Jan, 2002 : Latin American Hosting, IDC Markets to Grow: Frost

📅 January 15, 2002 - Though Latin American countries are struggling to recover from a regional economic recession, demand for Web hosting and Internet data center services is growing rapidly, says a new analysis from Frost & Sullivan (frost.com).

The analysis entitled Latin America Web Hosting and IDC Service Markets, reveals that this industry generated revenues totaling $84.9 million in 2000. Combined revenues from Argentina, Brazil, Chile, Colombia, Mexico, and Venezuela should continue growth through 2006.
"Increasing automation processes in the business sector will make itvirtually impossible for a company to survive without Internet access and aWeb presence," write Frost & Sullivan Research Analysts Juan Carlos Urquidi,Romina Adduci, and Paulo Hoffmann.
Difficult economic conditions will drive companies to increase their marketpresence and focus their target market. Web hosting and IDC services allowthem to do so with a limited initial investment.
While opportunities abound for service suppliers, overcapacity in themarketplace will force all market participants to hone their businessstrategies. Overcapacity could result in price wars, as some serviceproviders lower prices to attract customers away from competitors. Othersmight broaden their offerings to lure clients.
"The existence of oversupply in the marketplace will force service providersto consider expanding their range of services to increase revenues," writethe analysts.
A broad set of service offerings might be the only way to satisfy a diverserange of clients.
"Some larger corporations prefer flexible co-location Web hosting services,which use existing networking and computing infrastructures," write theanalysts. "However, corporations with less mature Web sites and limitedfunding may require dedicated hosting, in which IT needs are outsourced."Meanwhile, small businesses and home offices tend to select shared Webhosting services to test the business potential and benefits of a Webpresence without a long-term commitment.
Frost & Sullivan presents the 2001 marketing Engineering Awards to companiesthat have worked diligently to make a positive contribution to the LatinAmerican Web hosting and IDC services industry. These market-specific awardsare presented to: Andinet, Comdominio and Entel.