Brazil IT infrastructure sales bounce back

Market for servers, storage and networking grew 41 percent in Q2 2018, says IDC

Following the downward trend of the last few years, IT infrastructure sales in Brazil saw an increase in the second quarter of 2018, according to analyst firm IDC.

Local sales of servers, storage and networking generated $393.6 million, 41 percent up on the same period in 2017.

According to IDC Brazil analyst Luis Altamirano, the last quarter tends to be the strongest in terms of sales for that segment, but Q2 was "the strongest and probably the best quarter" of the year.

"Companies from the manufacturing, trade and finance that had a really outdated infrastructure invested in refreshes during this period, ahead of the uncertainty predicted for the second half with elections and dollar variations," the analyst adds.

Last year, combined infrastructure revenue was $1.271 billion, so 10 percent lower than in 2016, says IDC. In terms of specific segments, this meant sales declines of 15 percent in server sales, 4 percent in storage and 10 percent in networking.

During the period, IDC outlines that sales of x86 servers had the best performance, up 66 percent on the second quarter of 2017, with revenue of $147.62 million. According to IDC, datacenter racks performed well - and so did towers intended for small and medium enterprises.

External storage devices saw a sales increase of 34 percent, generating $82.58 million in revenue, according to the analyst, with medium-sized equipment gaining greater market share in relation to the high-end segment.

The Brazilian IT infrastructure market bounced back after consecutively difficult years, says IDC, with successive and significant sales drops since 2015. This was due to factors such as the economic and political instability, as well as the impact of new technologies such as cloud.

IDC predicts that IT infrastructure sales in Brazil will reach $1.38 billion in 2018, up 8 percent on total sales for 2017.