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).

IBM and Tech Mahindra join hands to create hybrid cloud system

IBM and Tech Mahindra on Tuesday said they are deepening their collaboration, especially in areas like 5G, hybrid cloud, automation and cybersecurity, as the two tech giants work towards building a billion-dollar ecosystem over the next three years.

Some key initiatives underway include the launch of Tech Mahindra’s Blue Marble on IBM Cloud for Telecommunications to drive 5G momentum, collaboration to grow cybersecurity business with IBM Cloud Pak for Security, and strengthening and expanding portfolio through cloud-based offerings.

The partnership will also see co-creation and co-innovation through innovation labs and Centres of Excellence as the two companies strengthen their partnership to pursue the USD 1 trillion Hybrid Cloud market opportunity.

“We see the opportunity in three things. In the near term, we see the opportunity around hybrid cloud and AI. And then in the medium to longer term, we see an opportunity in quantum,” IBM Chairman and CEO Arvind Krishna told reporters during a virtual briefing.

He said hybrid cloud is the destination for most enterprises and governments as these organisations continue to use a mix of multiple public clouds and on-premise infrastructure for various reasons like economics and regulations.

“That (hybrid cloud) opportunity is over a trillion dollars for the industry…artificial intelligence (AI) will unlock between USD 14-16 trillion of global productivity,” he said adding that the partnership with Tech Mahindra brings in a “potential revenue of a billion dollars for each of us”.

About 40 per cent of the revenue will be driven by Telco and 5G, powered by Hybrid Cloud; while 60 per cent will be driven by other industries. The five strategic focus areas include 5G, automation, hybrid cloud, cybersecurity, data and AI.

“We will be adding a lot of value to each other as we build almost a billion-dollar ecosystem for each other. We are building this on the success of the customers by solving some of their critical challenges,” Tech Mahindra CEO and Managing Director C P Gurnani said. He added that the pandemic has accelerated the adoption of technology.

Krishna noted that in 2021, IBM is doubling down to elevate its ecosystem through its new go-to-market model making it easier for partners to work with IBM and make the transition to a multi, hybrid cloud platform seamless for clients. Through this approach, IBM is looking at driving a multi-billion dollar portfolio with its ecosystem partners over the next three years.

India has a significant advantage and IBM India will continue to be at the forefront, driving innovation that is made in India, for India and the world, he added.

“We have an incredible focus on India. First, India as a source of great talent and the proof of that is our employee base in India, and how much service, and intellectual property they provide. And with a lot of collaboration, with a lot of the regulations in India that promote the export of both software and services from India,” he said.

Krishna said IBM is focussed on the India market itself and services top private sector banks and public banks, telecom services providers, industries, and it is on a “path to expand”.

“I think the Indian market is really vibrant… I really believe that remote delivery is going to offer Indian companies a great ability to expand their market share globally. But that implies that they all have to think about what is their digitalisation infrastructure and that is an opportunity for all of us to go in and help them expand,” he added.

The global partnership between Tech Mahindra and IBM spans over two decades. The companies have developed unique solutions and accelerators by leveraging IBM Blockchain, Data and AI and Security capabilities.

This is the latest collaboration between these two firms in hybrid cloud adoption, which started in 2015 when two signed a strategic teaming agreement.

In April of last year, In April 2020, Tech Mahindra had joined IBM hybrid cloud ecosystem with the aim to help customers transform operations by enabling them to migrate core business applications to the IBM Cloud.

In July, Tech Mahindra launched a new digital platform that leverages IBM blockchain for the global media and entertainment industry to enable production houses and content creators to track revenue, royalty payments, manage rights and address content piracy.

Currently, 60.9% of organisations globally are already using or are in the process of piloting a bridge cloud solution, and a further 2.7% plan to implement a hybrid solution within the next 12-24 months, according to a recent report by NTT.

JOIN W.MEDIA AT DIGITAL WEEK

SG | MY | ID | TH | VT | PH

When: 23-26 February 2021

Where: Online

The past year has seen incredible leaps forward in our embrace of digital solutions, and we think it’s time to come together and talk about it. We’re bringing together thousands of IT leaders from across Southeast Asia, covering everything from datacenter deployment to digital banking. Digital Week lets you expand your network and engage with new markets from wherever you are.

Want to learn more about ASEAN’s Cloud & IT ecosystem? Start your year off right and Register Today for Free!

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.

JOIN W.MEDIA AT DIGITAL WEEK

SG | MY | ID | TH | VT | PH

When: 23-26 February 2021

Where: Online

The past year has seen incredible leaps forward in our embrace of digital solutions, and we think it’s time to come together and talk about it. We’re bringing together thousands of IT leaders from across Southeast Asia, covering everything from datacenter deployment to digital banking. Digital Week lets you expand your network and engage with new markets from wherever you are.

Want to learn more about ASEAN’s Cloud & IT ecosystem? Start your year off right and Register Today for Free!

Report: Worldwide IT Spending to grow 6.2 percent in 2021

As the world continues to accelerate digital transformation at breakneck speed, worldwide spending on IT infrastructure is expected to grow by 6.2 percent this year.

Market research firm Gartner Inc.’s latest report in its 4Q20 Market Databook revealed that despite the availability of COVID-19 vaccines, the pandemic will continue to spur significant IT spending in 2021 up until 2022.

“With the economy returning to a level of certainty, companies are investing in IT in a manner consistent with their expectations for growth, not their current revenue levels. Digital business, led by projects with a short Time to Value, will get more money and board level attention going into 2021,” revealed John-David Lovelock, Distinguished Research Vice President at Gartner.

Among the top five IT segments researched, enterprise software and IT devices will see the highest growth in 2021 with spendings increased by 8.8 percent and 8 percent respectively. Data center systems came in third, with a 6.2 percent increase in spending.

Overall, the total IT spending for 2021 is projected to reach $3.9 trillion.

High spending in the devices market can be attributed to remote education and remote work from students and employees, which pushed the demand for tablets and laptops. Global IT spending for remote work, therefore, will reach $332.9 billion in 2021, a 4.9 percent increase from 2020.

Mr. Lovelock also added that digital business will remain the dominant technology trend in late 2020 and 2021, with areas such as cloud computing, core business applications, security and customer experience at the forefront.

“Optimisation initiatives, such as hyperautomation, will continue and the focus of these projects will remain on returning cash and eliminating work from processes, not just tasks,” he added.

ByteDance’s launch of new mobile payments on Chinese version of TikTok

ByteDance has launched its own payments service for Douyin, the Chinese version of its video app TikTok.

Currently, Douyin’s 600 million daily active users can buy virtual gifts for streamers or from stores on the site through Alipay and WeChat Pay.

However, now ByteDance is also offering a Douyin Pay option, taking advantage of the third-party payment license it acquired when it bought Wuhan Hezhong Yibao Technology last year.

Unlike TikTok, Douyin users can already sell merchandise since 2017 and it is now used by millions of people to shop everyday, according to Reuters.

The new launch will be a further step of ByteDance’s venture into the FinTech and e-commerce industry. 

This move is set to challenge the duopoly of WeChat Pay and AliPay, each has a 55.4% share and 38.5% share, respectively, in China’s mobile third-party payment market at the end of June last year, according to research firm Analysys.

Other Chinese hi-tech giants, including Meituan and Pinduoduo, are also expected to compete in mobile payments, as per reported by South China Morning Post.