The State of the Cloud—Latin America, 2025
Description
Since 2010, Frost & Sullivan has conducted an annual survey involving cloud decision-makers in both information technology and business areas. The purpose of this survey is to understand perspectives, choices, and acquisition strategies of organizations worldwide concerning cloud technologies.
In this report, Frost & Sullivan examines and analyzes results from its 2025 survey specifically related to Latin America. The data is derived from respondents operating in the four largest markets in the region: Brazil, Mexico, Argentina, and Colombia.
Key Findings Include:
- Technology adoption continues advancing across Latin America, with cloud now considered essential infrastructure. Organizations are no longer debating adoption, but refining how cloud enables efficiency, agility, and scalable growth.
- Despite accelerating AI adoption, data growth across the region has moderated. Companies are shifting from accumulation toward data efficiency, governance, and value extraction.
- While cloud remains the central foundation of IT for enterprises, AI, automation, and data analytics are growing technology investment priorities. Enterprises are consolidating spend around foundational capabilities that enable AI value and measurable ROI.
- Governance, skills, and operational complexity are now the main barriers to cloud value. Adoption is outpacing organizational readiness, particularly in cost optimization and multi?environment management.
- Cloud cost optimization has become a continuous operational discipline. Automation, rightsizing, and waste reduction are freeing resources to fund AI and innovation initiatives.
- Sustainability is gaining executive attention but faces execution constraints. High costs, limited expertise, and measurement challenges are slowing progress amid rising energy?intensive workloads.
- Reliance on third?party partners remained high in 2024-2025, though it began to level off with the world. Skills gaps, AI enablement, and cloud cost optimization continue to drive the demand for managed service providers.
In this report, Frost & Sullivan examines and analyzes results from its 2025 survey specifically related to Latin America. The data is derived from respondents operating in the four largest markets in the region: Brazil, Mexico, Argentina, and Colombia.
Key Findings Include:
- Technology adoption continues advancing across Latin America, with cloud now considered essential infrastructure. Organizations are no longer debating adoption, but refining how cloud enables efficiency, agility, and scalable growth.
- Despite accelerating AI adoption, data growth across the region has moderated. Companies are shifting from accumulation toward data efficiency, governance, and value extraction.
- While cloud remains the central foundation of IT for enterprises, AI, automation, and data analytics are growing technology investment priorities. Enterprises are consolidating spend around foundational capabilities that enable AI value and measurable ROI.
- Governance, skills, and operational complexity are now the main barriers to cloud value. Adoption is outpacing organizational readiness, particularly in cost optimization and multi?environment management.
- Cloud cost optimization has become a continuous operational discipline. Automation, rightsizing, and waste reduction are freeing resources to fund AI and innovation initiatives.
- Sustainability is gaining executive attention but faces execution constraints. High costs, limited expertise, and measurement challenges are slowing progress amid rising energy?intensive workloads.
- Reliance on third?party partners remained high in 2024-2025, though it began to level off with the world. Skills gaps, AI enablement, and cloud cost optimization continue to drive the demand for managed service providers.
Table of Contents
42 Pages
- Research Objectives and Methodology
- Research Objectives and Methodology
- Respondent Profile
- Key Findings
- Key Findings
- Latin American Businesses Embrace AI and Cloud to Drive Growth
- Businesses Focus on Efficiency to Expand in Latin America
- Cloud Leads the Way in Latin America’s Investment Priorities; AI/ML Follows Suit
- Beyond the Hype: Building the Foundation for Latin America’s AI Future
- From Explosion to Moderation: The 2025 Data Deceleration
- Latin American Companies Shift Strategies with Cloud Adoption
- Latin America's Cloud Adoption is Driving Growth and Global Competitiveness
- Stuck in Neutral: The New Direction in Cloud Transformation
- Latin American Businesses Still Recognize Cloud as the Key to Success
- Legacy Exit: Public and Multi-Cloud Absorption of On-Prem
- Governance and Talent Lag Cloud Investment
- The Dual Mandate: Efficiency and Innovation Drive Cloud Adoption
- Staff Familiarity and Performance Drive Legacy Systems
- Businesses See Cost Optimization as a Continuous Effort
- Sustainability Drives Innovation and Competitiveness in Latin American Businesses
- ESG Practices Gain Ground as Sustainability Becomes Central to Business Strategy
- Costs and Operational Bottlenecks Hinder Sustainability Efforts in Latin America
- Latin America’s Growing Use of Third-Party Partners
- Latin American Businesses’ Reliance on MSPs is Expected to Decline
- Cloud Cost Optimization and AI Initiatives Lead Reasons for MSP Collaboration in Latin America
- Appendix
- Growth Opportunities Fuel the Growth Pipeline Engine™
- Why is it Increasingly Difficult to Grow?
- The Strategic Imperative 8™
- Benefits and Impacts of Growth Opportunities
- Next Steps
- Legal Disclaimer
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