07/16/2009 08h27

Software AG increases investment in Brazil

Valor Econômico

Eighteen months after having guaranteed in court the right to operate directly in Brazil, the German Software AG prepares the next step towards its expansion in the market: strengthening the area of services and consulting. According to Ivo Totev, International Vice-President of services of the company, the purpose is to go from 20 to 120 professionals operating in this area in next two and a half years. "[Sales of] € 20 million is the minimum we want to achieve with the activity ", said the executive.

According to Totev, the investment that will be made is not to have an operational margin in the country for some time. "All the profit will be reinvested. We are aware of that", he says. According to the executive the movement is part of the global strategy of the company that seeks leaving behind the image of a company of systems, aimed at technology, in order to undertake the role of business consultant. "This is a demand of the clients. They do not want only technology products any more", he said. The area of services was responsible for 24% of the sales of € 720.6 million that Software AG registered in 2008.

Founded and developed in the world of the mainframes, the great computers that centralize the operations of the companies, Software AG, according to Totev, is looking forward to reinventing its model of businesses in order to remain important in the market. And Brazil is an essential part of such process. In 2008, Software AG had an income of € 40 million in the country, with 45 closed contracts. Among them is the one of licenses and maintenance of systems of Banco do Brasil, the greatest ever closed by the company in its 40 years of history - € 63.7 million in four years and a half. That is a very interesting result for a company that had to start its activities in the country practically from zero.