Enterprises Flock to Cloud Services in Singapore, Malaysia

Enterprises in Singapore and Malaysia are adopting cloud computing at a rapid pace, motivated by the growth of digital transformation and other trends in the region, according to a new research report published today by Information Services Group (ISG), a leading global technology research and advisory firm.

“Private and hybrid/multi-cloud providers are helping make this possible.”

The 2022 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud — Data Center Services & Solutions report for Singapore and Malaysia finds an increasingly developed market for data center services and solutions in the region, with both global and local providers growing strongly. Cloud adoption increased with the COVID-19 crisis, but it was already in motion before the pandemic as part of widespread IT modernization.

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“Digital transformation is on the rise in Singapore and Malaysia and will continue to grow,” said Deepraj Emmanuel, director, ISG Asia Pacific, in Singapore. “Private and hybrid/multi-cloud providers are helping make this possible.”

The rising demand for cloud products and services is linked to several enterprise IT trends in the region, including growing needs for automation, sustainability and edge computing, the report says. Both service providers and clients are quickly adopting platforms to automate cloud operations using AI and machine learning.

A major push for sustainability by both the public and private sectors in Singapore, likely to spread to Malaysia, is shaping companies’ decisions about data center locations, energy sources and service providers. Edge computing is emerging to address security, network latency and IoT applications.

For regulatory, cultural and geopolitical reasons, Singapore and Malaysia operate as separate markets for cloud solutions and services, so few providers have coverage in both countries. ISG expects providers to accelerate the creation of complex partnerships for national coverage, global connectivity and scale. In Malaysia, data center development is expected to move beyond Kuala Lumpur and the Cyberjaya district to other locations with cheap and reliable energy and proximity to Singapore.

The global shortage of IT skills is a particular challenge in Singapore and Malaysia, with technology unemployment at or near record lows and immigration reduced due to COVID-19, the report says. This crisis will require more investment in automation and a rethinking of how to fill the skills gap.

The report also covers other trends in the region, including the highly competitive market for managed services, the growing importance of physical and cybersecurity practices and the continued relevance of colocation services.

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