Server giants leveraging partner ties to gain edge

Tuesday, March 8, 2011

Server giants HP (NYSE: HPQ), IBM (NYSE: IBM) and Dell (Nasdaq: DELL) will increasingly leverage partnerships in Latin America to capitalize on regional demand, ICT consultancy Gartner research vice president Jeffrey Hewitt told BNamericas.

"They're leveraging channel partners for sales, and also their service and support presence," he said. "They have to be focused on technology evolutions and where those technologies are in their maturity levels in those countries."

Gartner recently revised its 2011 Latin American server market growth projections to 17% from roughly 9% in revenue terms, Hewitt said. Regional server sales increased 12.3% in revenue terms last year, according to a recently released Gartner study.

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The three companies maintain a solid sever market grip across most Latin American geographies, but Hewitt also noted the presence of local players in Brazil.

"IBM, Dell, and HP have a pretty strong presence in Brazil, but there a few other ones that come out such as Itautec," he said. "Through regulation and their own, internal economic infrastructure and also government-encouraged infrastructure, they have nurtured some of their own providers."

Gartner expects the fastest server market growth this year to come from Brazil, Mexico and Argentina, with significant advances also coming from Chile. Colombia's server market showed little movement in 2010, but the jury is still out as to whether economic growth will breathe life into sales in that country.

The full interview with Jeffrey Hewitt can be read in this week's Information Technology Perspectives, for subscribers only.