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Cloud IaaS Revenue will Reach $4.79B in Latin America

Cloud computing adoption and growth is a worldwide phenomena. Every region of the globe now has markets where traditional IT infrastructure applications are migrating over to public cloud platforms. That said, prior on-premises IT infrastructure continues to play a key role in digital transformation projects.

The Latin American cloud infrastructure-as-a-service (IaaS) market is set to grow as cloud service providers flock to the region to take advantage of the massive customer pool. Public, private and hybrid cloud service models as well as customized, best-fit solutions are accelerating the adoption of IaaS solutions.

Latin America Cloud Market Development

Hybrid cloud models will be particularly popular among enterprises due to their ability to support clients' strategy implementation, migration, and infrastructure management requirements.

"To ensure the optimal use of existing infrastructure and compliance certificates, most companies will invest in hybrid cloud deployments," said Renato Rosa, program manager at Frost & Sullivan.

Besides, their analysts believe that cloud service providers have the opportunity to become key enablers of this digital transformation by rolling out IaaS solutions.

According to the latest regional study by Frost & Sullivan, the IaaS market will grow at a compound annual growth rate (CAGR) of 33.4 percent from 2016 to 2021 -- reaching $4.79 billion in revenue. The countries covered by their study include Brazil, Argentina, Colombia, Mexico and Peru.

Although IaaS technologies are enjoying enthusiastic acceptance within the Latin America market, they're not growing at an optimum rate. This is mostly because cloud service provider customers are still somewhat concerned about the security, application performance, and privacy requirements of their IT apps -- especially when they're hosted in the public cloud.

Outlook for Latin America Market Upside

Cloud providers are working to mitigate some of these security and governance concerns by providing data encryption and multi-factor authentication. The leading cloud providers in the region are also helping clients to develop Hybrid IT skills that enable them to plan for on-premises and off-premises system integration.

"Significantly, pure-play IaaS is becoming a commodity solution in the Latin American market," said Rosa. "Therefore, the most successful cloud service providers will be those that differentiate themselves through value-added services or feature-rich solutions."

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