The 2022 ISG Provider Lens Next-Gen Private/Hybrid Cloud – Data Center Services and Solutions report for Brazil finds new regulations, new managed hosting technologies, and the rising number of ransomware attacks in Brazil have contributed to a hybrid cloud boom in the past few years. More organizations continue to migrate on-premises IT to managed services, managed hosting, and colocation services.
As a result, both the cloud and colocation markets are growing quickly in Brazil. There are now six cloud hyperscalers operating in the country, with 13 to 15 cloud data centers hosted in colocation facilities, the report says. At least six more large facilities are under construction to meet the demand for data center floor space. Global cloud providers such as AWS, Microsoft and Google have elevated the standard for security, service quality and environmental, social and governance (ESG) compliance in Brazilian data centers, ISG says.
Brazilian managed hosting providers, once considered threatened by the entrance of public cloud hyperscalers, are stronger than ever thanks to demand for new technologies, such as automated self-service platforms that mimic the public cloud service portfolio.
Companies are still modernizing their infrastructure to comply with the privacy and data protection requirements of the Lei Geral de Proteção de Dados (LGPD), which went into effect more than a year ago. In addition, open banking regulations imposed in 2021 have increased banks’ interest in cloud migration. All private banks in Brazil are committed to adopting cloud infrastructure, and even those that still use mainframes have long-term plans to modernize and migrate their applications.