Brazil's cloud investments to rise 74%, with less than half of market adoption

Friday, August 9, 2013

Investments in cloud computing in Brazil are expected to reach US$302mn this year for 74% growth compared to 2012, but only 38.8% of local corporates have implemented or are implementing cloud projects, according to a new Frost&Sullivan survey on the issue.

In addition, 38.1% of the market has yet to deploy anything related to cloud computing, while 23.1% claim to be studying the technology.

The consultancy interviewed 121 CIOs or IT executives from medium and large Brazilian corporates to assess their cloud computing strategies for the coming years.

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According to Bruno Tasco, industry analyst for Latin America, Brazil has significantly improved its awareness about cloud computing. Still, only 3.3% of those surveyed claimed to have "excellent" knowledge.

Over half of those interviewed, or 52.9%, said they had "good" cloud computing knowledge, while 14.9% claimed their knowledge was "very good," 21.5% said "regular" and 7.4% said "bad."

The Infrastructure-as-a-service (IaaS) and Software-as-a-service (SaaS) models continue to generate the largest proportion of cloud revenues and will continue to do so over the next five years, as opposed to platform-as-a-service (PaaS), says Frost.

According to the study, storage activities will grow at 10.7% CAGR, followed by disaster recovery at 9.9%, dedicated hosting at 9.3% and colocation at 6.6%.