Growing technological maturity boosts use of public cloud infrastructure, transformation consulting and managed services, ISG Provider Lens™ report says
Demand for public cloud services is growing in Asia Pacific as more enterprises recognize the importance of investing in advanced technology, including AI, to compete in global markets, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2024 ISG Provider Lens™ Multi Public Cloud Services report for Asia Pacific finds that rapid economic expansion in the region, which is at the epicenter of global growth, has enabled some companies to leapfrog international rivals in implementing cloud-native environments. Government incentives and a wave of legacy infrastructure modernization have also accelerated public cloud adoption. Strong ecosystems of local and global system integrators help to make cloud transformations possible.
“Enterprise technology is quickly maturing in Asia Pacific,” said Michael Gale, partner and regional leader, ISG Asia Pacific. “As companies gain more capabilities and look to expand their use of AI, they are stimulating both the cloud ecosystem and the regional economy.”
The expansion of cloud infrastructure in Asia Pacific is fostering the growth of provider ecosystems that help enterprises gain cloud maturity, the report says. One or more hyperscalers have been present in Australia, Japan and Singapore for more than a decade, and AWS entered Malaysia this year. Hyperscale infrastructure is expected to come online in Indonesia, Thailand and New Zealand by the end of 2025.
GenAI adoption is becoming a major accelerant of public cloud services demand in the region, ISG says. Many companies, especially in China and India, are looking to capture AI’s potential. They are turning to hyperscalers and service providers for the computing power, storage and tools required to develop and deploy AI applications. Scalable, on-demand access to these resources makes a strong public cloud infrastructure and ecosystem attractive to companies planning AI initiatives.
Enterprises in Asia Pacific are turning to managed services providers for help in modernizing applications and implementing cloud-native technologies to facilitate large-scale Agile development, the report says. They seek providers with expertise in lift-and-shift cloud migration, container management and DevOps approaches to support CI/CD development pipelines.
As companies in the region quickly adopt cloud services, they are also seeking stronger financial monitoring of cloud resources to control costs and comply with local regulations, ISG says. There is growing demand in Asia for FinOps services providers that use advanced AI to identify anomalies in cloud usage and spending and recommend steps to improve performance and cost efficiency.
“Companies throughout Asia Pacific are undergoing significant transformation to realize the value of the cloud,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Service providers help them minimize risks and make a cost-effective transition.”
The report also examines other public cloud trends in Asia Pacific, including the rise of local hyperscalers as alternatives to U.S.-based giants and the increasing demand for SAP cloud migration services.
For more insights into the public cloud challenges faced by enterprises in Asia Pacific, and ISG’s advice for overcoming them, see the ISG Provider Lens™ Focal Points briefing here.
The 2024 ISG Provider Lens™ Multi Public Cloud Services report for Asia Pacific evaluates the capabilities of 37 providers across five quadrants: Consulting and Transformation Services, Managed Services, FinOps Services and Cloud Optimization, Hyperscale Infrastructure and Platform Services and SAP HANA Infrastructure Services.
The report names Accenture, Capgemini, HCLTech and Infosys as Leaders in three quadrants each. It names AWS, Deloitte, Fujitsu, Google, IBM, Microsoft, NTT DATA, PwC and TCS as Leaders in two quadrants each. DXC Technology, Kyndryl, Rackspace Technology, SAP and Wipro are named as Leaders in one quadrant each.
In addition, Hitachi Digital Services, LTIMindtree and Rackspace Technology are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.
In the area of customer experience, Persistent Systems is named the global ISG CX Star Performer for 2024 among multi public cloud services providers. Persistent Systems earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.
The 2024 ISG Provider Lens™ Multi Public Cloud Services report for Asia Pacific is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.
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