Public Cloud Use in Brazil Expands, Gains Momentum

Major industries are leading the way to application transformation and ambitious migrations to complex hybrid, multi-cloud environments, ISG Provider Lens™ report says

SÃO PAULO--(BUSINESS WIRE)--Public cloud use in Brazil has matured and expanded into more sectors this year as organizations migrate increasingly complex applications to the cloud, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2022 ISG Provider Lens™ Public Cloud — Solutions & Services report for Brazil finds the country’s public cloud market growing as a result of new workloads being shifted to the cloud, with more organizations now pursuing full application transformation instead of simple lift-and-shift migrations. Brazil’s public sector and financial services markets have joined the move to public clouds this year, potentially accelerating the trend further.

“Enterprises of all sizes in Brazil are recognizing that they can reuse best practices from cloud initiatives by large, complex, regulated institutions,” said Bernie Hoecker, partner, Enterprise Cloud Transformation at ISG. “Seeing banking and insurance companies move to the cloud eases other industries’ fears about security.”

Major federal agencies and state and local governments in Brazil are adopting public cloud solutions to reduce costs and use AI to improve tax collection and predict future demand for public services, the report says. The financial sector has a growing need for the cloud as it embraces open banking and Brazil’s PIX instant payment system. Brazil is the second-largest IBM mainframe market after the U.S., and many banks are shifting mainframe applications to public clouds.

Most large enterprises in Brazil are using hybrid clouds to host legacy applications, and those that have experience with outsourcing are tapping into multiple public clouds because they avoid reliance on one vendor, ISG says. This approach makes cloud environments even more complex, which increases demand for AIOps and FinOps platforms to monitor cloud assets and services and control costs. Managed service providers in Brazil are beginning to offer observability, a set of services that use machine learning to identify anomalies in a client’s application performance.

“Companies in Brazil are looking for committed service partners they can trust to oversee cloud operations and expenses over the long haul,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research.

Midmarket organizations, which had faced pressures to move workloads to the cloud for years, began to embark on public cloud migration and application modernization this year, the report says. Objectives include cost savings, improved operations and new capabilities. Providers of consulting and transformation services play a crucial role in these efforts because midmarket companies in Brazil lack the resources to hire in-house certified cloud professionals.

The 2022 ISG Provider Lens™ Public Cloud — Solutions & Services report for Brazil evaluates the capabilities of 48 providers across six quadrants: Consulting and Transformation Services for Large Accounts, Consulting and Transformation Services for Midmarket, Managed Public Cloud Services for Large Accounts, Managed Public Cloud Services for Midmarket, Hyperscale Infrastructure and Platform Services, and SAP HANA Infrastructure Services.

The report names Compass UOL and Dedalus as Leaders in four quadrants each. It names Accenture, AWS, BRLink, Claranet, Kyndryl, Microsoft, Nextios, TIVIT, V8.Tech and Wipro as Leaders in two quadrants each. Atos, Capgemini, Google, Sky.One and Venha Pra Nuvem are named as Leaders in one quadrant each.

In addition, Atos, Logicalis and Teltec are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

A customized version of the report is available from Dedalus.

The 2022 ISG Provider Lens™ Public Cloud — Solutions & Services report for Brazil is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 800 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.