Managed Services: Brazil Is Next Big Market

Managed Services: Brazil Is Next Big Market

The managed services market has gradually extended across North America, Europe, Australia, South Africa and several other regions. So where is the next big managed services land grab? I suspect the answer is South America -- or more precisely, Brazil. Here's why.

About two years ago at a Kaspersky Lab partner summit in the Dominican Republic, I met a few attendees from Brazil who told me how they were pushing into cloud services and managed services. Earlier this week, those same folks told me they've reached a tipping point with their offerings.

Also, quite a few MSP-oriented software companies have offices in Brazil. In particular, I've heard from MSPs running Kaseya in that region. And I heard from Zenith Infotech earlier this year about some interest in Brazil. But the IT discussion in Brazil is getting louder and going mainstream. Two examples:

  • Lenovo earlier this week told The Wall Street Journal that the company would likely partner or buy its way toward prominence in Brazil. Indeed, Lenovo believes Brazil is the next big PC and mobile sales opportunity.
  • Meanwhile, SysAid Technologies has opened a new office in Brazil to promote IT Service Management (ITSM) and help desk solutions in the region, the company announced this week.
Why are IT vendors and MSP-centric companies turning their attention to Brazil? As Forbes put it:
"Few people would know that Brazil ranks seventh in the world’s IT market to India’s 9th place ranking, according to IDC in Framingham, Mass.  After China, it is the second largest emerging market for IT spending."
Plus, IT spending in Brazil is expected to grow about 9 percent in 2012, IDC predicted.

Still, not all MSP-centric software companies are flocking toward Brazil. Some North America firms are instead focusing near-term on extending beyond the UK into Germany, one executive told me earlier this week. Expansion in Europe, he told me, will keep his company busy for at least the next 12 months.
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