Asia-Pacific leapfrogs West into public cloud

As cloud and as-a-service services soar, how is the shift to Iaas and Saas impacting technological efficiency, privacy and regulation across Asia-Pacific.

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Asia-Pacific is forging ahead with cloud computing as the region’s banks, professional services companies, airlines, telcos and manufacturers migrate to the public cloud providers. Businesses in the region are skipping the managed services and outsourcing phase of computing which their Western rivals have gone through and are instead moving directly to the public cloud, laying the foundations for Asian technological advances in the decades ahead.

Cloud services rocketed to a record 85% of the IT and business services market in Asia-Pacific in the first quarter of 2021, according to researchers ISG. This is the highest level of cloud coverage globally and APAC’s cloud share far exceeds other regions. The Americas have some 60% of IT services in the cloud with 40% managed services and outsourcing, while in Europe, cloud accounts for 45% of IT spending against 55% for managed services and outsourcing, according to ISG’s president for EMEA, Steve Hall.

“The biggest trend is that APAC is well ahead of the Americas and Europe in broad cloud adoption. Infrastructure, Software and Platform-as-a-service are absolutely exploding in the APAC market,” says Hall. His company has created what it calls The ISG Index, which calculates the Annual Contract Value for cloud deals over $5m from a range of sources. The Index estimates that $7.2bn of ACV was awarded in the as-a-service sector in APAC in 2020. This compares to under $2bn for managed services.

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