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Demand for Managed Cloud Offerings to Drive Uptake of Outsourced Cloud Infrastructure Services
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The ASEAN cloud infrastructure market will gravitate towards a hybrid deployment model (partially premises-based and partially cloud-based) in the next 3–5 years. The demand for managed cloud offerings has been increasing, particularly for Application-as-a-Service and Network-as-a-Service offerings. Enterprises are looking to deploy more open-source private cloud platforms across hybrid environments, as hybrid IT emerges as a new norm. Adoption of multi-cloud solutions will accelerate, owing to factors such as the migration of development applications to the public cloud and disaster recovery and business continuity purposes. Enterprises are moving up the IT infrastructure stack and are demanding applications support, as well as integrated management solutions in multi-cloud environments (such as cloud orchestration, automation, and abstraction). Active government initiatives such as Smart Cities in developing countries and key digital hubs present new monetization opportunities for service providers in developing verticalized cloud solutions to address governments’ digital transformation ambitions. There is expected to be increasing demand for integrated management solutions in multi-cloud environments. Managed hybrid cloud platforms are in demand to accommodate workloads, ranging from enterprise applications (such as email, enterprise resource planning (ERP), and cloud-native applications) and analytics to Internet of Things (IoT). While cloud security and privacy remain major concerns for many companies in the ASEAN region, they present monetization opportunities for vendors to provide ancillary managed security, cloud, and other professional services. The expansion of open-source technologies, as well as advances in application programming interfaces (API)-accessible single-tenant cloud servers, helps promote acceptance towards managed cloud providers. Established data center markets such as Singapore and countries experiencing high data center growth rates such as Malaysia, Indonesia, and Thailand are expected to be the key focus areas for cloud infrastructure market growth in the ASEAN region, owing to the availability of necessary infrastructure and connectivity, as well as the presence of hyperscale cloud vendors.
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