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Trends impacting the APAC cloud computing market

Clement Goh, Managing Director, South Asia, Equinix | July 25, 2016
In a market as fast paced and constantly evolving as cloud technology, it’s no surprise that trends can change overnight or that CIOs are kept up all night thinking of ways to strike the balance between keeping systems ticking-over and continuing to innovate.

This vendor-written piece has been edited by Executive Networks Media to eliminate product promotion, but readers should note it will likely favour the submitter's approach.

In a market as fast paced and constantly evolving as cloud technology, it's no surprise that trends can change overnight or that CIOs are kept up all night thinking of ways to strike the balance between keeping systems ticking-over and continuing to innovate. There have been some important changes in the market this year - some incremental and some major leaps - that I expect will continue to impact the regional cloud computing market well into next year.

1.      The continued quest for cloud based applications

There has been a big shift in IT consumption models for enterprises, with many CIOs becoming more aware of the benefits of cloud based applications and increasingly exploring Software-as-a-Service (SaaS). The evolution of traditional licensed based software moving to the cloud has had an impact on the delivery of applications, and facilitated in the creation of application based user interfaces that can be accessed from a range of devices.

As such, enterprise CIOs are leveraging SaaS models to create opportunities, pick and choose the best applications for their market and to manage them through a single pane of glass. I expect to see both hardware and software providers trying to tie in to the SaaS market, either by establishing reference designs or evolving software packages to become more demand subscription based.   

With certain platforms providing direct access to SaaS providers, there are now easier ways in which applications can be delivered, such as bypassing the Internet to alleviate security and performance concerns.  For example, Office 365, which was available only via the Internet, can also be accessed now by private connections via Azure Expressroute. 

2.      Interconnection will remove significant barriers to IT growth

Corporate networks are currently strained by the global dispersion of workforces (75% of enterprise employees reside in locations outside of a company's headquarters) and the proliferation of multiple users who access the network via multiple devices in multiple locations. Centralized, siloed IT architectures, often trapped in on-premise data centers, can't scale to get closer to end users and deliver the high-performance connections users demand.

Meanwhile, interconnection via the public Internet will continue to be plagued by reliability and security concerns. For all these reasons, enterprises are increasingly designing interconnection-oriented infrastructures to enable direct and secure links to cloud and network providers and various other partners. In this interconnected era, companies will increasingly rely on instantaneous interconnection with each other to create new value and succeed.

The benefits of this interconnection are real and quantifiable. According to the "Enterprise of the Future" report by Equinix, more than a third of respondents who have already deployed interconnection solutions report greater than $10 million in value created, with 58% reporting this value came from increased revenue opportunities.

 

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