GenAI, Tight Budgets Boost Cloud Services Demand in Brazil
A growing number of enterprises in Brazil are investing in public cloud services, often to address the challenges of developing generative AI capabilities while reducing IT costs, according to a new research report published today by Information Services Group ( ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2024 ISG Provider Lens™ Multi Public Cloud Services report for Brazil finds that public cloud use continues to grow in the country, as in other regions, and GenAI initiatives are widely believed to be a major reason for this growth. The leading hyperscalers — AWS, Azure, Google Cloud and Oracle — have expanded their partner networks and joined with providers to educate users about AI, analytics and GenAI.
'Public cloud revenue has bounced back, while GenAI remains a top priority for many companies in Brazil,' said Anay Nawathe, ISG cloud delivery lead for the Americas. 'As enterprises try to harness GenAI in the face of intense budget pressures, they rely on service provider expertise.'
Only a small number of Brazilian enterprises have begun using GenAI for business functions other than chatbots, the report says. GenAI-powered conversational agents are being piloted to enhance customer support, and some internal teams are using GenAI semantic search to accelerate decision-making. While this illustrates that the technology has value beyond this early application, it shows how far GenAI has to go before it is widely deployed. Companies are hiring providers to help them overcome challenges such as implementation, usage tracking and cost control.
As they invest in advanced technologies and build complex multi-cloud architectures to remain competitive, more companies in Brazil are engaging with cloud consulting and transformation providers, ISG says. These help enterprises build optimized cloud environments that balance performance, cost efficiency and data sovereignty. While supporting clients' immediate digital transformation needs, leading consulting providers also provide long-term road maps.
GenAI also increases cloud resource consumption and introduces complex implementation and maintenance requirements, the report says. Companies in Brazil are hiring managed services providers for technical support and cloud infrastructure management. FinOps services and cloud optimization have become key focus areas for enterprises. Providers help clients establish strong financial controls and governance frameworks to keep multi-cloud environments cost-efficient in the long term. ISG expects GenAI to broaden cloud management services to include monitoring GenAI usage, security and privacy and comparing GenAI options across different clouds.
'By embracing GenAI, Brazilian enterprises are taking on new operational and cost challenges,' said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. 'As managed service offerings evolve, they should help companies optimize the use of this new technology.'
The report also examines other public cloud trends in Brazil, including growing interest in data sovereignty and on-premises cloud appliances and its effect on demand for SAP S/4HANA infrastructure services.
For more insights into the public cloud challenges enterprises face in Brazil, see the ISG Provider Lens™ Focal Points briefing here.
The 2024 ISG Provider Lens™ Multi Public Cloud Services report for Brazil evaluates the capabilities of 35 providers across five quadrants: Consulting and Transformation Services, Managed Services, FinOps Services and Cloud Optimization, Hyperscale Infrastructure and Platform Services and SAP HANA Infrastructure Services.
The report names Accenture, Capgemini, Dedalus, Kyndryl, Skyone and TIVIT as Leaders in three quadrants. It names AWS, Microsoft, V8.Tech and Wipro as Leaders in two quadrants. Oracle, T-Systems and Unisys are named as Leaders in one quadrant each.
In addition, Stefanini is named as a Rising Star — a company with a 'promising portfolio' and 'high future potential' by ISG's definition — in one quadrant.
Customized versions of the report are available from AWS, TIVIT and Unisys.
In the area of customer experience, Persistent Systems is named the global ISG CX Star Performer for 2024 among public cloud service providers. Persistent Systems earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, which is part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.
The 2024 ISG Provider Lens™ Multi Public Cloud Services report for Brazil is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world's top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry's most comprehensive marketplace data. For more information, visit www.isg-one.com.
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SOURCE: Information Services Group, Inc.
Copyright Business Wire 2025.
PUB: 01/29/2025 12:28 PM/DISC: 01/29/2025 12:28 PM
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