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Two of Every Three Brazilian Companies will have Invested in Cloud by 2015, Finds Frost & Sullivan

SAO PAULO, March 5, 2015 /PRNewswire/ -- In Brazil, cloud computing is fast evolving, with 41 percent of companies already using these solutions and 42 percent planning to invest in them by the end of 2015. Of the latter, approximately 25 percent of the companies will be investing in these solutions for the first time.

While the majority of companies in the region are currently opting for the private cloud model, it is anticipated that the hybrid model will command significant attention in the coming years. This trend is in line with the increasing realization that the best deployment option – on-premise, private or public – depends on the solution in consideration.

New analysis from Frost & Sullivan, Strategic Analysis of the Brazilian Companies Investments in ICT, based on a survey of 313 Brazilian companies, tries to understand the current adoption of and interest in information and communication technologies (ICT) such as security, cloud computing, mobility, big data analytics, telecom services and unified communication solutions.

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Brazilian companies now have a better understanding of the cloud-computing concept, but still have concerns surrounding a lack of data confidentiality. With security being an important factor to invest in cloud computing, it is not surprising that infrastructure, connectivity and service-level agreement have been cited by companies as the most important criteria for selecting cloud computing providers.

As such, the biggest challenge for cloud computing providers is to build user confidence in the security aspect of using the cloud. Many hesitant companies believe that sending information to the cloud makes it more vulnerable. Culturally, Brazilian companies prefer centralized control. As a result, many IT executives equate the use of cloud computing with a loss of control. These companies do not realize that it will be hard for them to be as well-equipped as service providers to fend off advanced threats.

"Cloud computing service providers must make clients aware of efforts they make to boost data security; for instance, getting certified," said Frost & Sullivan ICT Industry Analyst Guilherme Campos. "They should also ensure that clients understand that their data will be secure and inaccessible to other companies."

"These measures will help cloud computing service providers expand their customer base," continued Campos. "Already, with Brazilian companies facing economic problems, customers are turning to cloud computing to reduce costs. By replacing their traditional capital expenditure model with an operating expenditure model, customers will only need to pay for what they use."

By the end of 2015, approximately 66 percent of Brazilian companies are expected to use at least one cloud offering, indicating that ample opportunities exist for cloud computing service providers.

Strategic Analysis of the Brazilian Companies Investments in ICT is part of the IT Services Growth Partnership Service program. Frost & Sullivan's related studies include: Brazilian Cloud Computing Market, Colombian Cloud Computing Market, and The Future of Enterprise Communications from a Customer Perspective. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

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Strategic Analysis of the Brazilian Companies Investments in ICT

Francesca Valente
Corporate Communications – Latin America
P: +54 11 4777 5300
F: +54 11 4777 5300

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