This is the next IT trend in Latin America for a post-Covid era

Contxto – Coronavirus is changing the way businesses operate. Not just by fostering for more remote work (though we’re all grateful for that). Covid-19 is also pushing the boundaries towards greater cloud-computing adoption in Latin America.

Why it’s a big deal: Using this type of service will lead to more scalable projects which bodes for a future with more efficient tech and apps.

But first the ecosystem will have to weather the current storm.

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Things are looking cloudy

At the moment, the IT outlook in Latam is a rather somber one.

According to consulting firm, IDC, 53 percent of businesses in the region will reduce their spending in IT during the second quarter of 2020. Companies also told IDC that they expect six to 11 months to pass by before they can get back on track with their original plans.

That entails a reduction in consuming Software as a Service (SaaS) or Infrastructure as a Service (IaaS) products, as well as less employment for IT professionals.

Although once a more relative level of stability in Latin America is achieved, things will change.

• Related article: AWS tags US$235 million to expand its cloud infrastructure in Latin America

Post-Covid tech trends

For IDC, one of the biggest trends in IT in a post-Covid world will be hybrid cloud computing.

“Cloud suppliers will have more influence over data centers and businesses will increase their use of the public cloud during the pandemic so as to leverage its flexibility and scalability,” observed Alejandro Floreán, VP of Consulting and Enterprise Research for Latin America.

That of course will entail a larger need for cloud-based security solutions.

Terminology cheat sheet

• Public cloud: are shared cloud services carried out over the public internet. Though the name says “public” users cannot actually see or access one another’s content on the cloud.
  
• Private cloud: these services are not shared with parties outside of an organization. It can often take the form of a company’s intranet or hosted data center. 
  
• Hybrid cloud: a mishmash of the previous two.

All this cloud hubbub bodes a promisingly profitable opportunity for providers like Google, AWS, and Microsoft Azure.

These behemoths have been laying down data centers and cloud infrastructure in multiple parts of the region for quite some time. So in a year or so they’ll begin to see a return on their investment.

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-ML