Data center scarcity seen hindering cloud adoption

Monday, February 21, 2011

Cloud computing heads Brazilian businesses' technological agendas, but a lack of local data centers continues to slow adoption, Gartner analyst David Cearley told BNamericas.

Brazil was one of the countries included in a recent Gartner study that mapped the priorities of more than 2,000 chief information officers from large corporations and public agencies worldwide. Globally, CIOs believe 43% of corporations will have the majority of their IT environments in the cloud four years from now, as opposed to 3% today.

In Brazil, "the whole area of cloud computing has risen from relative obscurity to the top of CIOs' agenda," Cearley said.

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Educational institutions and the financial sector, according to the analyst, have shown a greater willingness to adopt cloud and service as a software (SaaS) solutions.

Concerns over security, compliance and control, however, have driven many Brazilian organizations to build private cloud networks rather than rely on external services, Cearley added. CIOs in the country expressed concerns over connectivity and the risks associated with transporting sensitive information across international borders.

"What we see in Brazil right now is the cloud being used more for experimentation and non-critical workloads," Cearley said. "A number of companies have talked about building data centers in Brazil, and when that happens, I expect some of these technologies to take off more rapidly."

Gartner anticipates activity around data center construction to pick up in 2012. A commitment by the Brazilian government could provide an "anchor tenant" to incentivize cloud providers.

"I think something like that may have to happen to unlock the entry into the Brazilian market," he said.

Platform as a service - where companies build new applications or enhance existing apps to take advantage of scalability in the cloud - is another trend on Cearley's radar.