Nearshore Americas

Report: LATAM Cloud Traffic to Grow 31% By 2017

Cloud traffic in Latin America will grow by 31%over the next four years, surging to 298 exabytes in 2017, according to Cisco’s Third Global Cloud Index. The increasing number of data centers is the main driver of growth in the LATAM cloud market, and the significant use of YouTube and Google Drive is also contributing greatly.

Earlier reports say that cloud market in the region is growing at a CAGR of 50%, with Brazil accounting for 50% of investment in cloud-related infrastructure.

“People all over the world continue to demand the ability to access personal, business and entertainment content anywhere on any device, and each transaction in a virtualized, cloud environment can cause cascading effects on the network,” said Doug Merritt, Senior Vice President, Product and Solutions Marketing, Cisco. “Because of this continuing trend, we are seeing huge increases in the amount of cloud traffic within, between and beyond data centers over the next four years.”

Approximately 17% of data center traffic will be fueled by end users accessing clouds for web surfing, video streaming, collaboration and connected devices, says Cisco. The forecast becomes increasingly important as the network and data center become more intrinsically linked in offering cloud services.

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Globally, nearly two-thirds or 63% of workloads will be processed by cloud data centers by 2017 and 37% will be processed by traditional data centers, says the networking giant. In Latin America, according to Cisco, fixed networks can support advanced cloud applications, but mobile networks can only support basic cloud applications.

Narayan Ammachchi

News Editor for Nearshore Americas, Narayan Ammachchi is a career journalist with a decade of experience in politics and international business. He works out of his base in the Indian Silicon City of Bangalore.

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