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Brazilian Enterprises Seek Support Optimizing Clouds

Brazilian Enterprises Seek Support Optimizing Clouds

Economic pressures and a maturing market have made it an ideal time for companies in Brazil to improve their cloud efficiency, ISG Provider Lens report says

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 by Information Services Group (ISG) a leading global technology research and advisory firm.

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The 2023 ISG Provider Lens Multi Public Cloud Services report for Brazil finds the cloud market in Brazil is maturing and hyperscalers are aggressively competing for business. To take full advantage of the cloud’s potential, a 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, the ISG report says.

“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 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, the report says.

“The economic slowdown in Brazil has pushed the cloud service market to become more competitive in pricing,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “For enterprises, it is the ideal time to plan cloud migrations and benefit from low prices.”

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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 Brazil evaluates the capabilities of 45 providers across seven quadrants: Consulting and Transformation Services for Large Accounts, Consulting and Transformation Services for Midmarket, Managed Services for Large Accounts, Managed Services for Midmarket, FinOps Services and Cloud Optimization, Hyperscale Infrastructure and Platform Services, and SAP HANA Infrastructure Services.

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.

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