APAC is forecast to outpace every other region in the world in expanding its hybrid cloud computing market over the next few years. Asian nations are now on the brink of overtaking North America, as enterprises increasingly seek to capitalize on cloud solutions to cut costs, optimize operations and drive innovation. By 2021, the cloud Infrastructure as a Service (IaaS) market in India will exceed $2.1 billion in end-user spending, according to Gartner.
Catalyst for cloud
What is the catalyst for this increasing focus? While the International Monetary Fund predicts strong near-term growth prospects for the region, the medium- to long-term outlook is less sunny. Global growth remains sluggish, and macroeconomic events such as China’s slowdown are contributing to economic uncertainty. Set against this, businesses know they need to modernize and innovate to stay competitive, and are often trying to do so with reduced or static IT budgets. Cloud, with all its benefits, offers a solution.
Some enterprises have already recognized the advantages cloud economics offers and started to move their workloads, but we are only in the early stages.
Why? Some business has been concerned that moving to a cloud infrastructure model would result in performance inconsistency and that the public cloud wouldn’t be as reliable as working with an on-premises system.
Data sovereignty laws have also been a major concern, particularly for mission-critical systems and those organizations operating in the more heavily regulated sectors such as government, education, healthcare and financial services, in which customer privacy and industry compliance are paramount.