The accelerating digital transformation across Latin America has made reliable, high-speed connectivity less of a luxury and more of an operational necessity. Recent developments in satellite technology, combined with the proliferation of cloud computing infrastructure, are reshaping how organizations in the region access and leverage global networks. Among the key players driving this momentum is Luxembourg-based satellite operator SES, which is banking on its next-generation O3b mPOWER medium Earth orbit (MEO) fleet to establish new benchmarks in high-throughput, low-latency connectivity. What’s particularly noteworthy is SES’s growing collaboration with global tech giant Microsoft, a partnership that underscores not only the importance of cloud integration for satellite networks but also signals a shift in telecom ecosystem strategies across Latin America and beyond.
The launch and integration of SES’s O3b mPOWER satellites mark a significant milestone for satellite-based internet services in the region. As of spring 2024, the company has activated eight out of a planned 13 satellites, with two launched in December 2023. These satellites serve a constellation of 12 operational ground gateways across the world, including crucial locations in Brazil, Peru, and Chile for Latin America. These hubs are more than infrastructural assets—they’re linchpins in SES’s bid to deliver consistent, low-latency, high-capacity connectivity that supports enterprises, governments, and cloud users alike.
One of the defining aspects of this expansion is SES’s leveraging of Microsoft’s Azure data centers for operating five of its global gateways. While SES did not specify which of its Latin American gateways are directly co-located with Azure, Microsoft’s existing and forthcoming cloud regions in Brazil, Mexico, and soon Chile strongly suggest deepening integration. This strategy serves a dual purpose: strengthening SES’s operational presence near major points-of-presence (PoP) and simultaneously reducing the “first hop” delay to enterprise-grade cloud services—a critical advantage in applications ranging from financial transactions to remote education and disaster response.
Microsoft’s foray into partnering with SES dates back to an initial 2021 agreement, which aimed to give SES “direct access to major points-of-presence while minimizing connectivity delay for cloud services.” This model follows a broader industry trend: satellite operators are no longer siloed infrastructure providers but are instead evolving into end-to-end digital service enablers, keenly aware of the necessity for seamless cloud integration.
Cross-referencing recent coverage by both BNamericas and industry news platforms, it’s clear that the SES-Microsoft partnership dovetails with other satellite-to-cloud initiatives, such as Starlink’s experiments with direct-to-cloud data transfer and Amazon Web Services’ AWS Ground Station service. Azure, as a rapidly expanding force in Latin America, has staked a clear claim in the hybrid-cloud-satellite paradigm, with Azure Orbital itself providing virtualized ground station access for third-party satellite operators.
Microsoft, meanwhile, continues its Latin American cloud region buildout. The operational Azure regions in Brazil and Mexico serve as the digital backbone for a range of industries, from fintech to agriculture, while the incoming Chilean region is expected to bolster the Southern Cone’s digital economy. These investments not only facilitate SES’s needs but signal wider enterprise confidence in the region’s cloud-readiness.
Hybrid infrastructure models are finding particular traction in regions with both world-class urban connectivity and vast under-served rural zones. The flexibility to route traffic either via terrestrial fiber or via high-capacity satellite—whichever is more cost- and latency-efficient—enables nuanced business models for telecoms, ISPs, and public agencies.
While success is by no means guaranteed, SES’s approach highlights how legacy infrastructure providers can adapt to (and even catalyze) the cloud revolution, ensuring that the benefits of digital transformation reach every corner of the globe. As the company and its competitors continue to deploy advanced infrastructure, the real winners will be enterprises, public sector institutions, and ultimately, the citizens who gain access to new educational, economic, and social opportunities powered by the clouds—both in the sky and on the ground.
Source: BNamericas BNamericas - SES taps Microsoft to expand LatAm gateways
SES’s Expanding Gateway Footprint in Latin America
The launch and integration of SES’s O3b mPOWER satellites mark a significant milestone for satellite-based internet services in the region. As of spring 2024, the company has activated eight out of a planned 13 satellites, with two launched in December 2023. These satellites serve a constellation of 12 operational ground gateways across the world, including crucial locations in Brazil, Peru, and Chile for Latin America. These hubs are more than infrastructural assets—they’re linchpins in SES’s bid to deliver consistent, low-latency, high-capacity connectivity that supports enterprises, governments, and cloud users alike.One of the defining aspects of this expansion is SES’s leveraging of Microsoft’s Azure data centers for operating five of its global gateways. While SES did not specify which of its Latin American gateways are directly co-located with Azure, Microsoft’s existing and forthcoming cloud regions in Brazil, Mexico, and soon Chile strongly suggest deepening integration. This strategy serves a dual purpose: strengthening SES’s operational presence near major points-of-presence (PoP) and simultaneously reducing the “first hop” delay to enterprise-grade cloud services—a critical advantage in applications ranging from financial transactions to remote education and disaster response.
The Strategic Case for Cloud-Enabled Ground Stations
Why is cloud integration so pivotal for satellite operators like SES? The answer lies in both technical and market considerations. Cloud-enabled satellite gateways minimize the transmission distance and thus the latency required to route data from end users to application servers. This is particularly significant in medium-Earth orbit deployments, which already halve the round-trip data time compared to traditional geostationary satellites—often dropping it from 600+ milliseconds to as little as 150-200 milliseconds. For use cases such as telemedicine, cloud gaming, autonomous vehicles, or real-time military communications, every millisecond counts.Microsoft’s foray into partnering with SES dates back to an initial 2021 agreement, which aimed to give SES “direct access to major points-of-presence while minimizing connectivity delay for cloud services.” This model follows a broader industry trend: satellite operators are no longer siloed infrastructure providers but are instead evolving into end-to-end digital service enablers, keenly aware of the necessity for seamless cloud integration.
Cross-referencing recent coverage by both BNamericas and industry news platforms, it’s clear that the SES-Microsoft partnership dovetails with other satellite-to-cloud initiatives, such as Starlink’s experiments with direct-to-cloud data transfer and Amazon Web Services’ AWS Ground Station service. Azure, as a rapidly expanding force in Latin America, has staked a clear claim in the hybrid-cloud-satellite paradigm, with Azure Orbital itself providing virtualized ground station access for third-party satellite operators.
Dissecting the O3b mPOWER Advantage
Launched progressively since 2022, the O3b mPOWER fleet distinguishes itself through several technical merits:- High Throughput: These satellites utilize advanced digital beamforming to allocate bandwidth dynamically, supporting bandwidth-intensive operations like streaming, video conferencing, and high-frequency financial trades.
- Low Latency: By operating in MEO rather than GEO, O3b’s architecture inherently shortens the signal distance, directly benefiting latency-sensitive sectors.
- Network Resilience and Flexibility: With more satellites set to join the constellation, SES projects a threefold increase in overall capacity by 2027.
- Global Reach with Regional Focus: O3b mPOWER services now span customers across the Americas, Asia-Pacific, Africa, and the Middle East, catering to industries as diverse as maritime, aviation, government, and cellular backhaul.
Financial and Operational Performance
Despite rapid technological innovation, SES has faced the headwinds of a shifting global market. In Q1 2024, the company reported revenues at €509 million (approximately US$578 million), a slight decline of 0.5% year-over-year. However, the networks segment—a core beneficiary of the O3b mPOWER rollouts—grew by 8.4%, powered by an uptick in government (+13.1% yoy) and mobility (+8.5% yoy) contracts. These metrics underscore the balancing act SES must perform: offsetting legacy service declines with aggressive ramp-up in next-generation network deployments.Ground Gateways: The Physical Link in the Virtual World
The physical locations of SES’s Latin American gateways play a foundational role in end-user experience and commercial viability. SES first activated a gateway in Hortolândia, Brazil, in 2018, enabling robust connectivity to one of the continent’s most data-hungry markets. New ground stations in Peru and Chile further extend SES’s reach, with possible co-location at or near Azure facilities maximizing both backend cloud efficiencies and customer-facing latency reduction.Microsoft, meanwhile, continues its Latin American cloud region buildout. The operational Azure regions in Brazil and Mexico serve as the digital backbone for a range of industries, from fintech to agriculture, while the incoming Chilean region is expected to bolster the Southern Cone’s digital economy. These investments not only facilitate SES’s needs but signal wider enterprise confidence in the region’s cloud-readiness.
Strengths: A Forward-Looking Strategy for a Cloud-Satellite World
A major strength of SES’s current roadmap is its keen alignment with how enterprise and public sector customers are actually consuming bandwidth today. Some highlights include:- Cloud-First Service Model: Direct integration with Azure and, by extension, Microsoft’s entire software and services ecosystem immediately opens the door to broad, value-added applications and platforms.
- Resilience and Scalability: The MEO-based model, combined with multi-location gateways and cloud region redundancy, offers a level of service assurance attractive to risk-averse government and corporate customers.
- Regional Partnerships: Contract wins, such as Mileto in Brazil, demonstrate an ability to secure anchor customers in competitive, regulatory-intensive environments.
- Tailored Solutions: Dynamic beamforming and digital payload management allow SES to customize services per region or customer, improving efficiency and commercial flexibility.
Risks and Challenges: Competition, Complexity, and Economic Volatility
Despite its technological advances and strategic partnerships, SES faces several material risks that warrant consideration:1. Intense Competition in the Satellite Connectivity Arena
With SpaceX’s Starlink rapidly scaling its global coverage, including aggressive expansion in Latin America, SES is vying in a market that is no longer limited to a handful of incumbents. Starlink’s low-Earth orbit (LEO) constellation offers even lower latency and the allure of consumer-recognizable branding. Similarly, Amazon’s Project Kuiper and regional telco satellites present further competitive heat.2. Complexities of Deep Integration
While Azure co-location offers tangible technical benefits, it entangles SES more closely with Microsoft’s evolving product architectures and cloud region operational timelines. Any disruptions or strategic shifts at Microsoft could materially affect SES’s service guarantees.3. Regulatory and Economic Risks
Latin America’s regulatory landscape is patchwork and frequently shifting, with concerns over spectrum allocations, cross-border data flow policies, and local content requirements potentially complicating deployments. Economic volatility, including currency swings and fluctuating capex cycles among telecom operators, can also impact demand for premium satellite and cloud-backed services.4. Unverifiable Claims and Information Gaps
SES has remained circumspect regarding which specific gateways in the region are Azure co-located, making it difficult for analysts to quantify the exact performance improvements or scalability thresholds. In such scenarios, customers evaluating mission-critical workloads should perform detailed due diligence before committing to long-term contracts.Latin America: The Next Frontier for Hybrid Cloud and Satellite Integration
SES’s expanding operations—both in its own ground stations and in partnership with leading cloud providers like Microsoft—fit neatly into the narrative of Latin America’s ongoing digital leapfrog. As rural broadband initiatives, burgeoning fintech ecosystems, and remote learning platforms proliferate, demand for robust, low-latency, and cloud-connected infrastructure is higher than ever. Cloud-enabled gateways are central to delivering on these expectations.Hybrid infrastructure models are finding particular traction in regions with both world-class urban connectivity and vast under-served rural zones. The flexibility to route traffic either via terrestrial fiber or via high-capacity satellite—whichever is more cost- and latency-efficient—enables nuanced business models for telecoms, ISPs, and public agencies.
The Road Ahead: What to Watch
Looking forward, several signals will help gauge SES’s ongoing impact in Latin America:- Completion of the O3b mPOWER Constellation: With five satellites still in the pipeline, SES’s full vision will only become clear as coverage, redundancy, and dynamic routing capacities reach planned thresholds.
- Further Azure Data Center Integrations: As Microsoft activates its Chile region and potentially expands elsewhere in Latin America, SES may increase its footprint of directly integrated gateways, accelerating the shift toward “cloud-native satellite” services.
- Competitive Response: Rival constellations, alternative network providers, and even terrestrial fiber consortiums are likely to respond with accelerated investments and new service offerings tailored to the hybrid connectivity landscape.
- Policy and Regulatory Developments: Harmonization of regional policies on satellite licensing, spectrum allocation, and cloud sovereignty will increasingly dictate the timelines and economics of satellite-ground-cloud integrations.
Conclusion
SES’s strategic move to expand ground gateways in partnership with Microsoft’s Azure cloud is far more than a typical business development announcement—it’s emblematic of profound changes transforming the digital backbone of Latin America and other emerging markets. The fusion of next-generation satellite networks with global-scale cloud computing platforms points toward a future where connectivity is not merely available, but also agile, intelligent, and tailored to the evolving needs of both urban and rural societies.While success is by no means guaranteed, SES’s approach highlights how legacy infrastructure providers can adapt to (and even catalyze) the cloud revolution, ensuring that the benefits of digital transformation reach every corner of the globe. As the company and its competitors continue to deploy advanced infrastructure, the real winners will be enterprises, public sector institutions, and ultimately, the citizens who gain access to new educational, economic, and social opportunities powered by the clouds—both in the sky and on the ground.
Source: BNamericas BNamericas - SES taps Microsoft to expand LatAm gateways
