GenAI and Tight Budgets Fuel Cloud Services Demand in Brazil

As generative AI (GenAI) adoption surges in Brazil, enterprises are turning to cloud services to harness the power of this transformative technology while managing tight budgets. According to the 2024 ISG Provider Lens™ Multi Public Cloud Services report for Brazil, the growing demand for cloud services is driven by the need for secure, scalable platforms to train and deploy GenAI models.

The report highlights several use cases that are driving cloud services demand in Brazil:

1. Automation of routine administrative tasks: Companies are using GenAI to process and analyze large volumes of data, enabling them to make better decisions faster. This includes applications like automated testing and code refactoring.
2. Creation of chatbots and virtual assistants: Enterprises are implementing chatbots and virtual assistants to improve interactions with customers, providing personalized and efficient customer service.
3. Application modernization: To boost operational efficiency, reduce maintenance costs, and gain agility, companies are working with service providers on application migration to the cloud. This includes mainframe modernization, which can involve migration to cloud architectures.
4. Data modernization projects: Organizations are pursuing data modernization projects using cloud-based analytics, with an eye toward better AI implementations. This often involves moving incomplete, isolated, low-quality data into high-quality structured databases for AI-enabled applications.
5. Cost optimization: As their cloud needs grow with GenAI and other emerging applications, some companies are re-evaluating their cloud strategies to balance investment with value. AWS partners are helping clients implement FinOps practices to better predict costs and identify savings opportunities. Demand for GreenOps, which optimizes IT resources to reduce environmental impact, is also expected to grow.



Cloud consulting and transformation providers are playing a crucial role in helping Brazilian enterprises navigate the complexities of GenAI implementation while maintaining cost efficiency. These providers offer various services, such as strategy and consulting services, development and deployment services, data governance services, FinOps services, and cloud optimization. By leveraging the expertise of these providers, Brazilian companies can effectively optimize their cloud environments for GenAI while managing tight budgets.

In conclusion, the growing adoption of generative AI in Brazil is significantly impacting the demand for cloud services, as enterprises seek secure, scalable platforms for training and deploying GenAI models. Cloud consulting and transformation providers are essential in helping Brazilian companies address the challenges of GenAI implementation while maintaining cost efficiency. As the demand for cloud services continues to grow, Brazilian enterprises can expect to see further innovation and investment in the cloud services market.