TABLE OF CONTENTS. Latin America and the Digital Disruption. Trends shaping the IT Industry in Latin America. Key Considerations and Call to Action

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2 TABLE OF CONTENTS 01 Latin America and the Digital Disruption 02 Trends shaping the IT Industry in Latin America 03 Key Considerations and Call to Action

3 Global Economy: An uncertain

4 The Roadmap for Sustainable Growth Stronger Institutions Sound Economic Strategy Empowered Middle Class Source: World Economic Forum 4

5 The Future is DIGITAL 2 Billion Connected Devices 564 million Fixed Internet users 84% Penetration 665 million Mobile Subscribers 99% Penetration 518 million Mobile internet users 77% Penetration 389 million Smartphone users 58% Penetration 672 Million Population Image Source: F&S Image Library; Source: ITU; CISCO; ERICSSON; GSMA; Frost & Sullivan 5

6 ...And will also be MOBILE Mobile Economy as Percent of GDP, 2025 General Economy 6% Contribution of Mobile to LATAM s GDP $360.3 Billion Related Industries 10% Mobile Network Operators 38% Breakdown of Mobile Economy Mobile Technology 46% Source: Frost Sullivan 6

7 Challenges in the Digital Transformation Journey Top IT Challenges, Latin America Dealing with security threats Ensuring network stability/reliability Aligning IT with business strategies Automating & streamlining business processes Managing multi-vendor solutions Migrating to the cloud Dealing with new regulatory requirements Procuring sufficient IT budget Managing enterprise mobility Legacy systems integration Skills shortage 26.6% 26.2% 25.6% 22.1% 20.7% 19.3% 17.8% 17.4% 35.7% 35.3% 39.3% n=507 n = 507 (2015) 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Source: Frost Sullivan 7

8 Industry executives recognize Forces driving Change Forces Driving Change 36% 27% 18% 12% New, disruptive competitors Digitalization New Business Models Product as a Service Perceived Rate of Industry Change Changing very fast Changing fast 2010 Now Changing at a moderate pace Changing only slowly Not changing at all 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Source: Frost Sullivan 8

9 Vertical Markets are Changing: IT is the Catalyst Industry Digital Transformation Automotive (Car Ownership) Mobility Service Outsourcing Skills as a Service Entertainment (Linear Mass Media) Medicine (Treatment-based) Big Data-based Content Creation Manufacturing (Mass Production) Personalized 3D Printing Wellbeing Businesses must look beyond their core business and focus on radical innovations in how to add value to clients Source: Frost Sullivan 9

10 TABLE OF CONTENTS 01 Latin America and the Digital Disruption 02 Trends shaping the IT Industry in Latin America 03 Key Considerations and Call to Action

11 Cloud Adoption remains Strong in Latin America Public Cloud Market, Latin America Receita (U$ Milhões) Revenue (USD Billion) $ % $ % PaaS 46% IaaS 46% IaaS 51% 51% SaaS SaaS Private Public Hybrid. *Forecasted numbers. Source: Frost Sullivan 11

12 The Keys behind the Adoption SaaS IaaS PaaS ü ShadowIT ü Pure IaaS is becoming a price-driven commodity ü Enables innovation ü SaaS-PaaS integration to facilitate customization ü Managed services is ü PaaS is perceived as the way to gain loyalty of growing developers ü Ease burden for ERP migration ü Hybrid environments will prevail in the future ü Companies in LATAM are still maturing in terms of PaaS investments Source: Frost Sullivan 12

13 Catching up in Mobility 13

14 BYO and the Connected Work environment Focus on Work Results Rather than How, When and Where Mobile BYO Mobile-first Tech Development Wearable technologies IoT People-centric User Experience Flexible Work Practices Work-life Balance Global Talent Sourcing Customer-driven Omni-channel Support Context Awareness Crowd Sourcing CONNECTED WORK Environment-friendly Travel Reduction Remote Working Innovating to Zero Collaborative Multi-modal Conversations Content Collaboration Agile Ubiquitous Connectivity Software-based Solutions Cloud Architectures WebRTC Contextual Single Pane of Glass Persistent Conversations Analytics 14

15 Security continues to rise in Enterprise Priority Source: Frost Sullivan 15

16 Managed Security Services on high demand Managed Security Services Market, Latin America 1, ,125.4 Revenue (USD Million) ü ü Efficient Hardware Fatores demand Compliance Analisados na Escolha de um Provedor de MSS Níveis desla Hosted emerging Managed SIEM Casos de Sucesso e Referência no Mercado. services ü Reputação damarca. Threat detection & remediation Robust mobile security offerings ü Parceiros Tecnológicos e de Negócios. ü Compreensão do seu Negócio e suaestratégia. 16 *Forecasted numbers. Source: Frost & Sullivan

17 Companies are challenged to extract value from data Volume: terabytes to exabytes of data 14% business critical data 32% redundant, obsolete 90% of today s data was created in the last 2 years and trivial data 54% dark data Variety: structured, semi- structured, unstructured data Velocity: data production and consumption within fractions of a second 80% of today s data is unstructured Veracity: imperfect consistency and certainty of data Value: gains generated from data analytics $ 17 Sullivan Source: Veritas, Frost

18 Big Data Analytics, a billionaire opportunity Revenue (USD Billion) 2.5 Big Data Analytics Market, Latin America ü ü Opensource and Predictive Níveis desla. Cloud based and Casos de Sucesso e Referência no Mercado. Prescriptive analytics Drives competitive advantage Data relevance awareness *Includes BDA hardware, software ad services. 18

19 IoT is leading to more Connectivity and Convergence 80 Billion Connected Devices By billion internet users by devices with unique digital IDs per square km by 2020 $100 ZB Big Data By 2020 $100 Billion Embedded Computing Market By 2020 $111 Billion Connected Home Market By 2020 $228 Billion Connected Work Market By 2020 $1.5 Trillion Smart Cities Market By 2020 Source: Frost & Sullivan 19

20 Security concerns when implementing IoT Top Concerns about the Implementation of IoT, Latin America Security risks 54% Automotive Top IoT Opportunities Today: Fleet management Future: Connected cars Managing data protection & privacy Cost of integration Cost of connectivity Time to develop solutions Lack of governance Lack of business case Drowning in Big Data Lack of standards and interoperability n:507 Don't know 2% 24% 22% 22% 22% 35% 32% 40% 44% Opportunity Size, 2016 Manufacture Smart Cities Asset management, Process and Quality control management will account for +60% of IoT applications for manufacture globally Urban mobility, security and electricity will capture most initial investments in Smart Cities Source: Frost & Sullivan 20

21 TABLE OF CONTENTS 01 Latin America and the Digital Disruption 02 Trends shaping the IT Industry in Latin America 03 Key Considerations and Call to Action

22 Companies still need YOUR guidance Understand clients technology/business challenges and goals in order to be as consultative as possible Evangelize and educate IT teams and LoB regarding the multiple combinations of cloud to best fit each company s needs Support companies in developing a holistic cloud strategy that comprises short, mid and long-term business requirements Target CXO executives by focusing on cloud benefits to business rather than solely to IT Source: Frost Sullivan 22

23 Quick Wins in Big Data The exponential growth of data will create a storage problem. Providers should act as advisors, supporting clients in developing data retention and analytics strategies based on data value. BDA providersshould target LoB, leveraging cloud based solutions withuser-friendly interface to help CXOexecutives tap their business objectives. Today, more than 80% of LATAM BDA revenue is generated by Finance, Retail and ICT. In the future other verticals such as Healthcare and Manufacturing will gain traction. Providers with vertical strategies are in best position to succeed in the market. Source: Frost Sullivan 23

24 IoT and the Strategic Choices... Which set of IoT capabilities and features to pursue? Should a company develop the full set of IoT capabilities internally or outsource to partners? What data must be captured, secured and analyzed to maximize the value of the offering? Enter new businesses by monetizing data? 24 Source: Harvard Business Review

25 Success Factors Drive sense of urgency Incremental improvements don t suffice. Think in terms of new business models Innovate to succeed Partnership and Multi-Industries Convergence Disrupt your own business or someone else will! Source: Frost Sullivan 25

26 My dear, here we must run as fast as we can, just to stay in place. And if you wish to go anywhere you must run twice as fast as that. Source: Lewis Carroll, Alice in Wonderland 26

27 Thank You Connect with me on social Juan Manuel González Research Director 27