Cloud Providers Offer Hybrid Models to Raise Growth Opportunities in the Latin American IaaS Market
Addressing security concerns will be vital for faster market growth, finds Frost & Sullivan's Digital Transformation team
Apr 24, 2017, 12:16 ET
SAO PAULO, April 24, 2017 /PRNewswire/ -- The Latin American infrastructure-as-a-service (IaaS) market is set to soar as cloud providers flock to the region to take advantage of the massive customer pool. Public, private and hybrid service models as well as customized, best-fit solutions are accelerating the adoption of cloud and, in turn, IaaS solutions. Hybrid models will be particularly popular among enterprises due to their ability to support clients' strategy implementation, migration, and infrastructure management requirements.
"To ensure the optimal use of existing infrastructure and compliance certificates, most companies will invest in hybrid cloud deployments," observed Frost & Sullivan Digital Transformation Program Manager Renato Rosa. "Besides, cloud providers have the opportunity to become key enablers of this digital transformation by rolling out IaaS solutions."
Infrastructure-as-a-service Market in Latin America, Forecast to 2021, is a part of Frost & Sullivan's IT Services & Applications Growth Partnership Service program. According to the study, the IaaS market will grow at a compound annual growth rate (CAGR) of 33.4 percent from 2016 to 2021 to reach $4.79 billion. The countries covered are Brazil, Argentina, Colombia, Mexico and Peru.
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Although IaaS technologies are enjoying enthusiastic acceptance, they are not growing at an optimum rate. This is mostly because clients are still apprehensive about the security, application performance, and privacy of their internal IT systems in the hands of third parties, especially in public cloud models. Cloud providers are working to mitigate some of these security concerns by providing data encryption and multi-factor authentication.
"Significantly, pure-play IaaS is becoming a commodity solution in the Latin American market," said Rosa. "Therefore, the most successful cloud service providers will be those that differentiate themselves through value-added services or feature-rich solutions."
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Infrastructure-as-a-service Market in Latin America, Forecast to 2021
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SOURCE Frost & Sullivan