ICT Cost Reductions and Operational Elasticity Drive Cloud Computing Market in Latin America

Dec. 13, 2010 - PRLog -- SAO PAULO – December 14, 2010 – Large enterprises in Latin America are already taking advantage of the cloud computing trend. At a recent Frost & Sullivan end-user study conducted with large enterprises in Brazil, Colombia and Mexico, it was observed that almost 50% of the companies are already using some form of Cloud Computing. Many of those are still on pilot stage, testing some applications, with clear plans to increase investments and incorporate new solutions in the cloud for 2011.

Private cloud computing infrastructures are by far the most adopted model implemented by large enterprises in Latin America. “Whilst public clouds suit small and medium companies’ business needs, enterprises have been demanded more secure and private environments” explains Frost & Sullivan Industry Manager Marcelo Kawanami. “Security issues and the quality of broadband services are still strong barriers for the adoption of cloud computing by enterprises in the region”.

Companies that still lack the confidence in contracting public clouds or invest in private ones are likely consider the hybrid cloud concept. This is the combination of two different architectures: highly scalable and cost-effective shared environment (public cloud) can be used to run less mission critical workloads and extremely vital and confidential information can be run and stored in secure and individual private clouds. This cloud computing model is expected to gain penetration in 2011 and 2012. Currently, only 22% of the companies that already have some solution in the cloud environment decided to adopt the hybrid model against 62% that implemented in the private one.

The adoption of cloud computing is expected to increase significantly over the next two years in Latin America. The main solutions and applications to be implemented in the cloud model are Business Intelligence, CRM, storage, website hosting, e-commerce hosting, marketing campaigns and application testing services.

“Cloud computing is not just a hype trend in Latin America anymore. It is a reality that many enterprises are already taking advantage of the cost-savings and scalability that this business model can provide” concludes Marcelo Kawanami.


If you are interested in more information on this study, please send an e-mail to Tatiana Brull, at tatiana.brull@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country.

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Cloud Computing End-User Analysis – Brazil, Colombia and Mexico
N82C -72, N807-72, N853-72

Contact:
Tatiana Brull
Corporate Communications – Latin America
P: +5511 30658445
F: +5511 30658422
E: tatiana.brull@frost.com

http://www.frost.com

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Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's research and consulting services empower clients to generate, evaluate, and implement effective growth strategies.