Multi-Cloud and Big Data Services Are Key Accelerators of Latin America IT in 2018: Frost & Sullivan
Latin American companies are shifting focus in 2018 away from technology spending to optimally employing digital transformation accelerators to enhance their business, new research from Frost & Sullivan reveals.
The new environments created by this competitive strategy are creating significant opportunities for information technology (IT) and cloud sourcing. In response, service providers are expanding their portfolio of cloud solutions and services.
However, many of these innovative offerings do not find uptake due to companies’ lack of revenue to make the shift to the cloud or the absence of specialized human resources to use them.
"IT providers are active in market segments and industry sectors where they had no historical presence, moving from the enterprise to small-to-medium business (SMB) segments and diversifying their portfolio as a way to increase their revenue," explained Renato Rosa, Digital Transformation Program Manager at Frost & Sullivan. "This movement is increasing the competition and forcing IT service prices to fall sharply."
The LATAM public cloud market revenue will reach $3,957.4 million by the end of 2018. The number of managed cloud services and multi-cloud providers will continue to increase, fostering new partnerships in the market.
The Latin America Big Data market revenue will reach $785.5 million by the end of 2018. IoT solutions will create new demands for data analysis solutions that can be integrated with Artificial Intelligence (AI) and machine learning technologies.
"Latin American enterprises are no longer satisfied with service offerings; they are demanding consultations to better plan for their future needs and optimize infrastructure," noted Rosa. "Therefore, it is important to have more efficient network operations center (NOC) and security operations center (SOC) solutions to monitor and manage clients’ infrastructure in real time, ensuring availability, monitoring, and management."
Frost & Sullivan’s recent analysis, “Latin America Outlook of the Information Technology Services Market, 2018”, covers the markets for IT outsourcing, public cloud, data center, Big Data, and managed security service (MSS) in Argentina, Brazil, Chile, Colombia, Mexico, and Peru.
The following trends will continue shaping growth opportunities in the IT business through 2018:
- The IT outsourcing market revenue will reach $13,696.1 million by the end of 2018. Crowdfunding models can transform the way companies provide desktop support, reducing costs and attracting companies that would not have access to this support in the previous model.
- The Latin America data center market revenue will reach $3,073.8 million by the end of 2018. Traditional storage and disaster recovery solutions will lose market share to cloud infrastructure as a service (IaaS) environments. Automation solutions such as Software-defined Data Center (SDD) will modernize data centers.
- The Latin America MSS market revenue will reach $620.9 million by the end of 2018. Machine learning and deep learning will be powerful tools for the security market. As the machine quickly learns and makes decisions, it can avoid threats instead of mitigating them after an attack.
Latin America Outlook of the Information Technology Services Market, 2018 is part of Frost & Sullivan’s global IT Services & Applications Growth Partnership Service program. (For more information visit https://ww2.frost.com).