Here’s how APAC organizations are embracing cloud computing benefits
- 60% of Asia-based companies with over 1,000 employees will increase their FinOps maturity with granular chargebacks, benchmarking, and multiple cloud optimization by 2024.
- 45% of companies will improve resiliency, reduce repetitive IT operations tasks, and move to a fully autonomous digital infrastructure by 2027.
The future of cloud computing is expected to focus on automation and cost management as organizations seek more benefits from their cloud deployments. In addition, more organizations are expected to prioritize sustainability and make decisions based on a cloud service provider’s ability to reduce carbon emissions.
According to research firm IDC, 60% of Asia-based companies with over 1,000 employees (A1000) will increase their FinOps maturity with granular chargebacks, benchmarking, and multiple cloud optimization by 2024. This is just one of IDC’s predictions in its latest report, IDC FutureScape: Worldwide Cloud 2023 Predictions – APEJ Implications.
There is no denying that companies in the Asia-Pacific region have been embracing digital transformation and cloud technology significantly over the past couple of years, especially when the COVID-19 pandemic sped up tech adoption. But, as the economy starts to feel the squeeze, these businesses are looking for ways to get even more out of their cloud deployments. IDC’s Daphne Chung, Research Director of Cloud and Software, believes that these companies are focusing on automation, cloud management, FinOps, sustainability and cost management to achieve greater efficiencies and deliver on innovation and value creation for the business.
“There are growing concerns that are placing greater pressure on budgets which require organizations to ensure the greater alignment and collaboration between IT and business to deliver on achieving business goals,” she explained.
IDC’s report provides guidance on cloud trends that organizations in the region can expect to see soon. Here their top ten predictions for cloud computing in the region:
A sovereign cloud refers to cloud computing services that a government or a government-controlled entity provides rather than a private company. These clouds are designed to address concerns about data privacy, security, and compliance with local regulations.
For example, in Singapore, HTX (Home Team Science and Technology Agency) and Microsoft are developing a sovereign cloud to accelerate digital transformation and innovation for HTX, and address emerging technology needs across Singapore’s Home Team Departments. The agreement will also introduce new skilling, job development and training initiatives.
Over in Malaysia, 3i Infotech’s NuRe 3i+ powered by Oracle, a first-ever Zero Trust Sovereign Cloud in Malaysia is slated to be a gamechanger in the way SMBs and enterprises embrace transformation. The Zero Trust Sovereign Cloud platform will have data and operational sovereignty built into it, providing compliance to businesses that aim to retain data within the country’s borders.
The IDC report predicts that by 2025, 30% of the A2000 will use sovereign cloud services to meet these needs.
As organizations increasingly adopt cloud infrastructure and SaaS tools, IT teams face increased pressure to manage complex environments while delivering more projects. Businesses also demand more digital services and solutions, which can add to the complexity of IT team’s work. This often involves managing multiple cloud providers and systems.
45% of companies will improve resiliency, reduce repetitive IT operations tasks, and move to a fully autonomous digital infrastructure by 2027, saving over US$ 1 million annually through event-driven automation.
By 2025, 75% of organizations will favor technology partners that can provide a consistent application deployment experience across cloud, edge, and dedicated environments. Tech vendors are now working towards offering business an ecosystem of solutions to help them build, deploy and manage applications.
A substantial proportion of Asia-based 2000 organizations (A2000) will adopt multi-cloud data logistics platforms to enable active data migration between hyper-scalers to optimize costs, reduce vendor dependencies, and improve governance by 2025. “A2000 organizations” refers to the top 2000 organizations in the Asia-Pacific region.
Last year alone, Google Cloud announced plans to launch three new cloud regions in the Asia Pacific region, located in Malaysia, Thailand and New Zealand, giving customers more options for accessing local capabilities and supporting their transition to hybrid and multi-cloud environments.
By 2026, most businesses will implement cloud-wide area and transit networks to enhance their cloud and edge applications’ reliability, performance, availability, scale, and latency. This is likely due to the increasing reliance on cloud technology for business operations and the need for seamless connectivity and data transfer between different cloud environments.
It’s important to note that Globe launched the first fully integrated cloud-based wide area network in the Philippines. This innovative technology simplifies the process of managing and expanding corporate networks for enterprises and growing businesses. It utilizes a plug-and-play device that leverages cloud-based technology and can be easily installed and configured as long as there is a fixed broadband connection.
Organizations will turn to specialized cloud-based computing environments to enhance agility and scalability and speed up gaining business insights by 2027.
Many companies in the APAC region have been affected by cyberattacks. However, many have not yet created adequate response strategies or have regular access to specialized cyber expertise. Out of all the organizations surveyed in APAC, 59% have experienced a cyber incident, with 32% experiencing multiple incidents.
By 2027, 30% of the A2000 companies will turn to using cyber recovery as-a-service (CRaaS) to combat the rising threat of ransomware attacks, as these attacks require advanced recovery methods that cannot be easily implemented through self-help efforts.
When building cloud workloads, sustainability involves assessing the effects of the services employed, measuring the impacts throughout the entire lifespan of the workload, and implementing design principles and best practices to minimize these impacts.
By 2024, 60% of IT buyers will base their decision on which cloud services provider to work with on the provider’s ability to show how they can assist in decreasing their client’s indirect carbon emissions.
By 2027, AI will significantly enhance the speed at which developers work by automatically generating code to fulfil the functional needs of 70% of new digital solutions in production.
For example, CloudMile, a prominent Asian firm specializing in cloud and AI, is intensifying its efforts in the Malaysian market to assist local businesses and industries in extracting value from their data. To achieve this, the CloudMile team will help enterprises utilize the cloud’s potential through innovative technologies such as AI and data analytics, security and collaboration best practices, and application modernization.
By 2024, 60% of A1000 companies will be driven to improve their financial operations (FinOps) maturity with detailed billing, comparison with industry standards, and optimization across multiple cloud providers in response to growing digital business complexities and financial constraints.
Organizations in the APAC region are not just focusing on cost savings, but are also looking to the future and investing in new technologies and services to drive innovation and gain additional benefits beyond just improved IT efficiency.
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