The Brazilian cloud computing market should see a jump in market revenues from $328.8m in 2013 to $1.1bn by 2017, according to research by consulting firm Frost & Sullivan.
According to the study “Analysis of the Brazilian Cloud Computing Market” the segment is rapidly gaining traction due to its “ability to turn capital expenditure into operational expenditure and its provision of anywhere-anytime access to information,” as well as infrastructure resource flexibility to end users.
While pointing out that the cloud market in Brazil is still incipient, the study mentions that there is “significant demand” in the areas of software as a service (SaaS), platform as a service (PaaS) and infrastructure as a service (IaaS), with IaaS becoming increasingly attractive to small and medium enterprises.
Verticals where cloud services have had a significant uptake in Brazil include e-commerce firms, as organizations that are subject to big variations in seasonality turn to these services to reduce costs, as well as telecom operators, says the study.
However, the concerns over data security and connectivity have also been highlighted. The Frost research points out that companies are concerned about storing critical data on the cloud, as well as availability and continuity of connectivity services, which could possibly prevent them from accessing the information when needed.
“Owing to the lack of awareness, companies are reluctant to give third parties access to their information, especially after the news of data espionage in the United States broke,” says Frost & Sullivan ICT Industry Analyst, Guilherme Campos.
As a reaction to the aforementioned spying episode, Brazilian president Dilma Rousseff voiced her intentions of enforcing local storage and wanted to include the requirement in the country’s upcoming “Internet Constitution.” However, the plans were strongly criticized by businesses and the opposition and eventually dropped.