Are Brazilian Enterprises Ready for the GenAI Cloud Transformation?

Brazilian enterprises are increasingly turning to public cloud services to support their digital transformation efforts. Major hyperscale cloud providers, such as Amazon Web Services (AWS), Microsoft Azure, Google Cloud, and Oracle, have significantly expanded their partner networks within Brazil. These partnerships aim to educate users on artificial intelligence (AI), data analytics, and GenAI. This educational thrust is crucial as enterprises seek expertise in harnessing GenAI amidst stringent budget constraints.

Despite the enthusiasm for GenAI, only a limited number of Brazilian companies have deployed this technology beyond basic functionalities like chatbots. Current applications primarily involve the use of GenAI-powered chat agents to augment customer support and the application of semantic search within internal teams to expedite decision-making processes. These early applications underscore GenAI’s potential utility beyond initial use cases but also highlight the challenges that need to be overcome before broader adoption can be realized.

The Role of Cloud Consulting and Transformation Services

To meet these challenges, Brazilian firms are increasingly engaging with cloud consulting and transformation service providers. These providers assist enterprises in constructing optimized cloud environments that deliver on performance, cost efficiency, and data sovereignty. Consulting providers play a pivotal role in guiding companies through immediate digital transformation needs while laying out comprehensive long-term road maps.

Additionally, GenAI’s introduction within enterprise environments results in heightened cloud resource consumption and intricate implementation and maintenance demands. Consequently, there is a growing need for managed service providers to offer robust technical support and cloud infrastructure management. FinOps services and cloud optimization efforts are becoming focal points for organizations, ensuring financial control and governance in multi-cloud environments. These services are critical to maintaining cost efficiency over the long term.

Managed Services and Financial Optimization

Through the engagement of managed services, enterprises aim to address GenAI-related operational and financial challenges. Service providers are expected to broaden their offerings to include monitoring GenAI usage, ensuring security and privacy, and assessing different GenAI options across various cloud platforms. This expanded scope of managed services aligns with the objective of optimizing the utilization of advanced AI technologies.

The ISG report identifies key leaders in the Brazilian public cloud services market across different service segments. Accenture, Capgemini, Dedalus, Kyndryl, Skyone, and TIVIT are recognized as leaders in three different service quadrants. AWS, Microsoft, V8.Tech, and Wipro are noted as leaders in two quadrants, while Oracle, T-Systems, and Unisys are named leaders in one quadrant each. Moreover, Stefanini has been highlighted as a Rising Star for its promising service portfolio and future potential in one quadrant. The report also mentions that customized versions of these insights are available from AWS, TIVIT, and Unisys.

Customer Experience and Market Trends

Moreover, in the customer experience arena, Persistent Systems has been named the global ISG CX Star Performer for 2024 among public cloud service providers. This recognition is based on ISG’s Voice of the Customer survey, which is part of the ISG Star of Excellence™ program. Persistent Systems achieved the highest customer satisfaction scores, reflecting its standout performance in the technology and business services industry.

The report delves into additional trends affecting public cloud adoption in Brazil, such as the increasing interest in data sovereignty. This particular issue aligns with the broader global concerns over control and protection of data across borders. The trend toward on-premises cloud appliances is also discussed, as it influences demand for SAP S/4HANA infrastructure services. The nuanced needs for data compliance and control within the Brazilian market play a significant role in shaping cloud service strategies and investments.

Comprehensive Evaluation of Service Providers

The research report titled “2024 ISG Provider Lens™ Multi Public Cloud Services for Brazil,” published by Information Services Group (ISG), sheds light on the significant trend of Brazilian enterprises increasingly investing in public cloud services. This investment surge is largely driven by the dual objective of supporting generative AI (GenAI) capabilities and reducing IT costs. ISG, a prominent global technology research and advisory firm, observes that the growing adoption of public cloud services in Brazil mirrors global trends. The trend is significantly propelled by the prioritization of GenAI initiatives across numerous industries. Brazilian companies are not just looking at public cloud services to cut down on costs but also to enhance their technological infrastructure to stay competitive in a rapidly evolving market. Additionally, with the adoption of GenAI, companies in Brazil are exploring new ways to streamline operations, innovate, and achieve faster time-to-market for new products and services. This strategic shift is aligning Brazil with global advancements in technology.

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