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Growing Demand for Advanced IaaS Market in Latin America Will grow at a 26% CAGR from 2016 to 2021

Press Release   •   Feb 22, 2017 06:21 EST

Given the modest growth that telcos are facing in their traditional telecom service business units, many are turning towards IT services that have strong synergies with their infrastructure and portfolio, such as cloud computing, in order to foster new sources of revenue. Telcos possess the data center infrastructure and capacity, and the fact that they own the network necessary to deliver cloud services, are key advantages to position themselves in the Infrastructure-as-a-Service (IaaS) market.

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Key Findings

- Driven by an increasing migration of large enterprises to the hybrid cloud IaaS business model, and the growing adoption of IaaS solutions by small and medium businesses, the IaaS market in Latin America will grow at a 26% CAGR from 2016 to 2021, generating $9.3bn in cumulative revenue for the period.

- To address the growing IaaS opportunity in Latin America, telcos can leverage up-selling strategies, taking advantage of their data center customer base, supporting enterprises in migrating their traditional hosting infrastructures to cloud IaaS environments.

- Nevertheless, telcos have to overcome some challenges in this area, mainly the strong competition from traditional IT service providers and pure-players, such as AWS and IBM.

Synopsis

IaaS Market in Latin America: How Telcos are Addressing the Iaas Opportunity in the Region', a Telecom Insider by Pyramid Research, provides an executive-level overview of the cloud infrastructure-as-a-service (IaaS) market in Latin America. It delivers quantitative and qualitative insights into the IaaS market, analyzing the impact of the IaaS growth on telcos, how telcos are addressing the growing demand for IaaS solutions, and how telcos are competing with traditional IaaS players such as AWS and Microsoft.

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It provides in-depth analysis of the following:

- Market size and forecast; a look at the total market size and forecast for cloud computing services in Latin America, bringing a segmentation among SaaS, IaaS, and PaaS;

- Drivers and Challenges; an overview on the key drivers and challenges for telcos to grow in the IaaS market in Latin America, taking into consideration their portfolio of services, the regulatory environment, the IaaS competitive landscape and the channels for IaaS delivery;

- Case studies; this section details three leading telcos in the IaaS market. These studies focus on their IaaS portfolio, their go-to-market strategy for IaaS, and the results that these strategic actions had on their financials;

- Key findings and recommendations; the Insider concludes with a number of key findings and a set of recommendations for .pan-regional and local telcos, network vendors and regulators.

ReasonsToBuy

- This Insider Report provides a comprehensive examination of the value chain and IaaS providers' business models in the Latin America market to help executives fully understand market dynamics, determine what works and what doesnt, formulate effective product development plans and optimize resource allocation and return on investments.

- This Insider Report provides a five-year forecast of the cloud computing and IaaS markets, developed using Pyramid Researchs rigorous bottom-up modeling methodologies, to enable executives to effectively position their companies for growth opportunities and emerging trends in demand for their products.

- Three case studies illustrate the findings of the report, providing insight into particular situations in the IaaS market; this will help the reader understand both the challenges confronted in the real world and the strategies employed to overcome those challenges.

- The report discusses concrete opportunities in the IaaS market, providing a number of actionable recommendations for pan-regional and local telcos, network vendors and regulators.

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Table Of Contents :

Introduction: Regional IaaS market context

Enterprise cloud computing services definition and taxonomy

Market context

Enterprise cloud computing revenue forecast

Enterprise IaaS revenue forecast

Competitive landscape

Drivers and challenges: The impact of IaaS market growth on telcos

Portfolio market driver

Regulatory market driver

Competitive market challenge

Channel market challenge

Market detail: Case studies

Mexico: Alestra-Axtel

Brazil: Embratel

Chile: Entel

Conclusions: Key findings and recommendations

Appendix: Acronyms and definitions

 

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