IDC: Cloud businesses see a huge opportunity in the SEA market
- The market for public cloud services in the SEA region is predicted to increase and reach US$11 billion by 2025
- Over 60% of organizations in Indonesia, Malaysia, and Singapore have made digital infrastructure resiliency programs a high priority
Southeast Asian countries have been attempting to increase their digital footprint, and become more data-driven, higher performing, and more connected in recent years. Along with the much-heralded advantages of a quicker time to market, reduced costs, and more durable infrastructure, the cloud offers businesses in Asia a special value proposition, which is the chance to grow and skip a whole generation of technology.
Cloud computing has developed into a significant strategic development driver for virtually everything, including businesses and government.
Infrastructure modernization, more cloud region/data center options, in-house development capability, low-code/no-code to drive development efficiency, digital economy and tech start-ups, customer experience, and cloud enterprise resource planning (ERP) are a few of the market drivers for cloud services in Southeast Asian countries like Malaysia.
Along with the previously mentioned factors, government actions and policies also play a significant role in the growth of Malaysia’s cloud industry and the country’s plan for its digital economy.
By 2023, digital will rule in Southeast Asia, according to IDC’s Top ICT Predictions for 2022 and Beyond at IDC FutureScape 2022, as one in three companies—up from one in six in 2020—would derive more than 15% of their sales from digital products and services. The transformation of organizations into data-driven businesses, the acceleration of digital services, autonomous operations, omni-experience, and supply chain modernization are some of the main topics that Southeast Asian nations are prioritizing to drive their digital economies.
Cloud technology will be even more crucial to business continuity and resiliency for Southeast Asian enterprises to compete in today’s digital-first market because of this focus on boosting income from digital products and services. The entire market for public cloud services in Southeast Asia is predicted to increase and reach US$11 billion by 2025 at a compound annual growth rate (CAGR) of 21.5%, according to IDC’s World Wide Public Cloud Services Tracker 2021.
How the pandemic has accelerated digital adoption for cloud businesses
In reaction to fast-shifting socioeconomic patterns, there has been a rising rate of digital transformation as the world struggles to deal with the COVID-19 dilemma. To stay relevant in the new normal, many tech businesses in Southeast Asia have had to change their business strategies.
More businesses also are moving their mission-critical workloads to the public cloud as a result of the COVID-19 pandemic, and regional authorities are paving the way for regulated industry players like the financial, insurance, healthcare, public sector, energy, telecom, and manufacturing to do the same. As businesses now have access to more durable products to enable data integration and application interoperability across many clouds, the use of hybrid and multi-cloud is rising.
Following the uncertainties caused by geopolitical tensions, inflation, supply chain disruptions, and managing the ongoing COVID-19 pandemic, over 60% of organizations in Indonesia, Malaysia, and Singapore have made digital infrastructure resiliency programs a high priority, according to the IDC Future Enterprise Resiliency & Spending 2022 Survey – Wave 5 (2022).
In addition, the IDC Asia/Pacific Cloud Survey 2021 found that 76% of businesses in the region said they will expand their use of cloud services during the following 12 months. 81% of businesses in Indonesia, 86% in Malaysia, 88% in the Philippines, and 92% in Thailand reported higher increases in the use of cloud services than the regional average.
According to Prapussorn Pechkaew, Research Manager at IDC Thailand, as the cloud matures in the region across industries, more businesses will be considering not only how to build their cloud strategic roadmap but also how to execute their cloud usage successfully.
Cloud cost visibility and measurement to control overspending issues are currently among the top concerns globally. Building capabilities around these areas will benefit the advancement of cloud services in more matured activities and environments,” he added.
- Nvidia in Malaysia: Here’s what transpired during CEO Jensen Huang’s visit last week
- Legacy tech gets a boost with Windows Notepad and Linux upgrades
- Shadow AI and tech debt: IT priorities for the next phase of digital transformation
- Adobe’s Achilles heel: How InDesign became a hacker tool and what other options are out there
- Unprecedented data breaches of the last ten years – and their aftermath