While the relentless global race toward digitalization has heavily characterized the past decade, the global uncertainties brought on by the Covid-19 pandemic starting in 2020 have certainly catalyzed this process.
As a matter of fact, according to a Garner Inc. survey, 69% of boards of directors stated that they accelerated their digital business initiatives following the Covid-19 disruption, with almost half of them anticipating altering their organizations’ business model and undergoing digital transformation.
Expedited by these sudden tailwinds, the Latin American cloud technology market has shown considerable growth potential. Nowadays, when we find ourselves in the post-pandemic scenario, cloud technologies are reinforcing their place as the centerpiece of digitalization by helping companies to optimize and scale their storage, obtain elastic and expansive computational power, and access customized tools transformative to their core business processes.
In this article, we’ll review the dynamic growth and everything you need to know about the cloud market services in LatAm so that you can make a well-informed decision when you begin to digitize your organization and prepare it for success in the years to come.
The Growth Of Cloud Market Services In LatAm
To explain the rapid growth of cloud market services in Latin America, we first must define the market and its offerings. In that regard, the market is generally divided across two dimensions—cloud solutions and service offerings.
Within the scope of cloud solutions, the product offering ranges from Infrastructure-as-a-Service to Software-as-a-Service solutions, all differing in their spectrum of utilization, cloud users, and the control it provides over the infrastructure.
Within the scope of service offerings, the Latin American market is dominated by service providers like professional edge data centers, which allow their clients to be connected and access their content hosted on the servers more efficiently and directly, indirect resellers, and those that offer managed services. Of course, both dimensions of the Latin American cloud market grow side-by-side, as both are equally required by end customers to truly unleash the value of this powerful technology.
Growth Expectations
In the current state of the industry, professionals foresee the cloud market in LatAm to grow by 2.5 times over the next four years and likely to undergo even more significant growth, given the current push on distributed teaming and digital transformation. Along with the expansion across each cloud technology, services will also flourish along with cloud solutions, completing the picture of digitization.
The Race To Full Digital Transformation Is On
There’s no denying that corporations in Latin America are accepting the challenge to keep up with the digital journeys of their northern counterparts, with the latter acting as the pioneers of the global digital game.
The journey to complete digital transformation for LatAm companies is sparked by an attempt to optimize financial performance and efficiency and, of course, increase competitiveness within the local markets. In that context, adopting cloud technology is the first and most crucial step of digitalization for companies of all sizes that strive to empower their storage practices, provide more computing power, and service and upgrade their legacy apps.
Ergo, industries across the continent rapidly shift from the conventional on-premises and lift-and-shift hosting approaches toward complete digital transformation. These efforts include infrastructure improvement, novel agile ways of working, complete process optimization, operative model design, and other operational advancements that are allowed by the value of the so-called cloud technology.
In addition, companies in Latin America are also starting to adopt advanced data analytics, artificial intelligence, machine learning, and other technology solutions to stay on track with the winds of the worldwide digitalization trends. Still, if companies neglect the need to make the most out of cloud technology to support their ventures, they risk staying behind in the technology-driven business expansion and sustaining competitive positioning.
The Journey To Optimization Of Business Applications For Smaller-Sized Companies
As cloud-based solutions are becoming less costly, more accessible, more customized to each client’s needs, and easier to implement and use, there is an enormous shift in customer base from solely large and global enterprises to developing small and medium-sized companies as well.
They are now looking for more straightforward solutions to their everyday business problems and issues like enhanced collaboration and workflow management. In that regard, the small and medium LatAm cloud market provides their client base with the full benefits of cloud adoption and application, given their lack of technical debt from big legacy systems. They generally access cloud services with the help of a local cloud services partner, leveraging these relationships as a profound doorway to digitalization.
Final Words
Today’s economic climate in Latin America presents an opportunity for companies of all sizes to take the leap and jump onto the high-speed cloud technology train. Put differently, the urge for regional companies to jump on the digitalization bandwagon inevitably translates into high growth rates for the cloud market for both cloud services and tech solutions.
In the future, this will translate into new, more resilient infrastructure that will permit businesses to adapt to the ever-changing environment, optimize their everyday operations, and scale seamlessly as digitalization efforts across industries in Latin America continues to accelerate in the same way it does worldwide.
