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The search for more flexible IT will make topics such as artificial intelligence, cloud, IoT, data management and SD-WAN more relevant
Investments in ICT are expected to grow by 4.9% in 2019 in Brazil, an index that reflects the market's optimism for the year. The biggest growth – 10.5% – will be in IT, still on account of digital transformation processes, movements to replace technologies and the sale of PCs, tablets, smartphones, printers and other devices. Without the devices, the IT market would grow by 6.8%. Telecom, on the other hand, will suffer a decrease of 0.3%, basically caused by the transition from voice to data and by billing models that are no longer used. These are some of the conclusions of the IDC Predictions Brazil 2019 study, carried out by IDC Brazil, a leader in market intelligence, consulting services and conferences with the Information Technology and Telecommunications industries.
“The market dynamics have changed, which tends to limit the growth rate in the coming years”, says Pietro Delai, Consulting and Research Manager at IDC Brazil. But, according to him, the market is maturing, with technology areas interacting more with business areas and spending better, doing more with less. “The business areas will put more pressure on IT not simply because of the cost, but to pay for what they actually use, demanding more dynamism from IT”, believes the manager of IDC Brazil.
Check out the top 10 trends in the IT and Telecom sector for 2019, according to IDC Brazil:
1 – Information Security – advances with intelligent solutions and managed services.
Investments in AI and machine learning for security are expected to reach US$ 671 million. The reason is the prevention of ransomware attacks and compliance with the General Law for the Protection of Personal Data, which comes into force in August 2020. “Ransomware attacks, such as WannaCry, have wreaked havoc very close to the reality of large companies. This forced CIOs to pay extra attention to information security”, explains Luciano Ramos, Research and Consulting Manager for Software and Services. For IDC Brazil, in 2019, the trend is the use of smart solutions, such as NextGen, which should grow twice as fast as traditional solutions, and the continued adoption of managed services (MSS), a segment in which expenses will exceed US$ 548 million in 2019.
2 – AI – increases pace of adoption.
In the Artificial Intelligence sector, IDC's projection is that global investments will reach US$ 52 billion by 2021. In the country, 15.3% of medium and large companies already have technology among their main initiatives and this percentage should double in the next few years. four years. The areas with the greatest growth potential are linked to customer service, fraud analysis and investigation, IT automation, diagnostics and healthcare. By 2022, the forecast for AI usage is 20% of companies using voice technologies to interact with customers, and by 2024, AI and process automation interfaces are expected to replace one-third of application screen interfaces.
3 – Big Data & Analytics – data management continues to challenge.
The data management market (big data & analytics) is expected to move US$ 4.2 billion in 2019 in Brazil. “The use cases that will be most attractive in this period are: 360° customer management, extended supply chain planning and business operation automation”, explains Luciano Ramos, Research and Consulting Manager for Software and Services at IDC Brazil.
4 – Public Cloud maintains strong growth rate until 2022.
The public cloud segment in Brazil could reach US$ 2.6 billion in 2019, growing 35% annually to reach US$ 6.5 billion in 2022. “The Brazilian market has a lot of room to expand, because despite the increase in cloud usage public, the country is still between the 12th and 13th position in the world”, explains Pietro Delai, Consulting and Research Manager at IDC Brazil.
5 – IoT, still unregulated, grows.
The IoT segment should move US$ 745 billion worldwide in 2019, with the potential to exceed the US$ 1 trillion mark in 2022, driven mainly by contributions from the industrial sector and retailers. In Brazil, it is estimated that the sector will have contributions of US$ 9 billion this year, driven by applications in agribusiness, health and the provision of public services, and grow above 20% annually until 2022. “The National IoT Plan has not yet was signed and the bill that simplifies taxation is still pending in Congress. Despite this, the market implements several IoT projects and the BNDES itself is already opening financing”, explains Pietro Delai, Consulting and Research Manager at IDC Brazil.
6 – Modern architectures and DevOps will accelerate application development, leveraged by cloud demands.
According to IDC Brazil, only one in three solutions is ready for the cloud, and the platform as a service (PaaS) market is expected to increase by 40% by the end of this year. The sector is expected to invest US$ 425 million in 2019 in Brazil. “The benefits of the cloud for the development of software solutions are already evident for companies. However, projects in traditional architecture still predominate, even though most of these already run in the form of infrastructure as a service (IaaS). We will see the acceleration of cloud-related architectures, with greater use of containers and Serverless Computing, which save resources and reduce implementation time, supported mainly by providers of tailored solutions”, explains Luciano Ramos, Research and Consulting Manager for IDC Brazil Software and Services.
7 – Devices will represent 38% of IT investments.
The increase in the IT market in 2019, according to IDC Brasil, is directly linked to sales of smartphones, tablets and PCs. The device market will move US$ 24.5 billion, representing 38% of all IT investment in 2019, adding up the B2B and B2C sectors. Revenue from smartphone sales is the highlight of this growth, which should increase by 18%, but the performance in number of units will be weaker (+0.1%). “Contrary to what happens in several countries, Brazilians are willing to pay more for new products”, explains Reinaldo Sakis, Research and Consulting Manager for Consumer Devices. The price of a smartphone, according to him, could reach R$ 10 thousand this year. Sakis also revealed that the device market as a whole, being PCs, smartphones, tablets, feature phones, printers, etc, in B2B, will represent 10% in 2019 with the option of more as-a-service sales for companies.
8 – Regional providers consolidate strong participation in the broadband market.
Regional providers will gain space in 2019, representing a quarter of fixed broadband connections in the country. “The movement is the result of investments in fiber optics and expansion in areas little explored by large operators”, explains André Loureiro, IDC Brazil Research and Consulting Manager. The market share of regional providers will increase by 5 percentage points in 2019, surpassing the 25% share of fixed broadband connections. “It is a market that will have more variety of products for the B2B segment, more projects, such as IoT, more added value and revenue”, he evaluates. Another important point for the sector is the professionalization of mergers and acquisitions, with investment funds looking at companies in this field. Regarding the B2C segment, the analyst points out that growth will be strong in fixed broadband.
9 – 2019 will be the year of SD-WAN consolidation in the Brazilian market.
For the SD-WAN market, expectations are above average. According to IDC Brasil, in 2019, more than 40% of large companies in the country will use SD-WAN. “The big opportunity is managed services, mainly for operators and integrators. SD-WAN still has low maturity here, but CIOs already understand that the improvements that technology can cause in the customer experience can be an enabler of new projects”, comments André Loureiro, IDC Research and Consulting Manager. Brazil. He also points out the increase in the diversity of the competitive ecosystem in this segment for this year.
10 – Managed services leverage the journey to flexible IT.
According to IDC Brasil, Brazilian companies are moving towards flexible IT, not only from the operational point of view, but also in terms of costs. “Mainly the cloud, with cloud solutions, IoT and other applications, security services, devices in the Hardware-as-a-Service modality, among others, are tools to achieve this goal”, explains Pietro Delai, Consulting and Research Manager at IDC Brazil.
“The market dynamics have changed, which tends to limit the growth rate in the coming years”, says Pietro Delai, Consulting and Research Manager at IDC Brazil. But, according to him, the market is maturing, with technology areas interacting more with business areas and spending better, doing more with less. “The business areas will put more pressure on IT not simply because of the cost, but to pay for what they actually use, demanding more dynamism from IT”, believes the manager of IDC Brazil.
Check out the top 10 trends in the IT and Telecom sector for 2019, according to IDC Brazil:
1 – Information Security – advances with intelligent solutions and managed services.
Investments in AI and machine learning for security are expected to reach US$ 671 million. The reason is the prevention of ransomware attacks and compliance with the General Law for the Protection of Personal Data, which comes into force in August 2020. “Ransomware attacks, such as WannaCry, have wreaked havoc very close to the reality of large companies. This forced CIOs to pay extra attention to information security”, explains Luciano Ramos, Research and Consulting Manager for Software and Services. For IDC Brazil, in 2019, the trend is the use of smart solutions, such as NextGen, which should grow twice as fast as traditional solutions, and the continued adoption of managed services (MSS), a segment in which expenses will exceed US$ 548 million in 2019.
2 – AI – increases pace of adoption.
In the Artificial Intelligence sector, IDC's projection is that global investments will reach US$ 52 billion by 2021. In the country, 15.3% of medium and large companies already have technology among their main initiatives and this percentage should double in the next few years. four years. The areas with the greatest growth potential are linked to customer service, fraud analysis and investigation, IT automation, diagnostics and healthcare. By 2022, the forecast for AI usage is 20% of companies using voice technologies to interact with customers, and by 2024, AI and process automation interfaces are expected to replace one-third of application screen interfaces.
3 – Big Data & Analytics – data management continues to challenge.
The data management market (big data & analytics) is expected to move US$ 4.2 billion in 2019 in Brazil. “The use cases that will be most attractive in this period are: 360° customer management, extended supply chain planning and business operation automation”, explains Luciano Ramos, Research and Consulting Manager for Software and Services at IDC Brazil.
4 – Public Cloud maintains strong growth rate until 2022.
The public cloud segment in Brazil could reach US$ 2.6 billion in 2019, growing 35% annually to reach US$ 6.5 billion in 2022. “The Brazilian market has a lot of room to expand, because despite the increase in cloud usage public, the country is still between the 12th and 13th position in the world”, explains Pietro Delai, Consulting and Research Manager at IDC Brazil.
5 – IoT, still unregulated, grows.
The IoT segment should move US$ 745 billion worldwide in 2019, with the potential to exceed the US$ 1 trillion mark in 2022, driven mainly by contributions from the industrial sector and retailers. In Brazil, it is estimated that the sector will have contributions of US$ 9 billion this year, driven by applications in agribusiness, health and the provision of public services, and grow above 20% annually until 2022. “The National IoT Plan has not yet was signed and the bill that simplifies taxation is still pending in Congress. Despite this, the market implements several IoT projects and the BNDES itself is already opening financing”, explains Pietro Delai, Consulting and Research Manager at IDC Brazil.
6 – Modern architectures and DevOps will accelerate application development, leveraged by cloud demands.
According to IDC Brazil, only one in three solutions is ready for the cloud, and the platform as a service (PaaS) market is expected to increase by 40% by the end of this year. The sector is expected to invest US$ 425 million in 2019 in Brazil. “The benefits of the cloud for the development of software solutions are already evident for companies. However, projects in traditional architecture still predominate, even though most of these already run in the form of infrastructure as a service (IaaS). We will see the acceleration of cloud-related architectures, with greater use of containers and Serverless Computing, which save resources and reduce implementation time, supported mainly by providers of tailored solutions”, explains Luciano Ramos, Research and Consulting Manager for IDC Brazil Software and Services.
7 – Devices will represent 38% of IT investments.
The increase in the IT market in 2019, according to IDC Brasil, is directly linked to sales of smartphones, tablets and PCs. The device market will move US$ 24.5 billion, representing 38% of all IT investment in 2019, adding up the B2B and B2C sectors. Revenue from smartphone sales is the highlight of this growth, which should increase by 18%, but the performance in number of units will be weaker (+0.1%). “Contrary to what happens in several countries, Brazilians are willing to pay more for new products”, explains Reinaldo Sakis, Research and Consulting Manager for Consumer Devices. The price of a smartphone, according to him, could reach R$ 10 thousand this year. Sakis also revealed that the device market as a whole, being PCs, smartphones, tablets, feature phones, printers, etc, in B2B, will represent 10% in 2019 with the option of more as-a-service sales for companies.
8 – Regional providers consolidate strong participation in the broadband market.
Regional providers will gain space in 2019, representing a quarter of fixed broadband connections in the country. “The movement is the result of investments in fiber optics and expansion in areas little explored by large operators”, explains André Loureiro, IDC Brazil Research and Consulting Manager. The market share of regional providers will increase by 5 percentage points in 2019, surpassing the 25% share of fixed broadband connections. “It is a market that will have more variety of products for the B2B segment, more projects, such as IoT, more added value and revenue”, he evaluates. Another important point for the sector is the professionalization of mergers and acquisitions, with investment funds looking at companies in this field. Regarding the B2C segment, the analyst points out that growth will be strong in fixed broadband.
9 – 2019 will be the year of SD-WAN consolidation in the Brazilian market.
For the SD-WAN market, expectations are above average. According to IDC Brasil, in 2019, more than 40% of large companies in the country will use SD-WAN. “The big opportunity is managed services, mainly for operators and integrators. SD-WAN still has low maturity here, but CIOs already understand that the improvements that technology can cause in the customer experience can be an enabler of new projects”, comments André Loureiro, IDC Research and Consulting Manager. Brazil. He also points out the increase in the diversity of the competitive ecosystem in this segment for this year.
10 – Managed services leverage the journey to flexible IT.
According to IDC Brasil, Brazilian companies are moving towards flexible IT, not only from the operational point of view, but also in terms of costs. “Mainly the cloud, with cloud solutions, IoT and other applications, security services, devices in the Hardware-as-a-Service modality, among others, are tools to achieve this goal”, explains Pietro Delai, Consulting and Research Manager at IDC Brazil.
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