BUSINESS | Southeast Asian companies to generate more revenue from digital products, services by 2023 – IDC
Due to the COVID-19 pandemic, more enterprises are migrating their mission-critical workloads to public cloud.
In its Top ICT Predictions for 2022 and Beyond at IDC FutureScape 2022 IDC said that by 2023 digital will rule in Southeast Asia, as one in three companies will generate more than 15% of their revenue from digital products and services, compared to one in six in 2020. Several key areas that are prioritized by Southeast Asian countries to drive their digital economy include becoming a data-driven organization, accelerating digital services, autonomous operations, omni-experience, and supply chain modernization.
Because of this focus on increasing revenue from digital products and services, cloud technology will play an even more integral role in business continuity and resiliency for Southeast Asian organizations to compete in today’s digital-first world. IDC also forecasts in its WW Public Cloud Services Tracker 2021, that the total Public Cloud Services market in Southeast Asia is expected to grow and reach US$11 billion by 2025 at a five-year compound annual growth rate (CAGR) of 21.5%.
Due to the COVID-19 pandemic, more enterprises are migrating their mission-critical workloads to public cloud, and authorities in the region are making way for regulated industry players such as financial, insurance, healthcare, public sector, energy, telecom, and manufacturing to adopt public cloud. The adoption of hybrid and multicloud is accelerating as enterprises now have access to more robust products to enable data integration and application interoperability across multiple clouds.
The IDC Future Enterprise Resiliency & Spending 2022 Survey – Wave 5 (2022) also shows that over 60% of organizations in Indonesia, Malaysia, and Singapore have set digital infrastructure resiliency programs as a high priority following the uncertainties due to geopolitical tensions, inflation, supply chain disruptions, and managing the ongoing COVID-19 pandemic.
Moreover, according to the IDC Asia/Pacific Cloud Survey 2021, 76% of organizations in Asia/Pacific indicated that they will increase their cloud services in the next 12 months. 81% of organizations in Indonesia and 86% in Malaysia, 88% in the Philippines, and 92% in Thailand, all indicated higher than regional average increases in cloud services usage.
“More enterprises will be looking into not just how to design their cloud strategic roadmap, but also how to execute their cloud usage effectively as cloud is maturing in the region across industries. Cloud cost visibility and measurement to control overspending issues are currently among the top concerns globally. Building capabilities around these areas will benefit the advancement of cloud services in more mature activities and environments,” said Prapussorn Pechkaew, research manager at IDC Thailand.