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Hybrid IT and Cloud Enabling Technologies are creating strong demand for data center and cloud services

Cloud is enabling the accelerated adoption of new technologies such as Big Data, the Internet of Things and Connected Industries

Cloud is enabling the accelerated adoption of new technologies such as Big Data, the Internet of Things and Connected Industries

New Delhi: August 8, 2015

Hybrid IT is fast becoming the new normal across organizations in Asia-Pacific. With the increasing utilization of data centers and cloud services across the Asia Pacific region, companies have gradually updated or upgraded their existing IT systems, giving rise to the Hybrid IT environment.

Besides helping enterprises to drive digital disruption, the latest Hybrid IT environment is also enhancing the customer experience and encouraging business model innovation.

As a result, there is greater acceleration in the adoption of a multi-vendor multi-cloud environment or Hybrid IT. More than half of enterprises surveyed last year are planning to move to a Hybrid environment over the next 12 to 18 months. This is putting the onus on vendors and services providers as the traditional IT procurement model is being disrupted by new business models. The service providers are responding to this by accelerating their pace of service innovation.

Frost & Sullivan’s latest report on Hybrid IT and Cloud Enabled Technologies, ‘Asia-Pacific Data Center and Cloud Computing Market Update 2015’ discusses the current developments in the lucrative data center market and its potential impact on enterprises.

According to Mayank Kapoor, Industry Principal, ICT – Data Center and Cloud Computing, Frost & Sullivan, Asia Pacific, although Hybrid IT is defining the new normal, the Cloud is enabling the accelerated adoption of new technologies such as Big Data, the Internet of Things and Connected Industries.

“These new technologies are also driving industry transformation. From our research, we have identified the three industry verticals at the forefront of such transformations, namely Manufacturing, Automotive and Healthcare,” Kapoor noted.

These two trends (Hybrid IT and Cloud Enabling Technologies) are also creating a strong demand for data center and cloud services. This in turn is driving the data center construction frenzy across Asia-Pacific.

Frost & Sullivan research estimates the market in Asia-Pacific to have been worth US$25.7 billion in 2014. It is expected to grow at a CAGR in excess of 20% over the 2014 to 2019 period to reach US$65.2 billion. Frost & Sullivan expects the cloud services to be the dominant segment of the market with a CAGR of 33.1% for the forecast period.

“In Singapore, for example, we are witnessing investments worth over a billion dollars over the next three years to establish more than 1 million square feet of raised floor space, and that is a conservative estimate. We at Frost & Sullivan believe that this is the start of the Everything as a Service (XaaS) era, with managed services at the heart of it,” explained Kapoor.

This widespread adoption is also driving significant new investments across the region. Here in Singapore, most service providers are looking to invest in capacity and capabilities to be ready to serve the next phase of growth for their customers. We are witnessing investments worth billions of dollars by telcos, cloud service providers and data center operators in data center, submarine cable and networks.

Other key trends having a strong impact on the data center and cloud computing market include the implementation of a Software Defined Everything Vision, stricter data sovereignty laws, such as in Indonesia and the rise of vertical cloud computing applications.

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