Skip to main content

Cloud Computing Services are Gaining Traction in Brazil

While much of the upside potential for cloud computing service adoption will occur in the developed markets this year, there's significant opportunities within the emerging markets around the globe.

In Brazil, as an example, cloud computing demand is evolving rapidly -- with 41 percent of companies already using these solutions and 42 percent planning to use them by the end of 2015, according to the latest market study by Frost & Sullivan.

Approximately 25 percent of Brazilian companies will be investing in cloud solutions for the first time. While the majority of these companies are opting for the private cloud model, it is anticipated that the hybrid (public/private) model will become the preferred approach over time.

By the end of 2015, 66 percent of Brazilian companies are forecast to use at least one cloud offering.

The upside opportunity does include some caveats, however, that may impact further adoption. While the Brazilian companies now have a better understanding of the cloud computing concept, many still have concerns surrounding the perceived lack of data confidentiality.

Clearly, security is an important factor when considering cloud computing. Therefore, it's not surprising that infrastructure, connectivity and service-level agreement have been cited as the most important criteria for selecting cloud computing providers in Brazil.

The biggest current challenge for cloud computing providers is to build user confidence. Many hesitant CIOs and IT managers believe that sending information to the cloud makes it more vulnerable. Culturally, Brazilian companies prefer centralized control.

As a result, Frost & Sullivan analysts believes that some executives equate the use of cloud computing with a loss of control. That being said, these same companies are typically not as well-equipped as cloud service providers to fend off advanced cyber threats.

"Cloud computing service providers must make clients aware of efforts they make to boost data security," said Guilherme Campos, ICT industry analyst at Frost & Sullivan. "They should also ensure that clients understand that their data will be secure and inaccessible to other companies."

These combined measures will help cloud computing service providers expand their customer base. Already, some Brazilian companies say they're turning to cloud computing to specifically reduce their IT costs. By replacing their traditional IT capital expenditure with a just-in-time operating expense, they'll only pay for what they need and use.

Popular posts from this blog

How Data and Analytics Drive Business Growth

Senior executives in the world’s largest and most complex organizations will develop the insights required to achieve lasting Digital Transformation. Gartner has identified a model for digital business growth that binds together data, analytics, technology, and forward-looking transformation capabilities. The Gartner Research Board said that data and analytics (D&A) leaders are uniquely positioned to drive this strategic organizational change that will make their companies behave like 'digital native' leaders.  "The most advanced and successful D&A leaders are driving new opportunities to use digital capabilities – often data and analytics products – to capture value. Those opportunities should directly connect to the business priorities," said Mario Faria, vice president at Gartner . Digital Business Market Development At the same time, some leaders are using digital and D&A to create whole new business models. These leaders – which Gartner named the CxO

Anywhere, Anytime Workplace Demand for SASE

The ongoing adoption of flexible working models within the enterprise market has significant implications for typical IT organizations that must now support knowledge workers and front-line employees that operate outside the corporate network perimeter. The global COVID-19 pandemic created IT networking and security challenges. The expansion of the distributed workforce, an increasing reliance on cloud computing infrastructure, and the requirement to securely connect online employees -- wherever they choose to work, at any given moment in time. Legacy IT solutions that have rigid network underlays and a requirement for on-premises infrastructure cannot adequately deal with these trends. This 'Anywhere, Anytime Workplace' led to demand for new Secure Access Service Edge (SASE) solutions, with networking and security delivered as-a-service. Anywhere, Anytime Workplace Market Development   Although converging networking and security capabilities offer enterprises a promising solut

The Metaverse Raised Virtual Reality Interest

After years of slow growth and limited use cases, the Virtual Reality (VR) market is now forecast to grow significantly over the next five years. Consumer interest in VR games and media continues to grow after the COVID-19 pandemic accelerated activity. At the same time, the need for employee enablement and immersive content within the enterprise environment remains strong. According to the latest market study by ABI Research, over 90 million Head Mounted Display (HMD) shipments in 2027 will drive total VR market revenues to reach over $95 billion across hardware, software, and services. Virtual Reality Market Development "The virtual reality market is no stranger to false starts, with identifiable efforts in VR dating back to the 1980s and 1990s. While the technology never found purchase results, the increased capability of VR hardware combined with the demand for immersive content in numerous markets, presents a significant opportunity," says Eric Abbruzzese, research direc