According to a recent survey conducted by Alibaba Cloud, 84% of cloud service users in Asia are planning to fully migrate to the cloud within the next two years. The survey also revealed that more than four in five businesses plan to increase their investment in cloud technology in 2023.
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To get a better understanding of the usage of different cloud methods across Asia, Alibaba Cloud enlisted the help of market research company NielsenIQ to conduct the survey.
The increased investment in cloud technology is expected to come primarily from countries such as Thailand, Indonesia, the Philippines, Hong Kong, and Singapore. Among these countries, the gaming sector is projected to see the highest increase in cloud investment, followed by the media & telecommunications, internet & technology, and financial services industries.
It is predicted that Thailand, Indonesia, the Philippines, Hong Kong, and Singapore will experience the most significant increase in cloud expenditure, while Japan and South Korea are likely to maintain their current levels of investment. In terms of industries, the gaming sector is expected to witness the largest growth in cloud spending, followed by media & telecommunications, internet & technology, and financial services.
In terms of priorities, businesses in Asia are focusing on automation, cloud computing, data analytics, and AI. The fact that more than half of the businesses surveyed plan to increase their spending on cloud computing highlights the importance of cloud technology in driving business growth.
The impact of COVID-19 has also influenced the adoption of cloud services, with more than two-thirds of businesses having used cloud for at least three years. The pandemic has accelerated the migration to the cloud, with 84% of companies expecting to complete their transition within the next two years, and 36% planning to migrate within the next six months.
The study also highlights the increasing diversification of cloud adoption strategies, with private cloud being the most common approach in Asia, followed by public cloud. Businesses choose public cloud for its strong reputation for security, local support, and attractive pricing, with a significant number of companies planning to increase their expenditure in the coming year.
Thailand, Indonesia, and the Philippines have been at the forefront of the cloud investment surge in Asia in recent years. These countries have experienced significant growth in their cloud computing markets due to several factors.
Firstly, the rapid adoption of digital technologies and increased internet penetration have played a crucial role. As more businesses and individuals go online, there is a growing demand for cloud services to store and process data. This has led to a surge in cloud investments to meet this demand.
Secondly, the governments of Thailand, Indonesia, and the Philippines have implemented policies to promote digital transformation and attract foreign investments in the technology sector. They have recognized the importance of cloud computing in driving economic growth and have created a favorable business environment for cloud service providers.
Furthermore, these countries have a large and young population that is increasingly tech-savvy. This demographic trend has contributed to the rise in demand for cloud services, as businesses and individuals look for ways to leverage the benefits of the cloud, such as scalability, cost-efficiency, and accessibility.
In terms of specific statistics, Thailand's cloud market grew by 65% in 2020, making it one of the fastest-growing markets in the region. Indonesia's cloud market also witnessed double-digit growth, with a 25% increase in cloud spending. Meanwhile, the Philippines' cloud computing market is expected to triple in size by 2025.
Thailand, Indonesia, and the Philippines are leading the cloud investment surge in Asia due to factors such as increased internet penetration, government support, and a growing tech-savvy population. These countries are well-positioned to continue fostering a thriving cloud computing ecosystem and attracting further investments in the years to come.