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Growth of private cloud in Malaysia: IDC

AvantiKumar | June 28, 2012
IBM, IDC study of public and private cloud in the Asia Pacific region notes overall steady growth.

 (L) IBM Rich Lechner & (R) IDC Chris Morris

PHOTO - (from left) Rich Lechner, vice president, cloud and services marketing, IBM Corporation; and Chris Morris, associate vice president, services practice Asia Pacific, cloud services Asia Pacific, IDC Australia.

A steady increase of usage and readiness of private and public cloud computing in the Asia Pacific is noted in a new study released by software giant IBM and analyst firm IDC, which also pointed to a growth of private cloud adoption in Malaysia.

Speaking in Kuala Lumpur on 7 June 2012, IDC Australia's associate vice president, services practice Asia Pacific, cloud services Asia Pacific, Chris Morris said the IDC APEJ Cloud End-user Survey 2012 noted that while overall cloud adoption in Malaysia was still at an early stage, private cloud deployments were increasing.

"[This] will be a growth area for the country," said Morris. "There is a significant shift in this area in Malaysia as compared with other countries in APEJ [Asia Pacific excluding Japan]. Although only a small proportion of respondents are currently using private cloud, they have indicated that they plan to increase the usage greatly during the next 12 months."

"Of those that currently have a private cloud strategy, 42 percent have indicated that they are planning to use private cloud in the next year," he said.

"Construction of private cloud infrastructure is the typical first stage of cloud adoption, with the next stage being the sourcing of business applications from the cloud, being witnessed in Malaysia in 2012," said Morris.

He said that there was a small uptake of public cloud and virtual private cloud (a subset of public cloud) to date. "More than 40 percent of respondents have indicated that they currently have no plans to use or deploy public and almost 50 percent have no plans to use or deploy virtual private cloud services."

"This low uptake is in relation to the uncertainties of legislations, service management (process) readiness - moving from simple infrastructure services to the delivery of end-to-end business service management - and the lower engagement of outsourcing in the country," said Morris.

The IDC APEJ Cloud End-user Survey 2012 covered almost 900 organisations, in many different sectors including government across the region, with more than 350 organisations in ASEAN and Malaysia.

 Keen interest

"The survey also shows the growing preference of organisations for business process outsourcing (BPOs) and IT outsourcing (ITOs) and their investments in new IT service management (ITSM) and business process management (BPM) tools," said Morris. "These are indicators of the increasing readiness of organisations for cloud adoption."

"The findings revealed that most of the APEJ companies were confident enough in cloud computing services to favour off-site and hosted virtual private cloud delivery, a sign that the public and virtual private cloud environments available in the APEJ market were considered robust and trusted enough for deployment of some types of enterprise workloads," he said.

"There has been a keen interest in cloud computing over the last few years and an increase in deployments, especially among larger organisations such as the government and financial services sectors," said IBM Malaysia country cloud leader, Ku Chuan Cherng. "Different organisations across industries are at different stages of research and adoption. However, while the organisations recognise cloud as an important technology or platform to drive business growth, the full potential of what it offers remains relatively untapped."

"Forward-thinking companies are rethinking IT and reinventing how they do business to receive business benefits of agility, improved economics and dexterity," said IBM vice president, cloud and services marketing, Rich Lechner. "They are discovering that cloud can help expedite this transformation, to deliver further innovation and in select cases, a new profit opportunity."

"The survey also predicts that by 2015, most business computing categories will be available from the cloud, reinforcing again the future widespread use and acceptance of cloud computing in businesses of tomorrow," added IDC's Morris. "A number of today's cloud vendors will not be able to sustain themselves if they do not have a long-term, viable cloud strategy. So, the choice of a strong, longstanding IT vendor with staying power is key. Cloud supplier selection and management will impact service delivery processes hence deliberating on the supplier's expertise in this space would help."


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