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Wireless Technologies

Rising in the East: The top three trends coming out of APJ

This is a contributed piece by Shiva Pillay, Vice President Asia Pacific & Japan at SevOne

 

With nearly four billion residents, the Asia Pacific and Japan region is home to nearly half of the world’s population.

In this part of the world, you’ll find a unique mix of cultures, languages and geographies. You’ll find countries that are highly connected and others that are growing fast using today’s technologies in novel ways.

To serve a market growing so quickly, today’s enterprises, carriers and entrepreneurs are embracing a new kind of digital transformation, one with an emphasis on embracing the Internet of Things, reliance on the cloud and localizing datacenters to enhance and improve business operations.

So, what are the top three things happening in the APJ region?

 

APJ is emerging as a leading datacenter location

Smart Homes in Australia should not be communicating to datacenters in the United States. Bandwidth cost and the reality of latency will not allow for the best customer experience. Due to regional growth and the cost of supporting these new markets, many local operations are going to start APJ charters. If the maker of a smart thermostat can add datacenters in multiple countries across the APJ region, customers will receive a better quality experience.

Datacenter expansion continues to grow in APJ, particularly in Singapore, which boasts 60% of Southeast Asia’s datacenter capacity, and is poised to grow as a connectivity hub.

In 2015, Digital Reality Trust invested more than $200 million in a new 13.2 MW datacenter in the island city-state. The datacenter is a redevelopment of an existing paper storage facility and spans 17,700 square feet.

Elsewhere in the region, the Philippine Long Distance Telecommunications Company (PLDT) is investing $22.5 million to construct a new datacenter facility in Makati City.

And in Australia, Veritas recently announced its third datacenter expansion over the next three years. The new investment will be used to meet growing business demands. The new development gives assurance to Australian businesses that data will be held locally, which is a main concern of many who are looking to move critical applications to the cloud.

 

The majority of new data generated will live on the cloud

Take a trend like mobile banking where, for security reasons, information needs to be encrypted and protected. Many applications have similar requirements for privacy, accessibility, security and performance.

Many APJ companies will be making critical business decisions surrounding person-to-person and mobile experiences. With an influx of data, it doesn’t make sense to store in in your devices, which leads to this data sitting in the cloud.

Gartner predicts that in 2018, total public cloud services spending in the mature APJ region (Gartner says: Australia, Japan, New Zealand, Singapore and South Korea) will rise to $11.5 billion.

“Many countries in the mature Asia/Pacific Japan region have solid reliable telecommunications infrastructure and relatively advanced technology usage profiles. Despite challenges in the global economy, we expect consistent and stable growth to continue through to 2018,” said Ed Anderson, research vice president at Gartner.

 

By 2020, there will be 8.6 billion connected devices in APJ

The world is evolving into smart grids, smart manufacturing, connected asset and fleet management, smart buildings, smart public safety and emergency services, connected digital signage and more.

For example, Japan boasts four smart cities. LIFX, an Australian-born company, pioneered the smart light in 2012. Klikr, a small IoT product that can be stuck on to any infrared remote controlled electronic product, has roots in Hong Kong. And Singapore-based xped introduced a technology that allows anyone using their smartphone to connect and control all of their electronic devices with just a simple tap.

There’s a $538 billion market opportunity for IoT in the region, says IDC. Top IoT penetration will be in South Korea, Australia, New Zealand, Singapore and Taiwan.

We see APJ becoming a major IoT / M2M hub, both for users and manufacturers. This will lead to an increase in mobile connections, as these devices need connectivity.

We are in the midst of a digital transformation where software is driving business differentiation. The APJ region continues to grow and expand as a hub for datacenters, cloud services, IoT connected devices, and more. Much of the APJ market is poised for growth and demonstrates stability for future initiatives.

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