Brazilian Cloud Market Provides Local Opportunity, ISG Says

SÃO PAULO, Dec. 11, 2018 /PRNewswire/ — The cloud computing market in Brazil is evolving in a unique way that offers opportunities for local providers to compete with large multinational cloud services vendors, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The ISG Provider Lens™ Cloud Transformation/Operation Services & XaaS Report for Brazil in 2019 finds some large cloud providers are focused more on the U.S. market, giving Brazilian companies an opening to grow their cloud-related business in the country. The report lists Brazilian cloud services vendors Sky.One, TIVIT, UOL Diveo and Dedalus Prime as leaders or rising stars in segments of the Brazilian cloud transformation, cloud operation services and XaaS markets. The Brazilian providers are particularly strong in serving local midmarket clients and in providing managed services.
“Brazilian service providers have a narrow opportunity to partner with hyperscale IaaS providers before the market gets crowded,” said Esteban Herrera, partner and global leader of ISG Research.
Potential cost savings are driving Brazilian companies to move workloads to large cloud providers, the report also finds. The average cost savings is 38 percent, although that number is not as high as suggested by hyperscale IaaS providers. A reduction in infrastructure incidents may be more attractive to some companies.
A cost savings of 30 percent or more is “a sound reason for moving to the cloud, but the business case for incident reduction and achieving higher infrastructure availability is more appealing in many cases,” Herrera said.
The report notes hybrid cloud use is commonplace among large enterprises that are still encumbered with legacy systems, but less so for midmarket companies. Midmarket firms that lack the scale or complexity to fully leverage a private data center may derive significant savings from a lift-and-shift approach to moving legacy systems such as SAP to enterprise clouds.
In the hyperscale cloud market, Microsoft and Amazon Web Services are leaders in Brazil, with Microsoft surpassing AWS in total contract value, the report found. Microsoft has 19,670 partners and resellers in Brazil, while AWS has 204, the report said. IBM, Google and Oracle are in the early stages of creating cloud partner programs.
The ISG Provider Lens™ Cloud Transformation/Operation Services & XaaS Report for Brazil evaluates the capabilities of 29 cloud providers serving this market across five quadrants: Public Cloud Transformation for Large Accounts, Public Cloud Transformation for Midmarket, Managed Public Cloud Services for Large Accounts, Managed Public Cloud Services for Midmarket and IaaS Enterprise Cloud. TIVIT is listed as a leader in all five quadrants, and Dedalus Prime and UOL Diveo are listed as leaders or rising stars in four. Other leaders or rising stars include Sky.One, BRLink, Eveo, Accenture, Capgemini, Claranet and IBM.
Other Brazilian companies evaluated are Atmosfero, CorpFlex, IPsense, Mandic, Penso, and Tecnocomp.
Custom versions of the report are available from Dedalus, Sky.One and TIVIT.
The ISG Provider Lens™ Cloud Transformation/Operation Services & XaaS report for Brazil is available to ISG Insights™ subscribers or for immediate, one-time purchase on this webpage.