June 17, 2025

IDC: 43% of Asia/Pacific Enterprises Explore Low-Cost Tech Alternatives Amid US Tariff Pressures

New IDC Report Highlights Strategic Shifts Among Asia/Pacific Enterprises Facing Potential Hardware Cost Increases

SINGAPORE, 17 June 2025 – In an IDC report titled, The Impact of US Tariffs on Asia/Pacific Enterprise Software in 2025 , IDC highlighted that technology buyers in Asia/Pacific will be adopting a cost control approach by looking at lower cost alternatives to current technology solutions and delaying major projects while turning to more cloud-based and SaaS solutions.

The current situation remains highly fluid amid ongoing changes in US tariff policies. While the US government has signaled a strong intent to enforce these tariffs, this report does not seek to analyze their broader economic impact. Instead, it focuses on showcasing the mindset and current responses from Asia-based businesses.

“It is heartening to see that Asia-based businesses avoid knee-jerk cost-cutting methods and instead adopt a more strategic cost control approach in navigating the economic turmoil,” says Abhishek Kumar, associate research director, IDC Asia/Pacific. “These businesses are nervous and looking for assurance from tech providers through predictability in pricing. Local and regional players have an opportunity to displace previously entrenched solutions by global providers who are perceived to be more vulnerable to these global tariffs.” He continues, “Technology vendors should be reinforcing their client and channel partner relationships with clear communications and transparency on potential pricing changes and product roadmap.”

The IDC report, The Impact of US Tariffs on Asia/Pacific Enterprise Software in 2025, explores how Asia-based businesses view the impact of US tariffs and outlines the strategies they are adopting to navigate potential disruptions.

To learn more about this IDC report, contact Abhishek Kumar at abkumar@idc.com. For media queries, please contact Michael De La Cruz at mdelacruz@idc.com or Miguel Carreon mcarreon@idc.com.

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About IDC

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 1,300 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 @IDCAP and LinkedIn. Subscribe to the IDC Blog for industry news and insights.

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