Coming cloud boom expected to catch country off guard

Tuesday, April 5, 2011

Just about every "2011 Forecast" article published by global press and consultancies at the start of the year - including those by BNamericas - had cloud services among the top five developments to watch.

Indeed, BNamericas has recently published stories about telcos' efforts to expand their data centers in this region, such as Global Crossing (Nasdaq: GLBC) and BT.

However, consultancy Gartner believes that in Brazil, at least, the explosion in demand for cloud services will outstrip operators' ability to increase capacity beforehand. "ICT resources in Brazil are not going to grow at the speed required to accompany growth of the economy, even if you take the World Cup 2014 and Olympics 2016 out of the equation," Gartner's Latin America research VP Cássio Dreyfuss told BNamericas.

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Demand pressure could lead Brazilian firms to look farther afield for such services, probably in neighboring countries but also in offshore destinations like India, Dreyfuss added.

Whether offering their own cloud services or simply handling the increased cross-border traffic that this sea-change implies, telcos in this region have a key role to play in facilitating uptake of the cloud model.

The latest BNamericas Telecom Intelligence Series takes a deeper look at the prospects for cloud services in this region, considering the enterprise segments that are most likely to lead adoption and whether there are hurdles that threaten to curb the vigorousness of this boom.

Use this link to read the executive summary or purchase the full report.