'No turning back from cloud as a service'

Thursday, December 7, 2017

This year the public cloud-as-a-service market is expected to grow 40% year-on-year and similar growth is expected for next year, according to consultancy Frost&Sullivan.

"The cloud is growing faster than Frost&Sullivan anticipated, and its adoption can be considered a point of no return for Latin American organizations," the consultancy's research director of customer care industries Juan González in a webinar organized by Mexican IT firm Ho1a.

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Cloud computing will make up 69.5% of the public cloud infrastructure-as-a-service market in the region this year, while storage will account for the remaining 30.5%.

Private clouds also continue growing, mainly fueled by compliance policies that limit the use of shared environments in certain organizations. "This leads us to believe that the cloud environment is becoming increasingly hybrid," said González.

Companies are compelled to adopt the cloud because it is agile, flexible, its implementation is fast, and it reduces maintenance and management costs. In the latter case, companies are able to redirect the savings and invest to other areas.

According to González, 38% of unified communications (UC) services in the region were based in the cloud last year and that percentage is expected to reach 70% in 2022.

In fact, next year will mark the first time investments in cloud-based UC have surpassed investments in on-premise UC infrastructure.

As companies have invested significant amounts in on-premise UC infrastructure, González also foresees a hybrid environment for these services.


González underscored that Latin American organizations tend to be reactive, not proactive, when it comes to cybersecurity.

According to the executive, Latin America is hit by 12 malware attacks every second.

Remote connectivity, telework, and the use of personal devices pose security threats that companies should address by implementing stronger cybersecurity measures, such as adopting managed security services, he said.

Frost&Sullivan estimates that this year Latin American companies will invest US$500mn in managed security services. The figure is predicted to reach US$1bn by 2020, some 22% of which is expected to come from Mexico.

Investments in managed cybersecurity will be fueled by an increasing complexity in the type of attacks, new and changing regulations, insufficient in-house resources in organizations and a wider array of products and services.