Asian Enterprises Embrace Cloud Services Amid Economic Growth and AI Adoption

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On Thu, 19 Dec, 8:03 AM UTC

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A new ISG report highlights the growing demand for public cloud services in Asia Pacific, driven by economic expansion, AI adoption, and the need for advanced technology to compete globally.

Asia Pacific's Cloud Services Boom

The Asia Pacific region is experiencing a surge in demand for public cloud services, driven by rapid economic growth and a growing recognition of the importance of advanced technology in global competition. According to a new report by Information Services Group (ISG), enterprises in the region are increasingly investing in cloud infrastructure and AI technologies to stay competitive in the global market 12.

Economic Growth and Technological Maturity

The report highlights that the Asia Pacific region, currently at the epicenter of global growth, has enabled some companies to surpass international competitors in implementing cloud-native environments. This rapid economic expansion, coupled with government incentives and the need for legacy infrastructure modernization, has accelerated public cloud adoption across the region 12.

Michael Gale, partner and regional leader at ISG Asia Pacific, notes, "Enterprise technology is quickly maturing in Asia Pacific. As companies gain more capabilities and look to expand their use of AI, they are stimulating both the cloud ecosystem and the regional economy" 12.

Cloud Infrastructure Expansion

The growth of cloud infrastructure in Asia Pacific is fostering the development of provider ecosystems that support enterprise cloud maturity. Major hyperscalers have been present in Australia, Japan, and Singapore for over a decade, with AWS recently entering the Malaysian market. The report predicts that hyperscale infrastructure will be available in Indonesia, Thailand, and New Zealand by the end of 2025 12.

AI as a Catalyst for Cloud Adoption

Generative AI (GenAI) adoption is becoming a significant driver of public cloud services demand in the region. Many companies, particularly in China and India, are eager to harness AI's potential. They are turning to hyperscalers and service providers for the necessary computing power, storage, and tools to develop and deploy AI applications 12.

Managed Services and Application Modernization

Enterprises in Asia Pacific are increasingly relying on managed services providers to help modernize applications and implement cloud-native technologies. This trend supports large-scale Agile development, with companies seeking providers experienced in lift-and-shift cloud migration, container management, and DevOps approaches for CI/CD development pipelines 12.

Financial Monitoring and FinOps Services

As cloud adoption accelerates, companies in the region are also seeking stronger financial monitoring of cloud resources to control costs and comply with local regulations. There is a growing demand for FinOps services providers that use advanced AI to identify anomalies in cloud usage and spending, and recommend steps to improve performance and cost efficiency 12.

Market Leaders and Rising Stars

The ISG Provider Lens™ Multi Public Cloud Services report for Asia Pacific evaluates 37 providers across five quadrants. Notable leaders include Accenture, Capgemini, HCLTech, and Infosys, each leading in three quadrants. AWS, Deloitte, Fujitsu, Google, IBM, Microsoft, NTT DATA, PwC, and TCS are leaders in two quadrants each 12.

The report also identifies Rising Stars, including Hitachi Digital Services, LTIMindtree, and Rackspace Technology, each in one quadrant. In the area of customer experience, Persistent Systems is named the global ISG CX Star Performer for 2024 among multi public cloud services providers 12.

As Jan Erik Aase, partner and global leader at ISG Provider Lens Research, concludes, "Companies throughout Asia Pacific are undergoing significant transformation to realize the value of the cloud. Service providers help them minimize risks and make a cost-effective transition" 12.

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