Server market shrinks in Brazil

Revenues drop by 17 percent in the second quarter of 2015.

The server market in Brazil has seen a 17 percent drop in revenue in the second quarter of 2015, according to a report by analyst house IDC.

According to the report, the months between April and June saw very few purchasing deals, a consequence of the current instability in the local economy.

"The market performance was impacted by economic and political issues that the country has been facing since the end of last year," says IDC analyst Luis Altamirano.

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"These factors, combined with the dollar hike, caused investments to decrease given all the uncertainty in the Brazilian business scenario," he added.

Despite the drop in revenues, the local market saw growth of 2 percent in server sales during the second quarter. By comparison, the first quarter saw a drop of 12 percent in revenue and 5 percent in sales volumes.

The predictions for the rest of the year are more upbeat - and the main reason for it is the various government tenders for acquisition of datacenter equipment that have been launched recently.

Based on those upcoming purchases, IDC forecasts an overall 22 percent drop in server revenues and a 7 percent decrease in sales volumes for 2015.