Cloud readiness has enabled organisations in Asia to maintain the smooth provision of services and transition to new ways of doing work.
According to a Gartner forecast, global end-user spending on public cloud services is expected to grow by 18.4% in 2021, reaching $304.9 billion. Much of this growth will be driven by organisations across APAC; Cisco and BCG forecast public cloud to account for 40% of organisations’ IT overall IT spend in 2024—up from 27% in 2020. Meanwhile, Deloitte reports that between 2015 and 2024, public cloud services in APAC will contribute US$258 billion to the region’s economy—equivalent to 0.8% of the GDP.
APAC companies are also more willing to embrace the public cloud, compared to their counterparts elsewhere in the world. An IDG Connect report shows that cloud services accounted for 85% of APAC’s IT and business services market in Q1 2021—the highest level of cloud coverage in the world. By contrast, the Americas and Europe’s IT share in the cloud sit at 60% and 45%, respectively.
In the near future, more APAC companies will skip managed services and IT outsourcing, and go straight to the public cloud—partly driven by the promise that the cloud will level the playing field.
Whilst enterprise confidence in the security of the cloud is at an all-time high, organisations raring to migrate their IT infrastructure to the cloud in 2022 and beyond may find their plans stymied by a lack of IT talent.
Gartner’s 2021-2023 Emerging Technology Roadmap shows that the majority of IT executives consider the lack of talent with cloud skills as the greatest barrier to deploying cloud-based technologies for strategic use in their organisation. This is a problem that has plagued companies for years. As early as 2018, McAfee reported that 40% of organisations with cloud skills shortages have had to delay their cloud adoption.
In 2022, we will continue to see an increase in organisations bringing their workloads and mission-critical applications to the cloud. As the pandemic emphasised the business value of maintaining agility and business continuity during periods of disruption, we predict that cloud-readiness will be key to staying competitive.
However, there is no one-size-fits-all approach to creating and implementing a cloud roadmap. Business and IT leaders across Asia must take the time to understand their cloud computing needs and weigh the benefits, challenges, and desired outcomes of cloud migration.
When transitioning to a cloud-first environment, it’s important to work with a provider with a proven track record. At T-Systems, our cloud solutions, dedicated service and collective expertise are helping businesses prepare for the future of technology. Get in touch with our team to learn more.