17 Aug 2020
IDC Expects Asia/Pacific Spending on IaaS Private, PaaS Private, and SaaS to Increase in 2020 as Country Recoveries Continue
SINGAPORE, August 18th, 2020 – COVID-19 has accelerated the adoption of digitalization technology and services, with Asia/Pacific spending projected to have a modest growth for full year 2020, according to IDC report Cloud and COVID-19: Asia/Pacific (Excluding Japan). The report examines data on end-user intentions regarding the impact of COVID-19 across IT and cloud spending. Based on IDC’s Worldwide Public Cloud Services Spending Guide, total Asia/Pacific* spending for Public Cloud will reach US$ 34.51 billion in 2020 – increasing from US$ 25.98 billion in 2019. Regional spending on IaaS Private, PaaS Private, and SaaS are also expected to increase further this year.
“As organizations transition to the Next Normal, increased demand for public cloud services has solidified and is likely to be maintained. Countries are emerging from the immediate reactive state and are building plans for recovery – with some countries moving faster than others. Moderate growth can be expected across all countries, except for New Zealand which will generally remain unchanged,” says William Lee, Research Director for Cloud Services at IDC Asia/Pacific.
Figure 1: Change in Demand for Cloud Software in APEJ
Other key highlights of the report:
- With the initial temporary interruption of hardware supply chains, some of the increase on infrastructure-as-a-service IaaS spending is likely to be short-term virtual private cloud (VPC) with hyperscalers.
- The increase in software-as-a-service (SaaS) spending will be driven by remote work solutions and conferencing/collaboration services.
- Security is one of the top areas for spending and also the area with little impact on the spend, making it a must-have item.
“The pandemic has brought opportunities for some organizations to take advantage of changed operating conditions to address the weaknesses on what projects to deliver under the current conditions,” ends Lee.
IDC's Cloud Services: Global Overview is a unique research service that provides a "rolled up" view of the entire cloud services market. It provides a wide-angle complement to other IDC research programs that provide drilldown views of specific cloud markets and topics such as IaaS, PaaS, SaaS, private clouds, and edge. This program analyzes how quickly cloud services are being adopted across customer segments and the organizational barriers to faster adoption. It also details key customer expectations about cloud benefits/concerns as well as forecasts how cloud will impact vendor business models and service offerings. To learn more, contact Deepak Mohan at email@example.com or click HERE.
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*Note: Asia/Pacific excluding Japan
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. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights: http://bit.ly/IDCBlog_Subscribe.
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