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Mexico is the second largest Infrastructure as a Service (IaaS) market in Latin America, behind Brazil; and is responsible for approximately 23% of the region’s market revenues in 2019, according to Frost & Sullivan estimates. However, a few characteristics specific to Mexico have hindered cloud adoption in the last couple of years—although, Frost & Sullivan believes that won’t be the case for long.Mexico has the most concentrated data communications market in Latin America, with over half of the market revenues from the incumbent Telmex. This acts as a barrier to lower connectivity prices, as well as to competition; which means few incentives to improve the quality of service, contributing to the high unreliability of networks connecting to cloud data centers.Additionally, Mexico boasts a high percentage of family businesses. Ninety percent of Mexican companies are family businesses, representing over 62% of the country’s GDP, and 70% of its jobs. How does this impact technology adoption? In this report, we take a look at the Mexican cloud market up close. Using data from the 2019 Latin America Cloud Survey of IT decision-makers, primary research with leading cloud service providers and macroeconomic indicators, we analyze the country’s current mindset and particulars around cloud adoption. Finally, we discuss opportunities for both providers and end-users.
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