Rising security and regulatory concerns are contributing to strong growth in Brazil’s private/hybrid cloud industry, ISG Provider Lens report says
Brazilian enterprises are increasingly concerned about the resilience and agility of their IT operations, fueling rapid growth in all types of private and hybrid cloud services, according to a new research report published by Information Services Group, a leading global technology research and advisory firm.
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“Brazilian companies require low-latency networks, backup and recovery and faster deployment of new services”
The 2022 ISG Provider Lens Next-Gen Private/Hybrid Cloud — Data Center Services and Solutions report for Brazil finds new regulations, new managed hosting technologies and the rising number of ransomware attacks in Brazil have contributed to a hybrid cloud boom in the past few years. More organizations continue to migrate on-premises IT to managed services, managed hosting and colocation services.
“Brazilian companies require low-latency networks, backup and recovery and faster deployment of new services,” said Bernie Hoecker, partner, ISG Enterprise Cloud. “For most, that means pursuing a hybrid cloud strategy.”
As a result, both the cloud and colocation markets are growing quickly in Brazil. There are now six cloud hyperscalers operating in the country, with 13 to 15 cloud data centers hosted in colocation facilities, the report says. At least six more large facilities are under construction to meet the demand for data center floor space. Global cloud providers such as AWS, Microsoft and Google have elevated the standard for security, service quality and environmental, social and governance (ESG) compliance in Brazilian data centers, ISG says.
Brazilian managed hosting providers, once considered threatened by the entrance of public cloud hyperscalers, are stronger than ever thanks to demand for new technologies, such as automated self-service platforms that mimic the public cloud service portfolio, the report says.
Companies are still modernizing their infrastructure to comply with the privacy and data protection requirements of the Lei Geral de Proteção de Dados (LGPD), which went into effect more than a year ago, the report says. In addition, open banking regulations imposed in 2021 have increased banks’ interest in cloud migration. All private banks in Brazil are committed to adopting cloud infrastructure, and even those that still use mainframes have long-term plans to modernize and migrate their applications.
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The report also examines other trends in the Brazilian private/hybrid cloud market, including how new technologies such as machine learning and service automation are helping providers deliver better services despite rising costs and shortages of skilled labor.
The 2022 ISG Provider Lens Next-Gen Private/Hybrid Cloud — Data Center Services and Solutions report for Brazil evaluates the capabilities of 40 providers across four quadrants: Managed Services for Large Accounts, Managed Services for Midmarket, Managed Hosting and Colocation Services.
The report names edge.uol, Equinix and T-Systems as Leaders in three quadrants each and Ativy, Matrix and TIVIT as Leaders in two quadrants each. It names Ascenty, Capgemini, Claranet, Dedalus, HostDime, Kyndryl, Logicalis, Lumen, Scala, Skymail, Unisys, V8 Consulting and Wipro as Leaders in one quadrant each.
In addition, Under and V8 Consulting 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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