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ISG Expands Provider Evaluations to Brazil

ISG Provider Lens™ Quadrant series launched with report evaluating providers offering infrastructure, data center and private cloud services

Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm, today announced it is expanding its ISG Provider Lens™ research coverage to Brazil, with a report evaluating providers offering infrastructure, data center and private cloud services in this market.

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG’s global advisory team. The series was launched last year in the U.S. and Germany, and is now being expanded to AustraliaBrazil and the UK.

ISG Provider Lens™ Quadrant reports provide valuable insights to enterprise buyers on the strengths, competitive differentiators and unique selling points of leading service providers serving the Brazilian market. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG’s own advisors use the reports to validate their own market knowledge and make recommendations to ISG’s enterprise clients.

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“What sets our groundbreaking research apart is our robust, independent methodology that combines our unique data assets with input and advice from our experienced ISG consultants who work every day with both service providers and enterprises clients to help achieve optimal outcomes from their partnerships,” said Esteban Herrera, partner and global leader of ISG Research. “No other research offers this kind of real-world perspective drawn from the front lines of digital, IT and business process outsourcing. Our clients derive tremendous value from these reports.”

ISG Provider Lens™ Quadrant reports place service providers in one of four quadrants:

  • Leaders: Those offering the most appropriate solutions to meet the specific needs of clients;
  • Product Challengers: Those with an attractive portfolio of services but limited competitive strength;
  • Market Challengers: Those possessing competitive strength but needing to improve their portfolio attractiveness, and
  • Contenders: Those needing to improve both their portfolio attractiveness and competitive strength.

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The horizontal axis of each ISG quadrant evaluates the competitive strength of providers based on brand image and awareness, geographic coverage, experience, execution capability, and sales and marketing ecosystem. The vertical axis of the quadrant evaluates portfolio attractiveness on such parameters as vision and strategy, pricing competitiveness, technology competency, partnership ecosystem, innovation and differentiation, and breadth of services.

Providers that score high on both axes, placing them in the upper-right quadrant, are identified as “Leaders.” Providers that do not make the “Leaders” quadrant but demonstrate significant traction in either their competitive strength or their portfolio attractiveness, and are projected to continue this trajectory, are identified as “Rising Stars.”

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First ISG Provider Lens Quadrant Report on Brazil Market

The ISG Provider Lens™ Infrastructure and Data Center/Private Cloud Quadrant Report published today evaluates 30 providers serving the Brazil market across three quadrants: Managed Services for Large Enterprises, Managed Services for SMB, and Managed Hosting and Colocation.

The ISG research found the infrastructure services market is still developing in Brazil, with new deals coming from enterprises in the small and medium business (SMB) segment. Providers that focus on SMB customers are growing faster than traditional providers that focus on large enterprise clients.

All the providers evaluated in the ISG report have implemented or are implementing software-defined data center (SDDC) capabilities, often with OpenStack and VMWare. ISG advises enterprises to consider SDDC when entering into new or renegotiating existing contracts.

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ISG also found AWS’s arrival in Brazil six years ago spurred increased data center investments, especially among colocation providers that acquired and renewed existing facilities to offer scalable and reliable infrastructure to public cloud providers. This caused traditional data centers to form partnerships with colocation providers rather than maintain old, obsolete facilities. Larger players invested in upgrading their facilities to face the new competition.

Brazil lags other markets in the use of artificial intelligence to improve service response time and automatically resolve incidents. Most multinational players are using this technology, but local players “seem to be ignoring AI’s beneficial ability to reduce costs,” or lack the resources to become early adopters, the ISG report noted.

The expansion of the infrastructure services market in Brazil, including the introduction of public cloud, colocation and SDDC capabilities, has leveled the competitive playing field and provided more options for clients, especially those in the SMB space who are seeking service providers to assist them in adopting public cloud services.

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“Despite the economic crisis that impacted Brazilian providers over the last three years, we have found providers that have grown 10 percent annually and are confident of future growth in this market,” said Esteban Herrera, partner and global leader of ISG Research. “Larger providers are reinventing their offerings and adapting to a dynamic environment, fueling innovation in areas like automation and software-defined services.”

The ISG report named Atos, DXC, Equinix, IBM, Logicalis, TIVIT, Unisys and Wipro as leaders in the large-enterprise managed services market; CentralServer, Dedalus Prime, Equinix, Logicalis, Mandic, T-Systems, TIVIT and UOL Diveo for SMB managed services, and Ascenty, CenturyLink, Equinix, T-Systems and TIVIT as leaders in managed hosting and colocation services.

The ISG Provider Lens Quadrant report series draws insights on service provider capabilities from focused surveys, briefings, interviews with providers, input from ISG advisors, ISG benchmarking data, and data drawn from the ISG Contracts Knowledgebase™ and ISG Engagement Database™. The series is a complement to the ISG Provider Lens Archetype reports, which offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types. Click here for more information about the previously published ISG Provider Lens Archetype report on Data Center Outsourcing.

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