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Expectation of Lower Costs Drive Cloud Adoption Rates in Asia Pacific
Cloud Communications Featured Article

Expectation of Lower Costs Drive Cloud Adoption Rates in Asia Pacific

August 01, 2013

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By Erin Harrison,
Executive Editor, Cloud Computing

Expectations that cloud will lower costs is driving rapid adoption rates in Asia-Pacific, with 77 percent of enterprise IT delivery is expected to be cloud-based in Asia Pacific by 2016, according to the results of a new study commissioned by HP.


Of that 77 percent, 38 percent will be delivered as private cloud, 22 percent as managed cloud (private cloud managed by someone else) and 17 percent as public cloud.  Traditional IT will remain a key delivery model accounting for 24 percent.   

In addition to expectations that cloud will lower costs (59 percent), respondents also said that driving agility (58 percent) and improved customer/citizen service (62 percent) are factors.

While the respondents expect these benefits, nearly half of organizations (46 percent) admit that they are not running any return on investment analysis for their cloud initiatives. For those organizations that do have some form of measurement, 13 percent say they only use “time to delivery” metrics, while 10 percent measure their cloud implementations by calculating the cost benefits.

In terms of adopting a cloud strategy, HP’s research also outlined the key factors to implementing a cloud strategy and moving applications to the cloud.

Defining service level agreements (62 percent), meeting regulation and governance (56 percent), managing issues with data sovereignty (54 percent) and identifying the right strategic partner (42 percent) were cited as the primary barriers to cloud solution implementation.

In a Gartner (News - Alert) study earlier this year, the highest growth rates for cloud services are coming from the Asia/Pacific region (led by Indonesia and India), China, and Latin America (led by Argentina, Mexico and Brazil), MSP Today reported.

North America is the largest region in the cloud services market, which will make up 59 percent of all new spending on cloud services between 2013 and 2016. Western Europe is in second, and will represent 24 percent of all new spending between 2013 and 2016.




Edited by Rory J. Thompson
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