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Cloud Boosts Mexico’s Digital Economy (Sponsored)

Recognized as a pioneer in Latin America, Mexico's digital economy accounts for around 25% of its GDP. Increasingly, cloud services are providing new opportunities for the economy. (Sponsored)

December 19, 2023

4 Min Read
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By Huawei Team

Recognized as a pioneer in Latin America, Mexico's digital economy accounts for around 25% of its GDP. Progress in network connectivity and the Information and communication technology (ICT) industry in recent years has benefited e-commerce and startup development. This in turn has encouraged investment. By 2022, the number of Chinese firms that had directly invested in Mexico reached 1,289. For example, Chinese vehicle and parts manufacturers have expanded further into Mexico establishing both sales and modern manufacturing operations. In fintech, from mobile payment to digital banking, wealth management, insurance, and digital currency, there are more than 450 companies growing 15% annually including more than 60 Chinese companies.

How Technology can Benefit an Economy

Many companies in Mexico are looking to scale, improve efficiency, and reduce operating costs by migrating their operations to the cloud and international providers are available. Consulting firm Gartner has predicted that by 2025, 80% of organizations will have migrated from on-premises data centers to cloud hosting.  With 22 years of experience in Mexico, and having indirectly created 6,500 jobs, Huawei recognizes the economic contribution that technology can bring to a country. In 2019, Huawei Cloud began providing public cloud services to Mexico and has supported the needs of various sectors including finance, media, government, and carrier. With rapidly increasing demand for cloud services in Mexico, providers are seeing strong market growth and offering more solutions for local industries. For example, providing 24/7 technical support, Huawei Cloud local service team and the Queretaro O&M center offers service assurance in Spanish. Today it supports more than 300+ Mexican customers, from finance, media, government, carriers, and many other industries including rapidly expanding sectors such as finance, media and entertainment, and automotive. In order to promote talent cultivation and build a local AI resource pool, Huawei Cloud is cooperating with Infotec, Mexico's science and technology bureau.

Digital Transformation

This extensive expertise in industry digital transformation both in and outside of China has extensive applications in Mexico. Through cloud-infused innovation, Mexican clients can enjoy better services, enhanced efficiency, and new models. VDE Suite, a local partner, has developed DexMi, a cutting-edge school management platform on Huawei Cloud. DexMi not only improves operational efficiency, but also makes remarkable enhancements in data security, empowering universities in Latin America to embrace digital in response to the ever-increasing number of students.

For digital banking, a financial cloud native foundation enables real-time transactions and promotes the development of mobile payment and consumer finance. The data foundation powered by AI and big data magnifies the financial risk control capabilities. Libertad, a leading local FinTech company, partners with Huawei Cloud to improve efficiency while reducing costs. For media and entertainment, Huawei Cloud offers virtual human model generation and model control services from content production, storage, to transmission, securing a seamless and efficient digital content creation process. Huawei Cloud has extensive expertise in autonomous driving, Internet of Vehicles (IoV), and intelligent experience.

Dzilam Nature Reserve

Digital technology and the cloud is not limited to only supporting business but also to protecting biodiversity. Home to 12% of all species found in the world, Mexico is a treasure trove of biodiversity. In May 2023, a team of nature conservation experts announced that with the help of Huawei Cloud and artificial intelligence, they had identified at least five jaguars -- two males, one female and two cubs -- in a nature reserve in Dzilam, Yucatan, in southeast Mexico. The Tech4Nature Mexico project, launched in the Dzilam de Bravo nature reserve last year, is a flagship project of a three-year program between Huawei and the International Union for Conservation of Nature (IUCN). It uses an integrated and continuous monitoring system analyzing images and sound data to identify and track jaguars and their preys. The project involves partners including the IUCN, Polytechnic University of Yucatan, C Minds' AI for Climate initiative, Rainforest Connection, the local community of Dzilam, and the government authorities of Yucatan. Huawei supplied the capabilities of Huawei Cloud to the project.

Cameras have been deployed over an area of 19.4 km2, covering coastal mangroves, low deciduous forest, and marsh lands -- all areas frequented by the jaguar. To date, the team has collected more than 30,000 photos, 550,000 audio recordings and numerous video clips of wild animals. This data provides deep insights of local wildlife to researchers and contributes to the preservation and promotion of Yucatan biodiversity.

Mexico’s Digital Future – A Significant GDP Boost

So, with 96 million netizens connected online, and already the 5th largest e-commerce market in the world, Mexico’s digital transformation supported by a reliable cloud and the integration of technologies such as AI, the country’s annual GDP is expected to grow from 2.4% to 6.4%.

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