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Enterprises in Brazil Look to Service Providers to Help Them Move to Hybrid Cloud Data Centers

ISG Provider Lens report sees a gradual adoption of the hybrid cloud model, with providers offering new tools to help clients migrate

Enterprises in Brazil are gradually adopting a hybrid cloud data center model and are using managed services providers to help them identify the workloads that can be moved to the cloud and the workloads that shouldn’t, according to a new report published today by Information Services Group (ISG), a leading global technology research and advisory firm.

The 2020 ISG Provider Lens Next-Gen Private/Hybrid Cloud – Data Center Services & Solutions Report for Brazil finds enterprises in the country investing in tools related to the software-defined data center. They are also embracing other cloud tools for assessing, planning and automating migrations.

With hybrid cloud data centers becoming more popular in Brazil, public cloud providers now realize the importance of software and services to enable the hybrid infrastructure, the report says.

“The new breed of cloud tools has reached the desired level of reliability that allows for predictable results,” said Jan Erik Aase, director and global leader, ISG Provider Lens Research. “The same tools provide a better understanding of the benefits of moving to the cloud, including the architectural and financial impacts, providing enterprises with better business cases.”

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As large enterprises in Brazil gradually adopt hybrid clouds, edge computing is pushing the shift because it requires a unified management platform, the report says. Most managed services providers that support complex enterprise environments have developed robust management platforms that shorten the deployment time to a hybrid cloud setup.

In addition, many service providers in Brazil are using artificial intelligence and cognitive computing to support managed services automation, the report adds. Intelligent automation has become the standard for managed services providers that serve large enterprises. While a fully automated hybrid cloud data center is still not a reality, providers are moving in that direction. Using automation, some companies have automated up to 70 percent of their service requests and incident resolution.

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Meanwhile, the report sees the Brazilian midmarket in the private and hybrid cloud data center sector growing faster than the large enterprise market. In past years, service providers had reported that new clients were companies that had in-house data enters and were willing to experiment with the cloud. But in 2019, some companies in the Brazilian midmarket began to switch between providers, indicating aggressive competition in the market.

The report recommends that midmarket companies concerned with costs should evaluate hybrid cloud services and their exit clauses. Clients should opt for short-term contracts and open architectures.

Meanwhile, the report sees the managed hosting market losing relevance in Brazil, as it gives way to public and hybrid cloud systems. However, many providers have focused on improving their managed services and data center facilities. Some providers have exited the managed hosting market, and the remaining competitors are focused on improving their value proposition.

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An emerging trend has managed hosting providers using high-end colocation facilities instead of their own data centers to host their hardware and software, the report says. Many Brazilian clients are also interested in colocation services, and many colocation providers are building new facilities to keep up with growing demand.

The report also finds data center security providers expanding their capabilities. Providers are focused on zero-trust, micro-segmentation, SD-WAN and AI for threat identification and response. Leading providers are also offering next-generation firewalls that can integrate with other security tools. However, the report doesn’t see any vendors with high-end applications that can provide end-to-end data center security for their customers.

The 2020 ISG Provider Lens Next-Gen Private/Hybrid Cloud – Data Center Services & Solutions Report for Brazil evaluates the capabilities of 59 providers across six quadrants: Managed Services for Large Accounts, Managed Services for the Midmarket, Managed Hosting, Colocation Services, Data Center Security Products and Hyperconverged Systems.

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