• Revenue for the Brazilian cloud computing market in 2012 is $217.2 million in 2012. Revenue
is expected to reach $1.11 billion by 2017 at a 38.7% compound annual growth rate (CAGR).
• Cloud computing solutions, such as infrastructure as a service and software as a service, will
show great growth over the next years in terms of revenue, because companies already
know what they are used for. Platform as a service will also have a growth but its
participation in the overall market will remain low, because clients are still learning what the
service is for.
• The aspects that are driving cloud computing adoption in Brazil are cost reduction, turning
capital expenditure (CAPEX) into operational expenditure (OPEX) , the flexible environment
giving options to increase or decrease the infrastructure according to the companies' needs,
and the fact that the information will be available everywhere and be accessed anytime.
• The aspects that are restraining cloud computing in Brazil are security, CIOs' fear of having
information stolen or accessed by 3rd parties, connectivity, which is crucial for cloud
computing, poor quality, and the fact that Brazilian companies are still not aware of the cloud
Source: Frost & Sullivan
• Although the Brazilian economy has not grown as quickly as expected in the last few
years, especially in 2012, when the Brazilian GDP grew only 0.9% from 2011, IT services
grew 9.9% in 2012 compared to 2011, reaching $ 6.45 billion.
• Due to the weakened Brazilian economy, companies are looking for cost reductions and
trying to outsource what is not their core business. Cloud is becoming an alternative for
companies once it is no longer necessary to invest in CAPEX, since billing is based on
• The Brazilian cloud computing market is becoming more mature in terms of adoption by
companies for cost reduction, agility in having access to information, and a focus on the
core business. There are big demands for IaaS and SaaS. The market is now starting to
demand some PaaS solutions.
Source: Frost & Sullivan
Drivers and Restraints
Total Cloud Computing Market: Key Market Drivers and Restraints, Brazil, 2013–2017
Security H M M
Connectivity H M M
Lack of knowledge M L L
1–2 years 3–4 years 5th year
H H H
Flexible environment H H H
Information available anywhere H H H
Impact: H High M Medium L Low
Note: Drivers & Restraints are ranked in order of impact. Source: Frost & Sullivan
Cloud Computing Assumptions
• Revenue for the Brazilian cloud computing market in 2012 is $217.2 million in 2012.
Revenue is expected to reach $1.11 billion by 2017 at a 38.7% CAGR.
• The Brazilian SaaS market reached a total of $126.0 million in 2012 and, by 2017, is
expected to reach $584.3 million at a 35.9% CAGR.
• The Brazilian IaaS market reached a total of $84.0 million in 2012; in 2017, it is expected
to reach $489.9 million at a 42.3% CAGR.
• The Brazilian PaaS market reached a total of $7.2 million in 2012; for 2017, revenue is
expected to reach $39.0 million at a 40.2% CAGR.
Source: Frost & Sullivan
Cloud Market Still has Great Opportunities
With a CAGR of over 30% until 2017, companies need to be aware of the adoption trends to
monetize on the opportunities.
Source: Frost & Sullivan analysis.
Possibility to have access to information anywhere, anytime
through any device connect to the internet.
Email, CRM and ERP are the most demanding services.
Companies will build new datacenters locally and price
reduction will drive most companies strategy.
Web site hosting, storage and intranet hosting are the most
Still not very used in Latin America, companies need to
increase the awareness for this cloud service.
Collaboration, Application Test and Applications development
are the most demanding services.
The Last Word—3 Big Predictions
SaaS will remain the biggest market in cloud computing, reaching $584.3
million by 2017.
Telecom operators will have a stronger presence in cloud computing due to
important factors such as billing, customer support, infrastructure, and
Cloud computing is still a nascent market in the Brazilian landscape; in the
future, it will become better known among enterprises as the concept
spreads throughout the market.
Source: Frost & Sullivan
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