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Revolutionizing Latin American Growth With Cloud Infrastructure

José Miguel Guzmán - Whitestack
Co-Founder

STORY INLINE POST

Diego Valverde By Diego Valverde | Journalist & Industry Analyst - Tue, 01/14/2025 - 10:10

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Q: As co-founder, what opportunities did you identify in the Latin American technology market to start Whitestack?
A: When we started in 2016, we saw a clear opportunity in the Latin American technology market to bring advanced trends of software-defined networking (SDN) and cloud models that were booming in more industrialized markets. The region had a deficit in digital infrastructure, especially in terms of data centers and computing capabilities, which prompted us to develop private cloud solutions and more efficient networks, suited to the needs of large enterprises and governments.

Our focus has been on creating highly efficient digital infrastructure for Telcos and large enterprises, which has allowed us to lead the market with a highly optimized private cloud model. Our technology has proven to be more efficient than that of other regions, consolidating us as a leader in Latin America and a benchmark for those companies that require a scalable and efficient computing infrastructure.

Q: What key sectors have driven Whitestack's growth in the region and in which areas has the company identified the greatest growth potential?
A: Our main growth came from telecom operators, a sophisticated and critical industry with very high computing demands. In several Latin American countries, important telecom services pass through our infrastructure, which has consolidated us as a key player in this space. The next biggest opportunity is in finance and government clouds. In the case of banking, the adoption of open finance models and the transition to agile cloud platforms are transforming the industry, generating significant disruption in cost structures by moving from expensive mainframe systems to more competitive cloud solutions. As for governments, the need to store and process data with sovereignty is driving the adoption of multi-cloud infrastructures, with a particular focus on Latin American countries, such as Mexico, that are seeking greater security and efficiency in their public services.

Q: What is Whitestack's main differentiator from other cloud infrastructure providers in the region?
A: Our main differentiator is that we offer a cost-efficient private cloud solution similar to hyperscalable providers, but on-premises, that is specifically designed for Latin America (in terms of scale and efficiency). While global players dominate the public cloud market, we provide an infrastructure investment model that generates significant long-term savings for enterprises. This model allows organizations to operate their infrastructure for years, which transforms their financial structure, similar to investing in solar panels instead of paying for electricity consumption. We offer this solution in a distributed manner throughout the region, in countries such as Mexico, Colombia, Ecuador, Peru, Chile, Argentina and Uruguay, consolidating our position as the local leader in this segment.

Q: What impact has the implementation of the first Telco Cloud interoperability lab in Latin America had on fostering innovation in the region?
A: In addition to demonstrating new ways to build networks, especially in 5G, this lab has allowed us to optimize cloud efficiency in the region. Thanks to these tests, Whitestack reached a record capacity of 1Tbps per server, an impressive figure that even exceeds the total traffic of some Latin American countries (and that we supported in one single server).

Q: What tangible results have customers experienced by opting for private cloud infrastructure?
A: In the telecommunications industry, we have seen a significant improvement in operator efficiency, especially in terms of reduced operating costs. This is particularly relevant given the context of economic pressure facing the industry, reflected in the decrease in average revenue per user (ARPU). In addition, telecommunications operators that have adopted our private cloud infrastructure have been able to optimize their processes, improve application management and extend the life cycle of their systems, which translates into substantial savings and greater operational sustainability.

Q: How is the Latin American technological landscape changing with the adoption of private clouds?
A: The adoption of private clouds is transforming the technology landscape in Latin America, as operators look to streamline costs and improve profitability. We have worked with leading operators in the region, helping them modernize their infrastructures to adapt to a more economically and technologically demanding environment. As private cloud infrastructure consolidates, we are seeing a transition to new technology models, such as Edge Computing, which represents the next step in the evolution of the cloud, bringing applications closer to end users and optimizing latencies, which will be crucial for the development of applications in areas such as telemedicine, autonomous vehicles and smart cities.

Q: How is Whitestack enabling AI to strengthen its offering?
A: We are building specialized digital infrastructures, such as those based on GPUs, which are critical for the intensive computation that AI requires. As companies seek competitive advantages, they are moving away from public clouds, as the confidentiality of their machine learning and data models is compromised. We offer private cloud solutions that enable companies to develop AI securely, with high cybersecurity standards, which is essential to protect their data. This trend, which will continue to grow in 2025, also includes the use of edge computing and the repatriation of data to private clouds, especially in government and high-computing sectors.

As private infrastructures, our systems are physically separated from the outside world, which enhances security. In addition, we adopt cybersecurity norms and standards compatible with those of the Department of Defense, which ensures a higher level of protection, providing a more robust security category, vital for companies that require a high level of confidentiality and protection.

Q: What do you think will be the role of alliances for the development of Whitestack during 2025 and what is your expectation for the company’s presence in the region?
A: They will certainly play a key role in 2025, as we are moving toward an ecosystem model where technologies interoperate under open standards. This not only benefits us, but also promotes a more competitive and accessible market, improving cost efficiency and allowing customers to access more innovative technologies at lower prices.

Our vision is regional and Mexico is key to this strategy, especially in the telecommunications industry, where we are looking to increase our presence. Although many operators are traditional and not willing to take technological risks, change is inevitable. We are interested in capturing opportunities in compute-intensive industries, such as finance and government, and in emerging sectors, such as AI. An example of our strategy is the Open Telco Cloud Summit, an event held in Mexico last September, which showed great interest in understanding and taking advantage of this emerging technology.

Q: How do you plan to maintain the balance between technological innovation and sustainability in your operations?
A: We are adopting energy-efficient computing, not only to reduce electrical costs, but also to reduce the environmental impact in the supply chain. Our large-scale computing systems are more energy efficient, which contributes to reducing the carbon footprint, especially in Latin American countries with an energy matrix dependent on fossil fuels. One server in our projects can replace several older mainframes, significantly reducing electricity consumption, allowing us to use energy more efficiently.

Q: What is missing in Latin America today to make it the digital hub of the next decade?
A: The region lacks digital infrastructure to facilitate the transition to digitized economies. Many countries, including Mexico, face difficulties in accessing high-speed networks and computing at competitive costs. For Latin America to become the digital hub, it is crucial to develop efficient and accessible information infrastructures. At Whitestack, our goal is to contribute to the creation of these digital "superhighways", which will enable the region to take advantage of technologies such as Industry 4.0, Smart Cities, and digitalization in general, moving faster than other parts of the world in the next decade.

 

Whitestack, founded in 2016, offers private cloud, software-defined networking (SDN) and network functions virtualization (NFV) solutions, enabling organizations to build hyperscalable data centers.

Photo by:   Mexico Business

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