Brazilian Enterprises Seek Support Optimizing Clouds
- Brazilian enterprises are actively seeking provider support to control costs and better distribute their workloads across multiple public clouds
- Growing number of Brazilian enterprises are looking to modernize their applications to better leverage cloud-native technologies such as infrastructure as code (IaC), serverless computing, data lakes, APIs, AI and ML
- Hyperscalers in Brazil are offering discounts or incentives to accelerate cloud migrations, winning over clients from their competitors
- Rightsizing cloud resources can reduce a company’s monthly bill by from 20 to 40 percent
- Economic slowdown in Brazil has pushed the cloud service market to become more competitive in pricing, indicating potential challenges for providers to maintain profitability
- Global economic uncertainties in 2023 have pushed enterprises to reconsider their investments in innovation and to prioritize projects that can deliver higher efficiencies and business process optimizations
Insights
The maturation of Brazil's cloud market and the increased competition among hyperscalers are significant factors influencing the cloud services landscape. With enterprises seeking to optimize their cloud operations amidst economic pressures, there is a notable shift towards adopting cloud-native technologies and modernizing applications. The aggressive competition is leading to cost advantages for businesses, as providers offer discounts and incentives to attract clients. This trend indicates a growing emphasis on not only cost-efficiency but also on leveraging advanced technologies like AI and ML to enhance business processes.
From a market research perspective, the shift by Brazilian enterprises towards more proficient cloud service providers suggests a dynamic market where customer loyalty is contingent on the provider's ability to deliver continuous improvements and cost savings. The report's findings on rightsizing cloud resources and the potential reduction in monthly bills by 20 to 40 percent underscore the financial impact of cloud optimization strategies.
The ISG report's evaluation of 45 providers across seven quadrants provides a comprehensive overview of the market, highlighting the leaders and rising stars. This segmentation can guide enterprises in selecting providers that align with their specific needs, whether they are large accounts or in the midmarket. The position of providers in these quadrants can influence their market share and growth prospects in the Brazilian cloud services market.
The economic slowdown in Brazil, coupled with global economic uncertainties, has created an environment where enterprises are prioritizing investments that can deliver higher efficiencies and optimize business processes. The ISG report's indication that companies can significantly reduce their cloud service expenses presents a substantial cost-saving opportunity, which can improve their bottom line and potentially enhance shareholder value.
For investors, the performance of cloud service providers in Brazil is a critical indicator of their competitiveness and growth potential. The report's identification of leaders in multiple quadrants, such as Dedalus, Compass UOL and TIVIT, can signal robust business models and strong market positioning. These providers' ability to offer advanced analytics and anticipate cloud spending can be a differentiator that attracts investment.
Furthermore, the report suggests that the adoption of cloud-native technologies and the implementation of FinOps services are becoming increasingly important for enterprises. This trend could lead to a higher demand for providers that can offer these services, potentially impacting the stock performance of companies that are well-positioned to capitalize on these market needs.
The report highlights a maturing cloud market in Brazil, where political and economic factors are influencing enterprise decisions on cloud investments. This reflects the broader economic principle that businesses adapt their strategies in response to macroeconomic conditions. The focus on cloud efficiency and optimization can be seen as a response to the need for cost control during economic downturns.
The aggressive competition among hyperscalers, leading to discounts and incentives, illustrates the economic concept of market saturation where providers must differentiate themselves beyond just price. The increased adoption of cloud-native technologies such as IaC and serverless computing indicates a shift towards more scalable and flexible business models, which can drive long-term economic growth and productivity gains for Brazilian enterprises.
The report's emphasis on enterprises leveraging AI-based analytics and new ML models to rethink business processes suggests an economy that is embracing digital transformation. This can have broader implications for workforce development and may stimulate innovation, potentially leading to new business opportunities and economic diversification in Brazil.
Economic pressures and a maturing market have made it an ideal time for companies in
SÃO PAULO--(BUSINESS WIRE)-- In an increasingly competitive cloud market, Brazilian enterprises are actively seeking provider support to control costs and better distribute their workloads across multiple public clouds, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2023 ISG Provider Lens™ Multi Public Cloud Services report for
“There is growing pressure on providers to optimize cloud operations,” said Bernie Hoecker, partner, Enterprise Cloud Transformation leader, ISG. “In the past year, many Brazilian enterprises have replaced their incumbent providers with more proficient ones.”
Politics and economics are driving forces behind the stepped-up emphasis on cloud optimization on the part of Brazilian enterprises, the ISG report says. The change in the federal government in 2022 and global economic uncertainties in 2023 have pushed enterprises to reconsider their investments in innovation and to prioritize projects that can deliver higher efficiencies and business process optimizations, the report says.
Public clouds offer economies of scale and provide enterprises with a highly efficient computing platform, the ISG report says. Optimization opportunities exist even for companies already running on the public cloud, the report says. Enterprises consider cloud services, such as the use of AI-based analytics, new ML models and generative AI as opportunities to rethink business processes and further improve efficiencies, ISG says.
According to the ISG report, hyperscalers in
“The economic slowdown in
The report also examines how top providers are using advanced analytics to anticipate cloud spending and help customers avoid unexpected costs.
The 2023 ISG Provider Lens™ Multi Public Cloud Services report for
The report names Dedalus as a Leader in five quadrants, Compass UOL as a Leader in four quadrants and TIVIT as a Leader in three quadrants. Accenture, AWS, BRLink, Capgemini, Kyndryl, Microsoft, Nextios, Sky.One, V8.Tech and Wipro are named as Leaders in two quadrants each, while Atos, Google and Unisys are named as Leaders in one quadrant each.
In addition, Capgemini, Extreme Group, Inmetrics, Oracle and SoftwareONE are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.
Customized versions of the report are available from Dedalus, TIVIT and Unisys.
The 2023 ISG Provider Lens™ Multi Public Cloud Services report for
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
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 900 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
View source version on businesswire.com: https://www.businesswire.com/news/home/20240110279119/en/
Press Contacts:
Will Thoretz, ISG
+1 203 517 3119
will.thoretz@isg-one.com
Thábata Mondoni, Mondoni Press for ISG
Mobile: +55 11 98671 5652
thabata@mondonipress.com.br
Source: Information Services Group, Inc.
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