By the Blouin News Technology staff

Latin America seeing cloud growth

by in Enterprise Tech.

Joe Raedle/Getty Images

Joe Raedle/Getty Images

The cloud computing market is taking off in Latin America for a number of reasons. The adoption of cloud by the enterprise information technology sector is one of the strongest contributing factors. In addition, the growth of communications technologies has led to more businesses looking towards virtual tech as a means to grow operations. Various research firms have predicted that the Latin American markets will see significant cloud growth over the next four years as several factors shift.

VISUAL CONTEXT: PLATFORM-AS-A-SERVICE USAGE

Source: Gartner

Source: Gartner

RnR Market Research suggests that the continuing influx of telecommunications companies will aid the network build-out of cloud computing infrastructures, and that certain companies have already made big investments in data centers with cloud-based technologies. It predicts the cloud computing market in Latin America to grow at a compound annual growth rate of 26.1% through 2018. The increasing adoption of cloud-based tech by small and medium-sized businesses (SMBs) is another factor: SMBs are finding the cost and operational efficiency of cloud technology amenable to their needs, and are promoting some of the adoption speeds in the region.

Brazil is one of the biggest drivers of the cloud market. Research and Markets says that the increase in purchase power in Brazil has had an impact on the cloud market by increasing the demand for products and services. Some companies have begun to adopt virtual agent applications to revamp their customer service products, and are taking advantage of the reduction in operational costs and the productivity increases that virtual agent apps provide.

These stats are interestingly paired with some forecasts that the U.S. cloud computing market is going to take a hit and grow less meteorically than it had previously been forecasted to because of the effects of Edward Snowden’s NSA leaks. The information released about the U.S.’s data collection practices has left many in distrust of virtual technologies. Even though the cloud computing market will continue its build-out, it could likely not be at the rate at which the U.S. has enjoyed cloud growth historically.

Latin America is not the only region seeing cloud growth; China is building out its cloud market as well, with a little help from U.S. tech giants. As both Latin America and China work on integrating virtual tech, they will be regions to watch, particularly positioned against the U.S.’s cloud growth.