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Brazilian Firms Find Agility, Resilience in Cloud Services

Rising security and regulatory concerns are contributing to strong growth in Brazil’s private/hybrid cloud industry, ISG Provider Lens™ report says

Brazilian enterprises are increasingly concerned about the resilience and agility of their IT operations, fueling rapid growth in all types of private and hybrid cloud services, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2022 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud — Data Center Services and Solutions report for Brazil finds new regulations, new managed hosting technologies and the rising number of ransomware attacks in Brazil have contributed to a hybrid cloud boom in the past few years. More organizations continue to migrate on-premises IT to managed services, managed hosting and colocation services.

“Brazilian companies require low-latency networks, backup and recovery and faster deployment of new services,” said Bernie Hoecker, partner, ISG Enterprise Cloud. “For most, that means pursuing a hybrid cloud strategy.”

As a result, both the cloud and colocation markets are growing quickly in Brazil. There are now six cloud hyperscalers operating in the country, with 13 to 15 cloud data centers hosted in colocation facilities, the report says. At least six more large facilities are under construction to meet the demand for data center floor space. Global cloud providers such as AWS, Microsoft and Google have elevated the standard for security, service quality and environmental, social and governance (ESG) compliance in Brazilian data centers, ISG says.

Brazilian managed hosting providers, once considered threatened by the entrance of public cloud hyperscalers, are stronger than ever thanks to demand for new technologies, such as automated self-service platforms that mimic the public cloud service portfolio, the report says.

Companies are still modernizing their infrastructure to comply with the privacy and data protection requirements of the Lei Geral de Proteção de Dados (LGPD), which went into effect more than a year ago, the report says. In addition, open banking regulations imposed in 2021 have increased banks’ interest in cloud migration. All private banks in Brazil are committed to adopting cloud infrastructure, and even those that still use mainframes have long-term plans to modernize and migrate their applications.

The report also examines other trends in the Brazilian private/hybrid cloud market, including how new technologies such as machine learning and service automation are helping providers deliver better services despite rising costs and shortages of skilled labor.

The 2022 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud — Data Center Services and Solutions report for Brazil evaluates the capabilities of 40 providers across four quadrants: Managed Services for Large Accounts, Managed Services for Midmarket, Managed Hosting and Colocation Services.

The report names edge.uol, Equinix and T-Systems as Leaders in three quadrants each and Ativy, Matrix and TIVIT as Leaders in two quadrants each. It names Ascenty, Capgemini, Claranet, Dedalus, HostDime, Kyndryl, Logicalis, Lumen, Scala, Skymail, Unisys, V8 Consulting and Wipro as Leaders in one quadrant each.

In addition, Under and V8 Consulting are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

Customized versions of the report are available from inov.TI, Matrix, Scala, Skymail, Under, Unisys and V8 Consulting.

The 2022 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud — Data Center Services and Solutions report for Brazil is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 800 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

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