Spending on cloud computing in Asia Pacific is forecast to grow at 19 per cent per year until 2023, with market investments expected to reach US$256 billion.
New findings from GlobalData suggests that within the space of four years, the region will account for 30 per cent of global cloud spend, behind only North America at 33 per cent.
“Cloud computing continues to fuel the growth of enterprises, supporting a wide range of use-cases,” said Sunil Kumar Verma, analyst at GlobalData. “This includes adoption of emerging technologies, enhanced automation and agility capabilities, enhanced digital customer experience, IT infrastructure services scalability and accessibility requirements; and enhanced data accessibility and process capabilities.”
From a sector standpoint, Verma said manufacturing, IT, retail banking, construction and energy will represent the five largest industry verticals in terms of cloud computing revenue, accounting for 42 per cent of the overall market in 2023.
Specific to technology, public and private cloud will be the largest segments during the forecast period, with the former accounting for two-thirds of the overall revenue across the region.
“However, there are issues related to security concerns and real-time requirements for data processing (resulting in latencies at applications requiring central processing), which might hinder the public cloud adoption,” Verma cautioned.
On the flip side, Verma said lower investment requirements for hardware and pay-as-you-go deployment model adoption is expected to drive private cloud adoption.
“Though IT governance and cybersecurity concerns might be major hindrances in cloud adoption, the overall sentiment amongst enterprises still remains positive considering the cost-effectiveness and scalability benefits provided by it,” Verma added.