Cloud Services in Latin America Set to Exceed $7.4 Billion by 2022 Powered by IoT and Cognitive Intelligence
End-to-end cloud services and integrated capabilities will trigger further growth opportunities, finds Frost & Sullivan
SAO PAULO, April 16, 2018 /CNW/ -- The adoption of new technologies, such as Internet of Things, Big Data, and cognitive intelligence, and uptake in cloud-managed services have been the main factors impelling the Infrastructure-as-a-service (IaaS) market in Latin America. Frost & Sullivan finds the sector generated $1.8 billion in 2017 and is expected to reach $7.4 billion by 2022, at a CAGR of 31.9%. In 2017, Brazil represented 50.7% of the total business, followed by Mexico at 22.9%, Chile at 7.9%, and Colombia at 6.5%. To capitalize on growth opportunities, players should offer end-to-end cloud services and integrate capabilities to support connected industries.
"To extract the most from the cloud, companies are increasing investment in hybrid infrastructures that combine multiple configurations, such as on-premise private cloud, public cloud, hosted private cloud, and bare-metal cloud," said Renato Rosa, IT Services & Applications Program Manager at Frost & Sullivan. "Other trends that will expand in the region are managed services offerings and the rise of multi-cloud providers."
Latin American IaaS Market, Forecast to 2022 analysis reveals prevalent factors contributing to growth in the market and challenges serving as barriers to success, as well as technology and market trends, vertical segments, adoption rates, and end-user insights in Argentina, Brazil, Chile, Colombia, Mexico, and Peru. Competitive profiles for key players such as AWS, IBM, Microsoft, Tivit, DXC, Google, and Oracle are also provided.
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To meet customer demands in a highly competitive and consolidated market, Rosa recommends that companies focus on developing industry-related knowledge and offering digital transformation solutions through the cloud, new technologies such as Internet of Things, and artificial intelligence.
Four areas creating growth opportunities in the Latin American IaaS market include:
- Multi-cloud is already a reality within large corporations and increases the need for integration, standardization and management of these environments. For efficient management, the adoption of cloud-managed service providers becomes the natural path.
- The small and medium-sized businesses market represents more than 40% of recurring revenue within cloud public providers, but despite this number being large, it is still far below the potential of this market.
- Internet of Things is considered much more than a technology or a new industry because it creates a huge ecosystem of products and services, from the manufacturing of sensors through the infrastructure of data, storage and processing. IoT will demand high computing power and data storage capacity only possible in cloud environments.
- The financial sector invests the most in technology solutions. In 2018, Banco Central, Brazil's central bank, will define cybersecurity policy and establish requirements for the hire of data processing and storage services and cloud computing, including minimum contractual requirements. Based on this regulation, banks will use large-scale public cloud providers.
Latin American IaaS Market, Forecast to 2022 is part of Frost & Sullivan's IT Services & Applications Growth Partnership Service program.
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Latin American IaaS Market, Forecast to 2022
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Contact:
Francesca Valente
Corporate Communications – Latin America
P: +54 11 4777 5300
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SOURCE Frost & Sullivan
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