Brazil: Cloud Computing sales to grow 74.3% until 2016

21.03.2013 By: TRANSFER Consultancy based on article IDC

Sales of cloud computing services in Brazil will remain strong, growing at a 74.3% CAGR (Compound Annual Growth Rate) over the next three years and reaching USD 798 million in 2015, forecasts ICT consultancy firm IDC.

In 2012, sales of cloud solutions expanded 68.4% year-on-year, while in 2011 they grew 57%.

A low impact of the 2008 economic world crisis enabled the Latin American market to grow economically and boost the IT business until today. This leads to an increase of personal use of computers, a significant raise on demand of data center services, an arise of new services and the urgency of high industry investments on data center building. The proximity of the Football World Cup in 2014 and the Olympic Games in 2016 in particular increased the need for sensible and fast investments and implementations to renew the networking infrastructure and the information wires. The vast majority of datacenters is built in the region of São Paulo, so expansion to other areas became a priority. Brazil has earmarked over USD 12 billion in 2012 in IT infrastructure development funds to support the Football event, and forecasts an additional USD 104 billion in economic activity, since an event of this proportion generates a staggering amount of advertising spending. Advertising agencies in Brazil in fact are preparing themselves for both events by building out their infrastructure in anticipation of an onslaught of new business activity.

Besides expansion and improvement of the network infrastructure also reinvention of IT companies is needed. In order to benefit and keep in business they will have to aim for scaled-down services or custom made services for small and medium-size businesses. Cloud computing in particular makes it much easier for businesses to consume technology without demanding large teams and infrastructure facilities to support them (especially in applications such as e-mail, collaboration, and CRM). The three types most likely to be useful to consumers and businesses are:
• Infrastructure as a Service (IaaS)
• Platform as a Service (PaaS)
• Software as a Service (SaaS)

According to IDC general research manager for Brazil, mister Anderson Figueiredo Figueiredo, Brazil accounts for more than half of Latin American cloud expenditure. On March 13 during the IDC LA Infrastructure & Cloud Solutions Roadshow 2013 he confirmed this by declaring 2013 as the year of Cloud Computing in Brazil. From 2013-2015, IDC predicts IaaS sales to expand at a 71.3% CAGR, SaaS at 81.2% and PaaS at 58%.

This year on November 27-28 another Cloud Computing event will take place: the 3rd Cloud World Forum Latin America, Latin America's leading cloud computing event in São Paulo. Discussions about how cloud is transforming business practice across the LATAM region will be one of the topics.

In case you are active in this industry and you might be interested in participating in the scheduled trade mission to Brazil, please contact us.