January 23, 2025

IDC Predicts: 50% of Asia/Pacific* Businesses to Modernize Cloud for Cost Efficiency by 2027

APAC Businesses Embrace Cloud, AI, and Multicloud for Innovation and Efficiency by 2028: IDC Report Highlights the Shift from Traditional Infrastructure to Modern Cloud Architectures

SINGAPORE, 24 January 2025 – According to IDC ’s recent report, IDC FutureScape: Worldwide Cloud 2025 Predictions — Asia/Pacific (Excluding Japan) Implications, organizations in Asia/Pacific excluding Japan are continuing their march into cloud as their use of traditional infrastructure continues to decline over the next two years, with IDC predicting that by 2027, over 50% of businesses will modernize up to half of their cloud architecture to boost efficiency and drive innovation.

Over 77% of APAC organizations recognize digital infrastructure as critical, driving adoption of modern cloud architectures with AIOps to optimize infrastructure, applications, networks, and costs. The rise of GenAI and traditional AI is accelerating this shift, unlocking new opportunities for productivity and innovative business models.

By 2028, more than 90% of newly developed applications will be multi cloud enabled, leveraging platform-delivered capabilities to drive innovation. As businesses embrace Platform-as-a-Service (PaaS), they aim to empower developers with efficient tools for building and deploying applications, fueling agility and adaptability in a multi cloud ecosystem.

“The AI Pivot in 2025 will fundamentally reshape how Asia/Pacific businesses approach cloud and digital transformation. Organizations that leverage multi cloud architectures, infused with AI and platform-based capabilities, will gain the flexibility to innovate faster, adapt to market demands, and deliver unparalleled customer experiences. This shift is critical to thriving in a multi cloud, data-driven world​,” Daphne Chung, research director, Cloud Services and Software, IDC Asia/Pacific.

This pivot means truly integrating AI into every aspect of business operations to drive growth and stay competitive. As businesses in the Asia/Pacific region prepare for the AI Pivot, some of the other 10 cloud predictions for Asia/Pacific revealed by IDC are found below:

Air-Gapped Clouds: By 2026, as part their sovereign cloud strategies, 35% of organizations will look for network infrastructure providers that offer sovereign controls.

Specialized Clouds: By 2026, 60% of organizations will leverage specialized accelerated cloud computing services to maximize the speed of deployment and optimize the scaling of their AI and other accelerated applications.

GenAI for Cloud Security: By 2026, 40% of multi cloud environments will leverage generative AI to streamline security and identity access management, reducing manual efforts by 50%.

“AI and cloud modernization are reshaping Asia/Pacific businesses, making the AI Pivot a necessity to drive growth, efficiency, and competitiveness. Organizations that prioritize AI investments, adopt multi cloud strategies, and align operations with key pillars will unlock new revenue streams, enhance customer experiences, and secure long-term leadership,” Chung ends.

Each year, IDC releases its top technology predictions at worldwide, regional and country levels through its IDC FutureScape Reports and gives a crystal ball view of what is ahead for the rapidly changing IT industry. These predictions have been used to shape the strategies and business objectives of technology leaders and business executives in the next one to five years. All the predictions stated here cover Asia/Pacific implications.

Catch an on-demand replay of IDC’s 2025 Predictions presentations on AI Everywhere Playbook, Building an AI-Fueled Business, Unblocking AI Everywhere Blockers, and Mapping Growth Opportunities in an AI Everywhere Era by register ing here .

Asia/Pacific Excluding Japan FutureScape Reports come with a complimentary report that provides specific recommendations for tech vendor sales and marketing leaders. Leverage IDC insights to better understand clients’ priorities and enhance your storytelling and go-to market plans, access the IDC FutureScape: Worldwide Cloud 2025 Predictions — Asia/Pacific (Excluding Japan) Implications: Positioning for Success — Opportunities for Tech Sales and Marketing Leaders market presentation here .

For more information about IDC FutureScape and other resources, please visit our regional FutureScape site. For sales inquiries on the IDC FutureScape framework and reports, please contact your IDC account manager or Tessa Rago at trago@idc.com. For media queries, please contact Michael de la Cruz at mdelacruz@idc.com   or Miguel Carreon mcarreon@idc.com.

*Asia/Pacific including Japan

-Ends-

About IDC FutureScapes

IDC FutureScape reports are used to shape IT strategy and planning for the enterprise by providing a basic framework for evaluating IT initiatives in terms of their value to business strategy now and in the foreseeable future. IDC’s FutureScapes are comprised of a set of decision imperatives designed to identify a range of pending issues that CIOs and senior technology professionals will confront within a typical five-year business planning cycle.

Click here to learn about IDC’s full suite of research products and how you can leverage them to grow your business.

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, IT benchmarking and sourcing, 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 idc.com/ap . Follow IDC on Twitter at @IDC  and LinkedIn. Subscribe to the IDC Blog  for industry news and insights.

Click here to learn about IDC’s full suite of data and research products and how you can leverage them to grow your business.

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