ISG Providerlens™ Quadrant Report

Home , DXC Technology

Private/Hybrid Cloud - Data A research report comparing provider Center Services & Solutions strengths, challenges Brazil 2019 and competitive differentiators

Quadrant Report

Customized report courtesy of: July 2019 ISG Provider Lens™ Quadrant Report | July 2019 Section Name About this Report

Information Services Group Inc. is solely responsible for the content of this report. Un- ISG Provider Lens™ delivers leading-edge and actionable research studies, reports less otherwise cited, all content, including illustrations, research, conclusions, assertions and consulting services focused on technology and service providers’ strengths and and positions contained in this report were developed by, and are the sole property of weaknesses and how they are positioned relative to their peers in the market. These Information Services Group Inc. reports provide influential insights accessed by our large pool of advisors who are The research and analysis presented in this report include research from the ISG actively advising outsourcing deals as well as large numbers of ISG enterprise clients Provider Lens™ program, ongoing ISG Research programs, interviews with ISG advisors, who are potential outsourcers. briefings with services providers and analysis of publicly available market information from multiple sources. The data collected for this report represents information that For more information about our studies, please email [email protected], ISG believes to be current as of May 2019, for providers who actively participated as call +49 (0) 561-50697537, or visit ISG Provider Lens™ under ISG Provider Lens™. well as for providers who did not. ISG recognizes that many mergers and acquisitions have taken place since that time, but those changes are not reflected in this report.

All revenue references are in U.S. dollars ($US) unless noted.

The lead authors for this report are Pedro Luís Bicudo Maschio and Shashank Rajmane. The editor is Jan Erik Aase. The research analyst is Abhilash C Ramadas and the data ISG Research™ provides subscription research, advisory consulting and executive analyst is Vijayakumar Goud. event services focused on market trends and disruptive technologies driving change in business computing. ISG Research™ delivers guidance that helps businesses accelerate growth and create more value.

For more information about ISG Research™ subscriptions, please email [email protected], call +49 (0) 561-50697537 or visit research.isg-one.com.

4 Introduction © 2019 Information Services Group, Inc. All rights reserved. 12 Managed Services for Large Accounts Reproduction of this publication in any form without prior 27 Managed Services for Midmarket permission is strictly prohibited. Information contained in this report is based on the best available and reliable resources. 39 Managed Hosting Opinions expressed in this report reflect ISG’s judgment at the 47 Managed Containers as a Service (CaaS) time of this report and are subject to change without notice. ISG has no liability for omissions, errors or completeness of 56 Managed Security Services information in this report. ISG Research™ and ISG Provider Lens™ are trademarks of Information Services Group, Inc. 66 Colocation Services

72 Methodology ISG Provider Lens™ Quadrant Report | July 2019 Section Name Executive Summary ExecutiveEXECUTIVE Summary SUMMARY Managed Services Trends

Over the past year, business enterprises have been witnessing a growing shift from pushing their sales through new partnerships. These newcomers, however, are not able traditional data center outsourcing to hybrid cloud data centers as the de facto standard to comprehend the complexities of large enterprises. The Managed Services for Large for enterprise infrastructure. Most have at least two service providers to balance the Enterprises quadrant has only seen six providers from the midmarket in the recent years. workload in data centers and cloud. Some traditional players have stopped selling data The client midmarket continues to grow at a faster pace than the large enterprise center hosting, even though they continue to manage the facilities. The culmination of the segment. For a midmarket business, the shift from an in-house data center to the traditional outsourcing era does not mean the end of data centers, as providers are strongly cloud involves tremendous effort and high risk. Companies in this segment are quick demonstrating a growing demand in this space. to recognize the value of a managed service provider to drive transformation. They are One particular managed service provider reported a record revenue growth of 80 percent in attracting traditional service providers, shifting their focus away from large enterprise a year. It may not be the largest data center provider, but its growth indicates the impact of clients. For traditional providers, reorganizing the sales channel and adapting to the cloud adoption on the services market. Most large service providers face growth challenges midmarket are major challenges. In the Managed Services for Midmarket quadrant, there but have reported a gradual shift from traditional services to the cloud model. They want to are only four providers that have repositioned themselves in this market. reposition themselves as digital service providers, using “cloud” as a keyword in every white paper or pitch deck. Managed Hosting Consolidation Trend

Service providers have also reported that large enterprise clients are becoming less Managed hosting is undergoing consolidation. The hosting business is diminishing in resistant to cloud adoption. Even large and traditional Brazilian banks are embracing hybrid importance, giving up space to private and hybrid cloud. cloud, with new workloads being developed to run on the model. These institutions still rely We have identified at least three players that have stopped offering hosting services this on mainframes to run their core accounting system. year. Most hosting providers are focused on maintaining their clientele, but they are

The managed services market is expanding with the emergence of new competitors from not updating their offerings. We have identified only two exceptions to this trend. These infrastructure as a service (IaaS) partnership programs. AWS, Azure, Google and IBM are service providers have an opportunity to capture those clients that will be left behind.

Managed Container As A Service Emerging Trend

When enterprises started migrating workloads to the cloud, they faced the challenge been declining after reaching an all-time high in 2014. In 2018, it registered a 19 percent of porting legacy applications. Concurrently, new applications that were developed for drop in reported incidents compared to the previous year. Although the Brazilian trend is one cloud could not run on another. Service providers realized they had a problem. positive, its relative position among other nations is poor. The Global Cybersecurity Index Some companies started using Docker. Google was working on Kubernetes, while Red (GCI) measures the commitment of countries toward cybersecurity. CGI 2018 rated the Hat was creating OpenShift. At the same time, the industry was gathering around the U.K. as the cyber-conscientious country, followed by the U.S. On the other hand, Brazil was Cloud Foundry foundation. Cloud Foundry and OpenShift are platforms for developing ranked 70th out of 175 countries. applications in containers that can be deployed on any cloud. These innovations and Complexities in security services are increasing. Traditional security systems use firewalls changes took place over just four years. to protect servers and databases. With the increased access via mobile devices, end-point For this study, ISG has qualified 11 service providers that are fully capable of deploying security is needed to protect application servers and databases. Identity management and managing containers in complex environments. This market is rapidly gaining traction (IdM), a process of authorizing and revoking access rights, is now leveraging artificial with many clients showing interest, providers sending proposals and negotiations taking intelligence (AI) and machine learning (ML) to identify behaviors and usage context to place. However, the number of containers in production is relatively small. We expect the revoke or grant access. The integration of AI/ML capabilities in IdM can also help validate market to see modest growth this year before entering an accelerating phase in 2020. the user’s location for authorizing access. Data protection and data loss prevention (DLP) practices have been on the rise due to stricter initiatives such as LGPD, the Brazilian MANAGED SECURITY SERVICES TRENDS regulation that is similar to the European Union’s GDPR (General Data Protection

In this era of digitization, criminals are migrating to the virtual world. Cybercriminal Regulation). Focus is now being shifted from access protection to data protection.

organizations have emerged. A report published by McAfee has estimated that the global Only a few service providers cover the scope of security services. Enterprise clients may cost of cybercrime reached $600 billion in 2018. CERT.br, the computer emergency need to hire multiple providers to meet all their requirements. response team in Brazil, reported that the number of cyberattacks in the country has

COLOCATION SERVICES TREND

Colocation data centers are in demand globally. With the increase in digitization, more data is created and stored. This has raised the demand for more data centers to ensure the continuity of operations. In Brazil, the speed at which data centers are being constructed has declined in 2019. However, their extensive expansion over the last two years has surpassed demand. Brazil hosts three AWS data centers, one Azure, two IBM Cloud, one Oracle Cloud and one Google Cloud, all of which are hosted in colocation data centers. The demand is also strong among small data center hosting providers, web hosting, ecommerce hosting and other small players that have migrated to colocation facilities to shut down their low-scale, costly data centers. The push to adopt private and hybrid cloud is also augmenting the need for colocation, as legacy workloads that are not suited to the cloud are migrated from inhouse data centers to colocation facilities. Despite the growing demand, the market is consolidating in the hands of a few large colocation providers.

Introduction Introduction Definition

Private clouds are an extension of existing computing enterprise environments. Simplified illustration Companies with strict security and governance requirements, exorbitant data Private/Hybrid Cloud - Data Center Services & Solutions 2019 - Brazil volumes, and a need for tight integration with other enterprise applications and workflows are best suited for on-premise deployments and operations. Service providers help enterprises implement cloud technologies to create private Midmarket clouds, such as virtual compute, networking and storage resources, in their data Managed Services centers. A hybrid cloud combines the best of on-premise infrastructure, private Large Accounts and public cloud services.

A hybrid cloud setup connects the existing on-premise infrastructure services Managed Hosting Managed Security Services with either a private or public cloud or both. The objective is to combine services and data from a variety of cloud models to create a unified, automated and well- Managed Containers as a service Colocation Service managed computing environment. Hybrid clouds allow businesses to leverage the capabilities of public cloud platform providers without offloading their entire Source: ISG 2019 data to a third-party data center. This provides greater flexibility while keeping the vital components within the company’s firewall.

Definition (cont.) Scope of the Report

Data center outsourcing is the practice of transferring the responsibility for At a broad level, data center outsourcing refers to the practice of transferring the responsibility provisioning, monitoring and management of computing and storage resources for provisioning, monitoring and managing computing storage and associated resources to a to a third-party provider. The data center facilities may belong to the enterprise, third-party provider. The data center may belong to the client, service provider or a third-party service provider or a third-party colocation provider. Monitoring services are colocation provider. Monitoring and management services are usually performed at the service typically offered from the provider’s location and are called remote infrastructure provider’s locations and are referred to as remote infrastructure management (RIM) centers, management services (RIM). though some staff may also be present in the data center facility for specific support services.

The ISG Provider LensTM study offers IT-decision makers: Typical outsourcing activities include level one, two and three technical support, server monitoring, application performance monitoring, storage and database administration, hosting, Transparency on the strengths and weaknesses of relevant providers; colocation, disaster recovery testing and execution, defining or setting up the architecture, A differentiated positioning of providers by segments; standards and policies and transformation projects such as virtualization, consolidation and Focus in markets, including global, the U.S., Germany, Switzerland, the U.K., cloud-enablement services.

Nordic Countries and Brazil. For standalone services such as colocation and managed hosting, the service levels and support Our study serves as an important decision-making basis for positioning key vary from those in a fully managed data center outsourcing contract. For example, a colocation relationships and go-to-market considerations. ISG advisors and enterprise company can provide the facilities and infrastructure to host equipment and some basic support clients also use information from these reports to evaluate their current vendor services. However, all other aspects of infrastructure management are the responsibility of the relationships and potential new engagements. client, which may independently handle it or outsource it to a managed service provider.

Definition (cont.)

Our studies are intended to anticipate the investigation efforts and buying Managed Hosting: This quadrant ranks service providers that offer enterprise-grade hosting decisions of typical enterprise clients. While contemplating a significant strategy solutions and use their facilities and infrastructure. They take responsibility for the day-to-day transformation, making purchase-vs.-rent decisions for infrastructure, implementing management and maintenance of data center assets such as servers, storage and operating agile practices or incorporating automation into their environments, enterprise systems. clients will benefit from a study that examines an entire ecosystem for a certain Managed Security Services: This assesses service providers of consulting, training, integra- service line. tion, maintenance, support and management of security services. Managed security services Therefore, ISG studies are comprised of multiple quadrants covering the spectrum comprise the operations and management of the security infrastructure via a security opera- of services that an enterprise client requires. tions center (SOC).

The quadrant descriptions are: Managed Containers as a Service (CaaS): This category deals with the orchestration of container solutions as a service (CaaS) for applications, data, security and infrastructures to Managed Services for Large Accounts: This quadrant assesses a service develop and operate applications. It also examines the benefits of increased product/service company’s ability to provide ongoing management services for data center infra- availability, platform flexibility and cost savings. structure for clients. Large enterprise clients are subject to strict regulations that add complexities. They typically have more than 5,000 employees and revenues Colocation Services: This quadrant assesses service providers that offer professional and of more than $1 billion. standardized data center operations as colocation services. These providers typically supply network connectivity, the access point for various hosting providers, system houses, indepen- Managed Services for Midmarket: This quadrant assesses a service company’s dent software vendors, and carriers or telecommunication providers. ability to provide ongoing management services on data center infrastructure for medium-sized business. The enterprise typically has less than 5,000 employees or generates less than $1 billion in revenue.

Provider Classifications

The ISG Provider Lens™ quadrants were created using an evaluation matrix containing four segments, where the providers are positioned accordingly.

Leader Product Market Contender Challenger Challenger The “leaders” among the vendors/ The “product challengers” offer a “Market challengers” are also “Contenders” are still lacking mature providers have a highly attractive product and service portfolio that very competitive, but there is still products and services or sufficient product and service offering and a provides an above-average cover- significant portfolio potential and depth and breadth of their offering, very strong market and competitive age of corporate requirements, but they clearly lag behind the “leaders.” while also showing some strengths position; they fulfill all requirements are not able to provide the same Often, the market challengers and improvement potentials in their for successful market cultivation. resources and strengths as the are established vendors that market cultivation efforts. These They can be regarded as opinion leaders regarding the individual are somewhat slow to address vendors are often generalists or leaders, providing strategic market cultivation categories. Often, new trends, due to their size and niche players. impulses to the market. They also this is due to the respective vendor’s company structure, and have ensure innovative strength size or their weak footprint within therefore still some potential to and stability. the respective target segment. optimize their portfolio and increase their attractiveness.

Provider Classifications (cont.)

Each ISG Provider Lens™ quadrant may include a service provider(s) who ISG believes has a strong potential to move into the leader’s quadrant.

Rising Star Not In

Rising stars are mostly product challengers with high future potential. This service provider or vendor was not included in this When receiving the “rising stars” award, such companies have a promis- quadrant as ISG could not obtain enough information to ing portfolio, including the required roadmap and an adequate focus on position them. This omission does not imply that the key market trends and customer requirements. Also, the “rising stars” service provider or vendor does not provide this service. has an excellent management and understanding of the local market. This award is only given to vendors or service providers that have made extreme progress towards their goals within the last 12 months and are on a good way to reach the leader quadrant within the next 12-24 months, due to their above-average impact and innovative strength.

Private/Hybrid Cloud - Data Center Services & Solutions - Quadrant Provider Listing 1 of 2

Managed Services for Managed Services for Managed Containers as Managed Security Colocation Managed Hosting Large Accounts Midmarket a Service Services Services

Accenture 4 Market Challenger 4 Not In 4 Not In 4 Product Challenger 4 Product Challenger 4 Not In

Ascenty 4 Not In 4 Not In 4 Not In 4 Not In 4 Not In 4 Leader

Atos 4 Leader 4 Not In 4 Not In 4 Product Challenger 4 Product Challenger 4 Not In

Capgemini 4 Leader 4 Product Challenger 4 Product Challenger 4 Contender 4 Rising Star 4 Contender

CentralServer 4 Not In 4 Contender 4 Not In 4 Not In 4 Not In 4 Not In

CenturyLink 4 Market Challenger 4 Leader 4 Contender 4 Not In 4 Product Challenger 4 Market Challenger

CorpFlex 4 Contender 4 Contender 4 Not In 4 Not In 4 Not In 4 Not In

Dedalus Prime 4 Market Challenger 4 Leader 4 Not In 4 Leader 4 Not In 4 Not In

DXC Technology 4 Leader 4 Rising Star 4 Not In 4 Rising Star 4 Contender 4 Not In

Embratel 4 Contender 4 Contender 4 Product Challenger 4 Not In 4 Not In 4 Not In

Equinix 4 Leader 4 Leader 4 Rising Star 4 Not In 4 Not In 4 Leader

EVEO 4 Not In 4 Contender 4 Not In 4 Not In 4 Not In 4 Not In

IBM 4 Leader 4 Leader 4 Leader 4 Leader 4 Leader 4 Product Challenger

ISH Tecnologia 4 Not In 4 Not In 4 Not In 4 Not In 4 Leader 4 Not In

Private/Hybrid Cloud - Data Center Services & Solutions - Quadrant Provider Listing 2 of 2

Managed Services for Managed Services for Managed Containers as Managed Security Colocation Managed Hosting Large Accounts Midmarket a Service Services Services

Locaweb Corp & 4 Contender 4 Leader 4 Market Challenger 4 Contender 4 Contender 4 Not In Cluster2GO Logicalis 4 Product Challenger 4 Product Challenger 4 Not In 4 Not In 4 Not In 4 Not In

Mandic 4 Contender 4 Market Challenger 4 Not In 4 Not In 4 Not In 4 Not In

Odata 4 Not In 4 Not In 4 Not In 4 Not In 4 Not In 4 Product Challenger

Sonda 4 Contender 4 Not In 4 Contender 4 Not In 4 Market Challenger 4 Contender

TCS 4 Leader 4 Not In 4 Not In 4 Product Challenger 4 Not In 4 Not In

Tech Mahindra 4 Product Challenger 4 Product Challenger 4 Not In 4 Not In 4 Not In 4 Not In

Telium 4 Not In 4 Not In 4 Not In 4 Not In 4 Not In 4 Contender

TIVIT 4 Leader 4 Leader 4 Leader 4 Not In 4 Not In 4 Contender

T-Systems 4 Contender 4 Contender 4 Leader 4 Not In 4 Not In 4 Not In

Unisys 4 Leader 4 Not In 4 Not In 4 Leader 4 Leader 4 Not In

UOL DIVEO 4 Leader 4 Leader 4 Leader 4 Leader 4 Leader 4 Leader

Wipro 4 Rising Star 4 Product Challenger 4 Not In 4 Product Challenger 4 Contender 4 Not In

Managed Services MANAGED SERVICES FOR LARGE ACCOUNTS

Definition

This quadrant assesses a service provider’s ability to provide ongoing management services for data center infrastructure in the large client segment. Large enterprise clients are subject to strict regulations that add complexities. They typically have more than 5,000 employees and revenues of more than $1 billion.

Management services include servers, middleware, storage, databases and networking. The infrastructure may be in the data center of a client or service provider or co-located in a third-party facility. They include transition services that involve large-scale consolidation, virtualization and cloud enablement on a software-defined data center (SDDC).

MANAGED SERVICES FOR LARGE ACCOUNTS

Eligibility Criteria Observations

Ability to service data center infrastructure by themselves and not The managed services market is expanding with new competitors emerging from IaaS partnership through partners; no subcontracting for core data center services; programs. However, these newcomers are not able to understand and support large enterprises. Large corporations are subject to complex regulations, demanding mature governance and Established relationships with one of the major public cloud compliance standards of their service providers. Emerging service companies struggle to comply hyperscale providers; with these strict regulations and sometimes lack the necessary scale to distribute the cost of Ability to provide services within a client’s premises or remotely and compliance measures and certifications.

preferably through its remote infrastructure management (RIM) Large enterprises typically have complex legacy applications and databases (also called workloads) service center; that cannot be easily moved to public clouds. Leading managed service providers have developed

Experience in large transition projects that involve consolidation, sophisticated transformational consulting services for re-architecting applications to enable migration. However, for many legacy workloads, it is cost effective to keep workloads within the virtualization of data centers and cloud enablement; data center, usually under colocation to reduce capex or repurpose the facility. Managed service Ability to act as an extension of the clients’ IT organization and providers can apply new management tools to these legacy workloads. These tools provide get involved in creating blueprints, architecture frameworks and cognitive bots to automate asset provisioning and de-provisioning and use artificial intelligence (AI) management processes at the client’s location; or machine learning (ML) to predict performance degradation or prevent incidents. They can also drastically reduce the need for human intervention. Adherence to strict regulations and complex governance; current client list to include large enterprises. The evolution of these management platforms using software-defined infrastructure tools make it possible to introduce DevOps for legacy systems and preserve the investments made in legacy

MANAGED SERVICES FOR LARGE ACCOUNTS

Observations (cont.)

applications. Leading managed service providers can simulate cloud features clients. The company uses colocation to handle private clouds and has partnered with major in private or hybrid data centers. public cloud providers to deliver private and hybrid cloud services. It uses the Canopy global

Large enterprise clients that hire managed service providers can reduce platform to support managed services. Atos’ consulting and advisory services help in ensuring management costs by leveraging their AI and automation capabilities. successful data center transformations.

Highly skilled employees would be able to execute value-added services that Capgemini is continuing its transformational journey to elevate its Brazilian services to world- are in high demand for digital business. Automation platforms have been class standards. It has many clients that have moved to the hybrid cloud platform, and its large maturing this year. Service providers have given structured explanations clients have countrywide operations. The company is expanding its sales reach to enhance its of the benefits and limitations of AI and their automation platforms. They presence in the country. Capgemini has been improving its portfolio options with Capgemini have thus been able to gain the trust of traditional large enterprise clients, Cloud Platform (CCP), propelling it to a leadership position. encouraging them to move more workloads to hybrid environments. Many case studies involving the financial industry have emerged, which re-affirms DXC Technology (DXC) has shifted its focus from data center operations to cloud managed the fact that cloud is now pervasive to all industries. services. It is currently in the process of transforming its data center clients into hybrid

Atos has invested in cloud technologies and has recently restructured its cloud data centers. Its managed services offering is being enhanced with robust automation TM sales channels in Brazil to expand its local footprint. Its automation tools capabilities provided by the AI-enabled Bionix platform and through partnerships with and robust governance standards help improve the overall security of VMware and ServiceNow. It provides a single pane of glass for a hybrid cloud data center. DXC together with Microsoft has been approaching clients to migrate workloads to Azure.

MANAGED SERVICES FOR LARGE ACCOUNTS

Observations (cont.)

Equinix is known for its colocation facilities. In Brazil, it was mainly into private data centers. It has launched a strong market campaign in Brazil for private cloud providing managed services following the acquisition of Alog Datacenters migration. eight years ago. The company has improved its technology to provide TCS has been operating in Brazil since 2002. In 2019, it inaugurated a delivery center in SDDC and network management services. Its six data centers in Brazil Londrina, which is planned to be its largest delivery center in Brazil with 4,000 employees. provide high scalability and low latency connection to all public cloud The company is mainly focused on concentrating its business in large global clients and has providers, resulting in reduced data charges and lower risk. Its data expanded its market presence among large Brazilian banks. It works to continuously build center floor space is incomparable in the region, making Equinix a strong trusted relationships, supplying additional ITO and BPO services to each client. TCS has option for clients with large workload demands. For multinational clients, increased its sales force to expand its business to local enterprises. its low latency connectivity to other continents is also an important factor. In 2018, ISG had positioned Equinix in the large enterprise quadrant. TIVIT has been offering data center services in Brazil for more than 20 years. With its efficient and highly secure facilities, the firm has been attracting top companies to its client base. In the In 2018, IBM’s hardware segment accounted for only 10 percent of the recent years, TIVIT has been migrating its client base from traditional data center outsourcing company’s overall revenue, while infrastructure services totaled $23 to managed services. Its hybrid cloud strategy is a response to the growing market competition. billion (28 percent). Its services arm has become the core business. Eighty With a renovated portfolio, it is building strong partnerships to make AWS, Azure and SAP percent of IBM’s enterprise workloads are yet to migrate to the cloud, offerings more accessible to clientele. which explains the company’s focus on private and hybrid data center services. Its installed client base has many traditional businesses running large legacy applications that are difficult to move to the public cloud. IBM positions its services as a solution to introduce modern cloud features

MANAGED SERVICES FOR LARGE ACCOUNTS

Observations (cont.)

UOL DIVEO offers all hybrid configurations, including colocation, hosting Unisys has a wide presence and extensive experience in Brazil. It is focused on large accounts and the public cloud. It has joined the Leader quadrant for the first time. in three industry verticals. Its managed services rely on CloudForte, a proprietary tool that is With more than 1,200 clients served by its data center, the company is designed to handle large and complex hybrid cloud environments. The company also offers a going through accelerated growth. UOL DIVEO serves all the businesses comprehensive and reliable solution that covers security, mobility, edge computing and digital of its parent company, including PagSeguro and its payment solutions, workplace. micropayments, ecommerce checkout and card processing. PagSeguro’s Wipro has a robust managed service offering based on automation, AI and ML. Its automated revenue crossed the $1 billion mark in 2018; it now processes over a platform allows for rapid scaling, with remote centers that guarantee 24x7 operations. The million transactions per day through UOL DIVEO’s infrastructure. In 2018, company is focused on expanding its footprint in the Americas and considers Brazil a major its parent company acquired Banco Brasileiro de Negócios (BBN). This is delivery center for South America. It is expanding its local offices and is continuously hiring. pushing UOL DIVEO to meet the high standards of financial institutions, Wipro is considered a Rising Star as it is expected to gain market traction in the coming years. thus benefiting all clients.

ATOS Overview Caution Atos is a global company with 120,000 employees in 73 countries and has an annual revenue of €13 billion. Atos’ automation and robust governance standards prevent clients from skipping It has a full set of ITO offerings, including cloud services, infrastructure and data management services. It process steps. Clients that prioritize speed over security and quality may find Atos has more than 3,000 employees in South America, with a delivery center in Londrina, Brazil, to support 13 restrictive or bureaucratic. They may find it useful to understand the culture and countries. The company leverages its Canopy platform for hybrid cloud orchestration. adjust governance procedures to obtain the maximum value that Atos can provide.

Strengths

Rich portfolio: Atos offers four main solutions for Brazilian clients. Cloud Assessment selects the best-of-breed structure to hybrid cloud deployments. Atos IaaS B2B provides a private cloud with IaaS features and pay per use. Managed services include Atos data centers and public cloud under a single management dashboard. Marketplace offers partner software as a service (SaaS), disaster recovery as a service (DRaaS), backup as a service (BaaS), DevOps and container management. The company’s key differentiators are its consulting expertise and invoicing at local currency. 2019 ISG Provider Lens™ Leader Security and compliance: Atos is known for its high-quality standards, partly attributed to its compliance with European standards that are usually higher than local requirements. Its advanced technology and optimized processes compensate for the higher service levels, keeping the company cost competitive. Brazilian clients can aspire for the same standards that top performers have through Atos. Atos has long experience in the Brazilian market an provides multiple alternatives for a secure Continuous focus on Olympic games: Atos is known to be the main provider of the Olympic Games technologies. However, this long-lasting agreement forces the company to maintain its technology at high private or hybrid data center operation. standards in terms of both agility and security at a global scale. As a result, Atos is constantly refreshing its technology offerings for Brazilian clients and keeping the local infrastructure in sync with global standards.

CAPGEMINI Overview Caution Capgemini has 211,000 employees spread across 40 countries. In 2010, the company arrived in Brazil through ISG expects Capgemini to continue its transformational journey to achieve first-class acquisitions. In 2016, it changed the local leadership to align the culture, processes and portfolio to its global services in Brazil. However, not all current clients have migrated to CCP. Therefore standards. In recent years, Capgemini launched its Capgemini Cloud Platform (CCP), a set of cloud services different service levels exist in its client base. New clients should aim for global and accelerators to migrate, operate and innovate in the cloud. CCP is part of the Digital & Cloud division that standards, while existing clients should request for services upgrades. accounts for 45 percent of the company’s revenue.

Strengths

CCP is modular and "ready-to-go:” Capgemini is improving its consulting capabilities in Brazil to leverage its business accelerators. Its intelligent automation knowledge hub has more than 4,500 applicable use cases. Its economic Application Portfolio Management (eAPM) uses AI-enabled analytics to identify the best architecture for each application workload, thus optimizing the hybrid environment cost. CCP is a SaaS platform that can integrate with any client's environment.

Clear roadmap to evolve hybrid cloud: Clients that choose Capgemini are not pushed into a platform lock-in. 2019 ISG Provider Lens™ Leader The company has a comprehensive toolset that allows for seamless operations in any cloud, including emerging technologies such as Nutanix and container on demand offerings. It is focused on transforming its existing data centers into a competitive, flexible colocation facilities with low latency to hyperscale providers, supplying efficient hybrid alternatives to accommodate all types of workloads. Capgemini has a large footprint in Brazil along with countrywide coverage to guide large Strong partnerships: Capgemini has many partnerships for all technologies that a client may need. The company recently strengthened its commitment to AWS and Azure; it is expected to sign many new deals enterprises in their cloud journey. with these two IaaS providers in Brazil. Its cloud partners also include Google, IBM and Oracle. Capgemini has planned to continue its three data center operations in Brazil, keeping its multi-cloud options open.

DXC TECHNOLOGY Overview Caution DXC Technology (DXC) has 130,000 employees in 70 countries. It started operations in Brazil in 1985. The DXC has shifted its focus from data center operations to cloud managed services. It company has partnered with 250 companies, and 14 are considered strategic partners. These include AWS, is not inclined to provide managed services on top of in-house client’s data center or AT&T, Dell EMC, HCL, HP, HPE, IBM, Micro Focus, Microsoft, Oracle, PwC, SAP, ServiceNow and VMware. DXC is managed hosting only. expecting to move from in-house data centers to public, private and hybrid cloud. Its managed services solution is based on the platforms of VMware and ServiceNow.

Strengths

CloudOps agile, continuous improvement: DXC has a unique four-step method to introduce DevSecOps and infrastructure as code (IaC) to improve automation, prevent failure and enhance security. In the first step, a small, highly qualified, multi-skilled team introduces the concept and its benefits to all stakeholders. The second step involves identifying product owners, client stories and backlog. This is followed by stabilizing new operating processes. In the final stage, the team creates an automated and consistent pipeline to enable business agility.

Strong experience in shifting data center: DXC has moved more than 110 customer data centers to the cloud. 2019 ISG Provider Lens™ Leader It applies a launch/adopt/run assessment method to ensure a paced transformation. The company assesses a client’s situation and goals and may recommend skipping steps. It customizes its solutions based on clients’ needs. DXC is enhancing its managed services offering Robust capacity and ecosystem: Given the wide partnership network, clients are encouraged to opt for DXC’s with robust automation and a single pane of glass multi-tiered support. The company is one of the five ServiceNow global strategic partners. It is also one of the few global Azure MSPs (managed service provider) and AWS Premier MSPs. The company has more than 200 for a hybrid cloud data center. managed cloud clients, 20,000 Microsoft professionals and 1,000 AWS professionals.

EQUINIX Overview Caution Equinix is known for its global footprint of more than 200 data centers, providing interconnection, colocation Equinix Hybrid Cloud management functionality relies on Red Hat® CloudForms, and services. In Brazil it has six data centers and also offers managed services. Its hybrid data center platform which does not prioritize IBM Cloud and Oracle Cloud in new releases. New and services help companies to evolve from a centralized IT strategy to a distributed IT, seizing the benefits functionality availability depends on Red Hat product roadmap. of an interconnected architecture with hybrid and multi-cloud environments. Equinix provides scale to large enterprises in the challenges of data, network and security transformation.

Strengths

Flexibility to locate processing: Equinix services address hybrid cloud needs with a platform that allows users to consume both dedicated and on demand resources and manages all cloud providers under Equinix Cloud Exchange (ECX) FabricTM and Equinix Performance Hub. Clients can distribute processing power and deploy edge data centers in areas where low latency is required (such as IoT and payment processing). Its solution provides integrated reports and a unified management console.

Attractive digital business platform: The company has many clients and hosts innovative breakthrough 2019 ISG Provider Lens™ Leader applications in its data centers. Given its exposure to innovation, it remains up to date with leading-edge technologies. Equinix serves a full spectrum of diverse businesses, from global corporations to startups. Its partnerships do not include reselling or brokering terms. This places Equinix at a neutral position while advising clients’ workload choices. Equinix managed services for hybrid cloud is a good fit for clients that seek flexibility, high SDN for high performance hybrid data centers: Equinix offers superior service levels when compared to the market average. Its default SLA can go up to 99.999 percent uptime and 0.1 millisecond latency to the cloud availability and low latency services. service provider edge router. ECX FabricTM is a unique SDN solution that provides private interconnections of 37 metropolitan areas across the world, extending the reach of clients’ data centers.

IBM Overview Caution IBM restructured its business in 2018. Its Technology Services & Cloud Platforms (TS&CP) accounted for 43 IBM is still undergoing a transformation. While profits are soaring year over year, percent of the company’s revenue. In contrast, IBM Systems, which covers hardware, contributed 10 percent. its revenue remains stable at around $80 billion. Due to growth challenges, the The remaining 47 percent comes from other services. Today, IBM is a service company. Infrastructure Services, company will be urged to change its portfolio or lower prices. Although there is no which represents $23 billion of the overall revenue, is part of TS&CP and includes hybrid cloud services. The firm financial risk, clients should ensure that their contracts allow for price changes and has claimed that 80 percent of enterprise workloads are yet to migrate to the cloud, which explains its focus on service swaps in the future. private and hybrid data center services.

Strengths

Full enterprise cloud journey: IBM has a framework to accelerate the modernization journey. For 70 percent of IBM’s clients, cloud adoption is being driven by the need to modernize applications. IBM’s private and hybrid cloud solution have the same tools that are available from the public cloud. These include infrastructure as code (IaC), serverless computing, DevOps and automation to provision and de-provision services quickly. IBM’s offering has a special appeal for those clients that are not ready to move to public clouds.

IBM Multi-Cloud Manager: IBM’s tools enhance the management platform. It can be set to manage application 2019 ISG Provider Lens™ Leader clusters, containers and infrastructure IaaS resources such as servers and storage. It provides multiple levels of orchestration, monitoring, security and automation along with seamless performance in public or private clouds. IBM’s continuous innovations and expanding Knowledge at scale: As stated in previous assessments, IBM’s knowledge is a clear differentiator in terms of portfolio help clients embrace a bold data center state-of-the-art global innovation and disruptive technologies. This gives it a leading edge over peers. The firm still attracts the best talent in Brazil and can train, develop and retain a team with high delivery capabilities. transformation journey and ensure safe operations.

TCS (TATA CONSULTANCY SERVICES) Overview Caution TCS has been operating in Brazil since 2002. This year, it inaugurated a delivery center in Londrina, planned TCS provides services related to automation and remote management. It does to be its largest delivery center in Brazil with 4,000 employees. This move is part of the company's five-digital not offer colocation and staff augmentation services. Clients can gain more value strength model, comprising cloud, big data and analytics, mobility, AI and robotics. through its consulting services for shifting workloads from in-house data centers. TCS’ cloud services include readiness assessment, cloud architecture and design, implementation and migration support, compliance and security management, managed infrastructure, PaaS (platform as a service), and SaaS.

Strengths

Machine-First Delivery ModelTM (MFDM): This framework augments human capability by using automation and AI to enhance the potential of the enterprise. The company’s entire spectrum of transformation and managed services has MFDM components. TCS also has 400 design templates, 250 preset bots for its migration factory and makes extensive use of its ignio cognitive automation software. It also provides highly automated services in both private and hybrid clouds.

Enterprise cloud platform: The company’s platform has robust software-defined capabilities to scale data 2019 ISG Provider Lens™ Leader center services. It is integrated with OpenStack for automation and open architecture. Container services are based on Docker, Kubernetes and Cloud Foundry technologies. It enables dynamic cloud services for portability and zero vendor lock-in. Data services are built on Spark, Mesos, Akka and Kafka to meet the diverse Large Brazilian organizations can count on TCS to requirements for big data, analytics, IoT and streaming data workloads. transform and run complex and large workloads Capacity to server large enterprises: TCS is focused on large enterprise clients and understands the in hybrid environments that use an advanced, requirements of complex organizations. It has top-partner certifications compared to all public cloud providers automated AI platform. and has 15 partner data centers and colocation facilities. With its platform and a cloud talent pool of 150,000 people, the company can transform and support very large data centers.

TIVIT Overview Caution TIVIT is a Brazilian company with operations in 10 Latin American countries. Its four business are Digital TIVIT still needs to improve its automation tools for remote operations and Business, Cloud Solutions, Digital Payments and Technology Platforms. Its Cloud Solutions portfolio includes infrastructure as code (IaC). Leading-edge companies that demand highly private and hybrid managed services. automated DevSecOps may find TIVIT’s options restricted to public IaaS and PaaS tools. TIVIT has been offering data center services for more than 20 years in Brazil. With efficient and highly secured facilities, it has attracted top companies to its client base. In recent years, the firm has been migrating its client base from traditional data center outsourcing to managed services.

Strengths

Countrywide presence and footprint: TIVIT has clients across Brazil. It is one of the top three companies that cater to large-size data center clients in the country and covers a broad range of industry verticals. This exposure allows TIVIT to understand the market needs on both technology and cultural fronts. This cultural match places the company in a favorable position to attract new clients. Cloud partnerships: TIVIT has strong partnerships with international cloud providers and can deploy clients’ workloads in AWS, Azure, IBM Cloud, Oracle Cloud, Google Cloud Platform and SAP Cloud. It also offers 2019 ISG Provider Lens™ Leader colocation services. No other Brazilian competitor has a portfolio that offers these many services.

Security, compliance and service levels: TIVIT maintains the highest security certificates to host financial services and card processing in its data centers. It can offer up to 99.99 percent availability depending on the TIVIT maintains a competitive position in the workload technology. The company also offers security services and has strong execution capabilities. Brazilian market, driven by a high demand for its ability to manage complex environments.

UNISYS Overview Caution Unisys is a global company headquartered in the U.S. Its cloud and infrastructure services account for 48 Unisys has extensive knowledge in three verticals with a strong focus on large percent of the company revenue. It is focused on large enterprises in three vertical markets: financial services, accounts. CloudForteTM is designed for complex environments. Small and medium government and commercial sector (communications, life sciences, healthcare, retail, travel and transportation). business clients may find Unisys overqualified to provide an adequate service or Unisys has extensive experience in the Brazilian market and has many resilient clients. Its services cover all solution. Brazilian states.

Strengths

Robust cloud platform: Unisys has partnerships with AWS, Azure, Red Hat, Dell EMC and several other leading companies. Unisys CloudForteTM is its managed services platform that provides self-service blueprints, automated governance and workflows, automated provisioning, containers, security, reporting and advanced analytics. Automation includes DevOps and discovery tools to assure that all assets are secure and compliant. Comprehensive hybrid cloud services: Unisys leverages the platforms of VMware, ServiceNow and open source as well as AI automation to enable service integration and management (SIAM), all integrated into one 2019 ISG Provider Lens™ Leader management solution. It can oversee private, public and hybrid cloud environments, workloads running on traditional data centers or colocation, as well as digital workplace, collaboration, mobility, security and edge computing. It also uses cognitive virtual assistants for user interaction. Unisys’ services give clients a single view of incident resolution and service availability. Its managed services offer a comprehensive and reliable solution to transform and operate Commercially savvy: Unisys’ strict focus on verticals helps consultants gain a deep market understanding to develop custom solutions. The company’s deal structure works in favor of its clients. Its pricing scheme is workloads in complex hybrid clouds. decoupled from cloud consumption, enabling the company to commit to cost reduction targets and resource optimization.

UOL DIVEO Overview Caution UOL DIVEO is a Brazilian company headquartered in São Paulo. The company became a pioneer in offering UOL DIVEO is consolidating its position as a service provider for large enterprises. internet services in 1996 and has been evolving since then. It acquired multiple emerging businesses to It manages large, complex, agile environments, including a large card processing consolidate its portfolio. UOL DIVEO offers all hybrid configurations such as colocation, hosting and most public operation that requires high-security standards. As governance and compliance clouds. It became a leader in the large enterprise market for the first time. complexity can significantly increase for large corporations, UOL DIVEO should further enhance its governance processes to address the sophisticated demands of large multinational clients. Strengths

Agile/DevOps infrastructure specialization: For several years, UOL DIVEO has been running DevOps for its clients, including PagSeguro (a payment solutions firm). The company provides support for AI, containers, Kubernetes and a plethora of open-source tools. It has more than 770 cloud-certified professionals to deploy and support an agile DevOps solution in multiple public or private clouds. It has hundreds of clients that leverage SDDC and automation to improve agility.

Full spectrum of possibilities: UOL DIVEO’s SDDC is enabled by Virtustream, VMware and OpenStack. Its cloud partners are AWS, Microsoft Azure, Google Cloud Platform, IBM Cloud and Oracle Cloud. The company offers hosting and colocation solutions in three proprietary data centers. It can also provide SDDC over a client’s data center. 2019 ISG Provider Lens™ Leader

Growth in large enterprise segment: UOL DIVEO has been continuously witnessing growth since its inception and is attracting large enterprise clients. It manages more than 45,000 servers and 17 petabytes of storage, a Clients that are willing to scale DevOps for corporate milestone that is hard to beat in Brazil. Its service volume is a benchmark for other service providers. use can consider UOL DIVEO as a proficient partner to deliver leading agile technologies.

RISING STAR: WIPRO Overview Caution Wipro is a global player with a robust portfolio. In ISG’s 2018 Latin America studies, Wipro had qualified for 34 Wipro has a robust managed services offering. It had significant sales success in quadrants and was named a leader 28 times. The company has identified numerous growth opportunities in recent years. However, the company could improve its go-to-market strategy to Latin America and has been investing in acquisitions and expansion, mainly in Mexico and Brazil. It has global reach a larger number of clients in Brazil. partnerships with key public cloud vendors.

Strengths

Software-defined everything (SDx):Wipro’s hybrid cloud offering encompasses software-defined compute, storage and network for orchestrating traditional and cloud-like workloads in private and public cloud. Its software-driven solution allows for scalability and seamless operations in all data center types. Wipro’s HOLMESTM, which leverages AI and analytics, has helped in reducing incident volumes by 60 percent and outages by 50 percent for some of its large clients. Its bots resolve up to 60 percent of service requests.

Commitment to service effectiveness:Wipro’s services offer a single point of contact with end-to-end 2019 ISG Provider Lens™ Rising Star accountability for service delivery. The firm can play a SIAM role across multiple client partners to ensure that service levels are met. It offers business-level agreements (BLA) for several deals. In one of the case studies provided, Wipro had committed to providing solutions for airport service quality (ACI ASQ rating), average flight delay, passenger check-in time and baggage arrival time. It has multiple solutions that support its commitments. Wipro’s managed services deliver an ultra- ServiceNXT, which can detect, diagnose and auto-correct incidents as they occur, is one such solution. modern infrastructure that is fully automated and

Full-scope automation for agility and DevOps: Wipro’s strategy is to reduce human intervention to a transparent to the business. minimum. In addition to investing in its HOLMESTM AI/ML tool, the company has developed its own solutions. It also leverages the services of ServiceNow, BMC, HashiCorp, Ansible, Chef, Puppet, Jenkins, Xebia Labs, Kubernetes, Docker, PCF, OpenShift, Splunk, Densify, Arago, Evolven, Moogsoft and Intigua.

MANAGED SERVICES FOR Managed Containers as a Service MIDMARKET Definition

This quadrant assesses how a service provider offers ongoing management services for data center infrastructure in the midmarket client segment. The midmarket includes companies that are growing in the direction of large enterprises but have not achieved the same size and complexity. Typically, these client companies have less than 5,000 employees or make less than $1 billion in revenue. Service providers in this market have a strong sales focus and suitable delivery structures to respond to the midmarket needs. Managed services include servers, middleware, storage, databases and networking. The infrastructure may be in the client’s or service provider’s data center or co-located in a third-party facility. They include transition services that involve large-scale consolidation, virtualization and cloud enablement on a software-defined infrastructure (SDDC). Midmarket clients expect proximity, agility and flexibility, which translates to a larger portfolio of commercial options. Business change and market dynamics are mostly not under the control of midmarket clients. As these dynamics can have a substantial impact on business results, these clients seek service providers that can respond quickly to their requests.

MANAGED SERVICES FOR MIDMARKET Eligibility Criteria Observations

Ability to service data center infrastructure by themselves and not The midmarket has been growing more rapidly than the large enterprise market. Service providers through partners; no subcontracting for core data center services; that were fully focused on the large enterprise market are now restructuring their sales channels and developing new partnerships to get closer to the midmarket. Established relationships with one of the major public cloud hyperscale providers; Some of the factors that drive expansion in this market are the cost of facilities, network bandwidth constraints, increase in security threats, distributed denial-of-service attacks (DDoS) and lack of Ability to provide services within a client’s premises or remotely and available skills. In addition, the marketing campaigns of large cloud providers, growing use of preferably through its remote service center; software as a service (SaaS), higher cost of software licensing, and the burden of software audits

Experience in transition projects that include consolidation, virtual- also push the client to search for a trusted source of advice. ization of data centers, and cloud enablement; However, the real trigger to transfer the responsibility to a managed service provider is the need for speed. The business demand for innovation is intense, pushing ecommerce and mobile apps Ability to act as an extension of the client’s IT organization and create into day-to-day business. Most in-house data center structures struggle to respond at the required blueprints, architecture frameworks and management processes at speed. the client’s location; Agility is a key aspect of service providers in this market. They help clients move to a private cloud Services provider’s current client list to include large enterprises. with ease and enable smooth integration with cloud providers. By introducing DevOps, these market leaders provide workplace efficiency to midmarket clients.

MANAGED SERVICES FOR MIDMARKET Observations (cont.)

In Brazil, most reported case studies cover retail and service companies Dedalus is a Brazilian company based out of São Paulo. As a prominent AWS and Azure such as hospitals, clinics, travel, payment services, small banks and managed service provider (MSP), Dedalus provides a private cloud over public IaaS and hybrid insurance companies. For the manufacturing industry, the main workload cloud with colocation partners. With a strong focus on public cloud, it does not have data center is the enterprise resource planning (ERP) of multiple brands including SAP. facilities. It is a fast-growing managed service provider in Brazil and has a key role in driving This is hosted in public cloud facilities but is configured as a private cloud. the business success of AWS and Azure. It is the first choice of many midmarket clients while Some providers are specialized in offering cloud-like dashboards for ERP choosing service providers based on their provision of AWS and Azure. hosting in colocation facilities. Equinix enables a smooth move to the hybrid cloud. Using its hybrid data center platform and CenturyLink has been operating in Brazil for more than 20 years and services, a company can opt for a private cloud that leverages Equinix’s virtual servers and has a strong presence in the midmarket. Its cloud services offer IaaS- storage. It can gradually add other options such as dedicated hardware and public cloud ser- like services running on its Tier III-certified data centers in Brazil. It has vices. Equinix has tremendous success in attracting midmarket clients because of its colocation partnered with AWS and Azure. The company offers managed services facilities and low latency network connection to any cloud provider. Connectivity is its main on top of its cloud management platform, which helps in easing the differentiator. central management of multiple clouds.

MANAGED SERVICES FOR MIDMARKET Observations (cont.)

IBM’s focus on the midmarket is growing every year. It offers a wide TIVIT is a long-time competitor in the managed services field in Brazil. Its robust data center and portfolio through IBM Cloud along with a large partnership program loyal client base help maintain its leadership in the data center and cloud computing markets. consisting of more than 4,000 partners. IBM’s hybrid cloud is not The company serves a broad range of vertical industries, including financial services and retail, restricted to its cloud as it includes AWS and Azure. Through IBM’s and is focused on the upper side of the midmarket. Its capacity to support legacy and deprecat- managed services, clients can use AI automation to reduce risk, ed technologies through managed services is a clear differentiator. incidents and outages. It uses AI/ML to predict and self-heal incidents. UOL DIVEO is focused on being recognized as a digital business partner. Its robust, agile practice Only a few service providers enable AI/ML to midmarket clients, which includes infrastructure services for DevOps, AI/ML, bots and security. UOL DIVEO’s cloud makes IBM WatsonTM a key differentiator. partners are AWS, Microsoft Azure, Google Cloud Platform, IBM Cloud and Oracle Cloud. The Locaweb Corp. & Cluster2GO covers all major cities in Brazil, providing company offers hosting and colocation in three proprietary data centers. It can also provide proximity to midmarket clients. It has flexible pricing and service-level SDDC over a client’s data center. It has direct connections to other clouds and colocation provid- agreements to accommodate special client requests. The company ers. This mix is unique and no other leader in the midmarket can offer these many choices. incorporates analytics in its service offering. Its unique specialization DXC Technology is identified as a Rising Star. It has finished the CSC-HPE merger and has estab- allows for dynamic performance dashboards that go above the virtual lished a new strategy for portfolio and target markets. The company has invested in automation machine monitoring control up to the application performance. Its to create the AI-enabled BionixTM platform. It aims to use automation to increase internal engineers rely on analytics to propose architectural changes and productivity in order to provide price-competitive deals. Because of the company’s repositioning configuration changes to optimize performance and costs. and partnership announcements over the last 12 months, DXC is expected to witness growth in the midmarket in the coming years.

CENTURYLINK Overview Caution CenturyLink has been operating in Brazil for more than 20 years and has a strong presence in the midmarket. CenturyLink serves many corporate clients through mass support channels. Clients In 2018, the company expanded its data center in Rio de Janeiro and extended its fiber-optic network to should not expect personalized support and custom advisory services. Consulting Fortaleza and Salvador. It also announced its multi-cloud service for application management and cloud and advisory services are available as per request. optimization. It has received the ISO20000 certification for its Sao Paulo data center. The company owns three data center facilities and has partnered with large colocation providers.

Strengths

Multi-cloud enablement: CenturyLink Cloud Application Manager eases customer IT transformation by orchestrating the delivery of infrastructure, applications and services across multiple clouds. By using the platform's inherent features, including application lifecycle management and deployment of CenturyLink’s Dedicated Cloud Compute (DCC), CenturyLink Private Cloud on VMware Cloud Foundation, Azure and AWS, customers can manage their infrastructure from a single interface.

Multiple alternatives: CenturyLink has partnered with AWS and Azure. The CenturyLink Cloud offers IaaS-like 2019 ISG Provider Lens™ Leader services running on its Tier III-certified data centers in Brazil. Its cloud infrastructure supports autoscaling and is built with enterprise-class hardware. Bare metal and colocation are also available. Clients have more configuration choices with CenturyLink than with other MSPs. CenturyLink’s comprehensive portfolio Integrated management: CenturyLink offers robust infrastructure and has a broad portfolio. It integrates offers leading-edge data center and cloud security, network, mobility and hybrid cloud management under its managed services offering. With technologies to clients of any size in all CenturyLink, a client can have all infrastructure under one contract, which will help in simplifying management Brazilian regions. and scalability.

DEDALUS Overview Caution Dedalus Prime is a Brazilian company based out of São Paulo. As a prominent MSP of AWS and Azure, the firm Hybrid cloud limitations exist. Dedalus can support workloads in collocation through provides a private cloud over public IaaS and hybrid cloud with colocation partners. With a strong focus on partners in exceptional cases. It does not support workloads running on IBM Cloud public cloud, it does not have data center facilities. However, its hybrid cloud footprint is growing because of the and Oracle Cloud. It is also not the first option for Google Cloud Platform. demands of existing clients to assemble services under a single provider. Its clientele is concentrated in financial services, healthcare, utilities, retail and service companies.

Strengths

Cloud specialization: Dedalus has experienced practitioners to help clients transform the application's architecture to optimize cloud resources and find the ideal data center option for each workload. Its architects design the connectivity to balance private network, internet access, security, firewall, credentials, resources and data transfer. Dedalus is one of the top AWS and Azure MSPs in Brazil which allow engineers to easily identify the best practices in the market.

Customer intimacy: Dedalus has structured its delivery process to enable proximity and understand the 2019 ISG Provider Lens™ Leader specific needs of each client. It provides clients with easy access to engineers and service delivery agents for custom services. The firm has a self-service portal, analytics, and utilization and cost dashboard for transparency. Its proximity based on design is a clear differentiator for the midmarket client. Dedalus is the first choice for hybrid clouds based Automation for scale: Dedalus’ management platform is custom developed as per requirements. Most on AWS or Azure due to its robust offering and automation is script based and accumulates more than ten years of IaaS and PaaS practices. The company has an optimized operating team, making it price competitive. Through automated processes, it can accelerate differentiated customer service. workload migration, operations, backup, DevOps, containers and scheduled provisioning.

EQUINIX Overview Caution Equinix is provides interconnection, colocation and services through six data centers in Brazil and more than Equinix is focused on addressing the most common needs and higher volume 200 globally. Its clientele includes both end-user companies and cloud providers. Its hybrid data center platform markets. Deprecated operating systems and technologies support is provided and services can help companies to evolve from a centralized IT strategy to a distributed IT, seizing the benefits through partners only. It also does not provide application services to upgrade of an interconnected architecture with hybrid and multi-cloud environments. Equinix services support midrange legacy applications to newer versions. client companies in the challenges of data, network and security transformation.

Strengths

Flexibility and scalability: Clients benefit from flexible services that address their hybrid strategy needs. Equinix Hybrid Cloud platform allows users to consume both dedicated and on-demand resources and manage the main cloud service providers trough a centralized portal. Multi-cloud is provided with AWS, Azure, Google, IBM Cloud, SAP and others. Its self-service portal allows clients to create and manage multiple services. They can also track the usage and automate workflows via the integrated panel.

Neutrality and cloud connectivity: Equinix’s data centers are carrier neutral. The company also has strong 2019 ISG Provider Lens™ Leader partnerships with all cloud providers, offering high-speed connections. Its multi-cloud is a cross-region solution that lowers the cost of computing resources. High bandwidth and low latency: Equinix has several publicly available cases studies to illustrate the Equinix hybrid cloud services are flexible performance gains of its Brazilian clients. Due to vast distances across Brazil, latency has impacted high-volume and scalable to support midmarket clients in transactions that are mostly carried out in the financial services and retail sectors. Equinix provides significant latency reduction. The company’s public client references include Suzano, Conductor, Megatelecom, Ingresso accessing leading-edge cloud technologies. Rapido, Gafisa and iFood (Movile).

Equinix Cloud Exchange (ECX) FabricTM: This unique SDN solution provides private interconnection of 37 metropolitan areas throughout the world, thus extending clients’ data center reach.

IBM Overview Caution IBM has been operating in Brazil for more than 40 years. It is a well-known brand, mostly acknowledged as a IBM’s pricing structure is not clear and transparent in most cases. As the firm is technology innovator for large enterprises. The firm has been a leader in patent applications for the last 25 keen to respond to competition, clients are advised to perform price benchmarks years. Its hardware business is no longer a focus, while the software and services line is taking precedence. on a regular basis. They should not expect IBM to offer the lowest prices and must IBM’s focus on the midmarket is growing every year. It offers an extensive portfolio for the Brazilian market consider price and features to make a balanced decision. through IBM Cloud and its large partnership program (more than 4,000 partners in Brazil).

Strengths

Any size business: Clients can opt for IBM services through a self-service portal on the IBM Cloud platform. For clients that consume services and support at a rapid pace, IBM account executives approach them with advanced managed services. Through this path, the firm can cover all IT service needs. Private cloud focus: IBM’s assumption is that most businesses are not ready to embrace cloud. It cites security and transformation costs as typical impediments. In response, IBM’s private cloud solution, based on VMware, incorporates all features of a public cloud such as AI, autoscale, serverless computing, infrastructure as code 2019 ISG Provider Lens™ Leader (IaC) and DevOps automation. Hybrid cloud option: Few clients realize that IBM has strong partnerships with AWS and Azure. The firm can manage both AWS and Azure, as well as IBM Cloud, inhouse data center and colocation, under a single IBM makes leading-edge technologies, including management platform, providing seamless operation in all clouds. automation and AI, accessible for client Watson services and automation: Through IBM managed services, clients can benefit from AI automation to companies of any size. reduce risk, incidents and outages. It uses AI/ML to predict and self-heal incidents. Few service providers enable AI/ML to midmarket clients, which makes WatsonTM a key differentiator.

LOCAWEB CORP & CLUSTER2GO Overview Caution In 2018, Locaweb Corp. acquired Cluster2GO, a managed service provider company with leading partners such The acquisition of Cluster2GO is still stabilizing, and new portfolio options and as AWS, Google, Microsoft Azure and Oracle. At the time of the acquisition, Cluster2GO had consolidated cases service levels may be included. Clients that require special custom solutions should at enterprise customers such as Cielo, Roche, Dotz and Volks Bank. Locaweb was founded in 1998 providing consider contractual protection for service continuity. web hosting services to more than 280,000 clients. Locaweb Corp. and Cluster2GO merged into a business unit to reinforce the company specialization in providing hybrid cloud services.

Strengths

Hybrid cloud with analytics: Locaweb Corp & Cluster2GO incorporate analytics in its service offering. This unique specialization allows for dynamic performance dashboards that go above the virtual machine monitoring control up to the application performance. The company’s engineers can use analytics to propose architectural changes and configuration changes for optimizing performance and costs. Service capability: Locaweb Corp & Cluster2GO has robust case studies. The combined company has a specialized team to understand enterprise client requirements and develop optimized service solutions for 2019 ISG Provider Lens™ Leader improved performance. It has delivered more than 1,000 cloud projects. Its large data center complies with strict security norms, including PCI-DSS. It also has specific TOTVS ERP managed services and provides security professional services for the financial and banking markets. Locaweb Corp & Cluster2GO have an Countrywide coverage and flexibility:Locaweb Corp. and & Cluster2GO cover all major cities in Brazil, innovative approach based on AI and providing proximity to the midmarket client. It has flexible pricing and service level agreements to analytics to improve managed services and accommodate special client requests. Client workloads can be hosted in its robust data center as well as in as-a-service and pay-as-you-go models. It expands its data center capacity by adding public cloud providers in a the client business performance. hybrid offering. Its intelligent analytics provide cost optimization by locating workloads in the most cost-efficient cloud.

TIVIT Overview Caution TIVIT is a long-time competitor in the managed services space in Brazil. Its robust data center and loyal client Despite TIVIT witnessing year-over-year growth, its competitors are moving at a base support its leadership in the data center and cloud computing markets. The company serves a broad faster pace. It has strong offerings for larger companies in the midmarket but has range of vertical industries, including financial services and retail. It is also focused on the upper midmarket. not been successful in attracting small businesses. It lacks self-service or as-a-service options to support new clients.

Strengths

Robust infrastructure: TIVIT has 10 data centers in Latin America and four in Brazil, including Tier III and PCI certification. Two data centers offer 99.999 percent availability. It offers hosting, colocation, managed services, cloud brokerage, network management and security, thus covering all aspects of infrastructure management. Countrywide footprint: TIVIT’s data centers are mainly concentrated in São Paulo, Fortaleza and Rio de Janeiro. Its clients, on the hand, are spread across the country. Service delivery teams are distributed in regional offices, thus sharing its robust field support network. TIVIT’s large number of clients of multiple sizes can provide 2019 ISG Provider Lens™ Leader insights into clients’ needs across several industry verticals and geographies. Custom service offerings: TIVIT offers specialized services for Oracle, IBM and multiple ERP brands. It can also support deprecated technologies such as Unix. Its managed services include AWS, Azure and Google, as well TIVIT is an ideal service provider for clients as custom services for SAP (on-premise or over cloud). Clients that seek competitive deals find TIVIT an agile that seek custom services, ERP in the provider that can put together agreements for collaboration and also adapt to client needs. cloud, and business continuity solutions that are built on hybrid cloud.

UOL DIVEO Overview Caution UOL DIVEO has been serving the midmarket for a long time. It acquired DIVEO in 2010. Today, it has more than UOL DIVEO has standard supporting channels to cover its large client base; howev- 2,000 clients and 770 cloud-certified professionals. The company’s stability is backed by Grupo Folha, its parent er, customers may find its support impersonal. Its consulting services are offered company. UOL DIVEO targets corporate clients and is a separated entity from UOL Host that targets small as project engagements. Clients that seek support proximity may need to contract businesses. Its portfolio includes infrastructure, security, cloud, agile development, business transformation additional service levels. and managed services.

Strengths

Digital business platform: UOL DIVEO is striving to be recognized as a digital business partner. Its robust, agile practice includes infrastructure services for DevOps, AI/ML, bots and security. Clients that choose UOL DIVEO’s managed services can quickly deploy a digital platform that integrates all cloud provider services and UOL’s high-availability data centers. The broader portfolio: UOL DIVEO proposes new architecture for migrating to the cloud, while considering alternatives such as colocation, hosting and IaaS. SDDC is enabled by Virtustream, VMware and OpenStack. 2019 ISG Provider Lens™ Leader The company has partnered with AWS, Microsoft Azure, Google Cloud Platform, IBM Cloud and Oracle Cloud. It offers hosting and colocation services in three proprietary data centers. It can also provide SDDC over a client’s data center. The firm has direct connections to other clouds and colocation providers. This unique mix gives the company a leading edge over peers. UOL DIVEO’s transformational services along Peripheral services: UOL DIVEO’s consulting services help clients become agile enterprises. The company is with its innovation and consultative services can specialized in optimizing ecommerce performance, including CDN solutions. Its high-speed network and security help clients create a digital business. services provide a solid hybrid data center. Its automated platform provides bots to reduce mean time to repair (MTTR) and to ensure prompt external client responses.

RISING STAR: DXC TECHNOLOGY Overview Caution DXC Technology (DXC) is a result of the merger between CSC and HPE’s Enterprise Services business. The DXC has many experienced and long-term professionals. It is not expected of clients company is mostly known as a provider for large enterprises. After completing the merger, it established a new to pay extra for their experience. To be competitive in the midmarket, the company strategy for portfolio and target markets. DXC has invested in automation to create an AI-enabled platform needs to balance customer intimacy with automation to compensate for internal called BionixTM to boot internal productivity and also to make price-competitive deals. Due to its repositioning costs. and partnership announcements over the past year, DXC is expected to witness growth in the midmarket in the coming years.

Strengths

Consulting technical capabilities: DXC’s heritage brings experienced professionals to clients. Its numerous partnerships, certified professionals and company accreditations provide broad access to the most effective technologies. DXC has partnered with AWS, Azure and Google in the cloud space. It also has partnerships with VMware, Dell EMC, Salesforce, Pegasystems, SAP, Oracle, Cisco, and more than 240 other companies. Clients have access to its varied knowledge base. 2019 ISG Provider Lens™ Rising Star Push into the cloud: DXC’s managed services are designed to support private and hybrid cloud on top of public IaaS services provided by AWS and Azure. Google Cloud Platform is also available whenever required. In Brazil, it is focused on developing Azure opportunities. The proposed hybrid cloud managed services can include DXC DXC has a robust portfolio to delight a or a client in-house data center as its management platform permits that integration. However, the company is typical midmarket client in its journey to aiming to migrate everything to the cloud. the hybrid cloud. Advanced workload transformation: DXC can provide application transformation services to eliminate the technical impediments that arise while moving workloads to the cloud. These services include readiness assessments, architecture design, code conversion, API development, and other consulting services to optimize performance, security and application availability.

Managed Security Services MANAGED HOSTING

Definition

This quadrant assesses service providers that offer enterprise-grade hosting solutions on dedicated facilities and infrastructure. They take responsibility for the day-to-day management and maintenance of data center assets such as servers and storage, as well as the operating systems. The also offer platforms to monitor various IT resources such as legacy systems, private and public clouds via a hybrid cloud hosting platform and a software-defined data center (SDDC).

MANAGED HOSTING

Eligibility Criteria Observations

Owns the data center facilities (excludes colocation-type hosting); The hosting business is diminishing in importance, giving way to private and hybrid cloud systems. ISG has identified at least three players that have stopped offering hosting services this year. Only Hosting includes backup and disaster recovery services; those clients that require support for legacy technologies, such as mainframes, Unix AIX, Sun Ability to manage and maintain data center assets and technology Systems and other proprietary appliances, continue to see value in contracting hosting outsourcing stack; services. Ability to take responsibility for physical security, including access However, these large legacy workloads mostly support financial services and governments. Some control to the data center room. of the largest data centers in Brazil are owned by banks and government entities. These systems will continue in-house, as no outsourcer in Brazil, including cloud providers such as AWS or Azure, have such large installations. Itaú-Unibanco’s private data center has a total area of 200,000 square meters, while the largest colocation provider is 113,000 aggregated square meters. In the 2019 study, ISG has found that most hosting providers are focused on maintaining their client base and not on renovating their hosting offerings. Only two providers have shown interest in expanding hosting services. All participants are investing in expanding their cloud brokerage and hybrid cloud offerings to offer viable alternatives to existing clients. These players are expected to

MANAGED HOSTING

Observations (cont.)

continue in the hosting business for many years because of the legacy 99.999 percent availability, and the high-speed connection between Rio de Janeiro and São applications that work well in their facilities and the fact that they provide Paulo offers an optimal disaster recovery alternative. integration to hybrid cloud structures. Moving workloads from hosting T-Systems has 13 offices and a twin-core Tier III data center in Brazil, serving several industry to hybrid cloud does not reduce their revenue stream if both options are verticals. It offers high availability with a strong focus on quality, security and robust governance offered. practices. Its specialization in SAP hosting is aligned with its application development and IBM offers robust, traditional hosting services, ideal for legacy maintenance practice in Brazil. workloads that need secure connections to the cloud. It has two hosting facilities in Brazil that are 110 kilometers apart and provide UOL DIVEO offers hosting in its two data centers in São Paulo. Its prime facility measuring disaster recovery for some clients. One data center is in Hortolândia, 25,000 square meters is the largest commercial hosting center in a single building in Brazil. where IBM has its delivery center, and the other is in São Paulo, which UOL is committed to hosting continuity as an extension to its cloud infrastructure offering. houses its country headquarters. Both are traditional installations with Its high-density data centers offer up to 99.99 percent availability. Its security accreditations the required security in place. include SSAE 16, ISO 27001, HIPAA, PCI DSS and N50600. It has the highest number of offerings compared to all Brazilian competitors in this market. TIVIT is constantly renovating and modernizing its data center facilities Rising Star Equinix is acquiring new clients thanks to its interesting portfolio. Its innovations to retain its leadership position. The company has long been providing hosting services and its on-demand offering extends the functionality may extend to the creation of virtual data centers, or edge-processing, in multiple locations. Its to add scalable resources such as virtual appliances, backup-as-a- SDDC solution enables clients to run IaaS-like private data centers. Equinix’s hosting service is an service and disaster recovery. Two TIVIT Tier III data centers provide excellent option for clients to locate data and core systems via a fast, low latency network that interconnects multiple cities.

IBM Overview Caution IBM Infrastructure Services’ revenue stands at $23 billion, accounting for 29 percent of the overall business. Due to its robust governance processes, some clients find IBM to be slow in The firm has two hosting facilities in Brazil that are 110 kilometers apart and provide disaster recovery services responding to changes in its hosting facilities. Clients should consider the pros for some clients. One data center is in Hortolândia, where IBM has its delivery center, and the other is in São and cons of such governance practices. These should also understand that the Paulo, which has the country headquarters. Both are traditional installations with the required security in processes help ensure the security and stability of all companies sharing the same place. IBM Cloud is not hosted in these data centers. environment. IBM’s data centers are not Tier III-certified.

Strengths

Footprint and legacy support: IBM has long experience in hosting with a loyal client base. Its large scale and diverse technologies enable support for legacy technologies. Its hosting services include mainframe, Unix, and other legacy systems that are required by finance institutions and certain service and retail organizations.

Matured governance: IBM has long employed strict governance and robust processes that have matured over time. Its management processes provide stability and security for clients. The firm helps them improve their processes to achieve high security and regulatory compliance, which some consider an indirect benefit of doing 2019 ISG Provider Lens™ Leader business with IBM.

IBM control center, NOC and SOC: IBM has its regional service management center in Hortolândia, where it IBM offers robust, traditional hosting concentrates all its monitoring tools for data center, network and security operations. The center runs 24x7 and uses IBM-leading technologies to monitor and remotely operate its facilities and configurable assets. services, ideal for legacy workloads that need secure connections to its cloud or hybrid solutions.

TIVIT Overview Caution TIVIT, founded in 1998, is constantly renovating and modernizing its data center facilities to maintain its leader- TIVIT aborted its IPO in 2017 and resumed the process in mid-2018. In December ship position. Its largest data centers are in São Paulo and Rio de Janeiro; it has eight centers in Latin America to 2018, it postponed it to Q1 2019, but the IPO did not take place. British firm Apax host regional clients. The company long offered hosting services. Its on-demand offering has the functionality to Partners acquired a majority stake in TIVIT for $950 million in 2010 and is waiting for add scalable resources such as virtual appliances, backup-as-a-service and disaster recovery. the current valuation to be higher; it is now looking for an anchor investor. A change in majority stake should not impact its capacity to deliver services. However, this could hinder new investments in modernizing hosting services as the company may prioritize more appealing cloud and digital services.

Strengths

Robust data centers: TIVIT has two Tier III data centers that provide 99.999 percent availability and host cloud providers. The high-speed connection between Rio de Janeiro and São Paulo is an optimal disaster recovery alternative. Its direct link connections to AWS and Azure provide low latency to the cloud. All security certificates are available for the most demanding clients. The other eight data centers exist as options throughout Latin America.

Effective delivery team:TIVIT’s team skills cover all technologies in a hosted environment. The company 2019 ISG Provider Lens™ Leader supports mainframe hosting and processes high-volume transactions for financial clients. It has an eclectic resource pool with technical service specialists to support legacy systems and leading-edge DevOps tools. From its monitoring and operations center in São Paulo, TIVIT oversees all its hosting clients to resolve incidents quickly. It has a long history of non-stop operations. TIVIT provides robust data center hosting services to large enterprises that require secure Portfolio breathe and scalability: TIVIT can integrate its hosted clients to other portfolio offerings such as a hybrid cloud. Its on-demand service adds a private cloud infrastructure with OpenStack automation and and reliable infrastructure. orchestration tools. Bare metal, virtual servers, storage, cloud connectivity, APIs, pre-configured SAP Hana and SAP Hybris are options under on-demand managed services.

T-SYSTEMS Overview Caution T-Systems, initially set up as a branch to support global customers, has been gradually attracting Brazilian T-Systems is undergoing a global transformation program, wherein it is gradually clients. The company has had a presence in Brazil since 2001 with 13 offices and a twin-core Tier III data center. moving managed services to India to reduce its European operating costs. Those T-Systems serves several verticals: automotive, manufacturing, banking, insurance, service companies, utilities, changes do not impact its Brazilian operations directly, as the local business retail and telecommunications. It is a full-scope service provider with services ranging from solution design to continues to grow and is considered a low-cost alternative to delivery centers hosting, including management, analytics and innovation. Its infrastructure options include data center, hybrid in other countries. However, recent negative news in local media can impact or public cloud. T-Systems’ brand image. Clients have been advised that the company will be moving to cloud services gradually but has planned to keep its data center facilities. This is aligned to the infrastructure strategy of its parent company Deutsche Telekom. Strengths

“Quality first” mentality: The company has a world-class Tier III data center in Brazil that offers 99.999 percent availability. Its data center follows T-Systems’ “Zero Outage” program, a fully redundant design with automated monitoring and recovery for optimizing quality and improving customer satisfaction. The firm has more than 600 quality assurance managers worldwide. T-Systems Quality Academy provides quality assurance training to 21,000 professionals.

SAP hosting specialization: T-Systems has a strong partnership with SAP and has a large network of SAP 2019 ISG Provider Lens™ Leader servers and databases running in its data centers. Clients seeking secure and zero-outage SAP installations should consider T-Systems as a primary option. Its high-quality standards for a robust SAP hosting solution are in line with SAP governance and compliance recommendations. T-Systems is a viable alternative to hosting IaaS-like managed hosting: T-Systems’ software-defined data center (SDDC) allows clients to deploy resources core workloads that require high based on pre-configured options. The platform accelerates DevOps adoption and provides integration to hybrid availability, top security, governance clouds. The data center also provides colocation in case a client has specific technology needs. The company’s and compliance at a predictable cost. pricing and invoicing are in local currency, which protects clients’ budget from currency volatility.

UOL DIVEO Overview Caution UOL DIVEO offers hosting in its three data centers in São Paulo. Its prime facility, measuring 25,000 in square UOL DIVEO has solid operations and more than 2,000 clients. Its experience in data meters, is the largest commercial hosting center in a single building in Brazil. UOL DIVEO is committed to host- center hosting for large corporations began with the acquisition of DHC in 2009 and ing continuity as an extension to its cloud infrastructure offering. Its parent company, Grupo Folha, has many DIVEO in 2010. It has expanded its processes since then and has acquired service other companies, providing UOL DIVEO the financial stability to compete with large multinational corporations. certifications such as ISO20000 and ISO27000. However, clients migrating from traditional hosting/outsourcing providers may not find UOL DIVEO’s governance up to standards. In that case, they can work in collaboration to align the governance and compliance requirements.

Strengths

Outstanding capacity: UOL DIVEO’s high-density data centers offer up to 99.99 percent availability. Its security services have received SSAE 16, ISO 27001, HIPAA, PCI-DSS and N50600 accreditations. The firm offers dedicated hosting and shared hosting. It currently manages more than 45,000 physical servers and offers recovery point objective and recovery time objective (RPO/RTO) as low as five minutes in some cases. UOL DIVEO can provide technical services for a broad range of technologies, including IBM mainframe and Unix servers if necessary.

Data center architecture consulting: UOL DIVEO can assess and design the best solution for each client, 2019 ISG Provider Lens™ Leader including hosting, colocation and cloud options. The company also helps clients in choosing the best cost- effective architecture for each workload, without constraints. Its high-speed connectivity to most cloud providers assures that the data center design is not limited in performance or scalability. UOL DIVEO is investing in modernization to stay IaaS-like hosting option: UOL DIVEO can provide SDDC over VMware or OpenStack. In either case, virtual competitive, making it a viable alternative for clients servers, storage and other data center assets can be provisioned in the same way a client would do in the public cloud. It can provide SDDC over dedicated or shared resources, although the latter offers higher scalability. It that need to integrate hosting and cloud services. has implemented SDDS several times for clients that want to run an IaaS-like private cloud.

RISING STAR: EQUINIX Overview Caution Equinix is a $5 billion company with 8,000 employees. Platform EquinixTM gives access to 52 markets through Equinix has data centers in Rio de Janeiro and São Paulo. Clients from other its interconnected data centers, with 99.9999 percent global uptime as of 2018. It has been providing hosting locations can benefit from its provision of high speed, low latency network. services in Brazil with six data centers since 2011. It also offers colocation, managed services and a dedicated However, access to physical data center assets is concentrated in these two cities. software solution for license asset control. With the increase in the number of hosting enterprise clients, Equinix ECX FabricTM and Network Edge are available in certain locations and are not will enter the Leader quadrant. applicable outside metropolitan areas.

Strengths

Strategy and vision: Equinix is focused on making IT infrastructure transparent to its clients. It has invested in developing intellectual property and partnerships to continuously increase its data center and network capacity and simplify its use through software-defined everything (SDx). It has 200 data centers in 52 locations, supporting more than 9,800 client companies. It also has 2,500 cloud providers connected through 1,800 networks. Clients can trust its facilities to host their core systems, as Equinix is not going to discontinue its data center services in the foreseeable future. 2019 ISG Provider Lens™ Rising Star Extendable data center capacity: Equinix Cloud Exchange (ECX) FabricTM and Equinix Network Edge provide a unique SDN private network capacity. For manage hosting, Equinix’s SDN enables the integration of remote data centers with edge-processing under a single managed hosting service. This means that clients can configure Equinix’s hosting service is an excellent a private data center in a city where branches, industrial plants or Internet of Things (IoT) edge computing are option for clients to locate data and core needed. systems via a fast, low latency network that Comprehensive hosting portfolio: Equinix technical staff is certified in the main technologies in the market. interconnects multiple cities. Services include operating systems, firewalls, databases, routers and switches, backup solutions and application servers from a wide range of providers. Certifications include Tier III and ISO 27001.

MANAGED CONTAINERS AS A Hybrid Cloud Management Platforms SERVICE (CAAS) Definition

This quadrant examines the orchestration of container solutions as a service for applications, data, security and infrastructures to develop and operate applications with the benefit of increased product/service availability, platform flexibility and cost savings. Containers are an innovative vehicle for deploying, running and scaling microservices. Professional management from a service provider not only offers the corresponding “node hardening” but also special services for container- based application operations such as monitoring, logging, patching and predictive analyses for guaranteed performance and ensured security.

MANAGED CONTAINERS AS A SERVICE (CAAS) Eligibility Criteria Observations

Ability to offer monitoring, logging, patching or predictive analysis With the growing prominence of hybrid cloud, more enterprises are understanding the tools that for guaranteed performance and security purposes over the entire provide business agility. They are also realizing that DevOps is not executable without automation. lifecycle of containers; However, as its use increases, clients start demanding quicker deployments and more changes. Manually configuring virtual machines and databases copy/deploy data in every DevOps cycle is Established partnerships with at least one container orchestration time consuming. This hassle has pushed containers into production. and cluster management tools/services such as Kubernetes, Docker According to Docker, “a container is a standard unit of software that packages up code and all its Swarm, Rancher, Nomad and OpenShift; dependencies, so the application runs quickly and reliably from one computing environment to Capability to support hybrid cloud environments, a combination of another. A Docker container image is a lightweight, standalone, executable package of software private-hosted container services and public cloud offerings (such as that includes everything needed to run an application: code, runtime, system tools, system libraries CaaS from AWS, Microsoft Azure, GCP and IBM Cloud); and settings.” Competencies in network performance management (SDN) and When companies started migrating workloads to the cloud, they faced the challenge of porting related domains such as agility through network automation. legacy applications. Concurrently, new applications developed for one cloud would not run on another. Service providers that are partnered with IaaS vendors realized they had a problem in scaling their business. While enterprise client and service providers were struggling to find a solution, Google was working on Kubernetes.

MANAGED CONTAINERS AS A SERVICE (CAAS) Observations (Cont.)

In 2015, the Cloud Foundry foundation was created and immediately For this study, ISG has qualified 11 service providers that are fully capable of deploying and received support from leading IT vendors and providers. It provides managing containers in complex environments. This market is rapidly gaining traction with many a development platform where applications reside inside containers proposals and negotiations being made. However, the number of containers in production is that are defined using Kubernetes. It eases the process of converting relatively small. legacy applications and creating new ones. Red Hat OpenShift is similar Dedalus has been providing managed CaaS for about a year. The company’s strong accredita- to Cloud Foundry and uses Kubernetes. Less popular options are also tion gives it direct access to key vendor experts and support teams to accelerate DevOps and available. containers adoption. All execution steps are automated for reuse, reliability and scalability. Kubernetes is an open-source system that automates deployment, In Brazil, it is the first partner choice for Amazon Elastic Container Service for Kubernetes and scaling and management of containerized applications; it is quickly Azure Kubernetes Service. becoming the de facto standard for container orchestration. Containers IBM Cloud Kubernetes Service is a managed container service. The company is an early adopter. can be deployed in any cloud. DevOps now deploys containers into It has been part of the Cloud Foundry foundation since its inception. IBM’s acquisition of Red production instead of application code. Hat is aimed at leveraging OpenShift, placing it ahead of market competition. IBM can manage For private or hybrid clouds, software-defined data center tools containers in AWS, Azure, IBM Cloud and in a private cloud. It adds AI/ML to improve security replicate the virtualization methods applied in public clouds, making and automation. containers deployable in-house. This pushes the need for DevOps to UOL DIVEO has been providing container managed services for five years, which makes it an be used for legacy applications. When clients try to run containers and early adopter. The firm can deploy containers on AWS, Azure and IBM Cloud; it is one of the few DevOps in-house, they find it easy to manage a few containers but players that offer Google Cloud Platform. It has proven CaaS cases to help enterprise clients consider scaling to the enterprise as a complex task.

MANAGED CONTAINERS AS A SERVICE (CAAS) Observations (Cont.)

achieve scale in agile development and DevOps using containers. Unisys’ CloudForteTM solution offers AI automation and advanced security, including secure key management for containers and other virtual assets. It uses VMware Enterprise PKS container technology. It provides templates for auto-provisioning and configuration automation to apply security and compliance policies. Docker containers are managed via Kubernetes in a private cloud, Azure and AWS managed container services. Rising Star DXC Technology (DXC) offers its managed container platform as a service (PaaS) powered by Red Hat OpenShift. This platform is aimed at accelerating application development and deployment processes. DXC has a renovated cloud services portfolio and long-running experience in the Brazilian market. Its renovated focus puts it in a position to gain market share in the future.

DEDALUS Overview Caution Dedalus is a service provider that deploys public and hybrid cloud to clients in Brazil and a few countries in Two factors prevent Dedalus from being better placed in the Leader quadrant. The South America. It supports midrange and large enterprises. The company is the major managed services company does not provide DevOps automation and CaaS in private cloud in-house provider (MSP) for both Azure and AWS, both of which granted it top accreditations. Dedalus has been data centers because its solution is based on AWS and Azure toolsets. In addition, providing managed CaaS for about a year. its consulting portfolio is limited to the operations side of DevOps; it does not provide application development consulting services.

Strengths

Pragmatic consulting and execution: Dedalus automates DevOps and containers. Its consultants help clients deploy application deployment tracking by using the best-of-breed tools. The company’s strong accreditation gives it direct access to key vendor experts and support teams to accelerate DevOps and containers adoption. All execution steps are automated for reuse, reliability and scalability. Market knowledge: Dedalus’ practitioners receive training from AWS and Azure at each innovation announcement. Given its limited client base, only a small percentage is using container. Despite this, the 2019 ISG Provider Lens™ Leader company still has more clients compared to its competitors in the local market, placing it ahead in the competition. Dedalus’ expertise has enabled it to become Service and customer intimacy: Dedalus works closely with clients to understand their needs and adapt the governance process and service solutions to specific requirements. Service automation is custom built for each the first partner choice for Amazon Elastic client and this requires proximity and team integration. The company uses collaboration tools to maintain Container Service for Kubernetes and Azure customer intimacy. Kubernetes Service.

IBM Overview Caution IBM Cloud Kubernetes Service is a managed container service. The company is an early adopter in this space The number of client cases in Brazil is insignificant compared to IBM’s size. The and been part of the Cloud Foundry foundation since its inception. IBM’s acquisition of Red Hat is aimed at technology is new and can change the application lifecycle management (ALM) leveraging OpenShift, placing the company ahead of the market competition. IBM can manage containers in process. Clients may choose to contract IBM training and ALM consulting before AWS, Azure and IBM Cloud. going for mass containerization adoption.

Strengths

Multi-cloud containers: IBM CaaS is available in all clouds. IBM Multicloud Manager helps in managing Kubernetes resources across multiple clouds and clusters to enable governance and control. Its graphics visualization replaces the command-line interface (CLI) listings, allowing multiple clusters to be managed by a consistent set of configuration and security policies. IBM CaaS provides containers portability, eliminating the risk of vendor lock-in.

Intelligent automation: IBM Cloud Kubernetes Service provides intelligent scheduling, self-healing, horizontal 2019 ISG Provider Lens™ Leader scaling, service discovery and load balancing, automated rollouts and rollbacks, and configuration management. Its CaaS capabilities include simplified cluster management, container security and isolation policies, cluster design, and integration tools for deployment consistency. IBM Cloud Kubernetes Service provides a Ready for scale: IBM can handle large environments and its solutions are designed for enterprise clients. comprehensive portfolio and robust delivery It understands governance and compliance concerns and can respond by using security key management, capabilities to ensure an automated, secure container registry, real-time deployment analytics, and other services based on robust tools that count on AI/ML container deployment at scale. to handle large data volumes that increase complexity.

UNISYS Overview Caution Unisys is a global company offering security software and services, digital transformation and workplace Unisys service solution is streamlined to its platform. It does not support all services, industry applications and managed services for the government, financial services and commercial container technologies and cloud providers. The company is expected to enrich its markets. Its cloud and infrastructure services rely on its automated CloudForteTM platform to manage portfolio over the years to address the growing market demands. Microsoft Azure, AWS, private and hybrid clouds.

Strengths

Automation and security: Unisys’ CloudForteTM solution includes AI automation and advanced security, including secure key management for containers and other virtual assets. It uses VMware Enterprise PKS container technology. It provides templates for auto-provisioning and configuration automation to apply security and compliance policies. Docker containers are managed via Kubernetes on a private cloud, Azure and AWS managed container services.

Global scale: Unisys has more than 1,000 professionals with cloud certifications. The organization gives 2019 ISG Provider Lens™ Leader Brazilian clients access to its knowledge and best practices. Its services comprise advisory, infrastructure transformation and application modernization to enable clients to use the best of containers and DevOps. Expertise in complex environments. Unisys is focused on dealing with large accounts, including banks, governments and commercial organizations. The company knows how to deal with strict regulations, complexity Unisys provides a robust, secure CaaS for large, and security requirements. It builds solutions to respond to compliance and risk to address regulations such highly regulated, complex enterprise clients. as the new Brazilian general data privacy law known as LGPD – Lei Geral de Proteção de Dados. In Brazil, it provides container management services to some large, complex clients and is ready to grow its CaaS client base.

UOL DIVEO Overview Caution UOL DIVEO has been providing container managed services for five years, which makes it an early adopter. It UOL DIVEO uses a multitude of technologies. However, it has not developed a can deploy containers on AWS, Azure and IBM Cloud; it is one of the few players that offer Google Cloud Plat- robust AI-automated platform to leverage container automation. form. UOL DIVEO serves all the businesses of its parent company. Its most demanding client that employs more than 1,100 people in agile development and uses DevOps and containers on the UOL DIVEO service platform.

Strengths

Large capacity: UOL DIVEO has a large data center footprint that is extended to public cloud platforms. It has proven expertise in various leading technologies with five years of experience in providing CaaS. It has a team of more than 770 cloud specialists to support service configuration and deployment. UOL DIVEO remains ahead of its competitors and has a larger CaaS professional team in Brazil. Full breadth of technologies: UOL DIVEO covers all technologies with respect to CaaS. It offers full flexibility for custom container deployment, supported by practitioners who offer insights into each client’s container 2019 ISG Provider Lens™ Leader configuration choice. Containers can be deployed to all cloud providers, a neutrality that is not encountered in the competition. Clients have more technology and infrastructure choices when choosing UOL DIVEO. Pragmatic approach: UOL DIVEO responds quickly to client requests on defining and deploying a container UOL DIVEO has proven CaaS cases to help strategy. It also offers consulting and application development services to accelerate adoption. It helps clients enterprise clients achieve scale in agile in choosing a better cloud platform, or data center, to deploy containers based on the surrounding client application technologies. development and DevOps using containers.

RISING STAR: DXC TECHNOLOGY Overview Caution DXC Technology (DXC) provides a full-scope IT outsourcing portfolio to 6,000 private and public-sector clients DXC has a long-standing partnership with IBM. The acquisition of Red Hat by IBM in 70 countries. In 2018, it announced the DXC Managed Container Platform as a Service (PaaS) powered by in late 2018 was pushed by the global market acceptance of OpenShift. ISG does Red Hat OpenShift, aimed at accelerating application development and deployment processes. DXC offers not foresee any risk for clients in adopting DXC’s managed container platform. a renovated cloud services portfolio and has extensive experience in the Brazilian market. The company is Moreover, like any open source product, OpenShift cannot be discontinued as its positioned to gain market share shortly. copyrights will remain open. However, DXC is expected to face new competition when IBM extends OpenShift support to its larger ecosystem.

Strengths

Unique OpenShift solution: DXC is the first service provider to offer managed OpenShift services. Clients can use OpenShift for free or pay for Red Hat support services; however, Red Hat does not operate containers. DXC’s offering appeals to a large client base in Brazil. DXC CaaS enables developers to build, deploy and manage containerized applications on a single platform across hybrid and cloud infrastructures. The solution was developed as a high-availability container platform managed service with a 99.9 percent guaranteed service level from DXC. 2019 ISG Provider Lens™ Rising Star Agility on continuous creation and delivery: DXC has a robust application testing practice, strong agile development capabilities, and an advanced, AI-powered managed services platform. These services can be added to CaaS for a true DevSecOps enterprise experience. DXC BionixTM is an AI/ML automation platform that With a comprehensive, renovated portfolio, provides increased security, speed and agility to CaaS. The firm has claimed that its OpenShift services can DXC is well positioned to grow its cloud and shorten the development cycle by up to 66 percent. CaaS services in Brazil. Comprehensive portfolio: DXC’s services include automation, incident management, patching, monitoring, scale-out, performance reporting, backup and recovery. The firm is currently providing managed cloud services to more than 800 clients globally.

Hyper Converged Systems MANAGED SECURITY SERVICES

Definition

This category includes consulting, training, integration, maintenance, support or management of security services. Managed security services comprise the operations and management of an IT security infrastructure for one or several customers via a SOC. Typical services are spam detection and prevention, security and penetration testing, security consulting, firewall management, and intrusion detection/ intrusion prevention systems (IDS/IPS). Private and hybrid cloud environments require highly flexible, ongoing (real-time) protection of data and can identity unauthorized access without compromising system performance. This analysis examines services that do not have an exclusive focus on the respective provider’s proprietary products.

MANAGED SECURITY SERVICES

Eligibility Criteria Observations

Ability to provide data center security services such as spam The managed security market undergoing a transformation. Until recently, the strategy was detection and prevention, security information and event restricted to protecting and monitoring access by identifying all ports in use and closing the others, management (SIEM), encryption, identity and access management followed by monitoring the traffic through each door. Software vulnerabilities can open new doors, (IAM), security consulting, firewall management, vulnerability but patching was enough to remediate. However, firewalls and software updates are no longer assessment and penetration testing (VAPT), and IDS/IPS remotely or enough to protect. at the client site; There is a growing complexity created by the convergence of multiple trends. The major push comes from the increase in cybercrimes. With the increase in digitization, criminals are migrating SOCs, along with the data center security services, to be preferably to the virtual world. With fewer people using checks and cash, falsifying checks and pickpocketing owned and managed by the provider and not predominantly by have become less appealing to thieves. Such activities have been replaced by phishing, identity partners; theft, ransomware and malware that are intended to steal money. A report published by McAfee Support for both on-premise and SaaS-based cloud workloads; in February 2018 has estimated global cybercrime costs reached $600 billion, or 0.6 percent of the global GPD. This is mostly higher in wealthier regions, moving up to 0.9 percent of GDP in the U.S. Staff to be certified in CISSP, CISM, GSEC and GIAC. and Europe. Other alarming reports exist. Sberbank, Russia’s largest bank, stated that cybercrimes inflicted total damages worth $1.5 trillion on companies in 2018. In a 2016 report, U.S.-based

MANAGED SECURITY SERVICES

Observations (cont.)

Cybersecurity Ventures predicted that cybercrime would cost the world compensate for the losses. However, most companies do not have the capacity to recover their more than $6 trillion annually by 2021. However, we believe that the affected operations quickly. ISG foresees an increase in the number of such incidents over the McAfee report is closer to reality, yet alarming. years as these criminals are now part of large cyber-criminal organizations.

CERT.br is a computer emergency response team that is responsible for Ransomware can be prevented by using a firewall and security patches. However, such incidents handling computer security incident reports across Brazil. The number cannot be easily prevented when the attacker already has user credentials. PwC’s 2018 Global of reported incidents has been declining after reaching an all-time high State of Information Security Survey has observed that 30 percent of incidents are carried out by in 2014. In 2018, it registered a 19 percent fall in reported incidents. employees and 26 percent by former employees, most of which are harmless, such as a lost device Although the Brazilian trend is positive, its relative position is poor or password, which can mask serious problems. For example, a regular CRM user/employee can compared to other regions. The Global Cybersecurity Index (GCI) is a download account contacts to a pen drive and pass this to criminals who, in turn, sell the data reference that measures the commitment of countries to cybersecurity. for mass marketing. Though this may seem harmless to the employee, it is profitable to the mass CGI 2018 rated the U.K. as the most cyber-conscientious country, followed marketing service provider. by the U.S. On the other hand, Brazil scored 70 out of 175. The implementation of end-point security is increasing. Access controls are being set up at entry Ransomware is considered the biggest security threat, not only because points such as mobile, notebooks and browsers. A server’s firewall protects doors 80, 8080 or 443 it stops business operations but also due to its terrifying psychological (the HTTPS door) from hackers and authenticates the browser application access to the server. effect on all people involved. In a recent attack, the affected companies End-point security protects access to the browser. The scope of data center security is expanding. responded by running disaster recovery and re-establishing operations Without end-point security, application servers and databases are at risk. in a few hours without giving into the demands. Some had insurance to

MANAGED SECURITY SERVICES

Observations (cont.)

The use of identity management (IdM), which involves giving and revoking are examples of regulations that demand security prevention and remediation. Some providers do access rights, is increasing. Adding AI/ML capabilities can improve the not include GRC in their portfolio because governance and compliance require additional skills and process. ML is used to identify user behavior and usage context to revoke specialization that are not sharable with the security team. access in case of change. AI, ML and analytics are improving application A few service providers can cover the full scope of security services. Enterprise clients may need to security and fraud detection by ensuring that identity, behavior and hire multiple providers as per the specialization. Some security measures can impact others. context comply with security rules. In the case of CRM downloads, IdM could block such unusual activities (or kept at a minimum), register logs IBM offers security services and tools for data centers, network, access security and cloud to trace the user, or ask for additional identification to authorize the cybersecurity services. It also offers strategic advisory consulting, incident response, design download. It could also prevent former employees from breaching data. and deployment services. The firm’s key differentiator resides in its AI tools. IBM uses AI/ML to

Data protection and data loss prevention (DLP) is on the rise due to rigid identify and learn about vulnerability, attacks, incidents and responses. It consumes large sets regulatory measures such as GDPR in Europe and LGPD in Brazil. In 2017, of data artifacts from both structured and unstructured sources to build a knowledge base on a report from IBM Security, in collaboration with the Ponemon Institute, threats and cyber risks. IBM gathers insights to identify the relationships between threats, such stated that a data breach costs $3.62 million on an average. This statistic as malicious files, suspicious IP addresses or insiders. This analysis takes seconds or minutes, has become a benchmark in the security services business. allowing security analysts to respond to threats up to 60 times faster.

Some service providers have incorporated governance, risk management ISH Tecnologia is a niche Brazilian player with a strong focus on security. It holds 700 technical and compliance (GRC) into their security services. The rationale is that GRC certifications and serves 500 clients. It established an SOC in 2006 and its specialization has provides additional security rules for enhanced protection. GPDR/LGPD been evolved to understand the particularities of the Brazilian market. It provides a pragmatic

MANAGED SECURITY SERVICES

Observations (cont.)

approach, using robust tools to monitor, protect and react accordingly. It UOL DIVEO has extensive experience in security services and technologies. Its managed services has surpassed the minimum scale to rapidly acknowledge new security line is comprised of assessment, consulting, integration, hardening, monitoring, anti-DDoS threats taking place in the Brazilian market and update security measures (distributed denial-of-service), web application firewall, incident remediation and brand to all clients. protection. It has many clients, including high-traffic corporate customers and those in financial services. UOL DIVEO offers a proven and effective security solution to companies of all sizes. Unisys runs 24x7 security operations and proactively improves clients’ security maturity. Its portfolio includes endpoint protection Rising Star Capgemini provides a full portfolio that includes cyber attack simulation, consulting, using AI/ML, managed SIEM for monitoring, detection and response data protection, application security, application testing, identity and access management protection, managed public key infrastructure (PKI), and security device (IAM), industrial security, open-source security, web application firewall, computer emergency management. The company provides a range of services to secure, response team (CERT), end-point security, threat hunting, threat intelligence and security monitor, identify and remediate incidents. Its key differentiator resides operations. It has 13 SOCs that are interconnected with the ability to share the best practices for in its sophisticated and unique technologies that help ensure a safe identifying threats and responding accordingly. environment for clients.

IBM Overview Caution IBM offers security services and tools for data center, network, access security and cloud cybersecurity IBM provides comprehensive services. However, in some cases, clients contract services. It also offers strategic advisory consulting, incident response, design and deploy services. Its services specialized services from its partners to supplement the capacity to respond quickly are extensible to the digital workplace. IBM’s Brazilian portfolio includes all aspects of its global offering. to incidents. The firm shows no resistance in combining its managed services with external specialists. IBM’s managed security services portfolio is complex to understand. Clients should be diligent in understanding their contracts. Under-contracting may cause a severe impact during a security incident. Over-contracting costs more than necessary. Strengths

Comprehensive portfolio: IBM’s managed services include detection, response, network security, IAM, penetration test, data security and application security. Differentiated services and tools can also be added. IBM MaaS360 uses AI to identify context and behavior before enabling endpoints, end users, apps, content and data. X-Force Red is an autonomous team of veteran hackers that break into organizations and uncover risky vulnerabilities. IBM X-Force Incident Response and Intelligence Services (IRIS) works to reduce loss in a security incident. IBM X-Force Command trains organizations in crisis response. IBM QRadar applies analytics over correlation rules. 2019 ISG Provider Lens™ Leader AI/ML enabled security: IBM uses AI/ML to identify and learn about vulnerability, attacks, incidents and responses. It consumes large sets of data artifacts from both structured and unstructured sources to build a wide knowledge base on threats and cyber risks. It gathers insights and uses reasoning to identify the relationships between threats, such as malicious files, suspicious IP addresses or insiders. This analysis takes seconds or minutes, allowing security analysts to respond to threats up to 60 times faster. The use of AI IBM offers a comprehensive set of security eliminates time-consuming research tasks and provides a curated analysis of risks, reducing the time to make services to protect the most complex enterprises. critical decisions and launch an orchestrated response to remediate the threat. AI and ML are not autonomous; they are used to enhance human capacity in identifying and responding to threats.

Professional services: IBM has a sizeable number of consulting practitioners to provide security advice and design services to clients.

ISH TECNOLOGIA Overview Caution ISH Tecnologia (ISH) is a Brazilian company headquartered in Vitória, state of Espírito Santo. It is a niche player ISH’s portfolio does not include fraud prevention. with a strong focus on security. The firm holds 700 technical certifications and serves 500 clients. It has a The company is a niche provider that can support large organizations. network of 36 partners, which include Check Point, Cyberark, F5, FireEye, Forcepoint, Forescout, Fortinet, Juniper, However, it does not have the business sophistication that is expected by some McAfee, RSA, Sophos, Symantec and Tenable. Its portfolio includes security assessment, security analytics, DDoS multinational organizations. detection and mitigation, compliance management, vulnerability management, penetration test, end-point security, privileged access management, cloud access and access control.

Strengths

Specialization and market knowledge: ISH’s SOC was launched in 2006. Its specialization has evolved to understand the particularities of the Brazilian market. The firm adopts a pragmatic approach, using robust tools to monitor, protect and react accordingly. It has surpassed the minimum scale to rapidly acknowledge new security threats that occur in the Brazilian market and updates security measures for all clients. Real-time monitoring platform: ISH Vision is the company’s platform for real-time security monitoring. The company configures security alerts and logs that are captured in real time to correlate all activities into a threat 2019 ISG Provider Lens™ Leader knowledge base. ISH Vision’s shared knowledge base ensures that updates are immediately available to all clients. ISH resolves 10,000 new incidents every year, gaining new insights that are then fed into the knowledge base. ISH is an ideal partner for Brazilian Pragmatic managed security services: ISH’s managed security services include regular compliance and enterprises that need pragmatic, hassle-free vulnerability assessments with an optional penetration test. The identified vulnerabilities are corrected using the best practices and the ISH knowledge base. It also monitors DDoS attacks to isolate the offender and scale managed security services. the resources to remediate. Its services include data loss prevention, endpoint security, secure public Wi-Fi access points and secure Wi-Fi/VPN appliances that connect branches and stores.

UNISYS Overview Caution Unisys is a global service provider. Its security operations offer 24x7 support and the company proactively Unisys services are designed for high-scale organizations. Clients from the improves its clients’ security maturity. Its portfolio includes endpoint protection using AI and ML, managed SIEM midmarket or SMB may find them overwhelming for their needs. for monitoring, detection and automated response protection, managed PKI, and security device management. The company provides all services to secure, monitor, detect, isolate and remediate security incidents.

Strengths

Robust threat protection: Unisys services are designed for large organizations. For Empresas Publicas de Medellin, it uses the BeATo™ benchmark assessment tool and Unisys Noise Cancellation Advanced Analytics Platform (UNCAAPTM) to monitor and correlate more than 140 million security events daily. It also uses third- party LogRhythm’s NextGen SIEM to inspect a vast quantity of logs and other machine data using AI for speed.

Unisys’ managed PKI: A PKI is a set of roles, policies and procedures to create, manage, distribute, use, store and revoke digital certificates. Unisys provides cloud-based PKI and services that are necessary to secure machines, network, virtual servers and IoT. There are many solutions to create digital certificates but storing 2019 ISG Provider Lens™ Leader and managing certificates is a challenge. Unisys provides consulting and solution design and services to manage digital certificates for large complex organizations. Zero-trust approach: Unisys Stealth® creates dynamic isolation, identity-based microsegments called Unisys uses the most advanced security communities of interest (COI). It regards all traffic as untrusted and permits communication only when COI technology to provide world-class security membership is confirmed. The solution separates trusted systems, users and data from the untrusted. All communications between COI members and Stealth®-protected assets are encrypted, and endpoints are services to demanding enterprise clients. concealed from non-members. This highly secure connection enables dynamic isolation, eliminating attacks that are in progress, to keep business running. The solution dynamically isolates devices and users at the first sign of compromise.

UOL DIVEO Overview Caution UOL DIVEO has extensive experience in the security of its related companies. Its managed services portfolio is UOL DIVEO has recently implemented AI/ML for monitoring and analyzing security comprised of assessment, consulting, integration, hardening, monitoring, anti-DDoS, web application firewall, threats. The company may take some time to develop advanced AI/ML and analytics incident remediation and brand protection. It can combine disaster recovery as a service (DRaaS) for fast to reduce reaction times. recovery as a remediation measure in case of large-scale attacks. Its SOC is based in São Paulo.

Strengths

Trusted security solution: UOL DIVEO manages the security of its newspaper Folha, its news portal UOL, with correlated subscription services, and its financial services arm PagSeguro. Its news portal is rated as the seventh most-visited website in Brazil, according to Alexa. PagSeguro transacts more than $1 billion a year over UOL DIVEO’s data centers and is a strong target for hackers. The company has been providing internet services since 1996 without any service disruption. Its size, traffic and financial services characteristics have taught the company to build robust security solutions. 2019 ISG Provider Lens™ Leader Advanced, intelligent monitoring tools: UOL DIVEO has introduced AI/ML and analytics to improve its monitoring effectiveness and speed. It uses a series of monitoring tools and analytics to process high volumes of real-time data such as logs and transactions. It can add fraud detection tools and services if necessary. UOL DIVEO offers a proven and effective Large scale and response capacity: UOL DIVEO’s security services are suited to businesses of any size. The managed security services solution to company has a large team of security experts to monitor and act in cases of security incidents. It has a shared team of experts that are focused on resolving complex incidents. enterprise clients of all sizes.

RISING STAR: CAPGEMINI Overview Caution Capgemini is a 50-year-old service provider with deep industry-specific expertise. It has more than 210,000 Capgemini acquired CPM Braxis in 2010. CPM Braxis, an IT services and outsourcing employees and runs multinational operations across 40 countries. The firm has many SOCs, one of which is company, has SOCs for several clients in Brazil. This report is evaluating Capgemini’s in Brazil. In 2018, it acquired Leidos Cyber, a pioneer in cybersecurity. Capgemini is focused on investing in current offer that differs from CPM Braxis’ services. Some of its corporate clients improving its security services and in restructuring its sales channels in Brazil. ISG believes that this move will may still be under CPM Braxis contracts. In such cases, clients should negotiate on push the company to the Leader quadrant in a few years. upgrading to Capgemini global standards.

Strengths

Expertise and professional focus: Capgemini’s global security team has more than 3,500 professionals dedicated to advising, protecting, monitoring, investigating and resolving cyber security-related incidents. It prides itself on the professionalism of its team and is continuously investing in the personal development and certification of its employees. Its industry certifications include CISSP, CISM, CLAS CBCP and CEH. Capgemini’s operations centers are ISO27001certified and frequently audited.

Detailed portfolio: Capgemini’s services include cyberattack simulation, consulting, data protection, application 2019 ISG Provider Lens™ Rising Star security, application testing, IAM, industrial security, open-source security, web application firewall, CERT, end- point security, threat hunting, threat intelligence and security operations. It has 13 SOCs that are interconnected with the ability to share the best practices to identify threats and respond accordingly. Capgemini has a robust service portfolio for Strong partnerships: Capgemini is working with many vendors to leverage market expertise. It is also handling complex enterprise requirements and is developing proprietary tools and open-source software to provide custom solutions and service differentiation. positioned to grow in the Brazilian market.

Colocation Services COLOCATION SERVICES

Definition

This quadrant covers service providers that offer professional and standardized data center operations as colocation services. They also provide a common access point for various hosting providers, system houses, independent software vendors, carriers or telecommunication providers and end users. Enterprise clients are opting for colocation services as they provide a standardized and professional data center setup, different carrier providers, low latency and high bandwidth to deliver rich content or just critical/latency-sensitive information to users in and outside major metropolitan areas.

COLOCATION SERVICES

Eligibility Criteria Observations

Location to be closest to service provider’s primary target market; Two typical clients prioritize colocation services. The first type has a legacy workload that does not benefit from virtualization. The second type has modern technology for supporting a stable Ability to provide colocation-hosting facilities with high-quality data workload that does not benefit from elasticity. Elasticity is one of the top benefits of cloud data network equipment; centers. Ability to provide power density to support both current and future Large enterprises typically have legacy applications and databases that are hard to migrate to technologies; public clouds. Leading managed service providers have developed sophisticated transformational Ensure robust facilities with security, access security and control; consulting services for application re-architecture to enable migration to the public cloud. As these are not cost effective in many cases, colocation becomes an alternative option. For most clients, Certified colocation sites (including SSAE 16, HIPAA, ISO 14001, renovating an old data center incurs high costs. In rare cases, a facility can be upgraded with ISO 22301, PCI DSS, NIST and FISMA) by one or more auditing security features that are available in modern colocation centers. companies. Leading colocation providers offer location alternatives and a partner ecosystem to support clients in moving, installing and maintaining assets. These data center facilities have high-connectivity staging areas; in some cases, they offer office areas for a temporary stay.

COLOCATION SERVICES

Observations (cont.)

Ascenty is based in Campinas, Brazil. It has 17 Tier III data centers UOL DIVEO provides colocation in two data centers in São Paulo. The company has 3,000 clients that are connected via a wide-ranging and dedicated fiber-optic and 1,500 employees. It is continuously renovating its infrastructure. The facility is shared with network, which ensures high capacity connections to cloud providers many clients and parent companies that generate high internet traffic. Clients are thus benefit- worldwide. The company provides high-density racks and multiple ing from a robust network along with colocation. alternatives to clients that have proximity concerns for their office operations. Ascenty is carrier neutral and its low latency network covers 28 cities in Brazil.

Equinix gives access to 52 markets through its interconnected data centers. In Brazil, it has six data centers in São Paulo and Rio de Janeiro, which offer 99.999 percent availability. The centers have an aggregated floor space of 17,250 square meters to serve 1,500 corporate clients. Equinix’s software-defined tools help enrich a client’s colocation alternatives.

ASCENTY Overview Caution Ascenty is based in Campinas, Brazil. It has 17 Tier III data centers that are connected via a wide-range and Ascenty’s data centers are concentrated in the state of São Paulo and the cities of dedicated fiber-optic network, which ensures high-capacity connections to cloud providers worldwide. In 2018, Rio de Janeiro and Fortaleza. U.S.-based Digital Realty acquired a controlling stake in Ascenty.

Strengths

Largest footprint: Ascenty has expanded the floor space for its 17 data centers, surpassing any other commercial data center in Brazil. It provides high-density racks and multiple alternatives to clients that have proximity concerns with their office operations. The company is carrier neutral and has a low latency network that reaches 28 cities in Brazil. It offers all major security certificates, including PCI-DSS. The ecosystem of supporting services: Ascenty has several optional services. The Smart Hands technical team executes services as per clients’ directives. Work Areas include office space to a client’s engineering team 2019 ISG Provider Lens™ Leader to oversee data center activities. Anti-DDoS uses sensors and algorithms to identify and stop DDoS attacks. Deployment Solutions are professional services that help clients design the data center solution. Cloud connectivity: Ascenty’s data centers offer Microsoft ExpressRoute, Amazon Direct Connect, IBM Cloud Ascenty infrastructure offers multiple Direct Link, Oracle FastConnect and Google Cloud Interconnect. It has a unique capacity to connect all IaaS robust data center options for colocation hyperscallers in Brazil. The company is an excellent option for disaster recovery due to the multiple location alternatives and access to cloud providers. and disaster recovery.

EQUINIX Overview Caution Equinix has a workforce strength of 8,000 employees, and its revenue reached $5 billion in 2018. Platform Equinix has data centers in Rio de Janeiro and São Paulo. Clients from other EquinixTM gives access to 52 markets through its interconnected data centers. The firm has six data centers locations can benefit from its provision of high speed, low latency network. in São Paulo and Rio de Janeiro with an aggregated floor space of 17,250 square meters. Equinix has 1,500 However, access to physical data center assets is concentrated in these two cities. corporate clients in Brazil. The company marketplace involves a series of partner companies that provide additional services.

Strengths

High availability infrastructure: Equinix’s data centers offer 99.999 percent availability. Its certifications include ISO 9001, ISO 27001, ISO 22301, ISAE3402 / SSAE16 SOC1 Type II, SAP Infrastructure Operations Services and PCI-DSS. Platform EquinixTM is an interconnection of 200 data centers and 2,500 cloud providers that allows a client to distribute its data center workloads to multiple locations. Robust complementary portfolio: Equinix IBX SmartView provides online access to real-time environmental and operating information, enabling infrastructure monitoring of on-premise and a globally distributed 2019 ISG Provider Lens™ Leader infrastructure. Equinix Cloud Exchange (ECX) FabricTM connects distributed infrastructure directly, securely and dynamically on Platform EquinixTM. Network Edge, which was launched in June 2019, enables customers to deploy virtual network services such as routers and firewalls in minutes, without the need to acquire hardware. Equinix’s robust infrastructure and software-defined Low-latency network: Equinix is carrier neutral. It offers high-speed connection to cloud providers such as network technology provide unlimited colocation AWS, Azure, Google Cloud, IBM Cloud and SAP. Its low latency network improves data center performance. Equinix Performance Hub adopts a low-risk approach to test and validate network design, which will help alternatives and a hybrid cloud configuration. improve network performance and reduce costs. It also connects data sources for real-time analytics, IoT, data collection and data protection. Equinix’s solutions go beyond colocation services.

UOL DIVEO Overview Caution UOL DIVEO provides colocation in its two data centers in São Paulo. The company has 3,000 clients and 1,500 UOL DIVEO’s data center is built according to Tier III specifications but is not employees. It is continuously renovating its infrastructure. The facility is shared with many clients and parent certified. companies that generate high internet traffic, allowing clients to benefit from a robust network along with colocation.

Strengths

High capacity data center: UOL DIVEO’s colocation facilities reside in the largest commercial data center in Brazil. With 25,000 square meters and high-density racks, it provides 99.99 percent availability. Current occupation includes 45,000 physical servers and more than 40 petabytes of data. Redundant energy supply (2N) and the advanced no-break system have allowed 19 years of non-stop operation. Certifications and connectivity: UOL DIVEO’s data centers comply with high-security standards for both facilities as well as services provided. Certifications include SSAE 16, ISO 27001, HIPAA, PCI-DSS, EN50600 and 2019 ISG Provider Lens™ Leader SOC. UOL DIVEO provides high-speed connectivity to cloud providers such as AWS, Azure and Google Cloud Platform. Its services include network management solutions. UOL DIVEO can provide network links to connect the client branches to the colocation data center.

Professional services: UOL DIVEO provides Remote Hands for in-data center services as per client’s request. UOL Diveo colocation services provide a Technical services are available for diagnostic and replacement. The company monitors client assets to evaluate reliable infrastructure for clients of any size. failures that can trigger alerts. Optionally, clients can contract monitoring services with immediate intervention SLA, a service referred to as managed colocation. UOL DIVEO provides design, architecture and project management through its consulting offering.

Methodology ISG Provider Lens™ Quadrant Report | July 2019

METHODOLOGY The ISG Provider Lens™ 2019 – Private/Hybrid Cloud - Data Center Services & Solutions research study analyses the relevant software vendors and service providers in the Brazil market, based on a multi-phased research and analysis process, and positions these providers based on the ISG Research methodology.

The study was divided into the following steps:

1. Definition of Private/Hybrid Cloud - Data Center Services & Solutions 5. Detailed analysis & evaluation of services & service documentation based on the facts & figures received from providers & other sources. 2. Use of questionnaire-based surveys of service providers/vendor across all trend topics 6. Use of the following key evaluation criteria: Strategy & vision 3. Interactive discussions with service providers/vendors on capabilities −− Innovation & use cases −− −−Brand awareness and presence in the market 4. Leverage ISG’s internal databases & advisor knowledge & experience −−Sales and partner landscape (wherever applicable) −−Breadth and depth of portfolio of services offered −−Technology advancements

Pedro Luís Bicudo Maschio, Author Regional Analyst, ISG Provider Lens™ Pedro Bicudo is Distinguished Analyst and Author and brings extensive experience in the research of the Brazilian and America services’ market. Pedro is a senior consulting partner at TGT Consult in Brazil. With over 30 years of experience, he developed vendor assessments, contract restructuring, services scope and benchmarking of IT, for diverse vertical markets. Before TGT and ISG, Pedro was Manager Vice President at Gartner Inc. responsible for the consulting business for Asia and Latin America.

Shashank Rajmane, Author Senior Analyst Shashank Rajmane is the Lead Analyst for Public Cloud Transformation and Data Center Outsourcing studies and has a total experience of 8 years in the technology research industry. Shashank is responsible for authoring quadrant reports around public and private cloud services and data center outsourcing market.

He has authored articles around the best practices in the cloud services domain and infrastructure services. Along with this Shashank helps ISG’s enterprise clients’ with their cloud strategy, service provider selection, contracts negotiation, etc. He also works with advisors and clients’ requests for ad-hoc research assignments in the cloud domain, across industries, predominantly in Automotive, BFSI, Retail CPG and Energy sectors.

Jan Erik Aase, Editor Director Jan Erik Aase is a director and principal analyst for ISG. He has more than 35 years of collective experience as an enterprise client, a services provider, an ISG advisor and analyst. Jan Erik has overall accountability for the ISG Provider Lens™ reports, including both the buyer-centric archetype reports and the worldwide quadrant reports focused on provider strengths and portfolio attractiveness. He sets the research agenda and ensures the quality and consistency of the Provider Lens™ team.

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 70 of the top 100 enterprises in the world, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm special- izes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.