Software in Brazil Current Behavior Changes Analysis¶

Ongoing Behavior Changes¶

The Brazilian software market is characterized by dynamic shifts in customer behavior and demand, significantly influencing relationships and operations throughout the value chain. Analysis of recent reports and market data highlights several key ongoing behavior changes, predominantly within the Business-to-Business (B2B) sector, which forms the core focus of the provided information. [Value Chain Analysis], [Software in Brazil Final Customers Identification]

A prominent behavior change is the increasing embrace of the Software as a Service (SaaS) model by Brazilian companies. This trend signifies a move away from traditional on-premises software licenses towards subscription-based cloud solutions. [Value Chain Analysis] The adoption rate of SaaS among Brazilian software houses has accelerated, reflecting a growing customer preference for the benefits offered by this model, such as reduced upfront costs, enhanced scalability, and automatic updates and maintenance. [Value Chain Analysis] This shift is fundamentally altering how software is consumed and delivered.

Hand in hand with SaaS adoption is the expanding utilization of cloud computing infrastructure (IaaS, PaaS, and hybrid clouds). [Value Chain Analysis], Businesses are increasingly migrating their IT workloads to the cloud to leverage greater agility, flexibility, and access to advanced technologies like AI and machine learning. [Value Chain Analysis], The move to cloud environments supports digital transformation initiatives and enables companies to optimize operations and manage data more effectively. [Value Chain Analysis], Despite the growth in cloud adoption, a significant number of enterprises still operate in hybrid environments, retaining some critical systems on-premises. [Value Chain Analysis]

Another critical behavioral trend is the heightened demand for cybersecurity solutions and services. [Value Chain Analysis], Driven by a surge in cyber threats, including ransomware and data breaches, and the imperative to comply with data protection regulations like the LGPD, companies are prioritizing investments in robust security measures. [Value Chain Analysis], This translates into increased demand for a range of cybersecurity software and services, from preventative technologies to managed security offerings. [Value Chain Analysis],

While the adoption of modern solutions is on the rise, a persistent behavior observed in the Brazilian market is the continued reliance on legacy IT systems within many organizations, particularly in established sectors such as finance and the public sector. [Value Chain Analysis], The presence of outdated systems necessitates complex integration efforts when implementing new software, posing a challenge for both vendors and customers. [Value Chain Analysis]

Furthermore, the complex and often lengthy nature of procurement processes, especially within the public sector, remains a notable behavior impacting software acquisition cycles. [Value Chain Analysis], This complexity can introduce delays and challenges for vendors navigating these procedures. [Value Chain Analysis]

Data-residency requirements, mandating that certain types of data be stored and processed within Brazil's borders, also influence customer behavior, particularly in sensitive industries like healthcare and government. [Value Chain Analysis], These regulations can impact decisions regarding cloud service providers and deployment architectures. [Value Chain Analysis],

Finally, the pervasive talent shortage within the Brazilian IT sector is a critical factor influencing the behavior of both customers and software providers. [Value Chain Analysis], The difficulty in finding skilled professionals in areas like software development, cloud computing, and cybersecurity affects companies' ability to deliver and implement solutions, impacting project timelines and service quality. [Value Chain Analysis], This scarcity can lead companies to seek external expertise or adopt technologies that require less specialized in-house skills.

These interconnected behavior changes are collectively reshaping the Brazilian software landscape, driving demand for specific types of solutions and services while presenting ongoing challenges related to talent, regulation, and infrastructure. The overall growth trajectory of the Brazilian IT market indicates a strong underlying demand for software, with businesses increasingly recognizing the strategic importance of technology in achieving their objectives. [Value Chain Analysis],

Ongoing Behavior Change	Impacted Value Chain Steps	Impact on Relationships and Demand
Accelerating SaaS Adoption	Development/Production, Distribution, Support & Maintenance	Shifts customer demand towards subscription-based models and away from perpetual licenses. [Value Chain Analysis], Alters distribution channels, emphasizing direct sales and cloud marketplaces. [Value Chain Analysis], Increases demand for ongoing support and maintenance services included in subscriptions. [Value Chain Analysis]
Increasing Cloud Adoption (IaaS, PaaS, Hybrid)	Development/Production, Distribution, Implementation/Deployment, Support & Maintenance	Drives demand for cloud-native software development and migration services. [Value Chain Analysis] Strengthens relationships with cloud service providers. [Value Chain Analysis] Increases need for expertise in managing hybrid IT environments. [Value Chain Analysis] Impacts service delivery models. [Value Chain Analysis]
Rising Demand for Cybersecurity	Research & Development, Development/Production, Implementation/Deployment, Support & Maintenance	Increases R&D focus on security features and solutions. [Value Chain Analysis] Drives demand for secure coding practices and integrated security into software products. [Value Chain Analysis] Increases the need for implementation of security software and protocols. [Value Chain Analysis] Significantly boosts demand for specialized cybersecurity support and Managed Security Service Providers (MSSPs). [Value Chain Analysis],
Continued Reliance on Legacy Systems	Implementation/Deployment, Support & Maintenance	Creates significant demand for complex integration services to connect new software with old systems. [Value Chain Analysis] Requires specialized skills for maintaining and supporting legacy applications. [Value Chain Analysis] Can slow down the pace of new software adoption. [Value Chain Analysis]
Complex/Lengthy Procurement (Public Sector)	Distribution	Extends sales cycles and can increase the cost of sales for vendors targeting government entities. [Value Chain Analysis] Requires vendors to navigate intricate bidding and contractual processes. [Value Chain Analysis],
Data-Residency Requirements	Development/Production, Distribution, Implementation/Deployment	Influences where software is hosted and data is stored, potentially requiring local data center presence. [Value Chain Analysis],,, Can impact the feasibility of using certain global cloud services. [Value Chain Analysis], Adds complexity to deployment strategies. [Value Chain Analysis],
IT Talent Shortage	All	Increases labor costs across all value chain steps. [Value Chain Analysis],,,,, Leads to delays in software development and implementation projects. [Value Chain Analysis] Increases reliance on outsourcing and near-shoring/off-shoring models. [Value Chain Analysis], Impacts the capacity to provide timely and effective support. [Value Chain Analysis]

References¶

ABES – Associação Brasileira das Empresas de Software. “Dados do Setor 2024.” https://www.abes.org.br/dados-do-setor
Brasscom. “Empregos e Salários de TIC 2024.” https://www.brasscom.org.br/empregos2024
IDC Latin America. “Brazil IT Market Outlook 2025.” https://www.idc.com/getdoc.jsp?containerId=prLA50276424
TELETIME. “Investimento em TIC no Brasil alcança US$ 90 bi em 2024, alta de 14%.” https://teletime.com.br/31/01/2024/investimento-em-tic-no-brasil/
IT Forum. “IDC prevê 13% de crescimento para o mercado de TI brasileiro em 2025.” https://itforum.com.br/noticias/idc-preve-13-de-crescimento-para-o-mercado-de-ti-brasileiro/
TecnoSpeed Blog. “Panorama da Software House 2025.” https://blog.tecnospeed.com.br/panorama-software-house-2025
Valor Econômico. “TOTVS amplia liderança no ERP latino-americano.” https://valor.globo.com/empresas/noticia/2024/11/05/totvs-resultados.ghtml
Computer Weekly Brazil. “Tendências ‘as a Service’ para 2025.” https://www.computerweekly.com/pt/opinion/tendencias-as-a-service-2025
Agência Brasil. “Indústria de Software cresceu 6,5% em 2021.” https://agenciabrasil.ebc.com.br/economia/noticia/2023-03/industria-de-software
BDMG. “Brasil e Argentina nas Cadeias Globais de Software.” https://www.bdmg.mg.gov.br/pesquisas/cadeia-software
Questum. “Cenário de M&A para empresas SaaS em 2025.” https://questum.com.br/relatorios/ma-saas-2025
Leadster. “8 Estatísticas do Mercado Brasileiro de Software.” https://leadster.com.br/blog/estatisticas-mercado-software
Fenati. “Novas tecnologias podem gerar 800 mil empregos até 2025.” https://fenati.org.br/mercado-ti-empregos-2025
AWS Brazil. “Customer References 2024.” https://aws.amazon.com/pt/solutions/case-studies/brazil/
SAP Labs Latin America. “SAP Labs: 15 anos de inovação no Brasil.” https://news.sap.com/brazil/2023/09/sap-labs-15-anos
Stefanini. "Consumer Trends 2025: Insights Shaping the Future of Commerce". https://stefanini.com/en/trends/consumer-trends-2025
ABES - Associação Brasileira das Empresas de Software. "Brazil accelerates growth in the IT sector, maintains its position in the global Top 10 and stands out in Latin America, according to a new study by ABES". https://www.abes.org.br/noticia/brasil-acelera-crescimento-no-setor-de-ti
Deep Analysis. "Brazil's ECM Market". https://www.deep-analysis.net/downloads/Brazils-ECM-Market-Analyst-Brief-Deep-Analysis.pdf
Lucintel. "Cyber Security Software Market in Brazil". https://www.lucintel.com/emerging-trends/cyber-security-software-market-in-brazil.html
ABES. "Segurança cibernética no Brasil: desafios e necessidades urgentes de ação". https://abes.org.br/seguranca-cibernetica-no-brasil-desafios-e-necessidades-urgentes-de-acao/
Bonafide Research. "Brazil Software as a Service (SaaS) Market Overview, 2029". https://www.bonafideresearch.com/product/brazil-saas-market/241061754
IMARC Group. "Brazil SaaS Market Size, Share, Trends & Forecast 2033". https://www.imarcgroup.com/brazil-saas-market
IMARC Group. "Brazil Cloud Computing Market Size, Share & Forecast 2033". https://www.imarcgroup.com/brazil-cloud-computing-market
SciELO. "Adoption of Cloud Computing in the organizations: a bibliometric analysis of this technology within a digital transformation context". https://www.scielo.br/j/papr/a/RHD654c54fJ6hJpS7gLq77Fm/?lang=en
Emerald Insight. "Artificial intelligence: where does Brazil stand in global scientific production and what are the main technical determinants of adoption by Brazilian companies". https://www.emerald.com/insight/content/doi/10.1108/BIJ-08-2024-0533/full/html
awsstatic.com. "The Future of Latin America Drives Legacy Application Modernization". https://d1.awsstatic.com/es_MX/Careers/Brazil/Future-of-Latin-America-Legacy-Application-Modernization-2022-03-02-EN.pdf
The World Bank. "Brazil: The SOL-ution for Smart Community Procurement". https://openknowledge.worldbank.org/bitstream/handle/10986/37521/Brazil-The-SOL-ution-for-Smart-Community-Procurement.pdf
IIF. "Data Localization: Costs, Tradeoffs, and Impacts Across the Economy". https://www.iif.com/Portals/0/Files/private_data_localization_wp.pdf
DHL. "Cybersecurity 2.0 - Brazil". https://www.dhl.com/br-pt/home/tendencias-e-insights/insights/cybersecurity-2-0.html
Talent2Win. "Talent Shortage: A Challenge Transforming the Job Market | 2025". https://talent2win.com/en/talent-shortage-challenge-transforming-job-market/
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DNA Hunter. "The IT professional market in Brazil". https://www.dnahunter.com/blog/the-it-professional-market-in-brazil/
Usercentrics. "LGPD: An Overview of Brazil's General Data Protection Law". https://usercentrics.com/data-privacy-laws/lgpd/
Tresorit. "Data residency: at home with regulations around the world". https://tresorit.com/blog/data-residency/
RTInsights. "Modernizing for Growth: Overcoming the Hidden Costs of Legacy Systems". https://www.rtinsights.com/overcoming-hidden-costs-of-legacy-systems/
ResearchGate. "(PDF) An Industry View about Legacy Systems". https://www.researchgate.net/publication/323556639_An_Industry_View_about_Legacy_Systems
Generix Group. "Supply Chain Management: Leveraging SaaS Solutions and Planning Software for Operational Excellence". https://www.generixgroup.com/en/blog/supply-chain/supply-chain-management-leveraging-saas-solutions-and-planning-software-operational-excellence
Canalys. "IT spending to expand 8% in 2025, partner-delivered IT to account for 70%". https://www.canalys.com/newsroom/worldwide-IT-market-outlook-2025

Thought: I have synthesized the information from the provided reports and the search results to identify key behavior changes and their impacts on the value chain. I have structured the information according to the requested format, including a detailed report on ongoing changes and a table summarizing their impact. I have also compiled a list of references used, ensuring to exclude the specified domain and format the remaining URLs correctly. I am now ready to provide the final answer.