2014 Latin America Cloud Computing Market

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1 2014 Latin America Cloud Computing Market Changing the Way Companies Run their Businesses January 2015

2 Contents Section Slide Number Executive Summary 3 Introduction 5 Cloud Computing Business Impact 21 Main Cloud Trends 30 End-User Insights Brazil 35 Factors Affecting the Choice of a Cloud Provider 39 The Last Word 47 The Frost & Sullivan Story 51 2

3 Executive Summary Latin America is one of the fastest growing markets in the world; the region is forecasted to grow at a compound annual growth rate (CAGR) of % from 2014 to The market is yet to mature though, as many companies are just getting familiar with the concept of cloud opportunities and other services that are available for companies of all sizes. Important issues such as connectivity and awareness still need to be addressed to aid growth. Private cloud still leads in preference due to security concerns, especially among large enterprises. Small and medium businesses (SMBs) are more open to go to a public environment. The future of cloud is aimed at hybrid cloud as more companies, even those on a private environment, tend to trust public cloud for non-critical and less complex workloads. Different vertical segments such as healthcare, energy, and automotive are already working on cloud environment with different solutions to support specific business needs. Software as a Service (SaaS) represents over % of the investments in cloud, which shows a clear sign of a world driven more by software applications and services. 4

4 Research Objectives, Scope, and Methodology Objectives Present an analysis of the current state of the Latin American cloud computing market. Comment on the emerging trends in cloud computing in Latin America. Present cloud computing benefits for different verticals. Scope Geographic coverage: Latin America Base year: 2014 Monetary units: US dollars Brazil, Argentina, Chile, Colombia, Mexico, Peru, and Rest of Latin America Research Methodology Primary research was conducted; secondary research includes the Frost & Sullivan online database, market participants websites, and third party researches. 6

5 Cloud Computing Definition Cloud computing is a business model that represents an evolution in the existent computing models. Mainframe: First equipment capable of storing and processing high volumes of data. Client Server: Network architecture in which computers were used to run applications (for clients) and connect to servers dedicated to process and manage activities. Cloud Computing: Delivery of IT capabilities (in the form of storage, computing power, software development environments, applications, or entire business processes) over the Internet

6 Cloud Computing Definition (continued) Cloud Computing Market: Cloud Computing Delivery Models, Latin America, 2014 Software as a Service (SaaS) Applications and their related data are delivered as a service. SaaS provides enterprises access to specific software over the network. Platform as a Service (PaaS) Platforms for development, testing, and storage of applications, interfaces, and databases are delivered as a service. PaaS enables enterprises to use a fully functional computing platform with utilities to maintain and develop applications. Infrastructure as a Service (IaaS) Servers, data center space, and operating system software are delivered as a service. Typically, IaaS allows enterprises to use computing power or storage space on demand. 8

7 Standartization /Flexibility High Cloud Computing Definition (continued) Cloud Computing Market: Cloud Computing Deployment Models, Latin America, 2014 Private Cloud Single Tenancy: Cloud computing resources are dedicated to a single enterprise. On Premises: Cloud computing resources are located at the enterprise s premises. Either the enterprise or the vendor can manage the cloud services. Public Cloud Multiple Tenancy: Cloud computing resources are delivered to multiple clients. Off Premises: Cloud computing resources are located at the vendor s premises. The vendor manages the cloud services. Hybrid Cloud This is a combination of public and private clouds. Some cloud-computing resources are in the private cloud while some others are in the public one. Public Hybrid Enterprises face a trade-off between the degree of standardization and flexibility of their cloud services and the perceived/actual degree of control of the service. Low Perceived/Actual Control Private High Typically, a public cloud service is highly standardized and flexible, but the degree of control of the service is low. 9

8 Cloud Computing Definition (continued) Cloud Computing Market: Cloud Computing Characteristics, Latin America, 2014 SLA Driven Clouds are based on service level agreements (SLAs) that define policies, such as delivery parameters, costs, and other factors. Utility Based Clients enjoy a pay-as-you-go IT services facility, and therefore save on the costs of unused capacity. Service Oriented The cloud hosts service-oriented applications that provide a platform for other applications to be developed. Agile and Flexible Shared resources allow flexibility regarding decision making and allow for information to be shared among cloud computers, if necessary. Scalable Enterprises have the opportunity to downsize storage facilities or upsize traditional cloud storage, depending on their needs. 10

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