Analysis: Why Do Big Tech Companies Invest in Chile and Not Argentina?

RIO DE JANEIRO, BRAZIL – This week, the digital services and software company Google announced the expansion of its cloud computing services in Chile. Cloud Computing refers to the provision of computing services through the internet (the cloud); It includes servers, storage, databases, networks, software, analytics and intelligence.

The American multinational is seeking to expand its market share as a cloud infrastructure provider. According to Canalys, Google occupies 6% of the market while its competitors, Microsoft Azure and Amazon Web Services, account for 20 and 31% respectively.

This is not the first million-dollar investment that has been announced in the neighboring country in recent weeks. Two weeks ago, Microsoft announced the construction of three data centers with an investment that would reach US$ 500 million. Meanwhile, Last year Huawei announced an investment of US$ 100 million and Google, one of US$ 300 million, all in data centers. Meanwhile, Amazon’s arrival in Argentina never occurred.

A few days ago, American company Oracle, an expert in data center solutions, announced a million-dollar investment in Chile. 38 regions will open by the end of 2021. According to the company, the first Chilean Oracle Cloud Region will also serve clients from other Latin American countries, such as Argentina, Peru, Uruguay, Paraguay and Bolivia.

Why not Argentina?

“Training is not the same as investing in data centers, they invested in infrastructure in Chile. Multinationals do not invest in Argentina for the same reason that many companies are leaving. Beyond the conjuncture, Argentina is a complicated country. Suddenly you invest in dollars and then you may have problems if you want to repatriate. In contrast, the main complication in Chile is the seismic issue. A strong earthquake can render data centers inoperable. Despite this, investments go ahead. That is to say, confidence in the economy is what weighs the most”, said Enrique Carrier, director of the consultancy Carrier and associates, when the news broke from Microsoft.

Amazon also turned its back on Argentina. Amazon Web Services (AWS) presented its plans for 2020 without neglecting its operations in Latin America but without any indication of what to do in Argentine territory with infrastructure.

Regarding the e-commerce service, the company is looking for a space in Santiago to install a logistics center and an office. According to sources, the North American company contacted real estate agents in the Chilean capital, to choose offices in a shopping center in Santiago and a distribution depot on the outskirts.

How much to invest in Chile

They will invest in the country to develop a “region cloud” : Google Cloud open offices and data centers in Chile to accelerate the implementation of the service in companies.

“With this new cloud region, we will be physically closer to the resources that Google Cloud has to offer, and we will be able to access cloud technology in a more rapid and comprehensive way, which will help us strengthen our mission: to provide care of high quality and accessible to our.”

What are Google’s plans in Chile

Both small and large companies rely on the scalability of cloud services. “In South America, Chilean companies are accelerating their adoption in the cloud and transforming their businesses,” stated the company in the official announcement.

In Chile, private clinics, hospitals and medical centers Net Health use Google Cloud. “We have migrated their infrastructure to increase the resilience and flexibility of their services. The announcement of a new Google Cloud region in Chile is good news for those of us in the healthcare space, where providers need a quick access to complete the information in order to make informed decisions about patient care,” says Daniel de la Maza, systems and technology manager at Net Health.

Google brought a new submarine cable to Las Toninas

The search giant, in conjunction with Antel, announced the arrival of the extension of the international submarine cable Tannat that connects Las Toninas, Argentina with Maldonado, Uruguay and Santos, Brazil. The extension of Tannat had been announced in June of 2019 as part of Google’s commitment to build a more secure, intelligent, and high-performance public cloud.

“Google’s network and infrastructure allows us to process vast amounts of information, in real time, to host some of the most demanding services in the world and to be able to deliver content with the highest levels of availability and efficiency,” said Cristian Ramos, Google’s infrastructure development manager.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error