Singapore and Hong Kong - April 25, 2012 - Results of a recent IDC Manufacturing Insights survey show that ease and speed of deployment, and reduction in IT staff are the top drivers for cloud adoption among manufacturers in Asia/Pacific excluding Japan (APEJ). However, only 16% of the survey respondents acknowledge these top drivers as forces for cloud computing adoption (Refer to Figure 1), indicating at best lukewarm interest in cloud at present. Detailed findings are documented in a report entitled, "Manufacturing and Cloud Computing: A View from Asia Pacific excluding Japan" (Doc #AP9397103U, April 2012).

The survey findings further revealed that half of the respondents are holding back on adopting cloud-based solutions due to concerns on encountering last mile connection speed problems. However, most companies interviewed also acknowledged that their worries about connection speeds are short-lived since developments in the telecommunications network infrastructure are growing at a fast pace in most parts of Asia.

Figure 1

Dr William Lee, Senior Research Manager for IDC Manufacturing Insights Asia/Pacific says, 'Keeping costs down continues to be the primary focus of Asia/Pacific manufacturers. As most benefits of cloud computing do not directly translate to lower total cost of ownership when compared to traditional on-site IT deployments, take-up has been slow till date with fewer than 10% of manufacturing firms across APEJ currently adopting the technology. Having said this, we see light at the end of the tunnel. The current volatile market conditions in the manufacturing sector have ignited new interest in cloud as more companies are now looking for shorter term return on investments (ROI), which is one of the chief benefits of cloud."

Security, not surprisingly, continues to be the biggest cloud adoption barrier for APEJ manufacturers. However, their security concern is not just about data breaches of sensitive information. APEJ manufacturers are anxious about the consequent loss of time and expenditure of resources to reproduce the data.

"The cloud is often perceived as less secure compared to retaining data in-house. In reality, most security breaches are internal, as shown in a recent IDC security survey. Therefore, having data residing in the cloud does not necessary make it more vulnerable to security risks," Dr Lee points out.

For more information about this report "Manufacturing and Cloud Computing: A View from Asia Pacific excluding Japan" (Doc #AP9397103U, April 2012), please contact Sheryl Fuertez at +65-6829-7758 or sfuertez@idc.com. To set up an interview with Dr. William Lee, please contact Lay Fang Tan at Tel: +65 6829 7731 or Email: lftan@idc.com.

About IDC Manufacturing Insights

IDC Manufacturing Insights provides a broad portfolio of research-based advisory services and custom research focused on market and technology developments impacting the manufacturing industry, including supply chain and demand management, product lifecycle management, operations technology, risk management, RFID/sensor networks, sustainability, and warranty and quality management. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world’s leading technology, media, research, and events company. For more information, please visit the IDC Manufacturing Insights Community at http://www.idc-mi.com

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International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide. For more than 47 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

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