everything you need to know about cloud computing in brazil

Everything you need to know about Cloud

Computing in Brazil

Information & Communication Technologies

Bruno Tasco, Frost & Sullivan Latin America Industry Analyst

August 7, 2013

2

Today’s Presenter

Bruno Tasco joined Frost & Sullivan in mid 2011 and is today a Senior Analyst for Frost & Sullivan’s Technology practice in Latin America. Tasco’s know-how lies in conducting thorough market analysis and development of forecasts within the Latin American ICT competitive landscape, as well as managing and executing market intelligence consulting projects.

Areas of expertise:- Tech Trends (Cloud Computing, Consumerization, Big Data, Enterprise Social Networks);- Enterprise Mobilty (Smartphones, Tablets, Mobile Security);- IT Services (BPO, Datacenter Services, Managed Printing Services);- Information Security (Managed Security Services, Endpoint Security).

Tasco holds a Bachelor Degree in Administration from Fundação Escola de Comércio Alvarés Penteado FECAP.

Bruno TascoIndustry Analyst – Technology, Latin AmericaInformation & Communication Technologies

[email protected]

mailto:[email protected]

Occasion for this Analyst Briefing

Cloud Computing is one of the fastest growing IT markets in Brazil and the one with

the largest opportunities.

Frost & Sullivan expects that investments in Cloud Computing in Brazil will reach

USD203 million in 2013, which represents a 74% growth compared to 2012.

Frost & Sullivan interviewed 121 CIO/IT Directors from medium to large enterprises

to understand their adoption trends and preferences for the next 2 years regarding

Cloud Computing.

This Analyst Briefing will give an overview of what their plans, maturity and

preferences in terms of Cloud Computing are.

3

4

1. Concept 3. Adoption Preferences

4. Future Adoption Trends

2. Awareness and current Cloud moment in Brazil

5. Q&A2013 Cloud Computing

Adoption in Brazil

5

NewBusinessModel

Scalability

Flexibility

Pay as you go

IaaS

PaaS

SaaS

2013 Cloud Computing Adoption in Brazil




5. Q&A

6

Excellent3.3%

Very good14.9%

Good52.9%

Regular21.5%

Bad7.4%

Source: Frost & Sullivan

N=121

28.9%

81.8%

Brazil has improved a lot the awarness about Cloud Computing but only a few companies really have a full knowledge of the concept and the benefits Cloud can bring to the organization.





5. Q&A

7

Dedicated Hosting

Disaster Recovery

Storage

CAGR: 9.9%

MaturityIntroduction Growth Decline

Time

CAGR: 9.3%

Colocation

CAGR: 6.6%

CAGR: 10.7%

IaaS

SaaS

Source: F&S 2013 IT Infrastructure Outsourcing Services: Brazil

PaaS

With the increase in the maturity levels of well established datacenter offerings, Cloud Services will be the new star offerings in the Brazilian IT services markets.





5. Q&A

8

The Brazilian Cloud Computing markets are expected to grow considerably over the next five years. Largest opportunities in

both the IaaS and SaaS layers.

2011 2012 2013 2014 2015 2016 2017$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

IaaS PaaS SaaS

Mili

ons

(USD

)

174MN

302 MN

+74%






5. Q&A

9

Identify activities that can be outsourced.

Initiate Cloud Computing proof of concept.

Minimize information security threats.

Offer greater mobility to workers.

Study new Analytics tools (Big Data).

CIO Agenda - 2013


Companies are expecting their CIOs to become enablers of innovation. Tech providers are pushing for Business Technologies as opposed to the old Information Technology concept.





5. Q&A

10

Not doing anything related to Cloud

Implementing or already implemented

Studying the concept Implementing pilot project0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0% 38.1%

23.1% 23.1%

15.7%

Source: Frost & SullivanN=121

61,2%

There are still great opportunities in Brazil since the majority of the market is still studying or has not yet adopted Cloud based solutions





5. Q&A

11

Top 3 Market Restraints according to End Users’ Perception (Brazil), 2013

Security

Connectivity Barriers

Lack of knowledge regarding Cloud concept

72.7%

52.9%

59.5%

Top 3 Market Drivers according to End Users’ Perception (Brazil), 2013

IT Infrastructure Availability

Cost Reduction

Operational Flexibility

84.6%

58.2%

81.3%

Sample: 121. Source: F&S 2013 Brazil Cloud Computing: End User Analysis





5. Q&A

12

1. Datacenter Companies;

2. Global IT Companies;

3. Telecom Companies.

Poll – Question: Which Services Provider do you think End-users would choose for their

investments in cloud computing based solutions?

13


Datacenter focused companies Global IT Companies Telecom companies

Extremely capable 0.214876033057851 0.12396694214876 0.0413223140495868

Very capable 0.479338842975207 0.512396694214876 0.256198347107438

Neutral 0.247933884297521 0.31404958677686 0.504132231404959

Little capable 0.0495867768595041 0.0495867768595041 0.198347107438017

Not capable 0.00826446280991736 0 0

5%15%25%35%45%55%65%75%85%95%

Cloud Computing End-user Analysis: Capability in providing Cloud Services, (Brazil), 2013

N=121

69.4%

5.8%

63.6%

5.0%

29.7%

19.8%





5. Q&A

14

Private Hybrid Public

Extremely reliable 0.12396694214876 0.00826446280991736 0

Very reliable 0.338842975206612 0.0495867768595041 0.0413223140495868

Reliable 0.471074380165289 0.619834710743802 0.454545454545455

Not very reliable 0.0661157024793389 0.297520661157025 0.462809917355372

Not reliable 0 0.0247933884297521 0.0413223140495868

5%15%25%35%45%55%65%75%85%95%

CloudComputing End-user Analysis: Perception about reliability, (Brazil), 2013


N=121





5. Q&A

46.3%

6.6.%

5.8%

32.3%

4.1%

50.4%

Brand

Local Presence

Service Portfolio

Partners

Market Reference

Experience

Price

Infrastructure

SLA

Security

6.7%

14.7%

17.3%

17.3%

21.3%

22.7%

30.7%

46.7%

72.0%

92.0%

Keep an eye on the security speech. Compliance and regulations will influence the adoption of cloud computing in Brazil.

Sample: 121. Source: F&S 2013 Brazil Cloud Computing: End User Analysis





5. Q&A

Main factors taken into consideration when choosing a provider

16


Private In-house Private Public Hybrid

We are using, and plan for more invest-ments for 2013

0.2 0.133333333333333 0.0666666666666667

0.0133333333333333

We are using, but no more investments for 2013

0.094 0.12 0.0666666666666667

0.0266666666666667

Plan to invest in next 12 months

0.173333333333333 0.186666666666667 0.0933333333333334

0.146666666666667

Plan to invest in next 13 to 24 months

0.12 0.24 0.106666666666667 0.16

No plans for investing in next 2 years

0.413333333333333 0.32 0.666666666666667 0.653333333333333

5%15%25%35%45%55%65%75%85%95%

Cloud Computing End-user Analysis: Adoption Model, (Brazil), 2013

N=75





5. Q&A

29.3% 42.7% 20.0% 30.7%

17


SaaS IaaS PaaS

We are using, and plan for more investments for 2013

0.186666666666667 0.146666666666667 0.0533333333333334

We are using, but no more investments for 2013 0.16 0.16 0.106666666666667

Plan to invest in next 12 months 0.186666666666667 0.16 0.146666666666667

Plan to invest in next 13 to 24 months 0.2 0.2 0.186666666666667

No plans for investing in next 2 years 0.266 0.333333333333333 0.506

5%15%25%35%45%55%65%75%85%95%

Cloud Computing End-user Analysis: Adoption Model, (Brazil), 2013

N=75

34.7% 30.7% 16.0%

38.7% 36.0% 33.4%





5. Q&A

18

Not planning to adopt

Less than 5%

5 to 10%

10 to 20%

20 to 30%

More than 30%

2.7%

25.3%

18.7%

14.7%

9.3%

29.3%

We don't have cloud

Less than 5%

5 to 10%

10 to 20%

20 to 30%

More than 30%

17.3%

40.0%

17.3%

6.7%

5.3%

13.3%

Source: Frost & SullivanN=75 N=75





5. Q&A

In 2013 the majority of the market will already have more than 30% of its infrastructure in the cloud.

2012 Infrastructure in the Cloud 2013 Infrastructure in the Cloud

Next Steps

Develop Your Visionary and Innovative SkillsGrowth Partnership Service Share your growth thought leadership and ideas or

join our GIL Global Community

Join our GIL Community Newsletter Keep abreast of innovative growth opportunities

Phone: 1-877-GOFROST (463-7678) Email: [email protected]

Your Feedback is Important to Us

Growth Forecasts?

Competitive Structure?

Emerging Trends?

Strategic Recommendations?

Other?

Please inform us by “Rating” this presentation.

What would you like to see from Frost & Sullivan?

http://twitter.com/frost_sullivan

Follow Frost & Sullivan on Facebook, LinkedIn, SlideShare, and Twitter

http://www.facebook.com/FrostandSullivan

https://www.linkedin.com/groups?gid=4480787

http://www.slideshare.net/FrostandSullivan

http://twitter.com/Frost_Sullivan

Bruno TascoIndustry Analyst – Technology, Latin AmericaInformation & Communication Technologies

[email protected]

Francesca ValenteCorporate Communications & MarketingF&S Latin America

[email protected]

@BrunoTasco





5. Q&A

@Frost_Latam





everything you need to know about cloud computing in brazil

Technology

cloud computing adoption

brazil cloud computing

cloud concept

cloud services

adoption preferences

terms of cloud computing

benefits cloud

tech trends cloud computing