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Frost & Sullivan: What Technology Trends will be Hot in Brazil in 2013?

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The Brazilian Information & Technology Market will be strongly impacted be a new tripod of technologies: Cloud Computing, Big Data and Enterprise Mobility. Companies will need to integrate these …

The Brazilian Information & Technology Market will be strongly impacted be a new tripod of technologies: Cloud Computing, Big Data and Enterprise Mobility. Companies will need to integrate these technologies into their business strategy and invest in their IT infrastructure in order to preserve their competitiveness and generate new sources of revenue.

This briefing will investigate the 2013 key IT trends, as well as identify major opportunities to seize in the industry.

“Brazil is today a top location for IT-related companies to monetize on emerging opportunities. Since the 2008/09 global unrest, the country has become by far the most interesting country in Latin America in terms of market size as well as short/medium term growth. Top trends include Cloud Computing, Big Data and Enterprise Mobility, all topics that will be discussed during this exciting Analyst Briefing,” said Frost & Sullivan IT Team Leader Fernando Belfort.

The presentation will help attendees improve their understanding of the competitive landscape in the Brazilian Information & Technology market. Attendees of the webinar will also discover the 2013 fundamental growth areas to capitalize on within the Cloud Computing, Big Data and Enterprise Mobility areas.


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  • Good afternoon. Its a pleasure to host this very exciting AB today. I have collecting some of the most recent analysis F&S has been working on in Latin America. We’ll start with a global then in country analysis of Brazil and immediately dive to explore some of the most interesting opportunities relates to Cloud, Mobility in the enterprise space and Big Data. I’ll be around at the end of the AB answering most of your questions too.
  • Before we start, as an analyst I’m very interested in knowing what is the major goldmine we’re looking at today in Brazil. Please use your webinar browsers to vote. We’ll share the result at the end of this presentation.
  • We see a world of disparities today when analyzing both mature and emerging IT markets. On one hand, more mature regions such as north america and europe are forecast reatively low growth forecasts for the next two years, emerging and dynamic economies such as Asia (mainly China and some of the emerging Tiger economies) and Latin America (mainly leveraged by the growth of Brazil, Mexico and the Andean region).
  • Some might ask – so what? Where are the largest opportunities in Brazil? I would answer that question with benchmark analysis. It’s extremely interesting to compare the current IT Spending regarding hardware, software and services between Brazil and a more mature market, the US for example. The Brazilian market is still heavily dependent on hardware, as opposed to the more services and software-centric US. Most of the opportunities we see in the short and medium term (and the ones we’ll relate to today) are very much related to both IT software and services.
  • We’ve been seing so many discussions regarding the evolving role of the CIO globally, so wanted to share some Brazilian insights of the growing importance of this key executive in organizations in Brazil. Companies and expecting their CIOs to become innovation enablers . Regarding the offer or the Tech provider side, players pushing for Business Technologies as opposed to the old Information Technology concept . The conten we will show today was put together for a reason. According to F&S research, top priorities of 2013 for CIOs in the enterprise segment include: Outsourcing services Cloud computing Information security Mobility Advanced Analytics capabilities
  • Lets start our opportunities quest today with Cloud Computing. Frost & Sullivan has been covering the Datacenter services markets in Latin America over the past decade, and we see some of the more well established offerings such as Colocation and dedicated hosting reaching maturity levels. In the “Introduction” phase of its product lifecyle, cloud services are forecast extremely positive growth rates in 2013.
  • In terms of drivers impacting the cloud services markets in brazil: Despite a series of outages we’ve seen over the last 12 months, the most important driver is IT infrastructure availability Cost reduction and operational flexibility are also important. Regarding restraints: Security is still king Connectivity (up from 32% last year) Lack on information (down from almost 60% last year)
  • You didnt think I was only going to mention “extremely positive growth rates”, right? I’d like to share the size of the opportunity here. We expect Cloud Services to generate approximately USD 300 million next year, representing a +74% annual growth. By 2017, the total opportunity with exceed USD 1.3 billion. Both IaaS (51% of the market by 2017) and SaaS (43% of the market by 2017) are forecast more agressive compound annual growth rates until 2017.
  • In terms of market penetration in the large enterprise segment (companies with annual revenues superior to USD 100 mn): SaaS – we expect 54% penetration by 2013. Highlights to Google Apps for business and Microsoft competing in this fast pacing market. IaaS – we expect 47% penetration by 2013. In terms of competitive scenario, highlights to Global providers (mainly IBM and AWS with offices in Brazil since late 2011) and Telcos picking up (particularly Oi). PaaS – we forecast 31% penetration by 2013.
  • Consumerization has definately been an area of discussions in a high amount of enterprises throughout Brazil. Consumerization is when business areas bully and pressure their IT departments to provide agile and highly productive tools. The same tools they have access to in ther personal lives (collobarative ways of working and communicating, more email archiving space, more options of smartphones, tablets and apps). Consumerization is also an immense challenges for companies in Brazil. Tablets sales are forecast to reach 15mn units shipped in 2020 and smartphones almost 50mn. Thats a huge amount of devices – that need policies and secure strategies to be plugged to corporate environments. There are currently different solutions to the bring your own device – or to the more humurous – bring your own disaster challenge. Software vendors have been pushing for Apps – examples being giants such as IBM, SAP and Cisco poviding apps versions of their robust softwares to multi-platform users. Virtual desktop is also an effective way to gaining access anywhere and with any device, and companies such as Citrix have been experiencing strong growth in the Brazilian Virtual Desktop markets. Mobile Device Management is also a market that hosts huge opportunities. Not only software-based but also as service. Noteworthy highlights to Blackberry Mobile Fusion, SAP’s Sybase Afaria and locla telecom provider Oi’s MDM as a service. Finally, info sec giants such as mcafee and trend micro and mobile niche player F-secure are also eyeing emerging mobile security opps in Brazil.
  • Big Data is not a technological revolution, but a an evolution of a series of different technologies with a new twist – the exponential increase in data. The 3 V’s of Big Data will definately contribute to companies as a new source of revenue to their own operations. Companies will be able to identify client unmet needs, retain customers and offer proactive new products tailored for specific client clusters. Its really exciting to analyze business technologies that will act as growth enablers. The Brazilian Big Data market is forecast to reach almost half a billion USD in the medium term. This revenue includes server and storage clusters, networking, software and consulting services related to Big Data. Business segments that host the largest opportunities in the short term in Brazil include: Retail, Telcos and Oil & Gas. The biggest challenge will be to make sense of so much unstructured data that is being generated. Thats were consulting units of the largest Tech global companies come in place.
  • I’ve listed a couple of companies that are in a strategically good standpoint to start 2013 monetizing on Big Data opps. The last 24 months have been extremely ineteresting in terms of M&A in the Big Data global space. Thinking a little outisde the box, interesting to note the Facebook instagram as an example of big data acquisistion. Social networks are an important data feed. IBM has had one of the most aggressive M&A strategy in this space. Coremetrics and Netezza Corporation in 2010. enterprise search optimizer Vivisimo. Varicent, a data analytics Tea Leaf, a leader in customer behavior analysis. EMC with Greenplum HP with Vertica (new vertica analytics announced just yesterday) and Autonomy I’m particularly looking forward to seing how SAP’s Hana and Oracle’s Big Data Appliance battling in the Brazilian market in 2013.
  • A couple of very exciting cases globally – amazon, oakland athletics (moneyball), walmart labs and european financial schufa. Definately recommend further reading on all of these cases. In terms of adoption curve, the Brazilian Big Data markets is where Cloud Services was almost two years ago. Lots of talk and little walk at the moment. A couple of pioneer and interesting Big Data adoption in Brazil though. If I had to name a few: brazilian e-commerce giant Netshoes and retailer Renner as well as Oil & Gas leader Petrobras have been some of the most interesting cases. We’ll be seing more case studies, in the financial segment and telecom service providers space in the next quarter. Stay tuned.
  • Transcript

    • 1. What Technology Trends will be Hot in Brazil in 2013?Analyst BriefingFernando Belfort, Frost & Sullivan Latin America Team Leader11th December 2012
    • 2. Today’s Presenter Fernando Belfort Fernando Belfort Team Leader ––Technology, Latin America Team Leader Technology, Latin America Information & Communication Technologies Information & Communication Technologies fernando.belfort@frost.com fernando.belfort@frost.comFernando Belfort joined Frost & Sullivan in mid 2007 and is today responsible for the hands-on management of Frost & Sullivan’sTechnology practice in Latin America. Mr. Belfort spearheads regional market intelligence reports and strategic consulting projects,assisting global and regional enterprises in leveraging their profits, brand, market positioning and growth.Areas of expertise:-Tech Trends (Cloud Computing, Consumerization, Big Data, Enterprise Social Networks);-Enterprise Mobilty (Smartphones, Tablets, Mobile Security);-IT Services (BPO, Datacenter Services, Managed Printing Services);-Information Security (Managed Security Services, Endpoint Security). 2
    • 3. 1. Global 2. Brazil’s 6. Key2013 Brazil Tech Outlook moment 3. Cloud 4. Mobility 5. Big Data Insights 7. Q&ATrends
    • 4. Poll – Question: Where do you see the greatest business opportunities in Brazil in 2013?1. Cloud Computing;2. Enterprise Mobility;3. Big Data.
    • 5. 1. Global 2. Brazil’s 6. Key2013 Brazil Tech Outlook moment 3. Cloud 4. Mobility 5. Big Data Insights 7. Q&ATrends Emerging markets have IT spending forecast 2-3 times higher than more mature markets throughout the next two years. Emerging markets have IT spending forecast 2-3 times higher than more mature markets throughout the next two years. Europe +3% growth forecast Asia North America +10% growth forecast +4% growth forecast Africa +6% growth forecast Latin America +7% growth forecast Source: Frost & Sullivan Source: Frost & Sullivan 5
    • 6. 1. Global 2. Brazil’s 6. Key2013 Brazil Tech Outlook moment 3. Cloud 4. Mobility 5. Big Data Insights 7. Q&ATrends The Brazilian software and services markets host multi-billionaire opportunities in the short term. The Brazilian software and services markets host multi-billionaire opportunities in the short term. 2013 US Tech Investment Tripod Services 40% Hardware 30% Software 30% 2013 Brazil Tech Investment Tripod Services 30% Hardware 55% Software 15% Source: Frost & Sullivan 6
    • 7. 1. Global 2. Brazil’s 6. Key2013 Brazil Tech Outlook moment 3. Cloud 4. Mobility 5. Big Data Insights 7. Q&ATrends Companies are expecting their CIOs to become enablers of innovation. Tech providers are pushing for Business Companies are expecting their CIOs to become enablers of innovation. Tech providers are pushing for Business Technologies as opposed to the old Information Technology concept. Technologies as opposed to the old Information Technology concept. CIO Agenda - 2013 Identify activities that can be outsourced. Initiate Cloud Computing proof of concept. Minimize information security threats. Offer greater mobility to workers. Study new Analytics tools (Big Data). Source: Frost & Sullivan 7
    • 8. 1. Global 2. Brazil’s 6. Key2013 Brazil Tech Outlook moment 3. Cloud 4. Mobility 5. Big Data Insights 7. Q&ATrends With the increase in the maturity levels of well established datacenter offerings, Cloud Services will be the new star With the increase in the maturity levels of well established datacenter offerings, Cloud Services will be the new star offerings in the Brazilian IT services markets. offerings in the Brazilian IT services markets. Colocation CAGR: 9.3% CAGR: 9.3% CAGR: 6.6% CAGR: 6.6% Dedicated Hosting CAGR: 9.9% CAGR: 9.9% Disaster Recovery CAGR: 10.7% CAGR: 10.7% Storage SaaS IaaS PaaS Time Introduction Growth Maturity Decline Source: F&S 2012 IT Infrastructure Outsourcing Services: Brazil 8
    • 9. 1. Global 2. Brazil’s 6. Key2013 Brazil Tech Outlook moment 3. Cloud 4. Mobility 5. Big Data Insights 7. Q&ATrends Top 3 Market Drivers according to End Users’ Perception (Brazil), 2012 84.6% IT Infrastructure Availability 81.3% Cost Reduction 58.2% Operational Flexibility Top 3 Market Restraints according to End Users’ Perception (Brazil), 2012 72.7% Security 59.5% Connectivity Barriers 52.9% Lack of knowledge regarding Cloud concept Sample: 121. Source: F&S 2012 Brazil Cloud Computing: End User Analysis 9
    • 10. 1. Global 2. Brazil’s 6. Key2013 Brazil Tech Outlook moment 3. Cloud 4. Mobility 5. Big Data Insights 7. Q&ATrends The Brazilian Cloud Computing market is expected to grow considerably over the next five years. Largest opportunities in The Brazilian Cloud Computing market is expected to grow considerably over the next five years. Largest opportunities in both the IaaS and SaaS layers. both the IaaS and SaaS layers.Milions (USD) 302 +74% MN 174 MN Source: Frost & Sullivan 10
    • 11. 1. Global 2. Brazil’s 6. Key2013 Brazil Tech Outlook moment 3. Cloud 4. Mobility 5. Big Data Insights 7. Q&ATrends Top of Mind market participants in Brazil regarding Cloud Services include: Google, Microsoft, AWS, IBM and Locaweb. Top of Mind market participants in Brazil regarding Cloud Services include: Google, Microsoft, AWS, IBM and Locaweb. SaaS – 54% IaaS – 47% PaaS – 31% Already using SaaS – 34.7% Already using IaaS – 30.7% Already using PaaS – 16.0% Will start investing in SaaS in 2013 – 18.7% Will start investing in IaaS in 2013 – 16.0% Will start investing in PaaS in 2013 – 14.7% Sample: 121. Source: F&S 2012 Brazil Cloud Computing: End User Analysis 11
    • 12. 1. Global 2. Brazil’s 6. Key2013 Brazil Tech Outlook moment 3. Cloud 4. Mobility 5. Big Data Insights 7. Q&ATrends Consumerization will force enterprises to invest in agile solutions to secure their company’s information. Consumerization will force enterprises to invest in agile solutions to secure their company’s information. All logos are used for illustrative purposes. Source: Frost & Sullivan 12
    • 13. 1. Global 2. Brazil’s 6. Key2013 Brazil Tech Outlook moment 3. Cloud 4. Mobility 5. Big Data Insights 7. Q&ATrends Volume, variety and velocity of data will change the way businesses proactively monetize on new market opportunities. Volume, variety and velocity of data will change the way businesses proactively monetize on new market opportunities. 473 CAGR (2012-2016) +25% 415 14% 349 19%Millions (USD) 33% 262 71% 153 Source: Frost & Sullivan 13
    • 14. 1. Global 2. Brazil’s 6. Key2013 Brazil Tech Outlook moment 3. Cloud 4. Mobility 5. Big Data Insights 7. Q&ATrends Billionaire M&As were execued throughout the last 24 moths surrounding Business Analytics. Providers will push for first Billionaire M&As were execued throughout the last 24 moths surrounding Business Analytics. Providers will push for first client cases in 2013. client cases in 2013. All logos are used for illustrative purposes. Source: Frost & Sullivan 14
    • 15. 1. Global 2. Brazil’s 6. Key2013 Brazil Tech Outlook moment 3. Cloud 4. Mobility 5. Big Data Insights 7. Q&ATrends Fonte: Frost & Sullivan 15
    • 16. 1. Global 2. Brazil’s 6. Key2013 Brazil Tech Outlook moment 3. Cloud 4. Mobility 5. Big Data Insights 7. Q&ATrends Key Takeaways • Since the 2008 global unrest the country has continued to grow at sustainable rates over the last years. Brazil Brazil • Brazil is today one of the highest growth IT markets globally. • Even though the entire IT market is forecast to grow, billionaire opportunities regarding software and services. Key Takeaways • Cloud Services will impact significantly the datacenter service markets. Cloud Computing Cloud Computing • Major opportunities relate to IaaS and SaaS service models. • Fierce competition is expected in these markets (global and local players, telecoms). Key Takeaways • Consumerization trend will catalyze mobile security opportunities for market participants that are able to Mobility Mobility approach enterprises in a consultive manner. Key Takeaways Big Data Big Data • Big Data is not a technological revolution, but a an evolution of a series of different technologies. • It will be used as a revenue booster, so will be driven by internal business areas from enterprise accounts. Source: Frost & Sullivan
    • 17. Analyst Contact InformationFernando Belfort Fernando Belfort Francesca Valente Francesca ValenteTeam Leader ––Technology, Latin America Team Leader Technology, Latin America Corporate Communications & Marketing Corporate Communications & MarketingInformation & Communication Technologies Information & Communication Technologies Frost & Sullivan Latin America Frost & Sullivan Latin America fernando.belfort@frost.com fernando.belfort@frost.com francesca.valente@frost.com francesca.valente@frost.com http://www.linkedin.com/in/fernandobelfort @Frost_Latam