In recent years, Brazil has emerged as a stronghold in the LATAM cloud market. So much so, that after Brazil, the drop-off in cloud spend is quite steep—according to Intricately data, the quantity of cloud buyers in what we consider a high-growth tier* (est. $100-500K monthly spend) was more than six times that of Mexico, the next-largest market.
Given Brazil’s significant buying power, cloud providers should continue to invest resources in the country, and reevaluate their priorities if they are currently under-invested.
Brazil: Where the Cloud Market Stands
Brazil’s 2020 nominal GDP was US $1.363 trillion, as shown by data from the International Monetary Fund (IMF). The growing nation is the 83rd country in the world in GDP per capita, coming in at US $6,450 per inhabitant.
While fewer than 1 in 10 Brazilian organizations have an entirely cloud-based business model, roughly 80% of enterprises across industry verticals use cloud computing services in one way or another.
Brazil's Future Cloud Growth
There are a number of factors driving the growth of the cloud computing service market in Brazil. For starters, there's increased adoption of the SaaS model across the country, as well as better scalability and flexibility overall. Additionally, many enterprises are looking for ways to reduce the operating costs associated with IT infrastructure, and more SMEs are continuously updating their cloud services.
Explosive cloud growth will continue across the Brazilian market, but much of it will likely occur in the startup landscape—specifically in industries like finance. Here are a few examples of fast-growing Brazilian finance organizations with noteworthy cloud spend:
Interestingly enough, Nubank raised a whopping $400 million Series G just last month. According to TechCrunch, its $25 million valuation places Nubank as the fourth most valuable institution in Latin America and the largest digital bank in the world by the number of customers and app downloads. With this, we expect their cloud spend to continue to grow rapidly.
To access the full list of over 1,400 Brazilian organizations spending an estimated $100-500K per month on cloud services, contact Intricately today.
Download the 2021 Intricately LATAM Cloud Market Snapshot Now!
Ready to get up to speed on the latest cloud hosting market trends and predictions in Brazil and other countries around the region? Download Intricately’s 2021 LATAM Regional Cloud Market Snapshot today.
If you’re wondering how you can get a customized report for a different region or industry, contact us! We can provide market share analysis for your company, market, or industry.
Let us help you find the next opportunities for cloud vendors within the LATAM market, and beyond. Contact us to learn more.
