Cloud growth outweighs Covid effect in APAC

One sector which has been booming during the Covid-19 pandemic is cloud computing: and this is at least as true in Asia as it is elsewhere.

It's no surprise, of course, as cloud solutions are one of the easiest ways to scale digital services rapidly. Companies worldwide are seeking to make more use of remote working and conferencing; they're looking to cut costs, often using improved processes and greater automation. And more and more often, all these things are built and delivered in the cloud.

Thus far, certainly in Asia, it seems that the dash to the cloud has more than counterbalanced the general contraction in business overall as the global recession bites. Asia/Pac cloud spending is projected to sustain modest growth across 2020, according to International Data Corp's new report Cloud and COVID-19: Asia/Pacific (the report excludes Japan).

The report analyses data on end-user intentions against the impact of Covid-19 across IT and cloud spending. The IDC analysts assess that APAC spending in public cloud will reach US$34.51bn across 2020 - that's up from US$25.98bn in 2019. Spending in the region on infrastructure-as-a-service IaaS and platform-as-a-service PaaS private cloud, as well as front-ended software-as-a-service SaaS, is also expected to increase this year.

"As organizations transition to the Next Normal, increased demand for public cloud services has solidified and is likely to be maintained. Countries are emerging from the immediate reactive state and are building plans for recovery - with some countries moving faster than others. Moderate growth can be expected across all countries, except for New Zealand which will generally remain unchanged," says William Lee, Research Director for Cloud Services at IDC Asia/Pacific.

According to IDC, some of the increase on infrastructure-as-a-service IaaS spending will result from disruption of hardware supply chains and is likely to take the form of solutions delivered using short-term virtual private cloud (VPC) with hyperscalers. The increase in software-as-a-service (SaaS) spending will be driven by remote work solutions and conferencing/collaboration services.

The report also highlights security as one of the top areas for new spending, and again this makes sense. Increased use of remote access tends to mean security risk, and sensible organisations will be seeking to make sure that their move to cloud and remote operations doesn't result in needless vulnerabilities and breaches.

"The pandemic has brought opportunities for some organizations to take advantage of changed operating conditions," adds Lee.

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