The growth of the fintech sector, a simplified software and more significant benefits at a lower cost are some of the factors that will accelerate the adoption of cloud or cloud computing in Latin America.
In the region, Mexico and Brazil are the leading countries in this trend, according to Oracle. The adoption of these services in the LatAm has been slower than expected. However, analysts anticipate that in the coming years, customers will see more benefits for their business, as software services become easier to use.
José Antonio Barragán, sales director for northern Latin America at Oracle said in an interview for Nearshore Americas that “a decade ago, the prediction was that the use of the cloud would be widespread and would help to accelerate transactions and companies’ performance. However, the software has not been user-friendly. “
For this reason, Oracle seeks to make its software more accessible for users so that companies migrate to the cloud. The company expects strong adoption of cloud computing services in the region over the next few years.
Cloud computing services will generate $7.4B in Latin America by 2022 and will have an annual growth of 31.9%, according to estimates by Frost & Sullivan.
Barragán said that the adoption of the cloud has been slow even in the largest economies in the region, such as Brazil, Mexico, Chile, and Peru. Brazil and Mexico are the leading markets in cloud computing services, followed by Colombia, Chile, and Argentina.
Examples of projects in the region that use cloud services include the Data Observatory in Chile or the partnership between ITESM and AWS to boost the growth of 500 Mexican startups.
Most used services in the cloud
Software as a service (SaaS) and enterprise resource planning (ERP) are some of the most required cloud sectors by customers. Only the ERP market in Latin America will reach a value of $ 2.73B, according to Research and Markets.
Barragán indicates that some industries are more reluctant to adopt cloud computing services than others. For example, the financial sector spends less than the health or pharmaceutical sector.
Costs are one of the main impediments for customers to decide to hire a service in the cloud. However, Barragán points out as a success case the company Bimbo, which achieved a saving of 40% thanks to the cloud.