50% of Asia/Pacific Enterprises to Form Strategic Ties with Cloud Providers for GenAI, DevTools, and Infrastructure by 2025

Top Cloud Predictions in Asia/Pacific* for 2024 and Beyond Revealed by IDC

SINGAPORE, 15 January 2024 – In a recent FutureScape report, IDC FutureScape: Worldwide Cloud 2024 Predictions — Asia/Pacific (Excluding Japan) Implications, IDC predicts that by 2025, 50% of enterprises will form strategic ties with cloud providers for GenAI platforms, developer tools, and infrastructure, requiring new corporate controls for data and cost governance. Organizations in Asia/Pacific excluding Japan (APEJ) are aware of the rise of GenAI as a technology to leverage. Users in the region are well acquainted with how cloud is integral to innovation and making new technologies accessible at a faster pace. Cloud provides scalability, agility, flexibility, and lower costs and access to resources of GenAI technologies.

As organizations seek digital enablement that is a key, dynamic fixture in our world, they are seeking to leverage both internal and external data for both advantage and innovation. Organizations that want to do so understand that the speed, agility, and scalability they need to derive this intelligence is built on a cloud foundation. As the world turns toward AI, with generative AI (GenAI) currently in the limelight, cloud in all its permutations will continue to play an ever greater role as enterprises journey into an AI everywhere era. The ability to leverage a multicloud or hybrid cloud architecture is mission critical to their GenAI strategy.

Below are the other predictions for AI-infused cloud in the region:

• Security. By 2025, 23% of organizations will implement cloud-native application protection platforms with AI to enforce continuous compliance with cloud security posture management features.

• Skill Gaps. By 2027, two-thirds of cloud applications will use AI, leaving 80% of Asia organizations to struggle with finding enough skilled AI professionals to continually manage and update them.

• App Modernization. GenAI will reinvent refactoring of legacy apps, with enterprises utilizing GenAI tools and cloud service provider platforms to initiate and execute 60% of code conversion and development tasks by 2027.

“With the rise of AI, cloud foundation is core to the ability to create even more possibilities for organizations to increase productivity and explore new business model. APEJ Organizations and their leaders will need to grasp both the broad long-term impact of AI as well as the immediate impact of GenAI investments across their entire technology landscape to ensure they capitalize on opportunities and manage costs and risks,” says Daphne Chung, Research Director, Cloud Services and Software, IDC Asia/Pacific

Aside from the AI-driven predictions above, we must also focus on a holistic approach guided by more IDC predictions below:

• HPC. By 2026, 50% of enterprises will break with the public cloud migration trend and primarily deploy High Performance Computing on premises, at a managed services provider, or at a colocation provider.
• Edge Computing. By 2027, 70% of the A2000 will rely on cloud providers and connectivity partners for zero-touch provisioning and zero trust security at the edge, reducing the burden on IT staff by 2x.
• Partner Ecosystem. By 2025, 65% of the A2000 will engage in multicloud through partner ecosystems that provide valued services, application development, and integration from the distributed cloud to the edge.
• Sustainability. By 2028, owing to growing power scarcity and sustainability mandates, 45% of datacenters will adopt fit-for-purpose solutions such as custom silicon, liquid cooling, microgrids, and ruggedization.
• FinOps. By 2026, 40% of A2000 companies will expand their FinOps scope to identify new cost optimization opportunities by adding SaaS management platform tools and capabilities.
• Sovereignty. Over the next 12 months, CIOs will direct 25% of their IaaS data storage budgets toward solutions for data sovereignty to achieve regulatory compliance.

Each year, IDC releases its top technology predictions at worldwide, regional and country level through its IDC FutureScape R eports  and gives a crystal ball view of what is ahead for the rapidly changing IT industry. These predictions have been used to shape the strategies and business objectives of technology leaders and business executives in the next 1-5 years. All the predictions stated here cover Asia/Pacific implications.

Catch an on-demand replay of IDC’s 2024 Predictions presentation that will be available as part of a series of FutureScape webinars addressing the IT Industry, AI and Automation, Digital Business, CIO Agenda, and Emerging Technologies. If you would like to attend any of these webinars, register and learn more HERE.

Asia/Pacific Japan FutureScape Reports come with a complimentary report that provides specific recommendations for tech vendor sales and marketing leaders. Leverage on IDC insights to better understand clients’ priorities and enhance your storytelling and go to market plans, access the IDC FutureScape: Worldwide Cloud 2024 Predictions — Asia/Pacific (Excluding Japan) Implications: Positioning for Success — Opportunities for Tech Sales and Marketing Leaders market presentation HERE.

For more information about IDC FutureScape and other resources, please visit our regional FutureScape site. For sales inquiries on the IDC FutureScape framework and reports, please contact your IDC account manager or Tessa Rago at trago@idc.com. For media queries, please contact Michael de la Cruz at mdelacruz@idc.com   or Miguel Carreon mcarreon@idc.com.

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About IDC FutureScape

IDC FutureScape reports are used to shape IT strategy and planning for the enterprise by providing a basic framework for evaluating IT initiatives in terms of their value to business strategy now and in the foreseeable future. IDC’s FutureScape reports are comprised of a set of decision imperatives designed to identify a range of pending issues that CIOs and senior technology professionals will confront within a typical five-year business planning cycle.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC’s analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world’s leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDCAP and LinkedIn. Subscribe to the IDC Blog for industry news and insights.

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