The Latin America microenterprise and small to midsize enterprise (SME) cloud services market is estimated to reach $1.9bn in 2012. While this segment represents 42% of the overall market in US dollar terms, it accounts for 99 of every 100 businesses in Latin America. The market is forecast to grow at a CAGR of 38% in the 2011-2017 period, to reach $12.7bn by 2017.
The results of this study helped us conclude that the SME segment in Latin American is still not well served by telcos or the cloud service providers. Pyramid Research believes that there is an opportunity for Latin American telcos to capitalize on the SME market primarily because they own the relationship with a critical mass of SME customers in the region, among other reasons. Traditionally, telcos have dominated the SME market for telecom, as opposed to the IT and OTT service providers. When it comes to cloud services, telcos are in a vulnerable position due to strong competition from well-established IT service providers, OTTs and independent software vendors (ISVs).
In the report, we provide a close look at the competitive cloud services offerings for the SME segment in seven selected countries in Latin America. Our diagnosis has helped us identify four market trends that are likely to evolve in the next five years:
Trend #1: Telcos and cloud service provides (IT service providers, OTT providers, independent software vendors and cloud aggregators/brokers) will coexist.
Trend #2: The Latin American SME cloud services market will consolidate. Strategic alliances between market players will continue emerge, and telcos will spin out their cloud services divisions.
Trend #3: SME cloud services will converge and will evolve from a horizontal to a vertical focus.
Trend #4: The cloud aggregator/broker model will become mainstream in Latin America.
How Latin American Telcos Are Tackling the SME Cloud Opportunity is part of Pyramid’s thematic report series. A blend of primary research and qualitative analysis, Pyramid’s research reports offer comprehensive coverage of the fixed and mobile communications space and enable those in the communications industry to stay ahead of changing market dynamics. For more information about this report, please contact us via email at info@pyr.comor telephone at + 1 ( 617) 747-4100
