Zentyal continues its commitment to Latin American market

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(Madrid, Spain) Zentyal, developer of easy IT solutions for small business, continues its commitment to the Latin American market, where the company – together with the European market – pursues international expansion in 2013. The company is carrying out an intensive internationalization process, according to its business strategy, on these markets. In Latin America Zentyal concentrates its efforts in Brazil, Mexico and Chile, countries with the highest growth expectations. As the company plans to reach 100% of its sales through the IT channel in 2015, the entry strategy to these markets is naturally through alliances with local IT providers.

Zentyal has chosen to start the Latin American expansion from Mexico, Brazil and Chile due to the strong economic growth and high expectations for the development of the IT sector in these countries. According to Gartner, 2012, Latin America lead worldwide IT spending growth with an average increase of 12.7%. In Brazil the estimated growth is 15%. Meanwhile, the government of Mexico indicates that the country’s IT sector grew at an average annual rate of 11.2% during the last ten years, even higher than the national GDP growth.

Currently, 21% of all Zentyal downloads and free account registrations come from Latin America. Downloads and free account registrations from Mexico and Brazil represent half of them, which is significant number, taking into considering that the company has not yet established offices elsewhere than in Spain and it has only recently, in 2013, started to carry out international promotion and sales plans.

With Internet-based distribution model since the foundation of the company, to date Zentyal has carried out its international expansion from its own headquarters in Zaragoza: from negotiation and signing of partnership agreements to providing of its services. In 2013 the company has started a proactive strategy towards these target countries, through commercial on-site meetings. The company plans that its partner network in Latin America will make 25% of its channel in 2013.

We have detected large business opportunities in Mexico, Brazil and Chile, that are all growing markets with high demand for technology services and solutions. Moreover, due to the high demand for IT professionals, we have seen that solutions such as Zentyal, that help to optimize resources, are very well received“, said José Ramón Padrón, Channel Sales Director for Iberia and LatAm at Zentyal.

In the coming months the company will focus mainly on closing the first new alliances in these countries, that will join the already existing partner network in the continent, as well as managing the new business opportunities generated during the business visit. At the same time, the company will provide the new partners all the necessary support to start offering Zentyal-based solutions to their end customers.

First results

Brazil, the second largest country by sales after Spain, represents a huge potential market for Zentyal. Furthermore, over 30% of Zentyal downloads in Latin America come from this country. Until now Zentyal operated in Brazil through three partners –Leucotron, Netsol and DBLink– that were recently joined by TMBTI. The company expects to grow its partner network in the upcoming months through new agreements with some of the 16 potential partners it is currently in negotiations with.

In Mexico, the company has three Zentyal Partners: Sinc, Open Factor and Technological University of Torreón (training partner), and it continues negotiations with eight companies. The company expects to multiply by four the partner network in this country by the end of 2013.

In Chile, where the market has confirmed to be specially receptive to implement the technology in SMBs, Zentyal has signed the first partnership agreement with Swetekno and it continues negotiations with six other IT companies.

About Zentyal

Zentyal designs and develops IT solutions for small and medium businesses since 2004. The company provides SMBs and their local IT providers all-in-one IT solutions that are easy to use, from the server to the cloud. Zentyal-based solutions allow to reduce and rationalize IT investments, improve the security and minimize system downtime.

Zentyal-based solutions are widely used by small and medium businesses independently of their activity or location, as well as by public administration or the education sector. The partnership agreements signed with IT support and service providers in more than 20 countries guarantee the distribution of Zentyal-based solutions to customers worldwide.

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