Dell: Investments in technology hinge on Bolsonaro's measures

US IT infrastructure firm Dell Technologies expects a positive 2019 in Brazil, especially if the economic measures of the Jair Bolsonaro government reassure companies regarding investments in technology and digital transformation, said Luis Gonçalves, SVP and general manager at Dell EMC Brasil.

Gonçalves also expects a resumption of sales in the public sector.

"Overall, there is an improvement [in the outlook for the Brazilian economy] this year. The perspective is positive. It will all depend on the government measures to prompt companies to continue investing in technology. We expect technology investment to remain high," he said at a press conference in São Paulo.

Some economic signals are encouraging. Economists and the central bank reported on Wednesday they believe credit will see the best performance in five years in 2019. Projections indicate an increase of 1.8-5.7% in the stock of credit to enterprises and consumers, compared to 2018.

Not that the past year had been disappointing for Dell. Although it was "politically and economically troubled," 2018 was good for Dell worldwide and in Brazil in particular, Gonçalves said.

H did not detail how much the company billed or grew in Brazil, however.

In 2018, Dell expanded its local production by adding the VxRail hyperconvergent appliance equipment to manufacturing at its Hortolândia plant, in São Paulo state.

In addition to the VxRail portfolio, the Hortolândia factory produces computers (desktops, laptops, all-in-ones, workstations and 2-in-1 equipment), servers and storage solutions. Production in Hortolândia supplies only the Brazilian market.

Gonçalves said that Dell signed a few significant contracts for the sale of the equipment in Brazil last year and that hyperconvergence continues to be one of the main bets for 2019, when Dell will complete 20 years of operations in the country.

DIGITAL TRANSFORMATION

Around 6% of Brazilian companies believe they are digital leaders in their field while 14% of business leaders see their firms preparing to deal with the changing demands they will face from their clients over the next years, according to data from a study carried out by Dell with Intel.

The Digital Transformation Index, which covered 4,600 companies from 42 countries, is based on data on the perceived performance of companies in the areas of digital business, IT strategy, workforce transformation and planned investments.

The companies were surveyed during the second half of 2018 and country-by-country results are being released gradually. In the case of Brazil, 100 mid-sized and large enterprises from different segments were assessed.

In Colombia, where the results have already been disclosed, only 3% of the companies saw themselves as digital leaders.

Of the companies interviewed in Brazil, 33% are investing in a gradual and more cautious way, 22% still move very slowly, evaluating what they can implement but without having an investment program geared towards digital transformation, and 2% do not even have a digital plan in force, being dubbed "digital laggers."

Among the main aspects cited by Brazilian companies as barriers to their digital transformation, 33% mentioned the regulatory environment or change in laws, 31% concerns about privacy and data security, 30% difficulties in dealing with data and information overload, 26% weak digital governance and structure, and 24% lack of appropriate sets of skills and internal knowledge.