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Accelerating Cloud Adoption in Asia


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A presentation I did to CCAP (August 2013) as part of the Asia Cloud Computing board of directors. Contents coming from ACCA, with additional slides contributed by me.

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Accelerating Cloud Adoption in Asia

  1. 1. 1 Accelerating Cloud Adoption in Asia Francisco “Cocoy” J. Claravall IV ACCA Board - Globe Telecom
  2. 2. The economic slowdown in China in 2012 will be short-lived. 10% growth Australia, New Zealand, and the ASEAN markets will remain resilient. 10%+ growth Korean organizations will accelerate the drive toward IT transformation. 4% growth India’s IT spending growth <10% Japan’s IT spending growth will stay flat in 2013. 0% growth 2 APAC tech industry outlook (2013)
  3. 3. Percentage of enterprise application that will be on cloud in 2014* 3 Cloud adoption 50% 56% 34% 24% “Large Latin American and Asia Pacific companies are the most aggressive adopters of cloud computing – while their European and US counterparts remain conservative about shifting apps to the cloud” - TCS
  4. 4. 28% 42% 12% 33% 26% 22% 36% 24% 12% 20% 17% 21% 40% 26% 48% 47% 68% 50% 53% 38% 38% All APEJ Singapore Malaysia Hong Kong India China Australia Cloud Adoption APEJ* Yes, already adopted No, but planning to No plans 4 Cloud adoption – APEJ by country
  5. 5. 13% 35% 49% 33% 40% 28% 15% 29% 45% 27% 30% 30% 6% 44% 57% 37% 49% 43% 0% 10% 20% 30% 40% 50% 60% No significant impact It will accelerate time to market It will reduce our costs It will provide our management with greater transparancy and… It will change our interaction with customers and suppliers It will fundamentally change our business model APAC EMEA AMERICAS 5 Understanding of Cloud Which of the following best describes the potential impact of cloud on your business model / operations? Cloud is not just for reducing costs, it is a transformative technology. This is particularly true in emerging markets. Asian executives understand this as reflected by the fact that they are more likely to describe cloud has having fundamental impact to their businesses KPMG 2011
  6. 6. Predicted cloud spending Private Cloud Public Cloud $2.9bln ($30.3bln) $32bln ($241bln) $21.8bln $2.3bln $534m $10.1bln 2011 2020 $1.1bln to $15.7bln $341m to $5.4bln $283m to $2.9bln $270m to $2.4bln $889m to $5.6bln
  7. 7. The Economics of Cloud Today • Cost of power • Infrastructure labor costs • Infrastructure buying power • Network capacity boom Supply side economies of scale • Time of day patterns • Randomness • Multiplexing • Broadband Growth Demand side economies of scale
  8. 8. Japan: largest market + Mature, broadband network, PaaS particularly strong, – Strong local IT providers, preference for custom-built solutions, conservative Australia: most mature + NBN, presence of global players, transparent - Concerns around data sovereignty, international bandwidth China: fastest growing + Local players, increased awareness, gov’t strong advocate, data centre investments - Underinvestment in IT, reliance on manual labour, lack of local Saas players, regulation India: ramping up + local players ramping up, SaaS increasing in city areas – Internet adoption low, no gov’t initiatives ASEAN: vary widely + Singapore lead, mobile internet access high, strong local IT skills – connectivity a challenge, concerns around data protection, data sovereignty Philippines’ Internet growth and savvy IT skills seen as positive for cloud growth in the country 8 Market Drivers
  9. 9. “Of the 207 respondents from outside the US, 56% were less likely to use US-based cloud providers after the revelations and 10% had cancelled plans to use American services. About a third said the revelations would not affect their provider choice.” 9 A recent article refers to a survey conducted by the Cloud Security Alliance, who surveyed 456 organizations around the world:
  10. 10. Face-To-Face interactions are critical for IT sales in Asia Majority of APAC info workers use 3+ devices for work Some other regional aspects 75% 61% 29% 29% 19% F2F with vendor F2F with integrator or agent Online (SaaS vendor website) Online (local reseller website) Phone 26% 22% 18% 20% 14% One Two Three Four or five Six or more 52% three or more
  11. 11. How will ASEAN IT managers use Cloud? TechTarget Study 2013
  12. 12. In the Philippines, customer adoption of cloud services is starting to increase but has to cross the chasm to gain traction … REVENUEGROWTH TIME EARLY MARKET BOWLING ALLEY TORNADO MAIN STREET TOTAL ASSIMILATION Total Cloud industry revenue growth @ 57% p.a. IAAS in 2016 at 5.8B (McKinsey) IAAS demand in 2017 range between 600M to 1B pesos (IDC & Gartner) THECHASM Globe launched In 2011
  13. 13. Maximize their strengths ... 1. Infrastructure 2. Customers 3. Scale 4. Coverage 5. Ability to offer end-to-end SLAs 6. Billing capabilities TO OVERCOME WEAKNESSES Perceived lack of Customer-centricity IT and Network Silos Perceived lack of Innovation Speed of Execution “Telco-minded” thinking Philippine Telcos are now moving to the Cloud
  14. 14. Asia has opportunities and challenges • multiple markets and regulatory regimes, • cloud readiness discrepancies among APAC countries • security, privacy, integration, service level, licensing concerns.
  15. 15. Mission: to accelerate cloud-computing adoption across the region of Asia Pacific by engaging stakeholders, providing tools to remove barriers and demonstrating the benefits of adoption. Vision: become the leading influencing industry voice on cloud-computing promotion and governance to business, government and citizens in Asia 15 Asia Cloud Computing Association Asia focus
  16. 16. 16 Membership
  17. 17. OUR THOUGHT LEADERSHIP 17 Cloud Readiness Index Public Policy Newsletter Data Sovereignty Study Data Sovereignty Heat Map SME Cloud Index SME Resource Centre Cloud Assessment Tool Service Provider Index Advocacy Stakeholder engagement
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  19. 19. 19 Matching ✔ ✔ ✔✔ ✔ ✔✔ abc abc
  20. 20. 20 ACCA Data Sovereignty Tools Detail the legal/regulatory landscape for 14 Asia-Pacific countries: • Identify the laws and regulations • Describe the law creation process • Identify the governing bodies • Project the impact of the regulatory laws Help ACCA members to: Focus: telecom, finance, government and health Inform strategic business decisions Identify market specific products & policies Inform and educate customers Dispel myths Advise govts
  21. 21. SME CLOUD Working Group provides thought leadership and education to governments, the vendor community and the SME’s to bring cloud computing technologies to the SME market. DELIVERING • the SME Cloud Index a comparative index of Asian countries’ SME size, attractiveness and readiness for cloud computing adoption • the SME resource centre a collection of information and resources relevant for cloud computing use in general and the SME segment in particular. 21
  22. 22. See: @accacloud (twitter) Asia Cloud Computing (linkedin) 22 ACCA is about: • Shaping Asia’s cloud future, • Collaborating with leading companies, • Magnifying your influence and visibility.