Skip to main content

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."

Popular posts from this blog

How the COVID-19 Pandemic Advanced Telehealth Adoption

The global COVID-19 pandemic has accelerated digital transformation across many industries. As an example, consider the healthcare sector. Some routine medical situations can be diagnosed and resolved online. While the trend was already in motion long before the pandemic arrived, the adoption of telehealth increased rapidly in 2020. Around the world, many governments responded to the disruption and inaccessibility of healthcare facilities by loosening previous regulations and restrictions on the practice of telemedicine apps, and teleconsultations. This decision resulted in the mass adoption of these medical services among patients and providers. According to the latest market study by Juniper Research, telemedicine will save the healthcare industry $21 billion in costs by 2025 -- that's rising from an estimated $11 billion in 2021. This increased app usage represents an anticipated growth rate of over 80 percent in the next four years. Telehealth Services Market Development The co

How Edge Computing and AI Applications Drive IoT

The global pandemic has accelerated the adoption of emerging technologies, including edge computing and TinyML. As more CIOs and CTOs seek ways to capture and process data at the edge of their enterprise IT network, the demand has fueled investment for Internet of Things (IoT) applications. According to the latest worldwide market study by ABI Research, the global edge Artificial Intelligence (AI), Software-as-a-Service (SaaS), and turnkey service market will grow at a CAGR of 46 percent between 2020 and 2025 to reach $7.2 billion. This is 25 percent of the global edge AI market, which is estimated to be $28 billion by 2025. The market is comprised of edge AI chipsets, SaaS, and turnkey services, as well as professional services. As the benefits of edge AI becomes more obvious, enterprises are searching for edge AI solutions that offer low latency and are fully secured to assist them with data-based analysis or decision-making. Edge Artificial Intelligence Market Development "The

Worldwide Semiconductor Demand will Accelerate in 2021

The technology sector is a key driver of the U.S. economy. Therefore, components like semiconductors play an important role in America's future. The 'CHIPS for America Act' is a new law that calls for incentives on domestic semiconductor manufacturing and investments in research and development. But these renewed efforts will require years of ongoing commitment. Meanwhile, despite the impact of the COVID-19 pandemic, the semiconductor market performed well in 2020. However, new demand by industry was uneven throughout last year due to global lockdowns, remote working adoption, and shifts in consumer and commercial buying behavior. Worldwide semiconductor revenue grew to $464 billion in 2020 -- that's an increase of 10.8 percent compared to 2019, according to the latest market study by International Data Corporation (IDC). Semiconductor Technology Market Development IDC now forecasts that the semiconductor market will reach $522 billion in 2021, that's a 12.5 percent