Local market seen gearing up for second virtualization wave

Thursday, March 24, 2011

Chilean companies are virtualizing critical applications such as ERP, CRM and SCM solutions as market maturity increases, Marcelo Leiva, software and services analyst for the local unit of international tech consultancy IDC, told BNamericas.

According to the latest IDC statistics, only 14% of servers sold in Chile this year will be able to be virtualized. Still, clients are moving beyond testing and e-mail, the analyst said.

"Before, we would ask, 'Do you virtualize your databases?' And they would say that they didn't," he said. "Today, the complete opposite is happening, and they are saying, 'Yes, databases are the first item that we virtualize.'"

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Consequently, Chile's 21 data center providers "are making significant investments in infrastructure and even in changing the way they deliver services."

"Today, you hear people talking about dense data centers that allow providers to place the highest amount of virtual servers within their infrastructure," he said.

Chile's maturing adoption will also spark new virtualization alliances among hardware, software and professional IT service providers, according to IDC Chile's general manager, Natalia Vega.

Companies are also virtualizing applications that are specific to vertical markets, Vega said, pointing to retailers that are virtualizing different sales, inventory and call center modules.

IDC expects overall IT growth in Chile to top out at 5.5% this year, which is slightly below the overall Latin American growth projection of 6.3%.

Chile's overall IT market reached 1.87tn pesos (US$3.88bn) last year, with roughly 61% going to hardware, 28% going to software and 12% going to services.