Hybrid IT becoming the new normal in APAC

Networks Asia staff
03 Aug 2015
00:00

Increasing utilization of data centers and cloud services across the Asia Pacific region is giving rise to the hybrid IT environment which is fast becoming the new normal, according to Frost & Sullivan.

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

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.

According to Frost & Sullivan Asia-Pacific industry principal for data centers and cloud computing Mayank, although hybrid IT is defining the new normal, the cloud is enabling the accelerated adoption of new technologies such as big data, the IoT 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 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.

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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