Strong Linux server presence confined to telecommunications, financial sectors

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Monday, February 7, 2011

Brazil's financial and telecommunications sectors will represent the main stomping grounds for Linux servers this year, IT infrastructure analyst at international tech consultancy IDC, Alexandre Vargas, told BNamericas.

Vargas attributed this trend to heavy use of Unix in both segments.

"Those two vertical markets have many of their core applications based on Unix systems. A large percentage of Unix servers can also support Linux," he said. "There is more familiarity."

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Meanwhile, with the exception of the government sector, the odds are against seeing this type of server notch advances in other vertical markets, according to the analyst.

"We expect this trend to continue," he said. "Linux players have won significant projects in those two markets, but I am not seeing any significant change regarding the overall panorama and the strong Windows server market share. Linux will maintain or even lose share in the future."

Revenues for the Brazilian server market in the third quarter of 2010 exceeded those in 3Q09 by 22.2% in US dollar terms, IDC said in a statement issued last month. By units sold, the industry outpaced the prior-year period by 32.5% in 3Q10.

Vargas said IDC is still consolidating figures from 4Q10, but noted that year-long results will most likely fall in-line with the consultancy's projections, which predicted that server unit shipments and sale value would increase 19.6% and 16.1% this year, respectively.

Representing 30% of total server sales, the financial sector poured resources into mainframe renovations during the latter months of 2010, thus driving market performance.

Vargas underscored advances by IBM (NYSE: IBM) and Unisys (NYSE: UIS), and noted that strong financial sector sales are set for a repeat in 2011.

"The market is hot," he said.