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Malaysian cloud investment could touch US$900m by 2020

AvantiKumar | Nov. 1, 2013
Cisco's Irving Tan says the Global Cloud Index shows that cloud traffic will account for more than two-thirds of global data centre traffic by 2017, a four-fold growth from 2012 to 2017.

Irving Tan, Vice President for Cisco in ASEAN modified 

Photo - Irving Tan, Vice President for Cisco in ASEAN.


Networking solutions provider Cisco's latest Global Cloud Index shows that cloud computing adoption in Malaysia is showing a marked uptake giving added credence to a recent Forrester global public cloud study prediction that cloud investment in the country should reach RM2.8 billion [US$0.89 billion] by 2020.

Cisco vice president for ASEAN, Irving Tan, said, "In Malaysia, the proliferation of networked devices like tablets and smartphones as well as the business take-up of cloud computing has resulted in an exponential rise in data volume and traffic."

Tan said 34 percent of organisations in Malaysia said cloud computing is their number one priority in the current fiscal year with one third of organisations already using some form of cloud computing [IDC: State of Cloud Computing in Malaysia].

He said the positive trends shown by both Forrester and IDC findings are confirmed by Cisco's third annual Global Cloud Index (2012-2017), which expects global cloud traffic, the fastest growing component of data centre traffic, to increase 4.5-fold - a 35 percent combined annual growth rate (CAGR) - from 1.2 zettabytes of annual traffic in 2012 to 5.3 zettabytes by 2017.

Overall global data centre traffic will grow threefold and reach a total of 7.7 zettabytes annually by 2017, said Tan. "Malaysian government support - with initiatives such as the MSC Malaysia Cloud Computing Initiative - will further fuel continuous growth in cloud adoption by enterprises and small and medium enterprises [SMEs] alike."

He said these trends mean that business leaders must be a few steps ahead of the curve and begin to invest in an intelligent network strategy from planning and building to managing their cloud environment. "This is to ensure that their infrastructure and data centres are able to cope with the escalating traffic and help their organisations improve productivity, profitability and competitive." 

 Some key findings

Tan said some of the key points from the global cloud index include:

 - In Asia Pacific, data centre traffic will reach 228 Exabytes per month in 2017 (in 2012 it was 64 Exabytes per month).
- Of this, business data centre traffic will reach 577 Exabytes per year (48 Exabytes per month) in 2017
- Consumer cloud traffic will reach 1.5 Zettabytes per year (124 Exabytes per month) in 2017
- Dramatic increase in business cloud use: business cloud traffic is predicted to reach 385 Exabytes per year (32 Exabytes per month) in 2017. In 2012, the business cloud traffic was 83 Exabytes per year (6.9 Exabytes per month) in 2012.
- Cloud traffic growth by region: The Middle East and Africa will have the highest cloud traffic growth rate from 2012 to 2017
From a regional perspective, the Cisco Global Cloud Index predicts that through 2017, the Middle East and Africa will have the highest cloud traffic growth rate (57 percent CAGR), followed by Asia Pacific (43 percent CAGR) and Central and Eastern Europe (36 percent CAGR).
He said a zettabyte is one billion terabytes. As an example, 7.7 zettabytes is equivalent to:
- 107 trillion hours of streaming music -about 1.5 years of continuous music streaming for the world's population in 2017.
- 19 trillion hours of business web conferencing -about 14 hours of daily web conferencing for the world's workforce in 2017.
- 8 trillion hours of online high-definition (HD) video streaming -about 2.5 hours of daily streamed HD video for the world's population in 2017.
The Cisco Global Cloud Index (2012-2017) was developed to estimate global for data centre and cloud-based Internet Protocol (IP) traffic growth and trends.


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