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Enterprises in Brazil Embrace the Cloud as Part of Digital Transformations

ISG Provider Lens™ report sees many companies in Brazil using multiple public clouds

Enterprises in Brazil are turning to public cloud service providers to help them with their digital transformation efforts, according to a new report published by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

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“The Brazil market is moving from infrastructure as a service to platform as a service, with clients using the right cloud based on how it aligns with their own technologies.”

The 2021 ISG Provider Lens™ Public Cloud – Services & Solutions Report for Brazil finds interest in public cloud services growing, with many enterprises in the country using multiple clouds. Many service providers support more than one cloud hyperscaler.

“Multicloud installations are pervasive in Brazil,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “The Brazil market is moving from infrastructure as a service to platform as a service, with clients using the right cloud based on how it aligns with their own technologies.”

In one example, a company in Brazil is running SAP on one hyperscale cloud, its corporate site on a second hyperscaler, and its AI analytics on both public clouds, the report notes.

While public cloud adoption is increasing, many cloud service providers are seeing a skills shortage among employees, the report says. Most service providers have open positions, and cloud hyperscalers have increased their online training options in an effort to add to the number of skilled engineers and cloud architects required to support market growth.

The work environment, employee training and efforts to promote employee well-being all help service providers retain and attract employees, the report says.

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In addition, some service providers have responded to the skills shortage by using automation, enabling them to support more clients without increasing their number of employees, the report adds. Many are using AI operations, or AIOps, to automate cloud functions, giving clients a better user experience and enabling providers to achieve higher profit margins.

Public cloud clients are asking for self-service infrastructure as code and containers to assist their agile development teams, the report says. Clients expect DevOps, security and configuration inspection services to be part of providers’ automation platforms.

The report also sees enterprises in Brazil interested in migrating their SAP workloads to the public cloud, although there’s no clear cloud provider preference. The migration of SAP workloads to the cloud provides several benefits, and companies should align their SAP strategies with their digital business strategies, the report recommends.

In addition, the financial services industry in Brazil has accelerated its move to the cloud, the report says. An increasing number of cloud service providers have banks as clients, and all large banks in the country have announced plans to run in the cloud.

The 2021 ISG Provider Lens™ Public Cloud – Services & Solutions Report for Brazil evaluates the capabilities of 48 providers across six quadrants: Consulting and Transformational Services for Large Accounts, Consulting and Transformational Services for the Midmarket, Managed Public Cloud Services for Large Accounts, Managed Public Cloud Services for the Midmarket, Hyperscale Infrastructure and Platform Services, and SAP HANA Infrastructure Services.

The report names Compasso UOL and Dedalus as Leaders in four quadrants and Accenture, AWS, BRLink, Claranet, Google, Microsoft, MIGNOW, Nextios, TIVIT and Unisys as Leaders in two. Capgemini, IBM, Sky.One, V8 Consulting, Venha Pra Nuvem and Wipro are named Leaders in one quadrant.

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In addition, Logicalis is named a Rising Star—a company with “promising portfolios” and “high future potential” by ISG’s definition—in two quadrants. SantoDigital and Venha Pra Nuvem are named Rising Stars in one quadrant.

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