Brazilian enterprises are rapidly increasing their demand for hybrid cloud services and consulting, according to a new research report from the Information Services Group (ISG), a global leader in AI-driven technology advisory. As organizations strive for greater efficiency, performance, and security, they are actively restructuring their infrastructure strategies.
In response to the limitations of public cloud platforms especially in AI-heavy environments businesses are now seeking alternatives like private cloud and colocation services. This trend has fueled a broader move toward hybrid cloud models, where managed hosting providers play a key role in creating uniform environments for diverse workloads.
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The 2025 ISG Provider Lens Private/Hybrid Cloud Data Center Services report shows that the growing excitement around generative AI is speeding up this shift.. Many companies struggle with the high costs and unpredictable resource usage tied to large language models (LLMs), making public cloud less viable at scale. As a result, firms are turning to hybrid approaches to manage expenses while maintaining privacy and performance.
Moreover, Brazilian enterprises are not just experimenting with GenAI in public cloud settings they are now repatriating certain functions to hybrid or colocation environments to better control cost and compliance. This shift reflects a growing desire to optimize infrastructure spending and achieve operational agility.
In order to support distributed workloads, companies increasingly demand secure, low-latency connectivity across hybrid platforms. Colocation providers are stepping in to deliver direct, private links that bypass the public internet offering faster, safer data transfers. These providers are also investing heavily in infrastructure, particularly in GPU-equipped data centers across Latin America, to meet the growing AI demand.
Notably, the ISG report recognizes industry leaders such as Edge UOL, Equinix, Kyndryl, and T-Systems for excelling across multiple service categories. It also highlights rising stars like Atos and Central Server for their promising portfolios.
Pedro L. Bicudo Maschio, the lead author of the report, pointed out, “Businesses are looking to GenAI not just to boost their revenue but also to cut costs. Latin America’s cloud infrastructure is evolving quickly to meet those expectations.”
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The report also underscores new trends such as small and midsize businesses adopting tested cloud-based LLM use cases and exploring non-VMware options for managed hosting.
FAQs
1. What is a hybrid cloud, and why are Brazilian companies adopting it?
A hybrid cloud combines public and private cloud environments to provide flexibility, security, and cost-efficiency. Brazilian companies are adopting it to run AI workloads effectively while controlling operational costs and ensuring data privacy.
2. How does a private cloud differ from a public cloud?
A private cloud is a dedicated cloud environment exclusively used by one organization, offering higher levels of security and customization. In contrast, a public cloud is shared across multiple users. Private clouds work best for businesses that have strict compliance rules or need top-notch performance.
3. What are the advantages of using colocation services in a hybrid cloud setup?
Colocation services offer physical space, power, and cooling for enterprise hardware in third-party data centers. In a hybrid cloud, this setup enables secure, low-latency data transfer between private infrastructure and public cloud environments without relying on the public internet.
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