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This is how Malaysia's ICT industry will transform in the next three years: IDC

AvantiKumar | March 8, 2017
The top emerging technologies and market shifts are picked out in this new IDC survey of Malaysia's operating environment.

- Cognitive Cybersecurity: By 2018, 30 percent of cybersecurity environments will incorporate cognitive/AI technologies to assist humans in dealing with the increasing scale and complexity of cyberthreats.
Commenting on this, Linda Chua, market analyst, Software, IDC Malaysia, said: "Based on IDC's Asia/Pacific (Excluding Japan) Business and IT Services 2017 Survey, 24 percent  of organisations in Malaysia plan to adopt or transform their cybersecurity solutions in response to the changes brought about by digital technology such as cloud, mobility, and IoT. Given, organisations continue to engage with vendors for predominantly traditional services such as network security, content security, and security incident & event management services."

- Datacentre Vision: By 2018, 25 percent of companies in data-intensive industries will adopt formal datacentre planning, sourcing, and governance processes to speed DX efforts.
Jun Fwu Chin, research director, Datacentre Group, IDC Asia/Pacific, said that DX has virtually impacted every industry.

"A key sign of the maturity of this transformation is the degree by which the industry has become information-focused. For enterprises in information-intensive industries, datacentre decisions must be based on the ability to quickly deliver and scale highly secure and resilient pools of transaction, content, and analytic resources worldwide. Malaysia lags majority of the Asia/Pacific market in terms of DX maturity. Worldwide pressures such as the consumerization of IT and digital disruption are forcing Malaysian firms to shift their vision and strategy."

-Service Provider Strategy: By 2020, 60 percent of enterprises will reconsider their current service providers, causing a shift in the systems integrator's function from traditional to digital and the emergence of new services roles.
Sherrel Roche, senior market analyst, Services Research, IDC Asia/Pacific, said, "Rapid consumerization of technology is creating an environment wherein enterprises are increasingly looking for new services around digital strategy and advisory as a starting point for digital engagements, as opposed to merely seeking for traditional implementation or SI capabilities."

"For example, typical SI activity aligned to infrastructure services will transform with the effect of DX services into less 'build' and more 'leverage' of standards-based platforms common in the industry," Roche said.
- FinTech: Incubation will visibly be a 'cost-first' directive for Malaysian FSIs  Pressures on profitability brought by declining investor confidence, political risk, and the weakening Malaysian Ringgit have substantially impaired the businesses of Malaysian banks. Through 2017, the pursuit of innovation will be couched by mandates on cost optimisation.

Sui-Jon Ho, senior market analyst, IDC Financial Insights, said: "Malaysian financial service institutions (FSIs) remain relatively insular in terms of collaboration with third-party fintechs. Although co-administered accelerator programmes abound (predominantly pursued by Maybank, CIMB and RHB), the lack of large and certain predicted returns remain a barrier for decision makers to scale up their involvement."

To close the roundup, Nath said that the technology areas discussed are expected to be key to digital transformation initiatives of enterprises in 2017 and beyond.

"A key requirement to success is in understanding the nuances of implementing some of these solutions to best fit the needs and aspirations of enterprises in Malaysia," he said.

This article was first published on 8 March 2017 on Computerworld Malaysia.


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