Frost & Sullivan: Demand for Managed Cloud Increases in Asia-Pacific Cloud Computing Services Market

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The demand for managed cloud and professional services has increased in the Asia-Pacific region, according to a new Frost & Sullivan report, especially in countries like Japan that have quite a mature cloud landscape.

The trend in Asia-Pacific towards an increased use of managed cloud is due to complex Big Data and workloads such as enterprise resource planning (ERP) being increasingly migrated to cloud platforms. The expansion of open-source technologies and advances in application programming interface (API)-accessible single-tenant cloud servers would help promote acceptance towards managed private cloud providers.

data center japanAdditionally, it is noteworthy that the ‘Big 3’ public cloud vendors – Amazon Web Services (AWS Cloud), Microsoft Azure, and Google – are emerging as heavyweights in the cloud ecosystem due to their “compelling high-volume, low-margins” business models. Thus, competing in the managed cloud space also allows service providers to avoid head-on competition with the ‘Big 3’ public cloud services providers.

“Scale ranks lower in importance in private cloud as infrastructure sharing is largely confined within the enterprise network, thereby making private clouds compelling as competitive strategies for cloud vendors,” said Frost & Sullivan Data Centre & Cloud Computing Industry Analyst, Yu Xuan Ng. “With most vendors viewing the public cloud as a red ocean, competition in the private cloud space will only pick up pace.”

Separately, with the rise of the Internet of Things (IoT), the cloud would be instrumental in enabling IoT applications to be developed and delivered. More enterprises in APAC are also redesigning their networks and deploying cloud services to deal with the explosion of data.

“Over the next three to five years, the APAC cloud market will gravitate towards a hybrid deployment model, which is part premises based and part cloud based,” added Yu Xuan. “Cloud vendors, for their part, will work on developing cloud-native ICT environments that support IoT, big data analytics, and mobile solutions.”

The ‘Asia-Pacific Cloud Computing Services Market Analysis, Forecast to 2022,’ new analysis from Frost & Sullivan’s Communication Services Growth Partnership Service program, looks at technology, competitive and adoption trends in the cloud computing services market in the ASEAN region (Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam), Greater China region (Mainland China, Hong Kong, and Taiwan), India, Japan, South Korea, Australia, and New Zealand.