Banks and financial services companies are the principal drivers of hybrid and multicloud adoption in Brazil, ISG Provider Lens report says
Faced with the twin challenges of providing increased connectivity and security from their on-premises data centers, a growing number of enterprises in Brazil are adopting hybrid architectures, according to a new research report published by Information Services Group, a leading global technology research and advisory firm.
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“Hybrid clouds can really provide the best of both worlds”
The 2023 ISG Provider Lens Private/Hybrid Cloud – Data Center Services report for Brazil finds that Brazilian companies are turning to managed hosting platforms that offer a cloud-like experience along with robust technology and hyperconnectivity to the public cloud. An increasing expectation of hyperconnectivity from both customers and businesses alike has led to an alteration in hybrid architecture, the ISG report says.
“More Brazilian service providers are entering the managed hosting market,” said Bernie Hoecker, partner, enterprise cloud transformation leader, ISG. “Those that are focused on private cloud services are showing more robust growth than those focused on public cloud services.”
According to the ISG report, many firms that migrated to the public cloud in a rush to reduce costs realized later that some workloads could be more efficiently processed in hosting or colocation environments. From an enterprise perspective, there are several reasons to shift from public to private clouds, particularly for companies in Brazil, the ISG report says.
Whereas public clouds set their price in dollars and are aligned with global infrastructure costs, managed hosting sets prices in Brazilian reals and is aligned with costs incurred in Brazil. A change in currency parity from 2020 to 2022 created a price gap that has made managed hosting more competitive in Brazil, ISG says.
In addition, according to the ISG report, the public cloud uses a granular pricing model that makes it easier to overspend, while a managed platform offers simplified pricing schemes that are easier to understand and control. Finally, concerns around data sovereignty, data access control, privacy and compliance are more readily addressed in managed hosting environment, the ISG report says.
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“Hybrid clouds can really provide the best of both worlds,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “They allow enterprises to leverage the capabilities of public cloud platforms without the need to offload all their data to a third-party data center.”
The report also examines how more providers are offering AIOps and FinOps across clouds to integrate automation and financial control on a single platform.
The 2023 ISG Provider Lens™ Private/Hybrid Cloud – Data Center Services report for Brazil evaluates the capabilities of 43 providers across four quadrants: Managed Services for Large Accounts, Managed Services for Midmarket, Managed Hosting and Colocation Services.
The report names Edge UOL and Equinix as Leaders in three quadrants each, while Kyndryl, Matrix, TIVIT and T-Systems are named as Leaders in two quadrants each. Accenture, Ascenty, Capgemini, Claranet, Dedalus, EVEO, HostDime, Logicalis, Nextios, Scala Data Centers, Skymail, Under and Wipro are named as Leaders in one quadrant each.
In addition, inovTI, Takoda and V8.Tech are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.
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