Major industries are leading the way to application transformation and ambitious migrations to complex hybrid, multi-cloud environments, ISG Provider Lens report says
Public cloud use in Brazil has matured and expanded into more sectors this year as organizations migrate increasingly complex applications to the cloud, according to a new research report published by Information Services Group a leading global technology research and advisory firm.
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“Companies in Brazil are looking for committed service partners they can trust to oversee cloud operations and expenses over the long haul”
The 2022 ISG Provider Lens™ Public Cloud — Solutions & Services report for Brazil finds the country’s public cloud market growing as a result of new workloads being shifted to the cloud, with more organizations now pursuing full application transformation instead of simple lift-and-shift migrations. Brazil’s public sector and financial services markets have joined the move to public clouds this year, potentially accelerating the trend further.
“Enterprises of all sizes in Brazil are recognizing that they can reuse best practices from cloud initiatives by large, complex, regulated institutions,” said Bernie Hoecker, partner, Enterprise Cloud Transformation at ISG. “Seeing banking and insurance companies move to the cloud eases other industries’ fears about security.”
Major federal agencies and state and local governments in Brazil are adopting public cloud solutions to reduce costs and use AI to improve tax collection and predict future demand for public services, the report says. The financial sector has a growing need for the cloud as it embraces open banking and Brazil’s PIX instant payment system. Brazil is the second-largest IBM mainframe market after the U.S., and many banks are shifting mainframe applications to public clouds.
Most large enterprises in Brazil are using hybrid clouds to host legacy applications, and those that have experience with outsourcing are tapping into multiple public clouds because they avoid reliance on one vendor, ISG says. This approach makes cloud environments even more complex, which increases demand for AIOps and FinOps platforms to monitor cloud assets and services and control costs. Managed service providers in Brazil are beginning to offer observability, a set of services that use machine learning to identify anomalies in a client’s application performance.
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“Companies in Brazil are looking for committed service partners they can trust to oversee cloud operations and expenses over the long haul,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research.
Midmarket organizations, which had faced pressures to move workloads to the cloud for years, began to embark on public cloud migration and application modernization this year, the report says. Objectives include cost savings, improved operations and new capabilities. Providers of consulting and transformation services play a crucial role in these efforts because midmarket companies in Brazil lack the resources to hire in-house certified cloud professionals.
The 2022 ISG Provider Lens™ Public Cloud — Solutions & Services report for Brazil evaluates the capabilities of 48 providers across six quadrants: Consulting and Transformation Services for Large Accounts, Consulting and Transformation Services for Midmarket, Managed Public Cloud Services for Large Accounts, Managed Public Cloud Services for Midmarket, Hyperscale Infrastructure and Platform Services, and SAP HANA Infrastructure Services.
The report names Compass UOL and Dedalus as Leaders in four quadrants each. It names Accenture, AWS, BRLink, Claranet, Kyndryl, Microsoft, Nextios, TIVIT, V8.Tech and Wipro as Leaders in two quadrants each. Atos, Capgemini, Google, Sky.One and Venha Pra Nuvem are named as Leaders in one quadrant each.
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