What Tech Trends will be Hot in Latin America in 2014?

Analyst Briefing
Bruno Tasco, Frost & Sullivan Latin America Industry Analyst

28th January, 2014

So Paulo, Brazil
1

Latin American Landscape

The impact of politics and economic performance will shape the ICT Industry spending during 2014

Economic stability in Latin America is

driving foreign capital to the region,
which has a direct impact on the
adoption of technology.
.

Tripod IT Investment, 2013

100%
90%
30%
80%

Projected GDP
Growth 2014

70%

Argentina

2.6%

60%

Brazil

2.6%

50%

Chile

4.0%

40%

Colombia

4.5%

30%

Peru

5.5%

20%

Mexico

3.5%

LATIN AMERICA

3.2%

Country

10%

40%
15%
Services
30%

Software
Hadrware
55%

30%

0%

Table source: CEPAL

Mature Countries

LA Countries
Source: Frost & Sullivan analysis.

Latin American Landscape

Cloud

Mobility

Security

Big Data

Key Takeaways

Q&A

Game Changing on Business Relations

Companies are adapting to new business models and the role of the executives is changing.

Since the economic instability during 2008/2009, CFOs have

more participation regarding IT decisions in the company.

CIOs want to establish lasting realtionship with its IT providers.

Business Technologies is overcoming Information Technology

approach.

Latin American Landscape

Cloud

Mobility

Security

Big Data

Key Takeaways

Q&A

Cloud Computing a US$ 3 Billion Market by 2017 in LA

Business efficiency is the main driver for cloud. Security is still the point of attention.

Main reason to invest in

cloud

Latin America Cloud Market 2014-2017

$3,500
$3,000

$ 2.866,5

Decreasing Cost

US$ Million

$2,500
$2,000

Strengthening business
continuity plans

152,9%

$1,500

Scalability

$ 1.113,5
$1,000

Improving
security/compliance

$500
$0
PaaS
IaaS

2014
30.7
490.7

2017
84.0
1,347.5

SaaS

612.1

1,435.0

Shifting costs from

CAPEX to OPEX

Source: Frost & Sullivan analysis.

Latin American Landscape

Cloud

Mobility

Security

Big Data

Key Takeaways

Q&A

Cloud Market Still has Great Opportunities

With a CAGR of over 30% until 2017, companies need to be aware of the adoption trends to
monetize on the opportunities.

SaaS

Possibility to have access to information anywhere, anytime

through any device connect to the internet.

CAGR 14-17
32.78%

Email, CRM and ERP are the most demanding services.

IaaS

PaaS

Companies will build new datacenters locally and price

reduction will drive most companies strategy.

CAGR 14-17
40.03%

Web site hosting, storage and intranet hosting are the most
demanding services

Still not very used in Latin America, companies need to

increase the awareness for this cloud service.

CAGR 14-17
39.84%

Collaboration, Application Test and Applications development

are the most demanding services.

Source: Frost & Sullivan analysis.

Latin American Landscape

Cloud

Mobility

Security

Big Data

Key Takeaways

Q&A

Cloud Computing Adoption Trends

By 2014, 50% of companies will be using at least one type of cloud services.

Cloud adoption by 2014

SaaS

73.3%

IaaS

26.70%

66.7%

PaaS

33.30%

49.3%

0%

10%

20%

30%

50.70%

40%

Companies using cloud by 2014

50%

60%

70%

80%

90%

100%

Campanies that will not adopt cloud until 2014

Source: Frost & Sullivan analysis.

Latin American Landscape

Cloud

Mobility

Security

Big Data

Key Takeaways

Q&A

Key Impacts behind Mobility

The real impact of Mobility could only be fully comprehensible when taking in consideration other
underlying but significant trends

Proliferation of
mobile devices

MOBILITY
Changing
Workspace and
Workforce Culture

Network
Readiness
Source: Frost & Sullivan analysis.

Latin American Landscape

Cloud

Mobility

Security

Big Data

Key Takeaways

Q&A

Consumerization and BYOT

Consumerization will force enterprises to invest in agile solutions to secure their companys information.

APPs

Virtual
Desktop

BYOT

Mobile
Endpoint
Security

MDM
Source: Frost & Sullivan analysis.
Latin American Landscape

Cloud

Mobility

Security

Big Data

Key Takeaways

Q&A

Comsumerization Manage is Better than Prohibit

It is important to understand your executives business needs to address BYOT issues.

My corporate smartphone has limited functions.

I need real time communication and access to all
company information no matter where I am.
Source: Frost & Sullivan analysis.
Latin American Landscape

Cloud

Mobility

Security

Big Data

Key Takeaways

Q&A

Security Evolution
It is more complex than never before to guarantee security throughout your entire enterprise.

Then

Now

Fax Machine / Email (incipient)

Email / Social Midia

Dial-Up Internet

Wi-Fi / 4G

Celphone

Smart Devices

Anti Virus / Anti Spam

Advanced Persistent Threat

Hard Disk

Cloud Computing
Source: Frost & Sullivan analysis.

Latin American Landscape

Cloud

Mobility

Security

Big Data

Key Takeaways

Q&A

10

Managed Security Services Market in Latin America

New business technologies will drive investments in security that will double the size of the market
by 2018 compared to 2013

Drivers for MSS Adoption

Managed Security Services Market: Latin America

Revenue CAGR, 20132018 = 13.8%
900.0

821.7

US$ Million

800.0

734.6

700.0

650.6

Cloud Computing

571.2

600.0
500.0

New Bisuness Model and

Technology Adoption

498.2
434.1

Sophisticated Attacks

400.0
300.0

Compliance and Legislation

200.0
100.0

Integration and Network

Convergence

0.0
2013

2014

2015

2016

2017

2018

Year
Source: Frost & Sullivan analysis.
Latin American Landscape

Cloud

Mobility

Security

Big Data

Key Takeaways

Q&A

11

Towards an Enhanced Enterprise Security Environment

The increasing of BYOD, will demand and increasing use of encryption systems and biometric
technologies.

Source: Frost & Sullivan analysis.

Latin American Landscape

Cloud

Mobility

Security

Big Data

Key Takeaways

Q&A

12

The 3v for Big Data

Key features that are shaping the future of Big Data

Volume

Variety

Velocity
Source: Frost & Sullivan analysis.

Latin American Landscape

Cloud

Mobility

Security

Big Data

Key Takeaways

Q&A

13

3v Explained and Trends

Not only people will be generating data by using devices but also machines will start doing it.

Volume

10 connected devices per house by 2020

5 connected devices per user by 2020
5 billion internet users by 2020

Velocity

Smartphones and tablets increasing data access

M2M, RFID, smart devices
4G, video call, streaming, Wi-Fi

Variety

Real time analysis

Pro-active strategy
Capitalize on new opportunities

Source: Frost & Sullivan analysis.

Latin American Landscape

Cloud

Mobility

Security

Big Data

Key Takeaways

Q&A

14

Big Data Scenario

Learn more about your customers and act faster than your competition

Source: Frost & Sullivan analysis.

Latin American Landscape

Cloud

Mobility

Security

Big Data

Key Takeaways

Q&A

15

Big Data Market

From a Nascent Market in 2014 to a Billion Dollar Industry by 2018 in Brazil.

What is next for Big Data?

Big Data Market Brazil, 20132018

Revenue CAGR, 20132018 = 31.7%
965.0

1,000.0
900.0

US$ Million

800.0

The fear of companies

regarding data security and
confidentiality will drive
Security Analytics solutions

731.3

700.0
600.0

551.8

500.0
414.9
400.0
315.9
300.0

243.6

200.0
100.0
0.0
2013

2014

2015

2016

2017

2018

Using Wi-Fi analytics

solutions on local stores will
have a good adherence
between retailers that
already use Online Analytics
on their website.

Year
Latin American Landscape

Cloud

Source: Frost & Sullivan analysis.

Mobility

Security

Big Data

Key Takeaways

Q&A

16

Key Takeaways for Decision Makers

Cloud

Increasing competition. The market is looking at a decrease on price.

Hybrid cloud is gaining more participation.
Saas and Iaas represent the major opportunities.

Mobility

BYOT Increasing number of devices entering the organization.

Security policies.
Management vs customer experience.

Security

Has a wider concept now.

Needs to be within the entire organization.
From devices to the network.

Big Data

Internet of things. Everything connected.

Demand will come from business areas from the enterprise.
Source: Frost & Sullivan analysis.

Latin American Landscape

Cloud

Mobility

Security

Big Data

Key Takeaways

Q&A

17

Q&A
Bruno Pagotto Tasco, Senior IT Industry Analyst
Frost & Sullivan
bruno.tasco@frost.com

Connect with me on social media:

@BrunoTasco
http://www.linkedin.com/pub/bruno-tasco/11/848/114

Latin American Landscape

Cloud

Mobility

Security

Big Data

Key Takeaways

Q&A

18