive influence in the company's financial and valuation metrics and ROI, and 100% ownership of our vision and strategy," Lava said.