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Diverse Hybrid Clouds Enable Asia Pacific IT Strategies

Information Services Group, Inc. 4 mins read

Service providers help companies assemble unique combinations of public and private clouds and colocation resources, ISG Provider Lens™ report says


SYDNEY--BUSINESS WIRE--

Enterprises in Asia Pacific are turning to hybrid cloud and data center services to meet specialized business, legal, cultural and IT requirements, 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™ Private/Hybrid Cloud — Data Center Solutions report for Asia Pacific, which covers Australia, New Zealand, Southeast Asia and India, finds that various combinations of public, private and on-premises data centers are ideal for most companies in the region.

“There is no one right or wrong approach to data center resources,” said Michael Gale, partner and regional leader, ISG Asia Pacific. “The best strategy is the one that is most effective for each organization.”

Cloud and data center choices in the region are largely shaped by factors such as cost, security, data privacy and interoperability requirements, the report says. Access to computing power for generative AI (GenAI) has become another key consideration. Conditions unique to certain parts of Asia Pacific influence companies’ decisions, especially because costs, network capacity and access to experienced labor vary widely across the region. In some cases, complex geopolitical issues affect which networks enterprises can use and where their data can be stored.

Companies struggling to manage IT budgets and resources are turning to managed services providers for help in migrating applications to the right IT architectures, ISG says. These must meet requirements for server downtime, data loss and other factors. Increasingly, enterprises want to automate operations through AI and ML technologies to boost efficiency and cut costs.

Demand is also growing in Asia Pacific for managed hosting services to remove the burdens of operating private data centers, the report says. In addition to secure storage, reliability and fast connectivity, companies want these services to include advanced security measures and automated backup and recovery based on AI.

Companies in the region that need scalable computing and economies of scale are engaging with colocation providers in growing numbers, ISG says. To comply with local regulations on cloud sovereignty and other considerations, large multinational enterprises are working with providers that have facilities across Asia Pacific rather than only in top data center locations such as Singapore or Melbourne. Companies focused on one market are considering more localized providers.

“Location is critical in Asia Pacific,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Providers’ new data center investments in growth markets are good news for enterprises.”

The report also examines other cloud and data center trends in Asia Pacific, including the expansion of some managed hosting services to new countries and the rising interest in modular data centers for remote sites.

For more insights into private/hybrid cloud and data center challenges in Asia Pacific, including widespread skills shortages and evolving sustainability requirements, plus ISG’s advice for addressing these issues, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Private/Hybrid Cloud — Data Center Solutions report for Asia Pacific evaluates the capabilities of 40 providers across three quadrants: Managed Services, Managed Hosting and Colocation Services.

The report names Fujitsu and Telstra as Leaders in all three quadrants. It names Kyndryl and NTT DATA as Leaders in two quadrants each. Accenture, Capgemini, Digital Realty, Equinix, Global Switch, HCLTech, Infosys, NEXTDC, NTT GDC, Rackspace Technology, Singtel, Tata Communications, TCS and Wipro are named as Leaders in one quadrant each.

In addition, Rackspace Technology is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant.

A customized version of the report is available from Tata Communications.

In the area of customer experience, Green is named the global ISG CX Star Performer for 2024 among private/hybrid cloud service providers. Green 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™ Private/Hybrid Cloud — Data Center Solutions 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 and automation, 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.


Contact details:

Press:

Will Thoretz, ISG
+1 203 517 3119
will.thoretz@isg-one.com

Julianna Sheridan, Matter Communications for ISG
+1 978-518-4520
isg@matternow.com

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