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Contxto Coronavirus is changing the way businesses operate. Not just by fostering for more remote work (though were all grateful for that). Covid-19 is also pushing the boundaries towards greater cloud-computing adoption in Latin America.

Why its a big deal: Using this type of service will lead to more scalable projects which bodes for a future with more efficient tech and apps.

But first the ecosystem will have to weather the current storm.

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At the moment, the IT outlook in Latam is a rather somber one.

According to consulting firm, IDC, 53 percent of businesses in the region will reduce their spending in IT during the second quarter of 2020. Companies also told IDC that they expect six to 11 months to pass by before they can get back on track with their original plans.

That entails a reduction in consuming Software as a Service (SaaS) or Infrastructure as a Service (IaaS) products, as well as less employment for IT professionals.

Although once a more relative level of stability in Latin America is achieved, things will change.

For IDC, one of the biggest trends in IT in a post-Covid world will be hybrid cloud computing.

Cloud suppliers will have more influence over data centers and businesses will increase their use of the public cloud during the pandemic so as to leverage its flexibility and scalability, observed Alejandro Floren, VP of Consulting and Enterprise Research for Latin America.

That of course will entail a larger need for cloud-based security solutions.

All this cloud hubbub bodes a promisingly profitable opportunity for providers like Google, AWS, and Microsoft Azure.

These behemoths have been laying down data centers and cloud infrastructure in multiple parts of the region for quite some time. So in a year or so theyll begin to see a return on their investment.

Related articles: Tech and startups from Mexico!

-ML

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Cloud computing to surge in Latin America once Covid-19 lays off - Contxto