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The Brazil's Cost In The Cloud

Unsurprisingly there are cost comparison of various consumer items across countries. Tax burdens, labor risks, low productivity and many other factors end up incurring what many call Brazil Cost. Entrepreneurs often demonstrate how difficult it is to undertake in Brazil compared to other countries. Unfortunately this higher cost in Brazil appears not only in comparisons of Big Macs or iPhones, but also in the public cloud.

Recently Ernesto Marquez of Concurrency Labs has written a very complete article showing the different costs across Amazon AWS regions. Check out two graphs below, the first one showing AWS's 1 TB data output costs to the Internet and the second one showing the costs of a typical virtual machine per month.

In both graphs the costs are in US dollars ($).

And the costs to the end user / customer of Brazil do not end there. In a typical Amazon AWS service-consuming operation, you will still be required to pay service import taxes of at least 42.28% and may be over 48% if you choose to pay by credit card , since the IOF is higher.

The cloud is the accelerator for innovation, for creating solutions, products, ideas, companies, businesses. We now have several requirements for data to be in Brazil, we have LGPD. But why for the data to stay here in Brazil we need to pay almost double the rest of the world? It is urgent for Brazil to treat this issue with care, to evaluate public policies, taxes and specific strategies so that we are not behind the world when it comes to public clouds.

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