Cloud News & Insights

Emerging Asian Economies and the Future of Cloud Computing

Girl in front of her laptop looking at a light bulb

There’s currently a boom in the IT sector in Asia’s emerging economies. This is especially true in countries like Philippines, Vietnam, and Indonesia, where it’s expected that cloud computing will play an important role in years to come. The cloud computing market in the region is estimated to increase by about thirty percent on average with revenues doubling by 2017. There are several reasons for cloud computing’s promising future in this part of the world:

1. Vendors, governments, and cloud service providers are all actively promoting SaaS business models in the region, which has led to a higher rate of adoption than previously expected.
2. There is a growing awareness of the cloud’s potential for cutting costs and improving service quality and reach.
3. Internet speeds in the region are gradually getting faster, allowing more individuals and organizations to have access to sophisticated online and cloud-based services.

These factors have resulted in a net increase in organizations shifting from traditional IT infrastructure to cloud computing business models. There is an enormous untapped market for cloud vendors in this region due to the wealth of small and medium businesses that can use cloud computing effectively. It is important to note that cloud computing is relatively new in these countries. For example, the first firm offering cloud computing services locally in the Philippines opened its doors as recently as 2010 and IaaS solutions only started to gain popularity in this country in 2012.

However, the rate at which cloud computing vendors and providers are joining this market is astonishing, with an explosion in the last couple of years, including several high profile data centers being opened in the region.

Companies of all sizes

Small businesses tend to prefer public clouds since it gives these companies access to shared resources. On the other hand, larger companies prefer exclusivity and want to move their assets to private clouds. The types of services that are in demand also change depending on the targeted business’ size. Smaller companies have a higher likelihood of using basic document management services and are more likely to be comfortable with storing files and documents in the cloud. They may also want to invest in cloud-based web security for their business.

Smaller businesses wanting to control expenses may also want to invest in SaaS models that let them pay only for what they use. One thing cloud vendors should keep in mind is that many small businesses can use the cloud to expand, eventually going from basic services and core apps into more sophisticated areas, such as cloud-based platforms for developing their own in-house services.

Larger businesses in emerging Asian economies tend to use cloud services differently. Apps may move to the cloud, including document management, PBX and telephone systems, and email — but businesses will often require a higher level of customization and may also need specifically made applications. Concerns about regulation and sensitive data also mean that larger companies are more likely to manage part of  their IT infrastructure on their own data centers or internal networks rather than going to a cloud service provider. Because of this, providers would do well to offer hybrid cloud services to larger companies and to stress the fact that they are able to provide secure, safe services while also allowing the larger companies to manage their own networks and to move from one to the other with ease.

In these cases, portability is definitely an attractive selling point, since larger companies will want to be able to integrate their own internal networks and existing infrastructure with a cloud service that allows them to cut costs in key areas with lower security concerns.

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About the Guest Author:

Nida Rasheed

Nida Rasheed is a freelance writer and owner of an outsourcing company, Nida often finds herself wanting to write about the subjects that are closest to her heart. She lives in Islamabad, Pakistan and can be found on Twitter @nidarasheed.

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