Latin America Appliance Server Market Shows Slow Growth But May Have Revolutionary Change By 2006, IDC Says

MIAMI, FL – JANUARY 10, 2003 – According to a just-released report by IDC Latin America, the Latin America appliance server market expects to have a total of US $39.62 million in shipments between Argentina, Brazil and Mexico, by the end of 2002 growing slightly from US $ 37.25 last year, which may show rapid increase with economic stabilization.

 

The uncertain economic environment greatly affected the shipments this year in the three countries. The speculation in the presidential elections in Brazil along with the huge difficulties caused by the suspension of the foreign debt payments and the deep economic crisis in Argentina have strongly affected the budget for IT infrastructure, appliance servers included.

In the three countries, the highest revenue-generating category was NAS (Network Attached Storage) with 74.2 percent of the total revenue, 33 percent of total shipments in 2001 and 1H of 2002.

"This is the fastest growing category in the market. As the high volume content traffic grows, the demand for online warehousing increases, and it directly affects the demand for NAS Filer servers," said Ricardo Villate, Sr. Research Analyst for IDC Latin America and author of the report. "As content creation gains importance in the manufacturing and public sectors, IDC expects these companies to increase storage spending and providing momentum to the NAS category."

Security accounted for the highest share of the market with 44.7 percent of the total shipments for 2001 and 1H2002 altogether. Cisco, which focuses on security, leads appliance server shipments.

According to IDC, the appliance server market could see a revolutionary change in the next few years with economic conditions stabilizing in the region resulting in higher demand for IT solutions in countries such as Argentina. In Brazil, the small-sized business segment has a demand for security, e-commerce and storage solutions stemming from telecommunications and commerce companies from the increasing generation of content and the need to administrate it. In Mexico, government initiatives related to e-Mexico present similar opportunities for growth in appliance server adoption.

"E-Mexico, a government initiative for the interconnection of government entities in a 'portals of portals' and for the growing access of municipalities and education centers of the Internet via a national interconnection plan, is expected to generate a lot of demand for 2003 and 2004," said Villate.

In the long run, after 2003, web serving could have a big impact on the market driven by the revival of the Internet commerce applications, e-business and online services and the growth of the telecommunications sector that would increase demand. Commerce and public services companies should also need to expand their services and will require a more intense and continuous contact with clients, in turn needing more Web serving applications.

Latin America Appliance Server Market, 2002 through a survey-based and bottoms-up research, provides an insight into appliance server demand drivers, market size and share in several workload categories in the Latin America, focusing on the top- three economies: Argentina, Brazil and Mexico. For more information regarding the study, Latin America Appliance Server Market, IDC, or to purchase the complete study, please contact Barbie Cordero of IDC Latin America bcordero@idc.com or at (305) 351-3131.

About IDC Latin America

IDC Latin America has established an unrivaled reputation for analysis of the IT, Internet, and Telecom markets in Latin America. Its research group is comprised of over 90 analysts in Argentina, Brazil, Chile, Colombia, Mexico and Venezuela who are devoted to generating the most authentic and up-to-date information on these markets. Following a commitment to excellence, IDC has pioneered primary research in the countries of Costa Rica, Dominican Republic, Ecuador, Guatemala, Panama, Peru and Puerto Rico. This distinctive local presence results in the most comprehensive and trustworthy market coverage of the Latin American region. For more information, visit www.idclatin.com or call 305-351-3131.

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at www.idc.com.

IDC is a division of IDG, the world's leading IT media, research and exposition company.