Cloud penetration in Latin American firms seen reaching 69% in 5 years

Wednesday, August 10, 2011

Cloud computing in Latin America is still in the initial stages, but the enterprise adoption rate is expected to grow to 69% in five years and move from US$170mn to about US$1bn in the next few years, the VP for research and consulting at IDC, Ricardo Villate, was quoted as saying by media outlet TyN Magazine.

Based on an IDC survey conducted in January this year in Latin America, the executive said at least 14.5% of companies with 100 or more employees have implemented these services, compared to 3.5% from January 2010.

In addition, 50% of the surveyed companies have adopted virtualization, considered a stepping stone for cloud solutions.

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Currently, Brazil is the country with the highest adoption rate in the region, at 25%. Chile, Argentina and Colombia are at an intermediate level, while Peru and Mexico have lagged behind.

Since the critical mass is still relatively small, it has been difficult to identify a clear trend toward the public or private cloud, Villate said.

Security remains one of the main barriers for cloud computing for 65% of the companies surveyed in the region. But within this result, there are two concerns - one has to do with protecting information from hackers and service attacks, and the other relates to government regulation and data sovereignty.