Brazilian Firms Seek Hybrid Clouds for AI, Cost Savings

Companies diversify infrastructure for consistent environments that balance efficiency, speed, security, ISG Provider Lens^® report says

SÃO PAULO--(BUSINESS WIRE)-- Demand for hybrid cloud services and consulting is rising in Brazil as enterprises modify their infrastructure for efficiency, security and performance, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.

The 2025 ISG Provider Lens^® Private/Hybrid Cloud — Data Center Services report for Brazil finds that companies are exploring alternatives to public clouds, including private clouds and colocation services, with many opting for hybrid approaches. Growing interest in generative AI is accelerating this transition as enterprises consider the technology’s significant computing and connectivity requirements. Many organizations struggle to estimate the full costs of large language models (LLMs) and lack the tools to control resource consumption by AI users.

“As enterprises learn the strengths and limitations of public clouds for AI and other applications, there is growing interest in other options,” said Anay Nawathe, ISG cloud delivery lead for the Americas. “Managed hosting providers are helping clients establish a consistent environment for all workloads.”

Optimizing infrastructure spending is a high priority for Brazilian companies, ISG says. Building well-integrated hybrid architectures allows them to migrate workloads to the most efficient platform. Enterprises are now “repatriating” some functions from public clouds to cloud-connected hosting or colocation facilities for this purpose.

Companies in Brazil are using public cloud infrastructure for GenAI proofs of concept but finding it too expensive for full-scale implementations, ISG says. They are now considering ways to run GenAI on hybrid architectures to minimize cost of ownership while preserving privacy and confidentiality. Providers of hybrid cloud design are helping a growing number of enterprises making this transition.

To move data quickly among distributed workloads, companies in Brazil are seeking secure, low-latency connections across hybrid environments, ISG says. Providers are responding to this demand with security tools, software-defined networking (SDN) and infrastructure as code. Colocation companies offer private direct connections that let clients transfer data among colocation facilities, hosting services and public clouds without going over the Internet.

The colocation market in Brazil and neighboring countries is growing, driven by a rising need for digital services that is fueled partly by AI, the report says. Brazilian colocation providers are building facilities across Latin America to host graphics processing units (GPUs) for AI and LLMs. Within Brazil, the vast distances between major cities are forcing colocation firms to develop low-latency SDN connections.

“Enterprises want GenAI to both increase revenue and reduce costs,” said Pedro L. Bicudo Maschio, lead author of the report. “Latin America’s cloud infrastructure is growing and maturing to turn these goals into reality.”

The report also examines other cloud trends affecting Brazilian organizations, including rising interest in alternatives to VMware for managed hosting and increasing demand among small and midsize enterprise for tested use cases of cloud-based LLMs.

For more insights into hybrid cloud-related challenges facing companies in Brazil, plus ISG’s advice for overcoming them, see the ISG Provider Lens^® Focal Points briefing here.

The 2025 ISG Provider Lens^® Private/Hybrid Cloud — Data Center Services report for Brazil evaluates the capabilities of 50 providers across five quadrants: Managed Services — Large Accounts, Managed Services — Midmarket, Managed Hosting, Colocation Services and AI-Ready Infrastructure Consulting.

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

In addition, Atos and Central Server are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

Customized versions of the report are available from Ascenty, DataEnv, Elea Data Centers, Scala Data Centers, Skynova, Takoda and Under.

In the area of customer experience, Persistent Systems is named the global ISG CX Star Performer for 2025 among private/hybrid cloud data center service providers. Persistent Systems 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.

The 2025 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 detailed data and market analysis 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 (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250730007548/en/

Laura Hupprich, ISG

+1 203 517 3132

laura.hupprich@isg-one.com



Thábata Mondoni, Mondoni Press for ISG

Mobile: +55 11 98671 5652

thabata@mondonipress.com.br

Source: Information Services Group, Inc.