Malaysian companies boosted private cloud investments: Nutanix survey
Nutanix, a leader in a private cloud, hybrid and multicloud computing today announced the findings of the Malaysian edition of its third annual Enterprise Cloud Index (ECI) Report. In mid-2020, U.K. researcher Vanson Bourne surveyed 3,400 IT decision-makers around the world to measure the state of global enterprise cloud deployments and adoption plans.
This report is supplemental to the global Third Annual Enterprise Cloud Index master report and focuses on cloud deployment and planning trends in Malaysia. It highlights key data points gleaned from IT professionals in Malaysia and how they compare to enterprise cloud experiences and plans in both the Asia Pacific (APJ) region and around the world.
The findings point to a digital transformation within the industry, with Malaysia reporting the greatest increase in private cloud as a result of COVID-19. 58 percent of Malaysian respondents reported that COVID-19 caused them to increase their investment in private cloud, outpacing the global average (37%) and their peers in APJ countries (44%).
The pandemic also forced many respondents to strengthen public cloud infrastructure to quickly accommodate large numbers of at-home workers. A total of 67% of Malaysian respondents said they had boosted public cloud usage and 51% said they had increased hybrid cloud usage.
The key findings from the report include:
Hybrid cloud is the ideal IT operating model for the vast majority of respondents in Malaysia and elsewhere. Nearly all respondents from Malaysia (96%) identified hybrid cloud as the ideal infrastructure for their organizations, outpacing those in the APJ region (90%) and in the global response pool (87%). Malaysian respondents run slightly more hybrid clouds than average today with 14% penetration, which they intend to grow to 57% penetration in five years.
Malaysian respondents are particularly bullish about expanding their public multicloud environments. They expect to grow public multicloud use by 6% in five years—the only infrastructure growth area cited by Malaysian respondents other than hybrid cloud. In the next year, they expect to increase their use of two public clouds from 25% to 39% and their use of three public clouds from 13% to 22%. However, they expect their use of more than three public cloud services to remain static at just 5% during that time.
Cost isn’t a primary driver behind IT infrastructure change in Malaysia. The motive for modernizing IT infrastructures mentioned most often in Malaysia is to increase flexibility to meet business needs (74%). From there, three goals tie for second place as inspiring change, with 63% of respondents from Malaysia selecting each of the following factors: 1) gaining better control of IT resource usage, 2) increasing the speed of meeting business needs, and 3) better supporting customers. By contrast, cost savings was cited by just 29% of respondents from Malaysia.
The global pandemic has raised IT’s profile and accelerated cloud adoption. 88 percent of respondents in Malaysia said that COVID-19 has caused IT to be viewed more strategically in their organizations. In addition, 67% of Malaysian respondents said they’ve increased their investments in public cloud, 58% said they’ve increased investments in private cloud, and 51% said they’ve upped their hybrid cloud investments as a direct result of the pandemic.
Despite being slightly behind the curve with private cloud adoption, Malaysian IT pros report above-average progress with hyperconverged infrastructure (HCI). More than half (59%) say they’ve deployed HCI or are in the process of deploying it in their data centers, compared to 50% of global respondents. The relevance of HCI is that it creates a foundation for private cloud by virtualizing and integrating data center computer storage, and networking devices in standard, off-the-shelf server hardware. Private clouds built upon this foundation ultimately merge with public cloud infrastructure services into the hybrid cloud setup that most ECI respondents say is the ideal infrastructure they’re working toward.
During the media briefing, Avinash Gowda, Country Manager of Nutanix Malaysia said that with business recovery on the horizon, companies in Malaysia see cloud adoption as a top priority, as revealed in the ECI report.
“COVID-19 has significantly accelerated digital transformation across industries. With digitization as the new business reality, Malaysia’s businesses will look to make strategic investments in technology that will accelerate business recovery and enable them to scale for innovation and growth.”
“Businesses need to look to maximizing outcomes from their investments in IT infrastructure — to ensure their cloud strategies are financially sound, and future-proof,” said Avinash.
Reportlinker’s findings show that Malaysia’s data center market will grow at a CAGR of 8% from 2020 – 2025, reaching $800 million SGD by 2025.
The market for cloud computing in Malaysia is not as mature as Singapore. However, due to land shortage in Singapore and lower cost, Malaysia might attract more and more investments in data centers, according to ReportLinker.