QAD notching 300% year-over-year growth in Brazil
US business software provider QAD's Latin American growth so far this year is being propelled by a 300% year-over-year sales jump in Brazil, the head of the company's Chilean unit, Jorge Rios, told BNamericas.
QAD, which focuses exclusively on software implementations for the manufacturing sector, is leveraging its presence in Brazil's automotive sector. Rios said the country will represent the focal point for QAD's Latin American expansion for the foreseeable future.
Although manufacturers' IT budgets shrunk during the global economic crisis, Rios noted that the industry is on the cusp of a major technological comeback throughout South America.
"From Colombia on down, things are going very well," he said. "We have seen good growth in Peru. Argentina is filled with opportunities because of policies encouraging manufacturing growth. In Chile, there isn't as much growth, but we have maintained sales levels."
On the other hand, the situation is not as rosy in Mexico and Central America, according to the executive.
"In Central America, there is very little manufacturing. There is mostly agricultural manufacturing with very few processes," he said. "What we are seeing in Mexico is that... the market and innovation are retracting. People are waiting to see what happens. The expectations in Mexico are not very positive... There is a significant pause in Mexico."
QAD is responding to the slowdown in Mexico by pushing on-demand versions of its solutions. Rios said the technology is catching the attention of executives grappling with fluctuations in company headcount.
"It has a great advantage considering the ups and downs of the economy," he said. "You can say 'if things go poorly and we have to close the factory, I will pay for 15 users this month. But, within four months, if we are firing on all cylinders, we are going to pay for 400 users.'"
In the long term, QAD's on-demand solutions are seen accounting for 50% of Latin American revenue growth through 2015, the executive added. The company expects overall Latin American revenues to increase 13% this year.
Founded in 1979, QAD currently serves over 5,555 manufacturers in 90 countries worldwide. The company posts more than US$200mn in global revenues annually.
By Matthew Malinowski
SAP (NYSE: SAP) has made an initial investment of 1mn euros (US$1.39mn) in a new innovation lab in Sao Paulo, Brazil, the company said in a statement.
The lab is due to open on October 27.
It will be the company's fourth global "co-innovation" lab, designed to create an environment for collaborative development between SAP and its solution partners, system integrators, technology partners and customers.
SAP's other co-innovation labs are located in Palo Alto, California; Tokyo, Japan; and Bangalore, India, with interconnected operations supported by cloud computing.
National partners involved in the project to date are Sigga and LexConsult. International partners of the SAP co-innovation lab network include Cisco, F5 Networks, Hewlett-Packard, Intel, NetApp, VMware, and Accenture.
SAP Brasil is also hoping to grow its local partner network through the site.
"This lab is part of the overall growth strategy for SAP in Brazil, while also supporting a broader technology agenda to join expert partners and customers in encouraging the adoption of service oriented architecture (SOA)," the statement said.
QAD, which focuses exclusively on software implementations for the manufacturing sector, is leveraging its presence in Brazil's automotive sector. Rios said the country will represent the focal point for QAD's Latin American expansion for the foreseeable future.
Although manufacturers' IT budgets shrunk during the global economic crisis, Rios noted that the industry is on the cusp of a major technological comeback throughout South America.
"From Colombia on down, things are going very well," he said. "We have seen good growth in Peru. Argentina is filled with opportunities because of policies encouraging manufacturing growth. In Chile, there isn't as much growth, but we have maintained sales levels."
On the other hand, the situation is not as rosy in Mexico and Central America, according to the executive.
"In Central America, there is very little manufacturing. There is mostly agricultural manufacturing with very few processes," he said. "What we are seeing in Mexico is that... the market and innovation are retracting. People are waiting to see what happens. The expectations in Mexico are not very positive... There is a significant pause in Mexico."
QAD is responding to the slowdown in Mexico by pushing on-demand versions of its solutions. Rios said the technology is catching the attention of executives grappling with fluctuations in company headcount.
"It has a great advantage considering the ups and downs of the economy," he said. "You can say 'if things go poorly and we have to close the factory, I will pay for 15 users this month. But, within four months, if we are firing on all cylinders, we are going to pay for 400 users.'"
In the long term, QAD's on-demand solutions are seen accounting for 50% of Latin American revenue growth through 2015, the executive added. The company expects overall Latin American revenues to increase 13% this year.
Founded in 1979, QAD currently serves over 5,555 manufacturers in 90 countries worldwide. The company posts more than US$200mn in global revenues annually.
By Matthew Malinowski
SAP brings innovation lab network to Latin America
SAP (NYSE: SAP) has made an initial investment of 1mn euros (US$1.39mn) in a new innovation lab in Sao Paulo, Brazil, the company said in a statement.
The lab is due to open on October 27.
It will be the company's fourth global "co-innovation" lab, designed to create an environment for collaborative development between SAP and its solution partners, system integrators, technology partners and customers.
SAP's other co-innovation labs are located in Palo Alto, California; Tokyo, Japan; and Bangalore, India, with interconnected operations supported by cloud computing.
National partners involved in the project to date are Sigga and LexConsult. International partners of the SAP co-innovation lab network include Cisco, F5 Networks, Hewlett-Packard, Intel, NetApp, VMware, and Accenture.
SAP Brasil is also hoping to grow its local partner network through the site.
"This lab is part of the overall growth strategy for SAP in Brazil, while also supporting a broader technology agenda to join expert partners and customers in encouraging the adoption of service oriented architecture (SOA)," the statement said.
