Cloud is Slowly Gaining Momentum among Asia/Pacific Retailers but IDC Retail Insights expects a Change of Tide in Two to Five Years
18 May 2012
Singapore and Hong Kong – May 18, 2012 – According to the results of IDC’s latest cloud survey, despite considerable resources allocated by IT vendors to scale-up their offerings, only 19% of retailers across key markets* in Asia/Pacific are evaluating the adoption of some form of cloud computing services. However, the survey reveals that cloud deployment is on their priority list; 32% of the respondents say that they are considering implementing cloud in the next two to five years. More insights can be found in an upcoming report, “Cloud Adoption in the Asia Pacific – Retail Industry”.
Kumar Gs Das, Research Manager for IDC Retail Insights Asia/Pacific says, “Retailers in Asia/Pacific are taking a cautious approach to cloud. The majority of them recognizes that the cloud would bring efficiency to their IT systems and improve operational backend issues. However, the plan to move into virtual platforms does not appear to be immediate and would take between two to five years.”
IDC Retail Insights notes that the retail industry, defined by its use of legacy systems, has always been a little hesitant when it comes to technology. Adoption of retail-specific technology in Asia/Pacific is less when compared to the other regions as the industry is still developing. However, IDC Retail Insight believes that the positive economic outlook in Asia will drive the future adoption of cloud among retailers in this region.
Kumar Gs Das points out, “Retail growth in Asia/Pacific has slowed with the Chinese economy experiencing a slow-down in its services and manufacturing sectors, and the Indian economy weakening as a result of rising inflation and falling rupee. However, as compared to the developed markets in the U.S. and Europe, the economic outlook in Asia is still much better. As such, investors will continue to shift their focus to Asia and businesses will be looking to improve operational efficiency and IT productivity in order to keep up with growing consumer demand.”
The survey further reveals that data security, firewall concerns and integration into internal IT systems are the three main barriers to cloud adoption among Asia/Pacific retailers. For cloud to gain traction, IDC Retail Insights believes that there must be greater investment in backend infrastructure to improve connectivity.
For more information about this report, “Cloud Adoption in the Asia Pacific – Retail Industry” (upcoming), please Sheryl Fuertez at email: firstname.lastname@example.org or Tel: +65-6829-7758. This report provides an analysis of cloud computing, cloud perception and cloud adoption among retailers in Asia/Pacific, and the future development of cloud in the Asia/Pacific retail sector. The report also provides recommendations for IT companies that are addressing and managing cloud computing solutions in this sector, and looking for new business opportunities.
To set up a media interview with Kumar Gs Das, contact Lay Fang Tan at email@example.com or Tel: +65-6829-7731.
Notes to Editor:
The survey was carried between December 2011 and January 2012 among 56 retail companies in key markets across Asia/Pacific, namely Australia, China, India, Malaysia, New Zealand and Singapore. 85% of the retailers interviewed were big- and mid-size- retailers.
About IDC Retail Insights
IDC Retail Insights assists retail businesses and IT leaders, as well as the suppliers who serve them, in making more effective technology decisions by providing accurate, timely, and insightful fact-based research and consulting services. Staffed by senior analysts with decades of industry experience, our global research analyzes and advises on business and technology issues facing the retail industry. 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 www.idc-ri.com, email firstname.lastname@example.org, or call 508-935-4490. Visit the IDC Retail Insights Community at http://idc-insights-community.com/retail .
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.
For more information, contact:
Kumar Gs Das
+91 80 6699 1070
Lay Fang Tan