Big Data, Managed Security Services to Drive Latin American IT Growth

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IT revenues in Latin America are projected to grow by over 20 percent in 2016, led by big data and cloud computing, according to a report released Tuesday by Frost & Sullivan.

The 2016 Latin America Outlook for the Information Technology Services Industry shows major growth in the opportunities available in the market for security providers as various stakeholders come together to tackle lingering reliability and infrastructure impediments.

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IT services in the region are expected to bring in $7.78 billion in 2016, up from $6.46 billion in 2015. Data center services remain the source of almost half of the sector’s regional revenue, but its compound annual growth rate is lower than any of the other services examined, including cloud computing, big data and analytics, mobility, and managed security services. Managed security revenues are predicted to grow by 18.4 percent from $580.2 million in 2015 to $687.5 million this year.

“One of the biggest hurdles to the mass adoption of potentially disruptive technologies is security,” Frost & Sullivan Digital Transformation Consultant Leandro Scalize said in a statement. “No matter which technology is in focus, without a well-drawn security strategy, there is little chance of long-term success.”

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Rising awareness and deployment of SaaS and IaaS in Latin America is contributing to a rapidly maturing cloud computing segment, the report says, predicting it will surpass $2 billion in 2016.

A report produced earlier this year by 451 Research showed public cloud is more expensive in Latin America than any other global region.

A previous Frost & Sullivan report, released in 2015, showed significant adoption of cloud services among Brazillian companies. Since then, however, Latin America’s largest country has been continuously wracked by recession, corruption, and political division.

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