Brazil Cloud Computing Market Introduction

Brazil is considered to be the one of the leading countries in the world in terms of IT spending and constitutes near to half of overall Latin America’s IT spending. Also, based on investment on information technology, innovation index, digitization, and online services Brazil ranks 7th within Latin America. Over the last few years, the cloud computing has evolved as mainstream technology that can offer practical solution for complex IT infrastructure applications. Also, enterprises in Brazil need a scalable architecture to enhance on-demand capacity and manage increasing amounts of data in today’s connected world. Cloud computing enable organizations to augment data center capacity, enhance scalability, and take advantages of value-added services.

Despite being numerous benefits offered by cloud computing technology still CIOs are facing major challenges while moving to cloud model. Data security and inefficient connectivity infrastructure are major challenges that are limiting the adoption of cloud services, hence, less than 10% of organizations in Brazil have entirely cloud-based business model. This is expected to hamper growth of the cloud computing services market in Brazil to certain extent. Other organizations that avail or deploy cloud services and solutions have partially migrated towards cloud with majority of the infrastructure and application related services are cloud-based. In total around 80% of enterprises across industry verticals use cloud computing services. However, introduction of favourable government initiative to support building and operating data centers in the country is anticipated to boost growth of the Brazil cloud computing services market in the near future.

Market Dynamics

Below are the factors driving or hindering growth of the cloud computing service market in Brazil.

Drivers

• Growing adoption of software as a service model
• Increasing update of cloud services among small and medium enterprises
• Enterprises focus to reduce overall capital and operational expenditure associated with IT infrastructure
• Increasing scalability and flexibility

Restraints or Challenges

• Concerns related to confidential data security and reliability stored on cloud
• Growing incidences of data breach and cyber attacks
• High capital and operational expenditure associated with running data centre to support cloud services operations
• Legacy IT infrastructure

Market Scope

The Brazil cloud computing services market has been analysed taking into consideration major segments such as service type, deployment model, organization size, and end user verticals.

By Service Type

• Software as a Service (SaaS)
• Infrastructure as a Service (IaaS)
• Platform as a Service (PaaS)

By Deployment Model

• Public Cloud
• Hybrid Cloud
• Private Cloud

By Organization Size

• Small & Medium Enterprises
• Large Enterprises

By End User Verticals

• Public Sector (Government & Education)
• BFSI
• Manufacturing
• Retail
• IT & Telecom
• Healthcare
• Energy & Utility
• Media & Entertainment
• Transportation
• Other End User Verticals

Brazil Cloud Computing Market Competitive Landscape

Prominent international brands present in Brazil cloud computing market are Amazon, IBM, Oracle, Microsoft, Verizon, Google, Rackspace, Dell, Salesforces, SAP, BT Global Services and Fujitsu. Major vendors such as IBM and Microsoft are planning to set up data centers to enhance local cloud services capabilities in Brazil. Key domestic players operating in the Brazil cloud computing services market are Locaweb, Mandic, Totvs and UOLDIVEO. Other players from telecommunication industries delivering cloud services are Embratel and Telefonica’s Vivo.

This research report on Brazil cloud computing market would be produced using first-hand market information gathered from industry experts and major participants across the value chain, during primary research. It would provide broad view of current market trends, growth factors and competitive analysis.