Locaweb embarks on international expansion plan

Brazilian data storage company Locaweb expects international sales to account for 5% of overall revenues within three years, online news source Baguete quoted the company's corporate development director, Celso Nunes, as saying.

This comes after Locaweb disclosed plans to invest US$1mn to open a technical center in Miami and a support and service center in Montevideo.

"The Latin American hosted services market lacks local providers... consequently, we identified an opportunity to take our experience outside of Brazil," Nunes said.

In 2008 Locaweb posted revenues of 102mn reais (US$56.1mn), which are expected to increase roughly 36.7% this year. The firm, which has more than 196,000 clients, currently controls 21.8% of the Brazilian market share in hosting.

Brazilian press reported earlier this month that Locaweb will invest 35mn reais by the end of this year to expand infrastructure and improve services.

Nunes said part of the funds will be channeled towards the completion of the company's new data center.

Publication: Business News Americas - English News
Provider: Business News Americas
September 22, 2009