Mexico IT Infrastructure Outsourcing Services Markets: Industry Report

Mexico IT Infrastructure Outsourcing Services Markets

Product Type: Market Research Report
Published by: Frost & Sullivan
Published: July 2007
Product Code: R1-5947

Description

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To maximize the potential for growth within a firm’s internal and external environment, Frost & Sullivan consultants can facilitate the creation of strategic programs that deliver improved market success. Frost & Sullivan’s strengths lie in combining strategic understanding with market expertise and applying these with absolute commitment to its clients’ growth.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

Co-location
Dedicated Hosting
Storage
Disaster Recovery
Network Management

Technologies

The following technologies are covered in this research:

Storage: This involves electronic computing devices capable of storing large amounts of digital information on permanently accessible media (hard drives or arrangement of hard drives), mostly magnetic or optical media.
Dedicated Hosting: Dedicated Hosting solutions involve a server, usually a Web server, which is located at a dedicated facility designed with resources, which include a secured cage or cabinet, regulated power, dedicated Internet connection, security, and support features. These facilities offer the customers a secure place to physically host their applications and corporate processes as opposed to locating them in their offices or warehouses where the potential for fire, theft or vandalism is much greater.
Disaster Recovery: Disaster recovery is an important element of business continuity management. Business continuity solutions have been developed in order to minimize downtime and disruption of mission-critical services for organizations.
Network Infrastructure Management: This refers to the broad subject of managing computer networks and infrastructure. There exists a wide variety of software and hardware products that help system administrators manage a network.
Housing/ Co-location: This is also referred to as server cluster, computer farm, or ranch. A server farm is a group of networked servers that are housed in one location. It streamlines internal processes by distributing the workload between the individual components of the farm and expedites computing processes by harnessing the power of multiple servers.

Market Overview

Mexico Positioned as the Second Largest Market in the Latin American Region

The Mexican IT infrastructure outsourcing services markets have seen significant development in recent times to emerge as the second largest market in the Latin American region. The market aggregated revenues worth $464.4 million in 2006, benefiting hugely from the increasing awareness of the benefits of outsourcing IT infrastructural services as well as international regulations such as Sarbanes Oxley and global standards of best practices. What is more, technological developments, along with reduction in hardware as well as software costs, have allowed service providers to invest firmly in infrastructure and create new storage spaces and datacenters.

Realizing the existent opportunities, global majors such as EDS, IBM, HP, and Unisys are gradually beginning to expand their market presence. These companies employ a strategy wherein they bundle their services as a complete offering and allow negotiable pricing in order to cater to the necessities of their clients. "For instance, IBM has begun implementing its Service Oriented Architecture (SOA) with a view to gaining market share and also changing the markets perceptions of its offerings," notes the analyst of this research service. "At the same time, other companies such as Diveo, Red Uno, Kio, and Triara, although capable of offering diverse services, are focusing and specializing in datacenter services such as co-location, hosting, and storage."

Government Vertical holds Considerable Potential

From the vertical perspective, financial, automotive, and government segments have been the ones driving demand for outsourced services. Opportunities look particularly promising in the government vertical due to the Austerity Agreement stipulated by the president Felipe Calderon in December 2006. The main objective of this is to reduce costs, improve processes efficiency, and become more productive by maximizing the existing infrastructure. Although this decree does not allow the purchase of any hardware or equipment related to IT, it permits the purchase of consulting services as well as solutions related to training, infrastructure outsourcing, and software licenses. Government organizations will hence be looking for providers that can help them manage their complex and high volume systems and databases and tapping this opportunity, providers are beginning to plan consolidated packages for public organizations.

"With regard to the market segment, the network management segment remains the largest, representing 36.5 percent of the total market," says the analyst. "Among others, dedicated hosting is one of the most acquired solutions within the Mexican IT infrastructure outsourcing services market. This is one of the strongest potential services for the medium-sized businesses in the short and medium term."

Table of Contents

1. Market Overview: 1. Introduction; 2. Market Engineering Measurements
2. Market Forecasts and Trends: 1. Forecast; 2. Demand Analysis; 3. Market Trends
3. Competitive Analysis: 1. Competitive Environment; 2. Competitive Profiles
List of Figures: Chapter 1; Chapter 2; Chapter 3

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