Brazilian Businesses Still Not Prepared For Digital Transformation: Report

The study shows that about 47% of organizations have instead continued to spend more than 60% of their budgets on legacy IT infrastructure.

Brazilian businesses

Brazilian businesses are still not prepared to take advantage of digital transformation technologies such as artificial intelligence, automation, and data analytics, according to a joint study sponsored by Dell EMC and Intel.

Considering the report, about 47% of organizations have continued to spend more than 60% of their budgets on legacy IT infrastructure. Worse still, barely one in four companies see IT as a competitive advantage for the success of their business.

When it comes to preparing to adopt digital transformation technologies, Brazilian firms average 43.7 points on a scale of 1 to 100, say IDC analysts who conducted the study on behalf of the US firms.

About 57% of respondents said they still have no plans to take full advantage of technology on their way to streamlining business operations.

As many as 250 executives responsible for purchasing IT infrastructure were interviewed for the study, with the authors of the report saying that they examined three indicators to conclude on business preparedness, namely process automation, infrastructure modernization, and business culture.

“The study shows that organizations still have a long way to go and, in particular, tend to face problems with a possible resumption of the economy and an increase in demand for digital projects,” explains Marcelo Medeiros, Vice President of Dell’s computational solutions and networks division in Latin America.

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The report does not provide reasons why so many companies are not excited about transformative technologies. One of the reasons, according to the report, could be the fact that many businesses don’t assess the ROI (return on investment) for IT infrastructure.

In the survey, barely 9% of respondents said they had fully moved their IT infrastructure into the cloud.

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