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Enterprises in Brazil Embrace Cloud Offerings from Microsoft

ISG Provider Lens™ report sees Brazilian companies looking to cloud-based solutions in response to the COVID-19 pandemic

Brazil has seen a dramatic rise in demand for cloud services during the COVID-19 pandemic, including for Microsoft’s cloud-based office and collaboration tools, according to a new report published today by Information Services Group, a leading global technology research and advisory firm.

“Many cloud service providers reported intense activity, with the market seeking alternatives to on-premises operating models.”

The 2021 ISG Provider Lens™ Microsoft Ecosystem Report for Brazil finds enterprises in the country looking to Microsoft partners to help them deploy and use Microsoft cloud-based tools.

“With social distancing rules established practically overnight, the demand for cloud services in Brazil increased considerably,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Many cloud service providers reported intense activity, with the market seeking alternatives to on-premises operating models.”

The COVID-19 pandemic produced waves of change in the Brazilian market, the report says. Enterprises looked to save costs through cloud services and through the use of managed services for Microsoft Azure.

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In addition, the number of users of Microsoft’s cloud-based Office 365 suite grew significantly in Brazil, the report adds. A significant portion of business activity for service providers began with organizations looking to migrate and modernize their Office software.

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Many enterprises in Brazil also looked to migrate their SAP installations from an on-premises environment to the cloud, the report says. Companies moving SAP to the cloud reported advantages such as an agile infrastructure, with less downtime, lower risk and reduce costs.

The report also sees the Microsoft partner ecosystem driving more than 95 percent of the company’s revenue in Brazil. As Microsoft expands its product portfolio, the company has transferred its complex and value-added services to its network of partners.

Microsoft partners, meanwhile, must demonstrate that they are adaptable and agile to compete in the Brazil market, the report adds. While global providers prefer large companies as clients, local Microsoft partners have a growing opportunity in the country’s midmarket.

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The 2021 ISG Provider Lens™ Microsoft Ecosystem Report for Brazil evaluates the capabilities of 58 providers across six quadrants: Managed Services for Azure for Large Accounts, Managed Services for Azure for the Midmarket, Office 365 – Modern Workplace for Large Accounts, Office 365 – Modern Workplace for the Midmarket, Dynamics 365, and SAP on Azure.

The report names Accenture (Avanade) as a leader in four quadrants and IBM and Venha Pra Nuvem as leaders in three. AlfaPeople, Brasoftware, Capgemini, Cloud Target, Dedalus, DXC Technology, FCamara, GRVPPE, Ingram Micro, ITCore, Nexer, Solo Network, SOU.cloud and Teltec are all named leaders in two quadrants. Meanwhile, 4MSTech, BHS, Dell, Kumulus, Lattine, Logicalis, Pentare, Prime IT, SGA, Softtek, SoftwareONE and T-Systems are named leaders in one quadrant.

In addition, Blueshift, Compasso UOL, DXC Technology, FCamara, Lattine, Nexer, T-Systems and VIVO were named Rising Stars—companies with “promising portfolios” and “high future potential” by ISG’s definition—in one quadrant.

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