A steady move away from on-premises data centers has led to rapid growth in managed hosting and colocation facilities, ISG Provider Lens™ report says

Enterprises in Brazil looking to incorporate GenAI into their business operations can use external data centers to experiment and develop use cases, 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™ Private/Hybrid Cloud — Data Center Services report for Brazil finds a growing demand from Brazilian companies of all sizes for data centers that will host GenAI servers. GenAI is widely available on the cloud with all hyperscalers offering large language models (LLMs) that startups and large enterprises can employ to develop GenAI use cases, the ISG report says.

“GenAI requires a massive amount of energy,” said Anay Nawathe, ISG cloud delivery lead in the Americas. “Because clean energy from hydroelectric sources is limited, colocation providers and hyperscalers are planning to build or expand solar and wind farms in Brazil to ensure the future supply for GenAI.”

Although Brazilian enterprises have been steadily reducing their on-premises data centers, not all their data is ending up in the public cloud, the ISG report says. Companies can opt for cloud technologies in managed hosting and colocation facilities that offer direct link connections to public cloud providers, the report says. According to ISG, adopting a hybrid approach enables enterprises to distribute applications across several locations and exchange data over private links without exposing any data on the public internet.

In response to this data migration, there has been robust market expansion in the number of providers and new data centers, a rise in available floor space and an increase in international investment in data center infrastructure, the ISG report says. The need for additional data centers in Brazil is considerable, driven not only by GenAI requirements, but also by organic growth, driven by increasing demand from content providers and hosting providers, the report says.

All colocation sites are connected to the Brazilian internet traffic exchange network and most sites have direct connectivity to AWS, Azure, Google Cloud and Oracle Cloud Infrastructure (OCI), allowing managed hosting providers and content creators to leverage these highly available and hyperconnected data centers to offer their services, the ISG report says. According to the report, all colocation providers have integrated software-defined networking (SDN) tools into their services.

“Enterprises in Brazil can use SDN to create virtual data centers spanning several locations,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “It is important to compare SDN costs and functionalities to select the most suitable colocation provider.”

The report also examines how low-latency demands required by GenAI are driving Brazilian computing to the edge.

For more insights into the private/hybrid cloud and data center services challenges that enterprises in Brazil face, including reducing public cloud consumption and developing a GenAI roadmap, along ISG’s advice for addressing them, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Private/Hybrid Cloud — Data Center Services report for Brazil evaluates the capabilities of 43 providers across four quadrants: Managed Services for Large Accounts, Managed Services for Midmarket, Managed Hosting and Colocation Services.

The report names Edge UOL, Equinix, SBA Edge and T-Systems as Leaders in three quadrants each, while Kyndryl and TIVIT are named as Leaders in two quadrants each. Accenture, Ascenty, Capgemini, Dedalus, EVEO, inov.TI, ODATA, Scala Data Centers, Skymail, Under and Wipro are named as Leaders in one quadrant each.

In addition, HostDime is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants, while Elea Data Centers, Takoda and V8.Tech are named as Rising Stars in one quadrant each.

In the area of customer experience, Green is named the global ISG CX Star Performer for 2024 among Private/Hybrid Cloud – Data Center Services partners. Green earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

Customized versions of the report are available from DataEnv, Elea Data Centers, EVEO, inov.TI, SBA Edge, Takoda and Under.

The 2024 ISG Provider Lens™ Private/Hybrid Cloud — Data Center 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 insights 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 and automation, 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 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.

Press Contacts: Will Thoretz, ISG +1 203 517 3119 will.thoretz@isg-one.com Thábata Mondoni, Mondoni Press for ISG Mobile: +55 11 98671 5652 thabata@mondonipress.com.br

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