Asian Cloud

Cloud Adoption in Asia on the Rise but Impeded by Typical Concerns

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Asian companies are getting more comfortable with the cloud, according to a recent Economist Corporate Network report. Over 60 percent of respondents reported partially replacing current IT use with cloud solutions and one-fifth are actively replacing most of their technology with cloud-based options. Large enterprises in particular are willing to go to a mostly cloud model, even with security sensitive data.

Nearly half of the survey respondents were C-level and 20 percent were CEO or CIO of companies based in Asia. Results may be slightly skewed since 25 percent of the companies were in software and technology-based business and a significant amount from financial services. These industries tend to be more educated about cloud use and capabilities.

As the economy grows in general, so does the need for cloud services.

“Since 2000, inter-regional trade has grown six-fold in value in developing Asia alone: exports within emerging Asian economies is now more than $60bn monthly, and has doubled in proportion to more than 15 percent of the region’s total international trade,” according to the report. “Increased wealth and greater access to digital service platforms means that the demands on Asia’s Internet ecosystem grow even more intense: EIU data suggests that Asia’s consumers will see their average disposable incomes roughly double in the coming decade, and over 950m of those consumers will access the Internet through a smartphone this year, according to forecast data from eMarketer.”

Escalating use of ecommerce and social media with the growth of the Asian economy will create massive amounts of data and spur the need for even more services such as data analysis.

As with similar cloud adoption reports for other geographic regions, nearly three-quarters of respondents see security risks and data privacy as a major concern and possible barrier to cloud adoption. Data sovereignty is also a key consideration, similar to a study with UK and Canadian respondents. One-third of respondents felt data privacy specifically is a primary concern for both the company and its customers. About 60 percent companies still house and manage sensitive corporate and client data in house.

Forty percent of respondents felt the company head was the decision maker on IT whether CIO or CEO. Larger firms with over 5 billion in revenues felt more strongly in this regard stating that the CEO was the lead decision maker for IT services. Large enterprises are also more likely to outsource IT.

Although the desire to move to the cloud is strong in Asian companies, they could be quickly impeded by infrastructure and IT talent availability. These factors were also weighed as a stumbling block to cloud adoption.

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