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February 20, 1989


By CBR Staff Writer

Although computer broking doesn’t account for even 10% of the market in Spain, compared with 40% in the US, there are signs that the market is on the move. Only three weeks ago a new brokerage company EBS SA was created as an offshoot of Banco Bilbao Vizcaya. At present there are about 12 of these companies, three of them are indigenous, and the rest are subsidiaries of multinationals. All either sell used, or lease used and new mainframes, to large operations like military and financial institutions and administrative bodies. At the moment there are about 10,000 leases out, but the potential market is more like 100,000 to 200,000. Companies also offer financial leasing, maintenance and distribution of software. Turnovers within the computer brokerage business range from Eurobrokers Hardware with $1.3m to ICS Espana with $7m. Most of the used systems sold are IBM models, particularly 4300s, Systems 38 and 36, with prices ranging from $350,000 for an IBM 4381 to $6,000 for a System 36. As regards renting, to hire an AS/400 for one year would cost $2,500 per month (ie about 15% of its retail price), whereas a discontinued low-end System 36 model would cost $4,500, or getting on for 50% of its retail price. Spain is still behind the European average in this market.

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