Alibaba Said Business In Asia Begins To Increase Cloud Investment In 2023

JAKARTA - 94 percent of cloud service users in Indonesia hope to increase their investment in cloud technology by 2023, while 92 percent of other businesses in Indonesia plan to complete cloud migration in two years.

This was stated in a recent survey report entitled The Next-Generation Cloud Strategy in Asia, which was initiated by Alibaba Cloud owned by Alibaba Group.

In the survey, which covers the entire Asian market, 84 percent of existing cloud service users expect to increase their investment in cloud technology by 2023, while more than four of the five (84 percent) plan to complete cloud migration in two years.

With more and more companies moving their important business online to tackle workloads more efficiently in the post-pandemic, businesses in Asia already using cloud services, plan to increase their investment in various cloud strategies by the coming year.

The increase is likely to come from Thailand (95 percent), Indonesia (94 percent), the Philippines (91 percent), Hong Kong Special Administrative Region (S.A.R.) (83 percent), and Singapore (83 percent).

Meanwhile, a larger percentage of businesses surveyed in Japan and South Korea showed they would maintain investment levels at this time.

Among major industries, the game sector is expected to experience the sharpest increase in cloud investment, followed by the Media & Telecommunications, Internet & Technology, and Financial Services sectors.

In terms of investment priorities, most businesses in Asia will focus on data and AI analytics (53 percent), cloud computing (52 percent), and automation (46 percent).

In fact, there are more than half of businesses planning to increase investment in cloud computing underlining the importance of cloud infrastructure in supporting business growth. In Indonesia, the focus of investment is on data and AI analytics (62 percent) and cloud computing (62 percent), followed by automation (58 percent), and the metaverse (51 percent).

Alibaba Cloud appointed global market research firm NielsenIQ to help conduct surveys, with the aim of better understanding the circumstances of implementing applicable cloud strategies, be it private, public, and hybrid cloud throughout Asia.

Completely Migration To Cloud In 2024

The research also revealed that 92 percent of Indonesia's business (vs 84 percent in Asia) plans to completely migrate the cloud within two years, as reported by VOI, Thursday, March 16.

Some of this is driven by new needs that arise during the pandemic. More than half (53 percent) of Indonesia's business in the survey (vs 36 percent in Asia) even anticipates comprehensive cloud migration in the next six months.

Among businesses surveyed, the impact of COVID-19 has caused significant changes in their IT use, with 56 percent of Indonesian businesses (vs 54 percent in Asia) reporting increased use of cloud-based software and 48 percent of businesses in Indonesia (vs 41 percent in Asia) reporting acceleration with their cloud migration.

More Diverse Cloud Adoption

During a survey, the private cloud (40 percent) became Asia's most popular strategy, followed by a public cloud (27 percent).

In addition, a strong reputation for security, (76 percent in Indonesia vs 58 percent on average in Asia) and cloud services tailored to business growth (57 percent in Indonesia vs 41 percent across Asia) are the main reasons for businesses to choose public cloud.

Where 54 percent of businesses in Indonesia surveyed hope to increase public cloud investment by more than a fifth in the coming year.

Meanwhile, hybrid cloud adoption in Asia is also increasing, with surveys recording a net increase of 7 percentage points in current adoption rates compared to the adoption of respondents' early cloud strategies.

Of respondents in Asia who have changed their cloud strategy, the highest proportion of 39 percent has switched to hybrid cloud. In addition to security factors, businesses tend to choose hybrid clouds for customized services.