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Asia Pacific cloud set to grow

Anuradha Shukla | Oct. 14, 2014
Cloud ecosystem to grow faster than other regions except EMEA.

IDC predicts Asia Pacific's cloud ecosystem to grow at a compound annual growth rate of 67.9%.

This growth is faster than other regions as North America and Latin America are said to grow at 54.6% and 46.6% respectively.

However, Asia Pacific growth will be lesser than the Europe, the Middle East and Africa (EMEA) region that will grow at 70.2%.

IDC's new report also estimates that in the next five years, SAP partners in the Asia Pacific region will earn US$4.1 billion in revenue related to cloud and managed services from SAP.

"For every dollar we earn in cloud and managed services revenue, our partners in the region make three more, and that's a compelling proposition," said Anthony McMahon, senior vice president for Global Partner Operations in Asia Pacific Japan at SAP.

Moving away from tradition

The SAP partner ecosystem is getting new opportunities for growth because of customers that are leaving traditional IT platforms for cloud and managed services.

Traditional IT no longer attracts customers as cloud offers reduced costs and IT staff size, and frees them from capital expenses as they now have the option of paying on a pay-as-you-go subscription basis.

IDC expects about 25 percent of all software revenue will be subscription-based by 2016.

Cloud also provides benefits such as rapid access of new functionality, improved resource utilization, and increased direct IT solutions control.

"We see growing demand for cloud services from our customers in Asia and we expect that to continue for the foreseeable future," said Joonbae Son, vice president of LG CNS, a global IT service provider based in Seoul. "One key driver for this growth is that cloud technologies have recently matured, and organizations can take advantage of transformative technologies, like SAP HANA Enterprise Cloud."

 

 

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