Equinix’s recent large data centre investments in Brazil are set to prove worthwhile as the market in the Latin American region is transforming and maturing.
That is according to Frost & Sullivan’s report on “Latin America Outlook of the Information Technology Industry, 2017” which has also highlighted that user confidence in outsourcing infrastructure to a third party is increasing with the steady realisation of its benefits.
In addition, analysts said the Latin American IaaS market is also growing as vendors provide cloud services in public, private and hybrid models.
Digital Transformation Program Manager Renato Rosa, said: “However, user concerns regarding security and transparency, inadequate connectivity infrastructure, and scarcity of tech experts still hinder investments in IT outsourcing, especially cloud computing.
“Data is becoming the most valuable asset for any company, and the growth of IoT will generate even more data to be tracked by companies on a daily basis.
“In this context, it is expected that investments in cloud computing to process and store this data; big data analytics to extract the data value; and security to protect the data, will steadily rise.”
Overall, Frost & Sullivan’s Digital Transformation team pointed to the fact the information technology (IT) industry in Latin America is growing fast as companies leverage digital transformation for efficiency and expansion.
Demand is strengthening across market segments, including big data and analytics (BDA), infrastructure as a service (IaaS), data centre services, Internet of Things (IoT), managed security services (MSS), and mobile device management (MDM).
The report has also found that while investment focus in 2016 was on cybersecurity and technologies that support cost reduction, by 2018, this will shift to technologies that enable competitive advantages, such as unified communication and collaboration (UCC) and enterprise mobility management (EMM).
IT Industry to grow in Latin America
IT industry revenues in Latin America will grow by 20.3% from 2016 to 2017, according to the study.
Rosa said: “Since IT solutions are no longer exclusive to the IT sector or department, solution providers need to be as consultative as possible to provide solutions that best fit the client’s strategic objectives.
“Integration between cloud computing, IoT and analytics will drive significant business value, and vendors must make plans aligned with their clients’ specific business needs and priorities.”
Rosa also said that as business becomes more digital, security becomes more critical for operations, driving growth in markets such as MSS and analytics applied to security.