Microsoft's expansion into global markets
continues, the company has now extended its Azure reach to the Brazil South
region.
The new expansion helps demonstrate
Microsoft’s commitment to increasing growth and helping customers access the
power of the cloud, in Brazil and around the world. It's also a commitment
introduced as part of a strategy to work around what Microsoft (and
others) perceives as a
disappointing stance on surveillance reforms by the
Obama administration. Many countries have laws that protect the export of electronic
data so proliferating datacenters across the globe ensures that regional laws
are maintained and not broken.
Microsoft saw strong adoption for Azure in
Brazil as can be learn by the recent IDC report that
says IT investments in Brazil have reached $61.6 billion. The country
ranks seventh in terms of global IT investment, following the U.S., Japan,
China, UK, Germany and France. Researchers expect Brazil to replace France next
year in sixth place. A Frost & Sullivan report pegged Brazil’s cloud computing
market at $328.8 million in 2013.
Over all, the last business report by Microsoft should the
Brazil outperforms rest of the world.
Microsoft
Brazil head Mariano de Beer has been quoted as saying that his operation has
performed better than the rest of the firm.
Back
in July, Microsoft
reported that it raked in a net profit of $22.1 billion for fiscal
year 2014 and an 11.5 percent increase in revenue over the previous fiscal
year. According to de Beer, the revenue growth percentage in Brazil alone was
higher than the overall figures:
As
for Brazil, de Beer added that the above-average growth has been prompted by
sales of Xbox consoles and Windows Phone devices, but most importantly, sales
of cloud-based product sales to small and medium enterprises - which more than
doubled over the last year, boosted by Microsoft's local datacenter azure
services in Brazil, launched earlier this year.
Following are news by Narayan Ammachchi in BRAZIL, covering the latest Microsoft activity in the Brazilian
market
Microsoft
Launches Azure Data Center in Southern Brazil
Microsoft has launched its Azure data center in Brazil’s Sao
Paulo state, promising to provide fully secured cloud computing services to
Brazilian companies concerned about cyber spying.
The new data center will store data
within the country and provide customers with better performance through
reduced latency.
Microsoft Azure, formerly Windows
Azure, is a cloud computing platform and infrastructure for building,
deploying and managing applications and services through a global network of
Microsoft-managed data centers.
Internet security has become a
sensitive issue in Brazil after news emerged that the U.S. National Security Agency (NSA) spied on its
President Dilma Rousseff and the state-owned oil company Petrobras. The
construction of more data centers in Brazil is inevitable for U.S. tech
firms because the South American country now insists that its websites be
hosted within its borders.
The U.S. tech giant has invested US$15
billion in its global data center infrastructure and
says it plans to expand its Azure cloud service to every corner
of the globe.
Globally, Microsoft says, more than
1,000 new customers join Azure every day, while revenue grew more than 150% in
the last quarter. According to reports, the Azure service is currently
only available in Southern Brazil.
Microsoft
Turns to Seaborn Cable System to Enhance Service Quality in Brazil
U.S. technology giant Microsoft has signed up for Seaborn
Networks’ yet-to-be-built submarine cable network as part of its plan to
provide high-quality cloud and IT infrastructure services in Latin America.
The news comes barely months after Microsoft unveiled
plans to launch its Azure data center in Brazil’s Sao Paulo state for
providing cloud-computing services.
Slated for completion sometime next year, Seaborn
Networks’ cable network will link São Paulo with New York City. Analysts say
this will be the first direct submarine cable route between the Brazilian city
and the United States, because most of the other submarine cables run through
the Caribbean islands.
According to the International Finance Corporation (IFC),
a World Bank subsidiary, the cable system will help accelerate broadband
development in Brazil and other South American countries.
“It is clear that Microsoft is highly committed to
delivering the best cloud experience and infrastructure in Brazil and all of
Latin America. We are delighted that Seabras-1 will play a major role in
further enabling their cutting edge consumer and enterprise services in region,”
said Larry Schwartz, CEO, Seaborn.
Investing in submarine cables appears to be a new trend
in the U.S. technology market. Google, for an example, recently signed up for
capacity on a trans-pacific cable system linking U.S. cities with Japan.