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Singapore’s cloud uptake: High but nascent

Caroline Ng | July 23, 2013
Opportunities abound for enterprises to step up to hybrid cloud for more advanced activities, according to a survey by Rackspace.

Despite Singapore's success in cloud adoption, at 73 percent, falling shortly behind India (79 percent) and Hong Kong (84 percent), the city-state remains far from unlocking true cloud value as it has been under-utilised, according to a latest survey by Rackspace.

The survey, based on 712 IT decision makers across the three cities, revealed that cloud has been largely used for basic applications, including storage (66 percent), email hosting (65 percent) and back-up (58 percent).

Only a minority camp use it for advanced activities, including disaster recovery (23 percent), supply chain (19 percent) and application testing (18 percent).

Singapore lags behind US
The results of Singapore's hybrid cloud uptake pale in comparison to the same survey conducted in the US.

According to the cloud computing survey, the American market is more advanced in cloud usage. Sixty-four percent of enterprises use cloud computing for disaster recovery while 62 percent use it for testing and development.

The prevalence of basic cloud usage in Singapore presents "a huge opportunity for organisations to tap into hybrid cloud solutions in particular to save costs, increase flexibility and security across a much greater range of applications and IT-related activities," said Ajit Melarkode, managing director of Rackspace Asia Pacific.

Barriers to cloud maturity
Security tops the list of concerns echoed by senior management. Three quarters (75 percent) of respondents in Singapore said data security is their main concern.

Fifty-eight percent also felt there is still a raft of market confusion revolving around cloud implementation while 53 percent of companies are concerned about meeting compliance requirements.

"These concerns are potential barriers to the full adoption of cloud computing technologies in Singapore," said Melarkode.

"Hybrid cloud solutions [...] can provide a way to get both security and potential compliancy of private cloud and the scalability of public cloud."

According to Melarkode, education on cloud implementation is needed to bridge the vacuum that currently exists in Singapore.

Gaining traction
Despite cloud's relatively nascent phase in Singapore, the survey has also found that among those respondents who have yet to use cloud, 84 percent have expressed their intentions to do so, driven by the need to stay relevant in the future.

Of these, 42 percent were considering a transition within the next 12 months while another 45 percent were looking at a span of one to two years.


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