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Turning to the cloud

Anushkar Mohinani | April 18, 2011
Uwe Schlager, managing director of T-Systems, shares his thoughts on cloud adoption in the region.

Uwe Schlager

Uwe Schlager, managing director, T-Systems

Uwe Schlager, managing director of T-Systems, provider of information and communications technology, spoke about the demand and adoption of cloud services and solutions in the region.

Cloud computing was more or less still in hype cycle as of last year. In 2011, has it moved beyond hype in Asia? If so, what are the key factors to the strong interest in the cloud?

As an IT user and vendor, we have certainly seen more companies with operations in Asia move beyond the hype towards action in 2011. As companies realise the need to transform their IT infrastructure in both a flexible and scalable manner to meet current and future business needs, many have made the strategic move to the cloud.

Cloud computing has triggered a paradigm shift within the industry, with many companies changing the infrastructure game and ending an era of buying oversized ICT supplies to combat peak demand. As business needs continue to vary, many organisations have realised the benefits of pay-per-use services, driving a sustained interest in the cloud.

The growing appetite for cloud services and solutions is being driven by the cost reduction, efficiency and optimised performance the sustainable model affords. The optimised performance and flexible availability of resources further allows businesses to accelerate go-to-market strategies, while allowing companies to focus on their core business.

What is driving demand for cloud in Singapore in particular?

 While the appeal of the cloud is universal, Singapore is slightly different in its role as a regional headquarters and hub for many organisations that have operations and information workers dispersed across the Asia Pacific. As such, pain points include growing data volumes, limited IT budgets and rising IT operating costs.

Of these, growing data volumes have been an acute area of concern in Singapore. In a recent Springboard Research report, 16 per cent of Singapore respondents indicated that they face IT infrastructure-related challenges as a result of growing data volumes and companies turning to cloud services to better manage their IT resources. 

These conditions have driven demand for cloud services not just in Singapore but also across the globe, with recent IDC forecasts predicting worldwide investments in cloud-based Internet services to hit US$44.2 billion by 2013, growing at a compound annual growth rate (CAGR) of 26 per cent. According to this forecast, cloud services will achieve a growth rate six times higher than traditional IT offerings, with Singapore leading the way in Asia for cloud demand and adoption.

What cloud models have gained popularity in the region?

When selecting cloud services, feedback from regional CIOs seems to be focused on ensuring the optimal use of existing resources, being able to cater to peak demand volumes when necessary, and freeing existing unused IT resources for more strategic business areas.

 

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