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AP retailers hesitant about cloud computing: IDC

Jack Loo | May 22, 2012
Deploying virtual platforms likely to happen in two to five years.

Retailers in the region remain cautious about adopting cloud computing services, according to IDC's Retail Insights arm.

Results from the report Cloud Adoption in the Asia Pacific - Retail Industry indicate that only 19 per cent of the 56 surveyed retailers are evaluating their options in cloud computing. The respondents are from countries such as China, India, Malaysia and Singapore.

IDC Retail Insights notes that the retail industry, defined by its use of legacy systems, has always been a little hesitant when it comes to technology.

Adoption of retail-specific technology in Asia Pacific is less when compared to the other regions as the industry is still developing.

The survey further reveals that data security, firewall concerns and integration into internal IT systems are the three main barriers to cloud adoption among Asia Pacific retailers.

"The majority of them recognise that the cloud would bring efficiency to their IT systems and improve operational backend issues. However, the plan to move into virtual platforms does not appear to be immediate and would take between two and five years," said Kumar Gs Das, research manager for IDC Retail Insights Asia/Pacific.

The survey reveals that cloud deployment is on the priority list; 32 percent of the respondents say that they are considering implementing cloud in the next two to five years.

Meanwhile, IDC Retail Insight believes the positive economic outlook in Asia will drive the future adoption of cloud among retailers in this region.

"Investors will continue to shift their focus to Asia and businesses will be looking to improve operational efficiency and IT productivity in order to keep up with growing consumer demand," said Gs Das.


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