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Home Industry

A cloud investment trend in Asia’s businesses in 2023

Syifa by Syifa
October 9, 2023
in Industry, Technology
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cloud technology

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Around 84% of the existing cloud service users surveyed in Asia aim to multiply their investment in cloud technology in 2023.

Heaptalk, Jakarta — Many companies have transformed their business operations digitally to simplify their workload to be more efficient, specifically in the post-pandemic. As a new technology ecosystem, Business in Asia has implemented a cloud service and plans to expand its investment in several cloud strategies in the coming years.

According to Alibaba Cloud‘s report entitled The Next-Generation Cloud Strategy in Asia, around 84% of the existing cloud service users throughout the Asia market surveyed aim to multiply their investment into cloud technology in 2023. At the same time, a similar survey reveals around 84% of businesses in Asia intend to conduct the overall cloud migration in two years.

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In more detail, the enhancement is most likely to come from Thailand (95%), Indonesia (94%), the Philippines (91%), Hong Kong (83%), and Singapore (83%). Meanwhile, a more significant percentage of businesses surveyed in Japan and South Korea indicate that they will maintain their level of investment.

Among the primary industries, the gaming sector is expected to experience the steepest increase in cloud investment, followed by the Media & Telecommunications, Internet & Technology, and Financial Services sectors.

In terms of investment priority, most of Asia’s business will focus on data analytics and Artificial Intelligence (AI) (52%) and automation (46%). Despite this fact, more than half of businesses plan to increase investment in cloud computing which underlines the importance of cloud infrastructure in supporting business growth. In Indonesia, the investment focus is on data analytics and AI (62%), cloud computing (62%), automation (58%), and metaverse (51%).

“This latest research reveals important insights for businesses and cloud providers in Asia. Cloud adoption has become a prerequisite for business success in the digital age. With cloud infrastructure laying the foundation for many cutting-edge innovations, such as generative AI, we will provide proven cloud-based solutions for businesses across industries,” the Vice President of Alibaba Group and President of International Business for Alibaba Cloud Intelligence, Selina Yuan, said.

Cloud technology growth in Indonesia

Despite Indonesia still being in its infancy in the cloud computing market, this technology has attracted numerous businesses in the archipelago. Moreover, during the Covid-19 pandemic, around 78% of Indonesia’s companies aim to invest in environmentally friendly technology to reduce their IT system carbon footprint in the coming years. On the other hand, Indonesia’s enterprises also plan to invest in AI machine learning (63%) and other technologies, including metaverse, Web 3.0, and NFT (62%).

With a high interest in Indonesia’s business deploying cloud technology, around 71% of companies in the country are still encountering the complexity of creating management to recognize new technology adoption. Other contributing factors are cost-cutting due to the current macroeconomic environment (55%), difficulty converting existing IT systems (48%), and unclear ROI (28%).

Nevertheless, business practitioners still oversee opportunities whereby 71% of enterprises still believe that cloud computing will transform Indonesia’s digital economy over the next 3-5 years; 61% observe a possibility in chip technology, and 58% believe in the potential of AI.

Tags: a cloud investment trend in 2023cloud computing

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