Brazil cloud computing sales to grow 74.3% over next three years

Brazil cloud computing sales grow
Info. Technology - Brazil
By Pedro Ozores - Wednesday, March 13, 2013

Sales of cloud computing services in Brazil will remain strong, growing at a 74.3% CAGR over the next three years and reaching US$798mn in 2015, ICT consultancy firm IDC forecasts.
In 2012, sales of cloud solutions expanded 68.4% year-on-year, while in 2011 they grew 57%.
However, due to particularities and the maturity level of the local market with respect to the technology, some cloud-based services are set to grow more than others, IDC general research manager for Brazil, Anderson Figueiredo, told reporters at the company's LA Infrastructure & Cloud Solutions Roadshow 2013, in São Paulo.
Such is the case with infrastructure-as-a-service (IaaS). Of the US$257mn IDC estimates will be spent on the cloud in 2013, most (US$123mn) will be spent on IaaS solutions, Figueiredo says.
"Iaas is the most visible part of cloud for corporates in Brazil, and also in the region, due to the growing virtualization process and increasing data center services being offered," said the analyst, adding that the recent tax exemptions for telecoms infrastructure, which includes data centers, should provide yet another boost to the market.
Another US$109m of the cloud expenditure forecast for 2013 will be spent on software-as-a-service (SaaS), with the remaining US$25mn going towards platform as a service (PaaS).
"Companies are still struggling to understand the PaaS offers and why they would need it. Furthermore, providers are having difficulty defining tailored PaaS business models and making their offers clear to customers. Anyway, PaaS utilization is very small," he said.
From 2013-2015, IDC predicts IaaS sales to expand at a 71.3% CAGR, SaaS at 81.2% and PaaS at 58%. According to Figueiredo, Brazil accounts for more than half of Latin American cloud expenditure