Cloud to surpass on-prem for Asia’s top companies by 2025

cloud passes on-prem by 2025
Image by blackboard | Bigstockphoto

Top enterprises in Asia-Pacific are increasingly shifting from on-premise infrastructure in favor of cloud as they turn to data-driven operations (DDO) for better decision-making. That’s according to a new report from IDC that predicts cloud will be the primary storage, management, and analysis destination for 65% of Asia-based 2000 companies by 2025.

80% of respondents to IDC’s latest Worldwide Future of Operations Survey said that cloud is important or critical in terms of its ability to help an organization achieve operational excellence and resilience.

“Asia/Pacific organizations understand the need to invest in critical technologies to achieve data-driven operations. Organizations need new digital capabilities and must establish foundational technologies like cloud and next-generation connectivity,” said Rakesh Patni, Associate Research Director of Future of Operations at IDC Asia/Pacific.

Emerging tech and the cloud

Sustainability in operations and lifecycle carbon footprint metrics are two areas where cloud-based systems can provide a competitive edge. By 2026, 40% of Asia-based 2000 industrial organizations will be making real-time decisions balancing economic and sustainability metrics, simultaneously improving both sets of metrics by 5% across the enterprise, IDC says.

Meanwhile, 30% of product-centric organizations will be using digital tools to measure their lifecycle carbon footprints by 2026. This will require better integration between product lifecycle management and operational data.

IDC predicts that by 2027, the use of extended reality technology, including AR/VR/MR tools, will increase by 40%, creating a new breed of digital worker and reducing operator/field worker errors by 30%.

Robotics will also play a bigger role in operations, with robots making up 25% of all non-traditional inspection and maintenance roles by 2027. This is expected to result in a 40% drop in inspection errors.

5G deployments are also expected to surge across Asia, with IDC predicting that by 2024, 5G-enabled digital-first operations will improve worker safety and result in a 20% reduction in lost-time accidents.

Addressing the talent challenge

However, Patni adds, there is another significant aspect that organizations must not neglect: developing talent, either through hiring and partnerships with service providers or upskilling and reskilling the existing workforce.

“It is only when talent and technology combine with the right strategy that organizations can achieve optimized and efficient operations,” Patni said.

Talent from service providers will be increasingly in demand. According to IDC, by 2024 the lack of talent and pressure for higher operational performance will force organizations to rethink their digital transformation strategies to use external services more extensively.

Related article: Why ASEAN leaders are doubling down on cloud basics in 2023

Be the first to comment

What do you think?

This site uses Akismet to reduce spam. Learn how your comment data is processed.