Study: 69% Singapore enterprises embrace hybrid cloud
69 per cent of Singapore enterprises plan to do away with traditional data centers for hybrid cloud in the next 5 years, 20 percentage points higher than that of the global average, a study by Nutanix revealed.
Nutanix, Inc. a private cloud, hybrid, and multi-cloud computing specialist, released its third Enterprise Cloud Index (ECI), an annual research on the state of global enterprise cloud deployments and adoption plans.
This year’s ECI especially sought to understand the progress with adopting private, hybrid, and public clouds and explored the impact of COVID-19 on current and future IT decisions and strategy.
It also revealed that more than half (67 per cent) of Singapore respondents have increased investments in the hybrid cloud as a direct result of the pandemic.
Ho Chye Soon, Singapore country manager, Nutanix, commented: “The global health crisis has accelerated adoption of cloud technology as enterprises prioritized business continuity and support remote workers. As enterprises here cautiously steer towards economic recovery, they will also be navigating into a new business reality that requires great operational agility. The agility to quickly test and launch new applications as they adapt to fast market changes for instance. To achieve this, enterprises will be looking to having in place a cohesively managed hybrid cloud environment with unified visibility, management, security, and application mobility.”
Diving into the drivers behind cloud initiatives in Singapore, enterprises reported IT to resource control (60 per cent) as a reason for the change, followed by increased flexibility (52 per cent) and better customer support (49 per cent). More Singapore enterprises cited cost savings as a reason for moving to the cloud (40 per cent) than both APJ (26 per cent) and global averages (27 per cent).
The report also showed that four-fifths of Singapore respondents have viewed IT more strategically as a result of the pandemic, slightly ahead of the global average of 76 per cent. Improving remote working capabilities (52 per cent), IT infrastructure (45 per cent), and automation (45 per cent) have emerged as the three top priorities in Singaporean IT departments.
“The pandemic has forced businesses to recognize the significance of digital transformation, especially driven by cloud trends, and this will remain a top priority in 2021. Having the right level of digital ability will continue to be vital for business resilience. CIOs and their IT teams will become more prominent in business decisions and leadership. Every business is now a technology business, even if they don’t realize it yet,” Ho added.
Despite Singapore’s readiness for a new reality, the research identified some key challenges in maintaining a hybrid environment.
Security concerns (57 per cent) and managing costs across environments (45 per cent) were cited as top challenges for Singapore enterprises, higher than both APJ and global averages.
Furthermore, a slightly higher percentage of respondents in Singapore said that their IT department lacked skills for managing hybrid cloud environments (42 per cent) than the global average (37 per cent).